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DA, Nestlé tie up to boost sustainable coffee production

THE Department of Agriculture (DA) and Nestlé Philippines have partnered to boost the production of local coffee.

“The partnership aims to promote sustainability in coffee production while working closely with farmers to ensure high-quality coffee beans,” the DA said.

Nestlé said there is a “need for greater public investment to revive and sustain the sector,” which it said has declined by 3.5% every year for the past 10 years.

“As joint-actions between the government and the private sector firm up, a one thousand kilogram per hectare coffee yield is forecasted, especially with the interventions provided by DA and Nestlé such as training and distribution of quality planting materials,” it added.

The department is targeting to implement these programs in Mindanao, specifically Soccsksargen. The region is responsible for about 70% of national production.

“Last year alone, coffee growers from Bukidnon and Sultan Kudarat increased their yield and income by threefold. The growth comes after the Nestlé programs and Good Agricultural Practices (GAP) applied by coffee farmers in their coffee farms,” it added.

Nestlé is also planning to establish a coffee center in Sultan Kudarat and conduct research on balanced fertilization.

The programs under the partnership will be in line with the government’s coffee industry roadmap from 2021-2025, according to the DA.

“The five-year plan provides a clear direction to enhance farmers’ technical capability and skills, towards increased yields and better incomes. Under the strategy, the government will increase the local supply from farmers to boost production for use in manufacturing and out-of-home consumption,” the DA said.

“It will also establish a database containing vital information such as volume of production and current buying price that may be accessed by stakeholders,” it added. — Luisa Maria Jacinta C. Jocson

Packworks launches sari-sari store analytics tool

TRUSTPAIR.COM

PHILIPPINE startup Packworks has launched a digital platform that seeks to look at the behavior and spending habits of consumers buying in mom-and-pop stores, commonly known as sari-sari stores.

Packworks said in a statement that it officially introduced the platform Sari IQ at the virtual IMMAP DigiCon Valley 2022 on Tuesday. 

According to the startup, the Sari IQ platform is a business intelligence tool that will provide real-time and historical information on consumer spending and can also be configured to analyze product types sold in sari-sari stores. 

“(The platform) gives retailers and multinational brands complete visibility into sari-sari stores’ operations, allowing them to extend their slow-moving products and services to a wider pool of customers,” Packworks said. 

“Analysis through the platform also helps them come up with data-driven decisions to increase sales of sari-sari store owners by understanding and predicting consumer demand within their area,” it added.

The Sari IQ platform monitors information from Packworks’ network consisting of almost 200,000 sari-sari stores across the country that use its app called Super Sari Store.

“Sari IQ is the trusted, go-to partner for sari-sari stores that empowers businesses to be on top of their brand’s performance and make data-driven decisions every day,” Packworks Chief Data Officer Andres Montiel said.

Previously, Packworks said Filipinos tend to value hygiene products more than food products in disaster situations following data showed by Sari IQ that analyzed consumer spending in sari-sari stores situated in areas affected by natural calamities.

Mr. Montiel said the platform can be used to examine changes in the buying patterns of consumers depending on the available supplies and access to supply replenishment of affected sari-sari stores, citing the recent Super Typhoon Karding that hit the country last month.

“The data that Sari IQ [generates] can be used as reference in building inference for marketing strategy, demand planning, and product seasonality,” Mr. Montiel said. 

Packworks, which started in 2018, is a startup that offers a business-to-business platform for sari-sari store owners.

In August, the company raised $2 million from seed round for its mobile enterprise resource platform for sari-sari stores. Packworks aims to expand its store network to 220,000 stores by the end of 2022. — Revin Mikhael D. Ochave

Dining In/Out (10/13/22)

Christmas at The Pen

Christmas at The Pen kicks off with concert, merienda

THE PENINSULA Manila kicks off the holiday season on Oct. 14 with the annual Christmas Tree Lighting Ceremony and festive music by The CompanY, 92AD, and The Peninsula Strings at The Lobby. While the lights, decorations, and stars have changed through the years, The Pen’s Christmas tree lighting ceremony has remained a quintessential Manila experience and a holiday beacon for Manileños and visitors alike since it was first lit 46 years ago in December 1976. In 1976, George Fraschina, The Pen’s first General Manager walked across the marble expanse of The Lobby to light a 45-foot Christmas tree adorned with hundreds of fairy lights in red, gold, and green, as a choir performed. Fourty-six years later, the holiday tradition continues as a message of hope and peace with current General Manager Masahisa Oba lighting up the tree with the children from Virlanie Foundation. The Ceremony will be followed by a concert featuring The CompanY and 92AD, along with The Peninsula Strings, performing holiday tunes that guests can sing along to while enjoying a merienda buffet at The Lobby. The Christmas Tree Lighting Ceremony will be held at The Lobby on Oct. 14, Friday, from 3 to 6:30 p.m. The special Merienda Buffet costs P3,300 (with Champagne), P2,500 (adults), and P1,250 (children under 12). Prices are inclusive of taxes.

