BDO Foundation, AFP, and BSP intensify collaboration to enhance financial well-being of soldiers

January 6, 2022 | 11:02 am

Efforts to institutionalize financial education in the capacity-building initiatives of the Armed Forces of the Philippines (AFP) gained momentum with the unveiling of financial education materials intended for the uniformed and civilian personnel of the Philippine Air Force, Philippine Army, and Philippine Navy.

In a virtual ceremony, the Bangko Sentral ng Pilipinas (BSP) and BDO Foundation turned over to the AFP a set of learning tools composed of new financial education videos, modules, and a trainer’s manual as part of the ongoing financial education program for the armed forces. The program is in line with the AFP’s Transformation Roadmap or ATR, which considers financial wellness as an integral aspect of a person’s holistic development.

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During the event, three new learning videos were introduced covering topics such as debt management, investments, retirement planning, digital literacy, and scam prevention. The AFP can now leverage a total of six videos tailor-fitted for the armed forces for its financial literacy learning sessions across the country.

The ceremonial turnover was spearheaded by BSP Governor Benjamin E. Diokno, AFP Chief of Staff Gen. Andres C. Centino, and BDO Unibank President and CEO, as well as BDO Foundation Trustee, Nestor V. Tan. The event was witnessed by BSP Economic and Financial Learning Office Director Maria Farah Angka, AFP Deputy Chief of Staff for Personnel Maj. Gen. Adriano Perez Jr., BDO Foundation President Mario A. Deriquito, and BDO Foundation Trustees Ma. Corazon Mallillin and Evelyn Salagubang.

The BSP Governor emphasized that the country’s central monetary authority “will continue to enhance and intensify the delivery of its financial education programs to reach the unserved and underserved sectors, including the AFP’s over 140,000 personnel and their families.”

“We salute and thank the men and women of the Philippine Air Force, the Philippine Army, and the Philippine Navy for your hard work and sacrifice for our country and our people – not only as peacekeepers, but also as security frontliners during the pandemic,” the BSP Governor added.

Meanwhile, Gen. Centino highlighted the importance of improving the financial well-being of soldiers and civilian personnel saying, “As we continue to adapt to the challenges posed by the COVID-19 pandemic, it is important that our personnel are financially literate and stable in order for them to focus on their jobs.”

In October 2021, the AFP issued a directive on the integration of financial literacy modules in the career courses of its officers, enlisted personnel, and civilian human resources as well as the utilization of the learning materials developed under its partnership with the BSP and BDO Foundation. The financial education partnership, which began in 2019, is in line with the BSP’s National Strategy for Financial Inclusion and BDO Foundation’s financial inclusion advocacy. The Program’s vision for the men and women of the armed forces is aptly captured in the program’s tagline, “Ang sundalo ng bayan, armado ng pinansyal na talino at kaalaman.”

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Inflation eases to lowest in 12 months

January 6, 2022 | 12:34 am

Inflation in December eased to 3.6%, the lowest in 12 months. — PHILIPPINE STAR/ MICHAEL VARCAS

By Bernadette Therese M. Gadon, Researcher

PHILIPPINE INFLATION in December eased to its lowest in 12 months, due to the slower increase in the prices of food and transport, but the full-year inflation still exceeded the central bank’s 2-4% target band.

Preliminary data from the Philippine Statistics Authority (PSA) showed headline inflation slowed to 3.6% in December, from 4.2% in November.

December’s inflation print was the slowest reading in 12 months or since the 3.5% reading in December 2020.

The headline figure is lower than the 3.9% median in a BusinessWorld poll conducted late last week, but falls within the 3.5%-4.3% estimate given by the Bangko Sentral ng Pilipinas (BSP) for the month.

However, this brought the full-year inflation average to 4.5%, higher than the 2.6% recorded in 2020, and breached the BSP’s 2-4% target band as well as the revised 4.4% forecast for the year. This was the highest print in three years or since the 5.2% logged in 2018.

BSP Governor Benjamin E. Diokno on Wednesday said he expects inflation to ease near the midpoint of the 2-4% target for this year and 2023.

“Looking ahead, the BSP stands ready to maintain its accommodative monetary policy stance to support the economy’s recovery while guarding against any emerging risks to its price and financial stability objectives,” he said in a Viber message to reporters.

SLOWER FOOD INFLATION
The National Economic and Development Authority (NEDA) noted slower food inflation as the main driver of the easing headline inflation in December. In particular, inflation in vegetables, which dropped 10% from the 1.8% decline seen in November, while fish inflation eased to 7% from the previous month’s 7.9%.

Meat inflation, meanwhile, rose to 11.3% from 10.7%, partly due to a 17.9% increase in pork prices from 17.3% in November.

The prices of food and non-alcoholic beverages, which contributed 52.8% to the inflation print, eased to 3.1% in December from the previous month’s 3.9%. This group accounts for the largest chunk (38.3%) of the theoretical basket of goods and services that an average Filipino household consumes.

