BIR sets floor price for tobacco, vapor products

May 20, 2021 | 12:32 am

THE BUREAU of Internal Revenue (BIR) issued guidelines on how to determine the floor price for cigarettes, as well as heated and vapor tobacco products.

Revenue Regulations No. 7-2021 serves as the implementing rules and regulations for Republic Act (RA) 11346 that increased the excise taxes on so-called “sin” products such as tobacco and alcoholic beverages.

Under the guidelines, the agency said the minimum price of cigarette, heated and vapor tobacco products will be computed by adding the total production cost of the cheapest brand per tobacco product, the excise tax and the value-added tax (VAT).

The BIR determined the reference rates for taxation purposes in case there are no documents available on the actual price of the product.

For instance, a floor price of P78.40 will be imposed for cigarettes with production cost of P20, excise tax of P50 and VAT of P8.40.

Heated tobacco products with a P20 production cost, P42 in excise tax and P7.44 in VAT should have a minimum price of P69.44.

For vapor products, the BIR said 0.7 milliliter (ml) pod of nicotine salts will have P125.44 as floor price this year — given its P70 production cost, P42 in excise tax and P13.44 in VAT. A nicotine salt of 2.5 ml will have P421.12 as a minimum price, while a 4-pod item has P2,195.20.

The floor price for 10-ml tank of freebase nicotine with a production cost of P50 each, P50 in excise tax and P12 in VAT, was estimated at P112, while a larger tank with 25 ml has a P308 minimum price.

“The ELTRD (Excise Large Taxpayer Regulatory Division) shall establish a monthly data profile based on the required periodic manufacturer’s or importer’s sworn declaration for all brands per tobacco product category,” the BIR said.

For those caught selling tobacco and vapor products below the floor price will face penalties from P200,000 to P500,000, or worth 10 times the amount of excise tax and VAT due. Sanctions also include 4-6 years of imprisonment.

“Any person who sells tobacco products including heated tobacco products and vapor products at a price lower than (the floor price) shall be punished with a fine of not less than 10 times the amount of excise tax plus VAT due but not less than P200,000, nor more than P500,000, and imprisonment of not less than 4 years,” it added.

The BIR also imposed inspection fees — 50 centavos per 1,000 pieces of cigars, 10 centavos per 1,000 sticks of cigarettes, and 10 centavos for 1,000 units of heated tobacco products. Meanwhile, one centavo of inspection fee was set per ml of vapor product, two centavos per kilo of whole leaf tobacco and three centavos per kilo of tobacco scraps.

To signify that excise taxes have been paid, the BIR said tax stamps should be attached on the packaging of these “sin” products.

Those who will affix previously used tax stamps, erase cancellation marks or make any alterations on the stamps will have to pay a fine of least P10 million and up to P500 million, with imprisonment of 5-8 years. Selling and using fake stamps will also face similar charges, according to the bureau.

The IRR was signed by BIR Commissioner Caesar R. Dulay and Finance Secretary Carlos G. Dominguez III on May 18 but the document was only published on Wednesday. The guidelines will take effect early next month or 15 days after its publication.

The Department of Finance expects to collect P297.8 billion from “sin” taxes this year. — Beatrice M. Laforga

Coronavirus surge in Asia has traders seeking more data for investments

May 20, 2021 | 12:31 am

PSE Trading Floor — COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

EQUITY INVESTORS in Asia are actively screening hospitalization rates and watching predictions on virus peaks, as several countries in the region struggle with a fresh jump in cases.

The pandemic’s resurgence has already worsened Asian stocks’ underperformance against their global peers this year. With efforts by countries to reopen their economies taking a hit, the severity of restrictions, the pace of increase in caseloads, the preparedness of governments and progress in vaccination rollouts have become key yardsticks for stock traders.

“We continue to monitor the infection numbers across Asia, in terms of whether we are starting to see the peak in infection numbers,” said Tai Hui, chief Asia market strategist at JPMorgan Asset Management. “Northeast Asian markets are arguably more resilient than Southeast Asia. China is still in its own league when it comes to containing the pandemic, despite some weaker-than-expected economic data for April.”

A surge in virus cases in Taiwan and Singapore last week contributed to a 3.2% plunge in the MSCI Asia Pacific Index, the biggest weekly loss since February. Indonesia’s stock benchmark narrowly missed a technical correction on Tuesday over fears that an expected jump in COVID-19 cases post Eid holidays could hurt the economic recovery. While stock gauges in Taiwan and Singapore have bounced back, they are still among the world’s worst performers this month.

“Countries are becoming too ‘comfortable’ with respect to COVID-19, and this could delay full recovery,” said Paul Sandhu, head of multi-asset quant solutions Asia Pacific at BNP Paribas Asset Management. “This is the biggest risk I see right now.”

That investors are watching factors other than just an increase in caseloads is evident from the market’s varied response to the pandemic situation in different countries. Even as their peers in Taiwan and Singapore got hammered after the latest flareups, equity benchmarks in India and Vietnam have continued to defy similar worries and are outperforming the broader MSCI Asia Pacific Index this month.

While India is battling the world’s worst outbreak of COVID-19, the S&P BSE Sensex has rallied 2.9% so far in May, with investors taking comfort from less-stringent curbs on activity as the government tries to limit the blow to the economy. The VN Index is also up 1.2% this month and hit a record last week, as retail investors pile into Vietnam stocks.

Cases in India may have peaked and investors are now looking at how quickly the wave descends along with how quickly vaccinations can be deployed, analysts at Morgan Stanley wrote in a note.