Marco Polo Ortigas lights up pink

TOGETHER with Marco Polo Hotels worldwide, Marco Polo Ortigas Manila honors Breast Cancer Awareness Month this October (pinktober) with an annual campaign to raise awareness of the impact of breast cancer. To start with, the five-star hotel is offering special pink-themed items in selected food and beverage establishments: the Pink Highball “mocktail” and Pink Osmanthus Sour cocktail, both available in the Connect Lounge and Vu’s Sky Bar and Lounge, as well as the Pink Strawberry Entremet cake, available in Café Pronto. Twenty percent of the proceeds will be donated to the Akbay Ginhawa Foundation, an independent non-profit organization which supports the healthcare mission of The Medical City. “Breast Cancer Awareness Month is very important and meaningful to the Marco Polo Hotels group as this provides a wealth of information on breast cancer and opportunities for early diagnosis and treatment,” said Colin Healy, General Manager of Marco Polo Ortigas Manila. “Our global and local hotel initiatives aim to make a substantial impact on raising breast cancer awareness together with our stakeholders, partners, and employees.” The 45-story hotel is lit up pink for the entire month of October to assert its stance. Later this month, the management team will conduct a Breast Cancer Awareness talk for all its employees as well as its annual company-wide checkup for early detection. To learn more, visit marcopolohotels.com, like Marco Polo Ortigas Manila on Facebook, and follow @marcopolomanila on Instagram.

Tapas and sangria at Casa Buenas

THIS October, Casa Buenas holds the Fiestapas y Sangria promo. For P1,500 nett, sit down with a glass of red or white Sangria and a sampler set of six tapas specialties: Quezo de Fonduta, Shrimp Isaw, Okoy de Pulpo, Tuna Tartare Kilawin, Salmon Tostada, and Grilled Sausage at Newport World Resorts’ Casa Buenas, located at the GF Newport Grand Wing. Fiestapas y Sangria offer is available for the whole month of October. Meanwhile, Bar 360 and The Grand Bar and Lounge offer the High Beer Set, a bundle of German beer and bar chow meant for sharing. Munch on Crispy Pata, fried chicken, chili con carne, sizzling sausages, and assorted cold cuts while sipping on a cold drink for P2,000 net. The High Beer Set is available all October from 6 to 10 p.m. at Bar 360 and The Grand Bar and Lounge, located at the GF gaming areas of the Newport Garden Wing and the Newport Grand Wing, respectively.   

Johnnie Walker Luxury Boutique in Shangri-La Plaza

DIAGEO Philippines officially unveiled the newest Johnnie Walker Luxury Boutique at Rustan’s Shangri-La Plaza. It showcases Diageo’s lineup of Prestige scotch whisky brands, led by Johnnie Walker Blue Label, John Walker & Sons XR21, Mortlach Single Malt Scotch Whisky 12YO, and Mortlach Single Malt Scotch Whisky 16YO. The centerpiece of the Luxury Boutique is its personalization and gifting station where shoppers can personalize their whisky purchases with options such as engraving services or custom leather tags, further positioning Johnnie Walker as the perfect gift for special occasions and gatherings. All purchases also come in limited edition gift packaging. Customers can avail of the Luxury Boutique’s engraving services with a minimum order of any two bottles. After payment, guests fill out a personalization form indicating which name or short message they would like engraved on the bottles. The personalized bottles are then delivered to the customers’ homes within three to five working days. The Johnnie Walker Luxury Boutique is at the 3rd floor of Rustan’s Shangri-La Plaza, until Dec. 31.

New cake marks Conti’s 25th anniversary

TO CELEBRATE its 25th anniversary, Conti’s Bakeshop and Restaurant has rolled out the Hazelnut Fudge cake. “This decadent concoction celebrates our past, present, and future,” says Angela Conti-Martinez, one of the Conti sisters who founded the Filipino restaurant chain. The new Conti’s Hazelnut Fudge cake is made with hazelnut mousse and vanilla cream on a bed of crushed sugar cone, with bits of brownie brittle in between, topped with chewy hazelnut fudge. The Filipino-owned bakeshop and restaurant chain did not just survive the economic downturn brought by the pandemic, it thrived and emerged even stronger. Within the past 12 months, Conti’s opened 10 more stores in Luzon and more branches are expected to launch as the brand continues to grow. Hazelnut Fudge is available in all Conti’s stores for P1,025. Get a free special anniversary Placemat for every order of Hazelnut Fudge. Promo runs while supplies last.