The food-alone index decelerated to 3.2% in December, from 3.9% in November and 4.9% in December 2020.

Transport prices, which accounted for 37.5% of December inflation, also slowed to 6.1% that month from 8.8% in November. Inflation in petroleum and fuels as well as tricycle fares decelerated to 29.4% (from 42.1% in November) and 1.7% (from 2.6%). Jeepney fares, meanwhile, declined to 0.2% from 0.5% growth in November.

Core inflation, which discounted volatile prices of food and fuel, stood at 3.6% in December — slower than the previous month’s 4.2% but higher than 3.5% a year earlier. It averaged 3.3% in 2021.

Similarly, the December inflation rate for the bottom 30% of households further slowed to 3.3% from 4.2% in November and 4.2% in December 2020. The inflation rate for this segment was the slowest in 14 months or since the 2.9% in October

For the year, inflation as experienced by poor households averaged at 4.8%, higher than 4.3% in 2020.

“With the National Capital Region (NCR) and the neighboring provinces of Cavite, Rizal, and Bulacan now under Alert Level 3, it is important to ensure affordable food prices and the continued delivery of goods and services,” Socioeconomic Planning Secretary Karl Kendrick T. Chua said in a statement.

“To temper inflation in meat, especially pork, the government is working to increase local supply and ensure regular unloading of stocks from cold storages,” he added.

NEDA recommended the extension of validity of Executive Order (EO) No. 133, which allows the increase in minimum access volume for pork, to December 2022 to ensure adequate pork supply throughout the year.

“The emergence of new variants has shown us that the COVID-19 (coronavirus disease 2019) virus is not going to go away easily. The good news is even as we temporarily impose more stringent restrictions to contain the spread of the Omicron variant, we have learned to manage the risks and live with the virus. Economic prospects in 2022 still remain promising, and we urge everyone to play their role in the recovery by getting vaccinated, availing of booster shots, and strictly adhering to the minimum public health standards,” Mr. Chua said.

Metro Manila is currently under the more stringent Alert Level 3 until Jan. 15 to contain the sudden spike in COVID-19 cases.

ODETTE’S ‘LAGGED EFFECTS’
“We had expected food inflation to spike due to storm damage of up to P10 billion which could indicate that the impact on food inflation may be felt in 2022 instead,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in note sent to reporters.

Typhoon Odette (international name: Rai) ravaged the southern part of the country in December.

Based on latest estimates, total agricultural damage is at P10.8 billion.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the normalizing base effects coupled with local oil price rollbacks and non-monetary measures to secure food supply “overshadowed” the damage caused by the typhoon.

“There could still be some lagged effects by the Typhoon Odette storm damage that could have led to some temporary increase in prices/inflation in hard-hit areas especially in January 2022 or even shortly thereafter,” he said in a note sent to reporters.

The BSP said the disruptions brought by Typhoon Odette will likely result in temporary uptick in the food prices and other necessities over the near term.

“As with previous episodes of natural disasters, the effective implementation of non-monetary government intervention measures to ensure adequate domestic food supply must be sustained in order to mitigate potential supply-side pressures on inflation,” Mr. Diokno said.

“The BSP will have to include the typhoon’s impact into its projections once firm estimates become available,” he added.

ANZ Research Chief Economist Sanjay Mathur and economist Debalika Sarkar welcomed the return of December’s print to the official target band as a “positive development.”

“However, we emphasize the need to maintain vigilance as recent weather-related disturbances could have reversed this moderation. Transport prices, too, can gain momentum in January following the recent rise in crude oil prices. Yet the fading of base effects will be favorable for the headline print,” ANZ Research said in a note.

Mr. Mapa said inflation will stay “more subdued” this year.

“The PSA shift to 2018 as base year for CPI (consumer price index) inflation calculations will likely translate to a one-off favorable base effect for lower price gains this year,” he said, noting that 2018 was the last time inflation breached the central bank target.

Global oil market developments also point to moderation in crude oil prices as the Organization of the Petroleum Exporting Countries opted to increase production to help the tight market, Mr. Mapa said.

“Despite strong gains in terms of GDP (gross domestic product) growth, demand dynamics suggest that the Philippine economy continues to operate below potential with the output gap yet to be closed,” he added.

CPI REBASED TO 2018
Separately, the PSA announced the rebasing of its CPI — used to calculate the inflation rate — to a 2018 base from 2012 currently starting next month for the reporting of January 2022 inflation data onwards.

“The rebasing of the CPI is done periodically by the PSA due to the following: (1) to ensure that the CPI market basket continues to capture goods and services commonly purchased by households over time; (2) to update expenditure patterns of households; and (3) to synchronize its base year with the 2018 base year of the Gross Domestic Product and other indices produced by the PSA…,” the agency said.

Aside from the base year, the rebasing will also change the market basket, the weights, and index computation. The new weights for the 2018-based CPI were derived from the spending data of the 2018 Family Income and Expenditure Survey.

The 2018 rebasing is the 12^th base period and 11^th rebasing for the CPI.

Lenders’ exposure to real estate falls as of end-Sept.

January 6, 2022 | 12:33 am

Several buildings are seen amid the sunset in Metro Manila. — PHILIPPINE STAR/ MICHAEL VARCAS

LOCAL BANKS and trust entities saw a decline in their exposure to the real estate industry at the end of the third quarter of 2021, based on data from the Bangko Sentral ng Pilipinas (BSP).

Banks and trust departments have a cumulative 22.18% exposure to the property market as of end-September, well-within the 25% limit set by the central bank. It inched down from the record 22.2% exposure seen as of end-June.

“I think [this level of exposure] is not much of a concern because we are still grappling with the pandemic and it is only in the fourth quarter that much of the demand [in the sector] has returned,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

“The Omicron threat may again dampen overall demand and may eventually affect demand for real estate at least in the short term,” he added, referring to the more transmissible coronavirus disease 2019 (COVID-19) variant that is driving a fresh surge in infections.

Broken down, real estate exposure of Philippine banks edged up to 22.24% as of end-Sept. from 22.21% as of end-June.

Meanwhile, trust departments’ exposure to the property sector plunged to 14.69% as of end-September from 21.16% as of end-June.

BSP data showed that loans and investments to the real estate industry reached P2.76 billion as of end-September, higher by 8.3% from the P2.548 billion seen in the same period of 2020.

Lending to the property sector reached P2.367 billion, up 6.9% from P2.214 billion a year ago. Broken down, banks disbursed credit worth P2.356 billion, while trust department extended loans amounting to P11.5 billion.

Gross nonperforming real estate loans hit P122.812 billion, rising 32% from the P92.991 billion as of end-September 2020. This brought the ratio to 5.19%, up from the 5.15% seen at the end of the second quarter as well as the 4.2% a year prior.

Meanwhile, past due real estate loans amounted to P152.186 billion as of end-September, up 6.11% from P143.411 billion a year earlier. These borrowings accounted for 6.43% of credit to the sector, edging up from the 6.41% as of June but lower than the 6.48% seen as of end-September 2020.

Real estate investments to debt and securities amounted to P394.476 billion as of end-September, increasing by 18% from the P334.256 billion a year earlier. Investments by banks amounted to P104.969 billion, while P289.506 billion came from trust departments.

The BSP monitors lenders’ exposure to the real estate industry as part of its mandate to guide financial stability.

As part of its relief measures during the pandemic, the central bank in August 2020 raised the real estate loan limit of banks to 25% of their total loan portfolio from 20% previously. The move was done to unleash liquidity for the sector during the crisis.

Home prices in the third quarter of 2021 rose by 7.3% year on year, ending two consecutive quarters of annual decline, based on data released by the BSP last month. The higher prices was attributed to the uptick in demand for condominium units and townhouses. — Luz Wendy T. Noble

PHL’s social assistance cap cuts school, health investments for some children

January 6, 2022 | 12:32 am

Kids play within the Baseco area in Tondo, Manila, Jan. 22, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

A SUBSIDY CAP monitoring three children per household for the Philippine government’s conditional cash transfer program has resulted in reduced household resources for the unsubsidized children who receive less schooling and health investment, an Asian Development Bank (ADB) report said.

The government’s Pantawid Pamilyang Pilipino Program (4Ps) provides cash grants for up to three children per household if they stay in school and submit to health examinations.

But an ADB report “Intrahousehold Responses to Imbalanced Human Capital Subsidies” showed that the children not monitored by the program have received less investment from households that shift their resources towards the monitored children.

“While subsidized children are caused to have increased household investment, in terms of greater aspirations, grit, health, education, and reduced child labor, unsubsidized children have reduced aspirations, lower heath investment, poorer nutrition, reduced schooling, and reduced learning as a result of the program,” the ADB said.

The report, which was released in December, was authored by ADB Economic Research and Regional Cooperation Department economist David Raitzer and ADB consultants Odbayar Batmunkh and Damaris Yarcia.

“Across a range of indicators, household resources are being withdrawn from unsubsidized children and redirected toward those who are subsidized,” the ADB said.

Under the 4Ps, parents or guardians are required to attend family development sessions. Depending on their age, children must receive preventive health checkups and vaccines, attend school, and avail of regular deworming pills.

The ADB said the 4Ps only monitored beneficiary children for educational compliance and few children for health compliance.

The beneficiary families, which have few resources, tend to maximize those resources by channeling them towards the monitored children.

“Such behavior is likely to maximize total expected income, it also means that disparities are exacerbated within families,” the ADB said.