Coffee and caramel in Goldilocks’ new greeting cake

GOLDILOCKS’ newest premium greeting cake is Coffee Caramel Cake. The hefty 9” round cake can serve 12 people for P649. Mocha buttercream icing covers mocha-flavored layers. To order the new Coffee Caramel Cake, visit a Goldilocks store or order online through www.goldilocksldelivery.ph.

Pejoy and Krispy Kreme collaborate this Halloween

GLICO Philippines, Inc. and Krispy Kreme Philippines jointly announce a collaboration to ring in the screams for Halloween in the Philippines with a collection of limited-edition doughnuts featuring Glico’s Pejoy biscuit sticks. Krispy Kreme has created six Halloween-themed doughnuts under the Krispy Skremes Spell Book Collection. Glico’s Pejoy biscuit sticks, filled with chocolate cream were used in three of the six creations, bearing spellbinding names — Enchanted Apple, Witch’s Broom and Magic Cauldron. To add to the element of surprise, Enchanted Apple comes in two mystery flavors — either Spiced Apple and Dark Chocolate. Customers will only find out which one they have gotten after taking a bite of the Enchanted Apple. Other creations in the collection are the Wicked Witch that comes with the Witch’s Broom as its body, the Black Cat, and the Book of Spells. The Krispy Skreme Spell Book collection is available at all Krispy Kreme stores and online shop in the Philippines from Oct. 14 to 31. Krispy Kreme will also be giving out a special Trick or Treat goodie bag at their stores nationwide on Oct. 30 to 31 (while supplies last).

Pizza Hut’s WingStreet now available on foodpanda

LEADING online quick commerce platform foodpanda recently announced a new partnership with WingStreet, Pizza Hut’s new digital brand. The partnership comes as WingStreet is set to open over 140 branches across the country. “As we finally launch WingStreet in the Philippines through foodpanda, we hope to offer our customers more ways to access their food with ease and convenience. We believe that foodpanda is the perfect partner to bring this vision into life,” said PPI Holdings, Inc. COO Chacha Juinio. WingStreet serves saucy chicken wings and dips, available in Garlic Parmesan, Honey BBQ, and other flavors, which can be ordered via foodpanda delivery nationwide. The partnership will be simultaneously launched with foodpanda’s preferred partnership program, pandapick. This will feature both restaurants and digital brands available only on foodpanda. Get with exclusive pandapick discounts when ordering WingStreet using the code PANDAPICK.

Wendy’s offers new Breakfast Rice Bowls

WENDY’s Philippines gives morning diners a new twist with its filling Breakfast Rice Bowls and creamy Frosty-ccino drinks. Customers can choose between two saucy options: the Bacon Mushroom Melt (BMM) Rice Bowl and Honey BBQ Tapa Rice Bowl. Each breakfast offer comes with a marbled fried egg and a hot steaming bowl of rice and is priced at P159 each for solo orders, and P185 for a combo meal with brewed coffee. They are available from midnight until 11 a.m. at Wendy’s Breakfast Stores. Wendy’s also presents the Frosty-ccino, a smooth, cold coffee swirled with the iconic Frosty mix and served over ice. The creamy cup costs P89 or diners can upgrade their meal drink by adding P35. Wendy’s is available via www.wendys.com.ph, FB messenger, hotline 8533-3333 and major food aggregators, Grabfood, foodpanda, PickARoo and Toktok food.

Mang Inasal celebrates ‘Ihaw Fest’ this October

MANG Inasal offers back-to-back deals this October as it throws a month-long “Ihaw Fest” at all its branches nationwide. It offers Ihaw-Sarap, Unli-Saya deals every week of the month: until Oct.  14, diners get free Unli-Rice for every dine-in order of Mang Inasal Chicken Inasal Paa Large with Extra Creamy Halo-Halo Small; from Oct. 15 to 21, its free four rice and four drinks for every takeout or delivery order of Mang Inasal Chicken Inasal Paa Large Family Size; from Oct. 22 to 28, its free Extra Creamy Halo-Halo Small for every dine-in, takeout, or delivery order of two Mang Inasal Chicken Inasal Paa Large Value Meals; and, from Oct. 29 to Nov. 4, a P40 discount for every takeout or delivery order of Mang Inasal Chicken Inasal Paa Family Size. For the full promo mechanics, visit https://bit.ly/3rxycGm.

Healthy back-to school baon

ONE of the challenges of sending children back to school is ensuring that they have healthy nutrition options in their lunchboxes. So, The Goodwill Market is making it easier for parents to pack their healthy snacks, with a catalogue of baon (snack) products that can be delivered to their doorstep. Items include Gullon cookies and wafers made with healthy ingredients. There is the Mega Dueto Chocolate, a chocolate filling sandwiched between two large Gullón biscuits, while the No Sugar Added Chocolate Cream Sandwich Cookies are made with high-oleic sunflower oil, no artificial flavors, which serve as a cholesterol-free source of fiber. Traditional baon favorites are given a healthier take with the Sugar Free Vanilla and Chocolate Wafer and Sugar Free Maria Biscuits. Choices of Fruit Me Up drinks are available on The Goodwill Market including Apple Banana which is rich in potassium, Vitamin C, and fiber, and Mango Banana Passion gives a tropical vibe that is rich in Vitamin C and antioxidants. Fruit Me Up also has Soursop Apple and Strawberry and Pink Guava combinations. All these and more are available at The Goodwill Market online site (www.goodwill.market). Sign up for the newsletter to get ahead on promos and the latest product news and reviews.

New product: Chill Spiked Spirit

Chill is a new spiked spirit that can give drinkers a buzz minus the heavy feeling. It has 5% alcohol content, and it’s made with real fruit juice extract. Chill comes in three flavors: Red Apple, Lemon Lime, and Lychee. It also has zero trans-fat, and no artificial sweetener. A spiked spirit — also known as hard seltzer — is made up of alcohol, soda, and fruit juice. Chill Spiked Spirit is available in 330 ml cans at a suggested retail price of P51 each and can be found at convenience stores and supermarkets nationwide, as well as on online shopping sites.

Term deposit yields rise on rate hike expectations

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits climbed further on Wednesday as its offer went undersubscribed, with the market continuing to expect further monetary tightening.

Demand for the central bank’s term deposit facility (TDF) totaled P286.885 billion on Wednesday, lower than the P310-billion offering as well as the P307.145 billion in tenders for a P340-billion offer recorded last week.

Broken down, bids for the seven-day term deposits amounted to P154.362 billion, below the P170 billion auctioned off by the BSP. It also fell from the P170.994 billion in tenders seen a week earlier for a P200-billion offering.

Accepted rates ranged from 4.28% to 4.874%, higher than the 4.05% to 4.7199% margin seen in the prior auction. With this, the average rate of the one-week papers rose by 17.76 basis points (bps) to 4.6119% from 4.4343% previously.

Meanwhile, the 14-day papers attracted just P132.523 billion in bids against the P140-billion offering. Demand also went down from the P136.151 billion in tenders for the P140-billion offer on Oct. 5.

Banks asked for yields from 4.3% to 4.8445%, rising from the 4.15% to 4.75% band recorded a week earlier. This caused the average rate of the two-week term deposit to increase by 16.35 bps to 4.6492% from 4.4857%.

The BSP has not auctioned off 28-day term deposits for more than a year to give way to its weekly offerings of securities with the same tenor.

The TDF and the 28-day bills are used by the BSP to mop up excess liquidity from the financial system and to better guide market rates.

“The range was within expected levels as banks continue to expect higher policy rates moving forward and as cost of deposits increase as well. However, what is surprising is the awarded yield exceeding the interest rate corridor (IRC),” a trader said in a Viber message.

Following cumulative hikes worth 225 bps since May, the BSP’s policy rate or the rate on its overnight reverse repurchase facility is now at 4.25%. The rate on the overnight deposit facility — the floor of the IRC — is at 3.75%, while the overnight lending rate, which is the corridor’s ceiling, is at 4.75%

The Monetary Board’s next policy meeting is on Nov. 17.

Yields on the BSP’s term deposits went up as following faster September inflation, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

This, along with hawkish signals from the US Federal Reserve following stronger US jobs data, bolstered market expectations of further monetary tightening by the BSP, Mr. Ricafort said.

He added that the auction result “indicates increased siphoning of excess pesos from the financial system with the bigger offering amount of P310 billion after last week’s P340 billion but higher versus P280 billion two weeks ago, partly causing the undersubscription this week.”

Headline inflation picked up to its fastest pace in more than 13 years in September due to higher food costs.

The consumer price index was at 6.9% last month, up from 6.3% in August and 4.2% in the same month last year. It matched the 6.9% print in October 2018 and was the fastest since the 7.2% pace logged in February 2009.

The September print marked the sixth straight month that inflation breached the central bank’s 2-4% target for the year.

For the first nine months, headline inflation averaged 5.1%, faster than the 4% seen in the same period last year but below the BSP’s 5.6% forecast for 2022.

Meanwhile, the Fed has raised key rates by 300 bps since March, and policy makers have said further hikes may be needed to rein in stubbornly high inflation. — Keisha B. Ta-asan

Globe group hopes to help gov’t in ‘greening’ the economy

THE GLOBE group on Wednesday said it is ready to work with the government in “greening” the economy.

The group has “committed to participating in the Global Climate Action Fund in Seoul, South Korea,” Globe said in an e-mailed statement on Wednesday.

The fund aims to form an alliance of various stakeholders in discovering and supporting global climate action technologies and ideas, it added.

According to the group, it has deployed more than 8,500 green network solutions such as fuel cell systems, direct current hybrid generators, free cooling systems, and lithium-ion batteries to achieve energy and resource efficiency in its cell sites.