In response, the ADB said all eligible children must be registered for educational monitoring even within the existing three-children cap.

“The 4Ps program is designed to promote investment in human capital, and those investments in terms of health are already intended to span all children. However, this is hampered by limited outreach to ensure that new pregnancies and births are registered and that health conditionalities are enforced. Were health monitoring conducted of all children, the health effects of underinvestment in certain children would be more apparent to healthcare providers,” it said.

The social assistance program could also focus on children at greater risk of dropping out of school, the ADB said.

The Philippine government’s 2022 national budget set aside P107.67 billion for the 4Ps.

The World Bank in 2020 approved a $600-million loan for the conditional cash transfer program, while the ADB has granted loans worth $500 million.

The program has over four million beneficiaries. — Jenina P. Ibañez

IMF delays the release of new global economic forecast to factor in COVID-19 developments

January 6, 2022 | 12:31 am

WASHINGTON — The International Monetary Fund (IMF) will release its World Economic Outlook on Jan. 25, a week later than planned, to factor in the latest coronavirus disease 2019 (COVID-19) developments, a spokesperson for the global lender said on Tuesday, amid signs another downgrade is coming.

“The World Economic Outlook update will be launched on Jan. 25 to allow our teams to incorporate the latest developments related to the COVID-19 pandemic into the economic forecasts,” the spokesperson said.

IMF spokesperson Gerry Rice last month told reporters to expect the update on Jan. 19.

Managing Director Kristalina Georgieva last month told the Reuters Next conference that the IMF was likely to further downgrade its global economic growth projections in January to reflect the emergence of the Omicron variant of the coronavirus.

In October, the IMF had forecast global economic growth of 5.9% in 2021 and 4.9% this year, while underscoring the uncertainty posed by the new coronavirus variants.

The coronavirus has killed nearly 5.8 million people worldwide over the past two years.

Economists expect the IMF to cut its economic forecast for the United States, the world’s largest economy, given the rapid spread of the highly contagious Omicron variant, as well as the failure of Congress to pass US President Joseph R. Biden’s $1.2-trillion social and climate spending package.

In October, it had already slashed its forecast for US gross domestic product growth in 2021 by a full percentage point to 6%, citing supply chain disruptions and a labor crunch, while forecasting growth of 5.2% in 2022.

Since then, the pandemic has surged again, and divisions in Congress have deepened.

The United States set a global record of almost one million new coronavirus infections on Monday, according to a Reuters tally, and its daily average has totaled 486,000 cases over the last week, a rate higher than that of any other country. — Reuters

SEC warns against three entities soliciting investments

January 6, 2022 | 12:06 am

By Keren Concepcion G. Valmonte, Reporter

THE Securities and Exchange Commission (SEC) has issued advisories against three entities offering unlicensed investment programs to the public.

In two advisories dated Jan. 4, the regulator flagged TuneGaga and OUTRACE “Play to Earn” for soliciting investments without authority from the SEC.

The regulator warned that the schemes offered by the two entities resemble a Ponzi scheme, “which is fraudulent and unsustainable, is not a registrable security.” Investments of newer investors are used to pay off “fake profits” of those part of the scheme earlier.

TuneGaga is not registered with the commission and it also does not have the license to offer investments to the public. The commission said it is luring investors through social media and through their independent website, which no longer works as of writing.

“TUNEGAGA/TuneGaga is a mobile application that can be downloaded in Google Play Store,” the SEC said in its advisory dated Jan. 4.

Users of the mobile application can allegedly earn extra income by just listening to music of their own choice. TuneGaga’s investors can supposedly earn weekly through its various subscription plans “with corresponding tasks.”

BusinessWorld reached out to TuneGaga for comment, but it has yet to receive a response as of press time. According to user comments of its app on Google Play, users have been experiencing problems on the app since late November.

Meanwhile, the SEC said OUTRACE is being run by another SEC-flagged entity, BCPay Financial Technology, Inc.

The regulator said OUTRACE is promising high returns for its players and “OUTRACE $ORE” token holders via acquiring its in-game non-fungible tokens (NFT) while on pre-sale and through initial coin offering for a cheaper price.

OUTRACE is luring investors “on the pretext that both will considerably increase in value once the $ORE is listed on public exchanges.” However, the entity is not registered with the SEC. It is also not licensed to solicit investments and it does not have the appropriate registration to offer or sell securities to the public.

OUTRACE is not registered with the Bangko Sentral ng Pilipinas (BSP) and it also does not have a certificate of authority as a money service business (MSBs) as required under the Guidelines for Virtual Asset Service Providers of the BSP.

“Likewise, its name does not appear among those listed as registered MSBs as of January 2021 with the Anti-Money Laundering Council under the Anti-Money Laundering Act, as amended,” the SEC said its advisory against OUTRACE dated Jan. 4.