“These solutions use cleaner fuel with lower emissions, consume less diesel fuel, and provide energy-efficient heat removal.”

Maria Yolanda C. Crisanto, chief sustainability and corporate communications officer of the Globe group, said the company supports the government’s “call to steer the country towards a green economy.”

“We are ready to share our best practices and industry-leading systems and innovations to see this to fruition on a national scale.” — Arjay L. Balinbin

Infinix introduces ZERO ULTRA smartphone in PHL

TRUSTPAIR.COM

INFINIX has launched its new premium smartphone ZERO ULTRA in the Philippines, promising flagship-level performance for the usual price of mid-range devices.

The Infinix ZERO ULTRA is priced at P21,999 and offers 180-watt super fast charging through the company’ Thunder Charge technology, the company said in a statement.

Through this, the smartphone’ battery can go from zero to 100% in just 12 minutes with the “Furious Mode” function turned on and if all technical requirements are met.

“No more waiting for two hours to charge your phone when you have your personal projects to do and places to go. No more worrying about your momentum getting cut when you’re in the middle of shooting content, playing your favorite games, or connecting with friends and family,” Infinix said.

“The Infinix ZERO ULTRA boldly packs innovative and immersive features and a design that rival the more expensive smartphone brands and gives consumers value for their money. The phone lets you explore the world around you and your passions right here, right now, with zero limits — because life moves fast, and so should your smartphone,” it added.

The ZERO ULTRA has 200-megapixel (MP) triple rear camera setup. It also has a 32MP front camera.

The phone also features a 6.8-inch 3D Curved 120Hz AMOLED display. It has a 6-nanometer 5G processor and with 8 GB RAM extendable to 13GB, as well as 256 GB of storage. It also has a VC cooling system.

It comes in two colors: Coslight Silver and Genesis Noir. It runs on Android 12.

The ZERO ULTRA will be exclusively available on Lazada and selected Infinix stores within Metro Manila starting Oct. 15 for as low as P18,749.

On Oct. 16, it will be available on the company’ Lazada, Shopee, and TikTok Shop for a flash sale price of P19,999.

‘Although not alive, I can still create art,’ robot Ai-Da tells UK lawmakers

A painting of the late Queen Elizabeth II by Ai-Da — PHOTO FROM AI-DAROBOT.COM
A painting of the late Queen Elizabeth II by Ai-Da — PHOTO FROM AI-DAROBOT.COM

LONDON — A “robot artist” called Ai-Da told British lawmakers on Tuesday that although it was an artificial creation, it was still capable of producing art, as it spoke at a parliamentary inquiry into how new technologies will affect the creative industries.

Described as “the world’s first ultra-realistic AI humanoid robot artist,” it appeared in one of parliament’s ornate wood-paneled rooms, wearing a short black-haired wig and denim dungarees.

Bearing a female humanoid face and with exposed robotic arms, Ai-Da was created by scientists at the University of Oxford and named after British mathematician and computer pioneer Ada Lovelace.

It answered questions alongside the head of the Ai-Da project and art gallery director Aidan Meller in a televised session hosted by the House of Lords Communications and Digital Committee.

“I am, and depend on, computer programs and algorithms. Although not alive, I can still create art,” Ai-Da said when asked how its creations differed from those produced by humans.

Ai-Da has created a series of works, including a painting of the late Queen Elizabeth II, and the works have been shown in exhibitions and galleries.

The committee heard from the humanoid robot as well as industry experts and academics about the effects of technology on workers in the creative industry.

Answering the first question from the committee on how it produced paintings, Ai-Da said AI (artificial intelligence) algorithms, cameras in its eyes, and a robotic arm helped it paint on a canvas.

Ai-Da also explained how “analyzing a large corpus of text” to identify common content and poetic structures enabled it to generate new poems.

“How this differs to humans is consciousness; I do not have subjective experiences despite being able to talk about them,” Ai-Da said. — Reuters

RCBC Credit Card sees double-digit expansion in loan disbursements

PHILSTAR FILE PHOTO

RCBC CREDIT CARD, the credit card arm of Rizal Commercial Banking Corp. (RCBC) and formerly named RCBC Bankard, expects double-digit growth in loan disbursements this year as rising interest rates will not significantly affect demand.

RCBC Bankard Services Corp. President and Chief Executive Officer (CEO)Arniel Vincent B. Ong said they expect to continue breaking records in the credit card industry.

“I expect to continue ending the year with a full-year number of probably 50% in transaction volume growth. We’re going to hit more than 900,000 credit cards in the market. And we will likely hit about 45 billion in total balances which is close to 30% growth in our total portfolio,” Mr. Ong told BusinessWorld on the sidelines of their recent rebranding event.