On the other hand, UP-Mass Innovative Marketing Corp. or UMIM Corp. was also flagged by the commission for its unauthorized investment solicitation activities. Its program has members “invest, wait, and earn without having to do anything.”

“It has come to the attention of the commission that purportedly, [UP-MASS Innovative Marketing or UMIM] has acquired MassDrop and MDM Ventures Corp. and those who invested with the two corporations are being offered three options under the ‘transition’ program,” the commission said.

The SEC recently revoked the registrations and the certificates of incorporation of MassDrop and MDM Ventures after being found that their unlicensed investment programs also resembled a Ponzi scheme.

While UMIM is registered with the SEC, it does not have the required secondary license. Its articles of incorporation also explicitly state that the entity should not collect or take investments from the public nor shall it issue investment contracts.

The SEC is calling on the public to report any information on the operations of the three entities.

15-year-old whisky joins Highland Park lineup

January 6, 2022 | 12:06 am

THERE’S a new kid in town, and he’s already 15 years old.

A new expression of Highland Park whisky called Viking Heart presents itself in the middle of permanent iterations: Highland Park 10-year-old, Highland Park 12-year-old, and Highland Park 18-year-old — priced at P2,549, P2,999, and P1,1699, respectively, all on Boozy.ph. On Liquor.ph, the 15-year-old is priced at P7,199.

It’s easy to distinguish the Highland Park 15, if we were to base it on appearances alone. It’s encased in a heavily embossed ceramic bottle, made by UK-based Wade Ceramics (a 19^thcentury porcelain manufacturer, known for their collectible porcelain animals). The new bottle, based on ancient earthenware vessels, has a glossy, creamy, and appealing appearance. It won’t affect the taste, we were assured: an e-mail to BusinessWorld from the company said, “The bottle does not influence flavor and storage. It is glazed, which makes it non-porous, similar to glass. It is completely sealed inside and outside.”

“We’ve often had requests from our consumers asking us to add a 15-year-old to our core range. We are delighted that our Master Whisky Maker Gordon Motion has been able to work with suitable stock to create this exciting new addition to our core range,” they said.

The Viking spirit is high in the Viking Heart, pointing to the company’s origins. Since owned by the Edrington Group, Highland Park began in the 1700s on a hill in the Orkney Islands, once owned by Denmark (hence the Viking influence), and ceded to Scotland as part of the dowry of a princess.

In a statement, Mr. Motion described the taste and mouthfeel of the new single malt. “Vanilla and citrus notes lead and combine with the unique fragrant peat and creamy mouthfeel synonymous with Highland Park. The hand selection of quality first-fill and refill casks for Highland Park 15-Year-Old delivers a rich color which is 100% natural. Bottled at 44% ABV, this retains more of the compounds which deliver a whisky with extra body and enhanced mouthfeel.”

The company gave a list of food pairings to go with the single malt: since it contains notes of toasted cinnamon, warm vanilla sponge cake, lemon zest and fresh pineapple, heather honey and aromatic peat smoke, “15-Year-Old Viking Heart is the perfect accompaniment to light fish dishes and seductively sweet desserts too.”

The Highland Park Viking Heart is available for purchase from whisky retailers, specialty liquor shops and online retailers in Metro Manila as well as Boozy.ph, Clink.ph, Liquor.ph, Thirst.ph and Singlemalt.ph. — Joseph L. Garcia

Gov’t told to engage firms in services trade talks

January 6, 2022 | 12:05 am

THE GOVERNMENT needs to consult local businesses to give it a defined set of commercial “offensive” interests before negotiating with partner countries on trade in services, the country’s main socioeconomic think tank said.

“The government should engage with domestic stakeholders to negotiate effectively, identify the interests, competitive strengths, and weaknesses of domestic suppliers more accurately, and direct policy attention to the need for more supply capacity,” the Philippine Institute for Development Studies (PIDS) said in a report released in December.

The report “A Review of Philippine Participation in Trade in Services Agreements” said a country’s request list during trade negotiations presents sectors that it wants other countries to cut regulations on in order to improve export access.

“While industry players may be fully aware of their defensive interests, often, they do not have a clear idea of the offensive interests or the concessions they would like to obtain from the nation’s trading partners,” it said.

Trade liberalization for services goods involves reducing regulations that limit businesses’ market access.

Trade in services includes business, communications, construction, education, healthcare, tourism, and transport.

“In the conduct of services negotiations, the government must be proactive to gain opportunities from trade agreements,” the study said.

“It includes presenting request lists (an act of rule-making) during services negotiations to promote export interests of services where the country has comparative advantages.”

PIDS said that an organization, like the Philippine Services Coalition, could help make sure that the industry is involved in negotiation in services trade.

Services exporters face challenges in market development because of low brand recognition, lowering credibility with international suppliers.

They also lack access to export financing and do not have an established presence in foreign markets.