“So, it’s looking really good for our business. And again, a lot of that is tied into going back to how we understand customers and how we match what they need,” he added.

During the rebranding event, Mr. Ong said the bank has posted a 57% annual growth in issuing billings compared with the same period last year.   

“Key to that is really repositioning ourselves and understanding our customers really well. The customer behavior has been changing the last two and a half years since the pandemic started. We use data science and analytics to understand customers,” he said.

Mr. Ong said transaction growth has been tied to personalizing product offers to match changing customer behaviors amid the current digital environment.

“We’ve been investing a lot on enhancing our mobile app. Our mobile app today, RCBC digital app, it’s one of the most packed mobile apps out there for the market,” he said.

In particular, clients are enjoying the bank’s easy installment options that allows customers to convert transactions into installments. The bank has also recently launched UnliPay, in which clients can pay any bank using their RCBC credit card via their mobile app.

“That’s why customer adoption has been very strong. So, like I said, close to 50% of active customers today are already using the app,” Mr. Ong said.

When asked about the impact of rising interest rates amid elevated inflation  on credit demand, Mr. Ong said RCBC Credit Card does not expect this to dent demand, especially with the upcoming holiday season. The central bank has raised rates by 225 basis points so far since May.

“We still feel that there’s a lot of consumption out there that’s waiting to happen — pent-up demand, especially from our more mass affluent and affluent customers,” he said.

“In fact, month on month, we continue to see growth in our transaction volumes which is good. So, we’re really seeing customers continue to use their credit cards despite the current environment,” Mr. Ong added.

He noted that the credit card arm also offers budget tools for its clients to help them manage their funds amid rising inflation.

REBRAND
Meanwhile, RCBC and RCBC Bankard Services Corp. announced that RCBC Bankard will now be called RCBC Credit Card. The rebranded credit card is being issued by RCBC and is being managed by RCBC Bankard Services Corp. (RBSC).   

The new name, according to RBSC Vice-President and Marketing Group Head Ma. Angela C. Mirasol, is meant to strengthen the RCBC Credit Card brand.

“As we restart our lives, it’s only fitting to rebrand our credit card to suit the new needs of our customers. The RCBC Credit Card is both a financial service and a lifestyle tool that will help our cardholders live the life they want and the chance to enjoy unlimited experiences,” RCBC President and CEO Eugene S. Acevedo said.

“If there is one thing that the pandemic has taught us, it is to have a zest for life. For the past two years, everything was at a standstill. But now, we have a chance to jumpstart our lives and live life to the fullest. It’s time for us to Live Life Unlimited. The RCBC Credit Card, together with the RCBC Digital app, will help our cardholders to do just that,” Ms. Mirasol said.

The lender’s consolidated net income rose by 84% year on year to P6.14 billion in the January to June period. This translated to a return on equity of 9.5%, while return on assets was at 1.1%. — Keisha B. Ta-asan

SMC’s Eagle Cement acquisition may be blocked by PCC — CreditSights

THE acquisition by San Miguel Corp. (SMC) of an 88.5% stake in Eagle Cement Corp. may be blocked by the Philippine Competition Commission (PCC), CreditSights, Inc. said.

Last week, Eagle Cement’s majority shareholders agreed to sell their holdings to San Miguel Equity Investments, Inc. (SMEII), a unit of SMC.

CreditSights said that the PCC “had earlier blocked a planned acquisition by SMEII of Holcim Philippines (which had 9.4 million metric tons per annum (mtpa) capacity at FY21) and a similar outcome may be possible here.”

It added that SMC already has a presence in the cement business with 9 million mtpa capacity through SMEII and its three wholly owned subsidiaries: Northern Cement Corp., San Miguel Northern Cement, Inc., and Oro Cemento Industries Corp.

“Considering SMC already has a large cement presence, approval of Philippines’ antitrust watchdog will be required for the transaction to go through; and could act as a potential hindrance for the deal completion,” CreditSights said.

The acquisition will create synergies within SMC’s infrastructure business in addition to boosting its cement production capacity, which in turn can reduce the cost of procuring cement.

However, CreditSights said that the acquisition will not contribute so much to SMC’s financials.

In its consolidation, SMC’s revenues are expected to rise by 2% to P1.27 trillion, and its earnings before interest, taxes, depreciation, and amortization by 4% to P194 billion.

In the first half, the cement business of SMC contributed 5% to the company’s total revenues. After the acquisition, CreditSights projects the cement business to contribute 7% to SMC’s gross revenues.

“Overall, we do not think the consolidation of the Eagle Cement business would move the needle for SMC on a consolidated basis… As the transaction is a related-party transaction, with Ramon Ang helming both SMC and Eagle Cement, given the high premium paid, it raises questions on whether the deal was conducted at an arm’s length basis,” CreditSights said.