They also do not have reliable access to cheap infrastructure, the report added. — Jenina P. Ibañez

The 10 Most Memorable Wines that I drank this year

January 6, 2022 | 12:05 am

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By Elin McCoy

PICKING my Top 10 experiences of 2021 wasn’t easy: I sampled great wines from 18 countries on six continents this year.

Flipping through my tasting notebooks revealed stars for dozens of wines, including great vintages of Bordeaux, memorable California cabernets and chardonnays, and brand-new, stellar cuvées from Champagne, both fizzy and not.

I also savored less well-known regions and grapes — antâo vaz and jampal from Portugal, gaglioppo and turbiana from Italy —and many from young winemakers committed to saving the planet, giving me hope for the wine world’s future.

Sadly, I poured most of them at my own table, often while chatting virtually with winemakers. Their backdrops — stone winery cellars, scenic vineyard vistas, grand restaurants — were tantalizing reminders of how much I miss visiting wine regions in person.

My 10 highlights range from the old to the new, the familiar to the esoteric. They include a bargain Portuguese white made from an almost-extinct grape, a 45-year-old Champagne, a great red aiming to be the best in China, and a brand-new Spanish wine that’s poised to be a sought-after collectible.

All reflect what’s important in today’s wine world, and where it’s headed.

2017 MANZ CHELEIROS DONA FATIMA JAMPAL
My discovery of the year is this unique white, the only wine in the world made entirely from the rare Portuguese grape jampal. I was captivated by both the taste and the tale of the grape’s rescue from near extinction by a star Brazilian soccer player, goalkeeper Andre Manz. He bought a small vineyard north of Lisbon and enlisted experts to determine what the grapes were.

His jampal, with perfumy aromas and the tang of citrus, earth, and fresh green plants, is like a combo of chardonnay, semillon, and sauvignon blanc — long and elegant. It’s nearly impossible to find right now, but more is coming in 2022. $25

2020 MASSICAN SAUVIGNON BLANC
Last summer, I moved to a new house. After a hot day unpacking, I craved a comforting, familiar wine that could be counted on for energy and zip. The wine cellar was a shambles of boxes, but I stumbled on bottles of crisp, bright whites from Napa’s Massican winery, which my husband and I drank over several nights to unwind and relax.

All were refreshing and delicious, but the green, flinty notes of this mouthwatering sauvignon blanc made it the perfect wine match for the moments when we sat outside to savor our new forest-and-mountain view. $35

2017 YJAR
What a treat to preview this new collectible red from charismatic winemaker Telmo Rodriguez. A leader in Spain’s wine revolution, he’s long highlighted the country’s top terroirs and native grapes. One of his ambitions has been to create Rioja’s first contender for iconic status. He’s done it with Yjar. Though made at his family estate, Remelluri, this is a separate passion project.

The fragrant, sleek, ultra-harmonious blend is made from an exceptional, high-altitude, historic vineyard planted with tempranillo and four other traditional varieties. This is the first Rioja to be offered exclusively to Bordeaux negociants — the entire vintage of 7,500 bottles sold out in hours. It will arrive in the US in 2022. $105

2017 ROYAL TOKAJI COMPANY MÉZES MÁLY 6 PUTTONYOS
This voluptuous, amber-colored, sweet wine from Hungary’s Tokaj region, from one of the top vintages in the past 30 years, is my bargain of the year. Yes, really. The three-digit price tag is cheap for this style of elixir, which long ago coated the tongues of such emperors as Franz Josef and Napoleon.

Of Royal Tokaji’s single-vineyard bottlings, the Mezes Maly, from one of the region’s two most famous vineyards, was my favorite. It’s the epitome of fleshy richness, with aromas and flavors of honey, fat apricots, ginger and orange peel, and enough acidity to keep it from being cloying. Tokaji is often sweeter than Sauternes, but has more fruitiness, refreshing acidity, and lower alcohol. Why, oh why, are these gorgeous wines out of fashion? $210 for 500 ml

2019 BIBI GRAETZ COLORE 20^TH ANNIVERSARY
Tuscan winemaker and artist Bibi Graetz’s colorful personality was on vivid display during a launch for the 20^th anniversary of his best red, Colore Rosso, staged in July at grand Michelin three-starred Ristorante Enoteca Pinchiorri in Florence.

Over the past two decades, the style of Colore Rosso, a Sangiovese-based, practically handmade Tuscan red, has evolved and shifted, from intensity and concentration to more elegance and finesse. But what most seduced me about the 2019 was its expansive rose petal aromas, purity of fruit, and seamless, satiny texture. It’s now an Italian icon. $250

2011 RIDGE MONTE BELLO
Ridge’s Monte Bello is my ideal of classic, age-worthy California cabernet, so I grab every chance I get to sample older vintages. A panel discussion at Napa’s Inglenook winery in January featured it among six cabernets from the cold, rainy 2011 vintage, which critics had originally totally dismissed. The idea was to prove the critics wrong, and the tasting did — brilliantly.

The wines, from Inglenook, Corison, and Ridge, were long and layered, complex and stylish — but to me, the Monte Bello was the star, with dark plum fruit, savory tobacco notes, the kind of power and structure of a great Bordeaux, and perfect balance at 12.8% alcohol. It goes to show that “off” vintages from great estates can age better than you think. $257

2016 AO YUN
I was all-in on an exclusive personal tasting at Moët Hennessy’s lavish, glass-walled downtown New York tasting space on the 36^th floor of 7 World Trade Center, with views of the Hudson River. On a giant screen, winemaker Maxence Dulou beamed in from China with a backdrop of snow-covered peaks. The occasion? I was sampling the first five vintages of a Chinese cabernet-based blend, Ao Yun, with a chance to compare the 2016 with the same vintage of Chãteau Lafite-Rothschild and Opus One.

Ao Yun is one of the best reds in China, and the 2016 struck me as the vintage where it found its style. More Bordeaux than Napa, it’s bright and fresh and elegant, with a leafy, savory character. Yes, the Lafite was deeper, richer, and more complex, but the tasting showed that Ao Yun has grown up. $295

2018 VERITÉ LE DESIR
Dinner at Eleven Madison Park to celebrate the 20^th anniversary of Sonoma’s secret star, Verité, with winemakers Pierre Seillan and his daughter Helene was a must-attend. We drank older vintages and the just-released 2018s of their three Bordeaux-style red blends: La Muse (based on merlot), Le Desir (on cabernet franc), and La Joie (on cabernet sauvignon).

I loved the powerful, plush 1998 and 2008 La Joie, but the 2018s were the stars for me, especially Le Desir, with its aromas of berries, violets, and damp earth and dark, brooding flavors. It’s going to live for decades. $424

2018 OLIVIER BERNSTEIN MAZIS-CHAMBERTIN
On my birthday, I crave grand cru Burgundy, and this one, made by buzzed-about micro negociant Olivier Bernstein, did not disappoint. It’s almost exotic, with a deep core of ripe, dark fruit, notes of spice, and that combination of silky density, expansive aromas, and racy energy that make great Burgundies so seductive.

This vintage was a sweltering summer for cool-climate Burgundy, but the energy in this wine gave me hope that top winemakers can put off the effects of global warming, at least for a while. $594

1976 BOLLINGER R.D. EXTRA BRUT
During the online launch of Bollinger’s lush, creamy textured, superb 2007 R.D. Extra Brut cuvée in March, we also sipped two mystery vintages. (R.D. stands for recently disgorged, the process of removing the yeast sediment in Champagne). A quick explainer: Champagne starts with a bottled base wine to which sugar and yeast are added to create a second fermentation in the bottle, which in turn creates the bubbles. Bollinger typically ages its R.D. in the bottle with the dead yeast cells (called lees) for more than a decade to gain richness before disgorging and re-corking. The longer the wine ages with the lees, the more brioche-y flavors and texture it gains.

To my surprise, both mystery bottles turned out to be R.D. cuvées from 1976, the oldest vintage of R.D. I’d ever tried. Why did they taste so different when both were bottled at the same time? One was aged on the lees until it was disgorged six years ago; the other was aged even longer, and disgorged only six months ago.

I preferred the latter, which was brighter, more intense, rich, and wine-like, with subtle scents of citrus, baked golden-delicious apples, and chalk. Sadly, you can’t buy it. But magnums of the earlier disgorged 1976 are at London’s Finest Bubble for $3,264 a bottle. — Bloomberg

DTI expects stable supply of paracetamol this week

January 6, 2022 | 12:04 am

THE Department of Trade and Industry (DTI) estimated that there would be a stable supply of paracetamol within the week, amid efforts by manufacturers and drugstores to replenish their stocks.

Trade Secretary Ramon M. Lopez said in a Viber message to reporters on Wednesday that a reasonable time to catch up with the replenishment of paracetamol stocks across drugstores is within the week as drugstores are restocking their inventories.

“For Watsons, they have started already and Watson said they will distribute to their branches today. For Mercury Drug, they will start delivering tomorrow (Thursday) instead of this coming Saturday. United Laboratories, Inc. (Unilab) said they are expediting this week,” Mr. Lopez said.

Further, the Trade chief said manufacturers suggested that there was no need to put a purchasing limit on paracetamol since they can supply, adding that drugstores are able to impose limits on the allowed quantity to be bought if they see unnecessary bulk purchases.

Previously, Mr. Lopez said there was no shortage of paracetamol in the market, but disclosed that there was tight supply for some brands due to the timing of deliveries to replenish stocks across drugstores.

“There are other brands of paracetamol in the market so there is no shortage. There are also a lot of generic products in the market,” Mr. Lopez said.