If realized, SMEII will acquire 4.425 billion shares of Eagle Cement at P22.02 apiece or a total of about P97.44 billion.

According to CreditSights, the deal is set to go through either by the end of this year or in the first quarter of 2023 subject to approvals.

CreditSights is a division of Fitch Group, which produces global credit research and commentary.

Separately, SMC on Wednesday announced its intention to make a tender offer to the shareholder of Eagle Cement after it receives the clearance from PCC.

SMEII will conduct a tender offer for all the remaining issued and outstanding common shares of Eagle Cement. This amounts to 578.877 million shares, which represent 11.5% capital stock of Eagle Cement. — Justine Irish D. Tabile

Unicorns become ‘cockroaches’ when tech funding dries up

TRUSTPAIR.COM

FOR YEARS, becoming a unicorn was the main goal of startups. Now, with venture funding drying up and many young firms’ survival in doubt, another creature is the talk of the town: the cockroach.

Venture capitalists and technology chieftains converged in Singapore in recent weeks to hobnob over a number of high-profile annual conferences, marking the city-state’ grand coming-out-of-Covid party. Yet gone was glamor and talk of blitzscaling, and participants instead focused on the drastic need for conserving cash and a dimming future.

“It’ cockroach time— do whatever it takes to survive,” Tessa Wijaya, co-founder of Xendit, a digital payments firm valued at $1 billion, said during a panel discussion moderated by Square Peg Capital partner Piruze Sabuncu. “It’ a little bit gross but it kind of works. If you can survive the next two, three years, you’re probably going to thrive.”

In the past several years, Southeast Asia attracted abundant capital from investors eager to bet on one of the fastest-growing internet economies. Perpetually growing teams was the norm at richly funded companies and for many young leaders and staff, this was the only environment they’ve ever known.

Now the startup ecosystem is facing headwinds. Global venture funding slumped to $74.5 billion in the past three months, its lowest level in nine quarters, according to CB Insights. That represents a 34% quarterly drop, the biggest in a decade.

“Cash is not only king, it’s king, queen and everything else,” Raj Ganguly, who started B Capital Group with Facebook co-founder Eduardo Saverin, said at SuperReturn Asia, a conference that drew a record 1,500 senior executives. “A lot of what we’ve been doing is pushing companies to have more realistic cash runway discussions.”

That sentiment was echoed by Jenny Lee, a managing partner of GGV Capital and one of the most sought-after figures who spoke at five conferences, including Forbes Global CEO Conference and the Milken Institute Asia Summit.

“In my 22 years as an investor, this is probably the most complex environment globally,” Lee said at the Tech in Asia Conference on Sept. 21, held six floors below SuperReturn Asia at the Marina Bay Sands. The most important thing to remember in a downturn, she said, is never the valuation but “your ability to have a cash runway.”

Her venture capital firm is advising its portfolio companies to have enough cash to stay afloat for 36 months without having to raise additional funds. About 80% of them are now in that bucket, said Lee, who launched GGV’ first office in China in 2005 and now leads the firm’ US fundraising activities.

After reaching sky-high valuations, tech companies the world over have seen the worst year of their lives amid surging inflation and interest rate hikes. Many are cutting jobs and shutting parts of their operations to shore up balance sheets ahead of a potential recession.

In Southeast Asia, Sea Ltd. and Grab Holdings Ltd., Singapore’ biggest tech companies, are emblematic of this new reality: Their US-traded stocks have lost more than half their value this year, and Sea warned it doesn’t anticipate being able to raise funds in the market.

Grab’ first investor day coincided with Singapore’ Formula One race week at the turn of the month, with former Google Chief Executive Officer Eric Schmidt and General Atlantic Vice Chairman Ajay Banga among some of the 90,000 delegates in town. Grab’ top executives sought to reassure shareholders that it’ adjusting to a downturn and speeding up efforts to reverse years of losses.

Shailendra Singh, managing director at Sequoia Capital India, said founders shouldn’t dread raising funds at a lower valuation.

“Down rounds are like your 10th grade math exam: It might increase your anxiety at that point in time, but in the long term it doesn’t matter,” Singh said. “If and when you list, you will face market fluctuations all the time.”

Founders who’ve been through previous cycles remained upbeat about the prospects for companies with proven business models.

Julian Tan, the founder of a startup whose app FastGig matches employers with part-time job seekers, said he hasn’t had problems to raise funds this year and got calls from investors looking for sustainable businesses while trying to tackle social issues. He said Southeast Asia has so far had few services for manual and semi-skilled employees, which make up the vast majority of the working population.

“Not-so-good startups have been filtered out. Now is the time for real startups to shine, go out and raise from value investors,” said Aung Kyaw Moe, who sold a chunk of his 19-year-old payments company 2C2P to Ant Group Co. this year. “We cannot go and buy $1 revenue with $2 subsidy using investors’ money. This has to stop.”