In a separate television interview on Wednesday, Pharmaceutical and Healthcare Association of the Philippines (PHAP) Vice-President Jannette Jakosalem said the group was processing orders to replenish stocks across drugstores.

PHAP member firms include Pfizer, Mercury Drug, Zuellig Pharma, Watsons, and Metro Drug, Inc.

“In two to three days, we will be able to replenish. They can place the order now. If they are in Metro Manila, we can deliver on the same day,” Ms. Jakosalem said in mixed English and Filipino.

“The out-of-stock situations across big drugstores, we are already reaching out so that they can replenish. We are willing to help,” she added.

To recall, Unilab issued an advisory on Tuesday disclosing that some of its brands are temporarily out of stock in select drugstores following “extraordinary demand.”

The Department of Health recently urged the public to refrain from hoarding, panic-buying, or unnecessary purchases of paracetamol and other drugs for flu-like symptoms. — Revin Mikhael D. Ochave

EU records first drop in sparkling wine exports in decade as champagne loses its fizz

January 6, 2022 | 12:04 am

alexander-naglestad-xzKtOI1Cnxo-unsplash — ALEXANDER NAGLESTAD/UNSPLASH

BRUSSELS — The European Union’s (EU) exports of sparkling wine to the rest of the world fell last year for the first time in a decade, Eurostat said on Friday, largely because of a massive drop in champagne sales, though prosecco and cava sold well.

The coronavirus disease 2019 (COVID-19) pandemic dampened wine trade globally in 2020, the latest year for which data are available, as restaurants and bars remained closed for long periods.

Champagne was hit the hardest. Sales outside the EU of the famed French sparkling wine fell over 20% by volume to 66 million liters in 2020 from nearly 84 million liters the previous year.

That largely contributed to a 6% overall drop in EU exports of sparkling wines last year compared to 2019, the Eurostat data showed.

EU exports fell from a peak of 528 million liters in 2019 to 494 million liters in 2020 — still nearly twice the level recorded in 2010.

Of the three main categories of sparkling wine exported from the EU, only champagne recorded a significant drop by volume.

Prosecco, which is by far the most exported, recorded sales outside the EU of 205 million liters in 2020, compared to nearly 207 million liters in 2019.

Cava, which is produced in Spain, bucked the trend by increasing its extra-EU exports by more than 10% to 58 million liters in 2020, getting closer to replacing champagne as the second most sold EU sparkling wine outside the 27-nation bloc.

Total champagne sales, including in the EU, fell 18% last year by volume, producers’ group CIVC has estimated.

Despite the drop in sales by volume, vintage champagnes have proven a lucrative draw for investors this year, outperforming all major financial market assets from Big Tech to bitcoin. Salon le Mesnil’s 2002 vintage surged more than 80% in value in 2021 on online platforms. — Reuters

BoI greenlights P195.5-M broiler chicken project in Cavite

January 6, 2022 | 12:03 am

THE Board of Investments (BoI) approved the application for registration of Agro Azienda, Inc. as a new producer of broiler chicken in Maragondon, Cavite worth P195.5 million.

The BoI said in a statement on Wednesday that the broiler chicken producer is expected to begin commercial operations in May 2022, and is listed under the agriculture, fishery and forestry sector of the 2020 Investment Priorities Plan as the transitional Strategic Investment Priority Plan of Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act.

“Broiler farming is the process wherein broiler chickens are reared and prepared for meat processing and/or final consumption,” it said.

The BoI said the project involves the commercial production of broiler chicken on a contract growing scheme with a local company, and will serve as an essential support to the meat processing industry.

“The firm has a capacity of 2,310,000 birds per year, and has acquired brand new equipment to be installed in the facility. The firm will employ 10 direct workers. The potential direct employment to be generated by the firm based on the employment multiplier is estimated at 109 workers,” it said.

“The firm also built fly management control system including tunnel vent building design, dry manure, and insecticide fly trap,” it added.

According to the BoI, the project will help in achieving one of the targets under the updated 2017-2022 Philippines Development Plan (PDP) which is to improve chicken production volume to 1.96 million metric tons (MT) by 2022.

“The entry of the project can supply 3,696 MT of chicken accounting for 0.19% and 0.20% of the PDP target and the BoI production forecast for 2022, respectively,” the BoI said.

Further, the BoI said Agro Azienda plans to have measure that will reduce the effects of natural calamities to the project, while in-house health and safety protocols will be strictly enforced to avoid the spread of the coronavirus disease 2019 (COVID-19).

“The project will shore up the Department of Agriculture’s Plant, Plant, Plant Program with two components, namely: Integrated Livestock and Corn Resiliency Project and the Expanded Small Ruminants and Poultry Project to ensure the uptick in the production of meat, chicken and eggs and manage the impact of the present global health crisis in domestic food supply,” the BoI said. — Revin Mikhael D. Ochave