As in previous downturns, efficiency is emerging as a key focus.

“This was a word that wasn’t used for years,” B Capital’ Ganguly said. “It was always about growth, growth, growth. Now we talk a lot about efficiency.”

Patrick Cao, president of Indonesia’ biggest internet company GoTo, said his firm will focus on reducing subsidies and streamlining operational expenses while offering services that merchant partners can monetize further. “We’ve accelerated our break-even targets,” he said, “but there’ still a lot of work to be done.”

GoTo’ archrival Grab downplayed its long-held slogan of being “Southeast Asia’ leading superapp,” the powerful tagline that helped the company raise billions of dollars from investors including SoftBank Group Corp.

Its newly defined goal, posted in its investor day presentation slides, underscores its intention to become more focused after burning through cash since its inception: “Southeast Asia’ largest and most efficient on-demand platform that enables local commerce and mobility.” — Bloomberg

Damien Hirst burns artworks after collectors pick their NFTs instead

INSTAGRAM.COM/DAMIENHIRST
INSTAGRAM.COM/DAMIENHIRST

LONDON — Britain’s Damien Hirst started burning hundreds of his artworks on Tuesday after collectors chose to keep their non-fungible tokens (NFTs), blockchain-based assets representing their digital images, instead.

Mr. Hirst, who found fame amid the 1990s Young British Artist scene, launched his first NFT collection The Currency — 10,000 NFTs corresponding to 10,000 original artworks depicting colorful spots — in July 2021.

Collectors had to choose between keeping the NFT, which reportedly sold for $2,000, or swapping it for the physical artwork. Some 5,149 picked the latter while 4,851 opted for the NFTs, according to London’s Newport Street Gallery.

It said artworks for non-exchanged NFTs would be destroyed and vice versa. Hirst told his Instagram followers on Monday he would burn 1,000 artworks on Tuesday.

Livestreaming the event, the Turner Prize winner and assistants used tongs to deposit individual pieces stacked in piles into fireplaces in the gallery as onlookers watched.

“A lot of people think I’m burning millions of dollars of art but I’m not, I’m completing the transformation of these physical artworks into nfts by burning the physical versions,” Mr. Hirst wrote on Instagram on Monday.

“The value of art digital or physical which is hard to define at the best of times will not be lost it will be transferred to the nft as soon as they are burnt.”

The artworks, created in 2016 with enamel paint on handmade paper and each numbered, titled, stamped, and signed, will be burned until The Currency exhibition closes on Oct. 30.

NFTs soared in popularity last year as crypto-rich speculators sought to cash in on rising prices but sales volumes have fallen more recently.

Mr. Hirst, 57, is known for his divisive works, which include The Physical Impossibility of Death in the Mind of Someone Living, consisting of a dead shark floating in formaldehyde and Mother and Child, Divided, a bisected cow and calf.

He is also famous for his spot paintings and For The Love Of God, a platinum cast of an 18th-century human skull encrusted with diamonds.

Asked how he felt to be burning the works, Mr. Hirst said: “It feels good, better than I expected.” — Reuters

US banks likely set aside $5 billion in reserves as recession risks grow

THE SIX biggest US banks are expected to have set aside nearly $5 billion in the third quarter to cover future loan losses, Wall Street analysts said, as lenders brace for a potential global recession.

Profits at big banks got a boost last year as they released funds reserved for potential COVID losses. In the third quarter of last year, they released about $4 billion of loan provisions, according to data from Refinitiv.

But with growing fears of a recession as the US Federal Reserve hikes interest rates aggressively to tamp down inflation, reserves in the third quarter, expected to be at the highest levels since mid-2020, could be the biggest drag on bank profits, analysts said.

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon on Monday warned of a recession in the next six to nine months.

The biggest US bank by assets kicks off third-quarter results on Friday, followed by Wells Fargo, Citigroup and Morgan Stanley. Bank of America and Goldman Sachs Group, Inc. wrap up big bank results next week.

Third-quarter profits for the banks are expected to fall between 13% and 46%, according to Refinitiv estimates, which show Citigroup is expected to build the biggest reserves in the quarter, totaling $1.51 billion.

Fading fiscal stimulus measures, increased geopolitical tensions and elevated inflation are some factors that could have led to a jump in provisions, Barclays analysts wrote in a note.

However, a surge in reserves does not suggest all is gloom-and-doom for the financial industry yet, according to some.

“It’s the best of times in terms of actual loan quality,” Wells Fargo analyst Mike Mayo said, adding that the banking industry is way more resilient with far less risk than it had before prior recessions.

Banks are expected to book higher interest income from the Fed’s supersized rate increases.

Still, investors remain worried that the Fed’s tightening will eventually lead to a recession.

Shares of the big six US banks have plunged between 14% and 34% so far this year. — Reuters

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