“In particular, I will be watching developments in Singapore given their relatively good progress in vaccination, which I hope will be an example of what the rest of Asia should be working towards,” said JPMorgan Asset’s Mr. Hui.

Meanwhile, the Philippine Stock Exchange index has slumped almost 13% this year, making it the world’s worst-performing major benchmark, amid growing concerns over the economy’s recovery.

With the utilization of ICU beds and ventilators already running at about 50% and 40%, respectively, “an acceleration in cases would likely prompt the government to announce a more severe lockdown,” said Gary Dugan, chief executive officer at Global CIO Office.

Southeast Asia’s stock benchmark is lagging the broader Asia-Pacific region for a second straight month, reversing two months of outperformance marked by the value rotation, as Singapore, Malaysia and Thailand adopt stronger restrictions on movement.

“In Southeast Asia, the benefit from strong exports still exists, but weakness in domestic demand because of lockdown measures could delay recovery more so than in Northeast Asia, including tourism,” said Mr. Hui. — Bloomberg

Monde Nissin secures cornerstone investors for IPO

May 20, 2021 | 12:10 am

By Keren Concepcion G. Valmonte

MONDE Nissin Corp. has secured “overwhelming commitments” from cornerstone investors for its P55.9-billion initial public offering (IPO), it said on Wednesday on what it called a “strong vote of confidence.”

“We are pleased that these world-class investors share our vision of the future and will cornerstone our IPO. Their commitment is a strong vote of confidence in our company, strategy and talented team,” Henry Soesanto, chief executive officer of Monde Nissin, said in a statement.

The cornerstone investors for the listing include AIA Investment Management Private Ltd., Avanda Investment Management Pte. Ltd., Eastspring Investments (Singapore) Ltd., FIL Investment Management (Hong Kong) Ltd., and GIC Private Ltd.

Goldman Sachs Asset Management (Singapore) Pte. Ltd., M&G Investment Management Ltd., NS Partners Ltd., RWC Asset Advisors (US) LLC, Stichting Depositary APG Emerging Markets Equity Pool, and The Capital Group Funds are also part of the list.

“There was very strong demand from local and foreign institutional investors during the book-build. We cannot say the number, but with the book several times oversubscribed, Monde Nissin secured several renowned cornerstone investors,” BDO Capital & Investment Corp. President Eduardo V. Francisco said during the company’s IPO briefing on Wednesday.

Mr. Francisco added that there are also several local cornerstones that are not yet named.

“This may show the conviction that some investors have on the company’s management team as well as their growth plans over the long term, both locally and abroad,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.

Monde Nissin also announced that the Securities and Exchange Commission issued the order of registration and permit to sell for the IPO. Its listing consists of 3.6 billion common shares priced at P13.50 apiece, with an overallotment option of 540 million common shares.

The company’s shares are slated to list and begin trading on the main board of the Philippine Stock Exchange (PSE) under the stock symbol “MONDE” on June 1, earlier than the initial June 7 schedule.

Monde Nissin is expected to net P55.9 billion in proceeds, which it will use to fund its capital expenditures, the redemption of its Arran Convertible Note, and the repayment of bank loans.

For Philippine-based trading participants, the offer period was set to run from May 19 to May 25.

BDO Capital, First Metro Investment Corp., and BPI Capital Corp. were assigned as the local lead underwriters and joint bookrunners for the transaction.

UBS AG Singapore Branch, Citigroup Global Markets Ltd., and JPMorgan Securities Plc. were tapped as joint global coordinators and joint bookrunners.

Credit Suisse (Singapore) Ltd. is a joint international bookrunner. Macquarie Capital Securities (Singapore) Pte. Ltd. and Jefferies Singapore Ltd. are international bookrunners.

China Bank Capital Corp., PNB Capital and Investment Corp., and SB Capital Investment Corp. are tagged as the domestic co-lead underwriters.

“We are excited about the opportunities that lie ahead as we accelerate our growth plans for our meat alternative business Quorn, which is a global player in the transformation of sustainably produced healthier food, and extend our leadership position in the Asia-Pacific Food and Beverage business through continued innovation and constant dialogue with our consumers,” Mr. Soesanto said.

Monde Nissin through its Quorn Foods brand is ramping up expansion plans in the US and is eyeing further market penetration via quick-service restaurants.

Dining via the cloud

May 20, 2021 | 12:09 am

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GrabKitchen opens more branches

RIGHT before the pandemic closed down restaurants and encouraged dining at home, GrabFood introduced its GrabKitchen concept — a “cloud kitchen” — in Glorietta last year. In the aftermath of coronavirus disease 2019 (COVID-19), GrabKitchen is expanding. It opened a branch in Sampaloc in February, and will soon open two more in Malate, and Paranaque — the last two were announced in a press conference on Zoom on May 12.

A “cloud kitchen” is a restaurant that focuses exclusively on takeout and/or delivery, with no dine-in section. In the Grab version, GrabKitchen serves as a central commissary, with multiple brands sharing the same kitchen. With this set-up customers can order items from different restaurants at the same time and have them delivered together

GrabKitchen’s Glorietta branch, which opened just as the pandemic was starting in Feb. 2020, served as the cloud kitchen (albeit with limited seating) for Omakase, Mister Kabab, 24 Chicken, Recovery Food, Frank and Dean, and CoCo Fresh Tea and Juice. The cloud kitchen setup enabled customers to order from these restaurants, despite the absence of a brick-and-mortar store.

What was once presented as novel in the early days of 2020 — although GrabKitchens have been up in Indonesia since 2018, and the concept is present through most of Grab’s Southeast Asian market — has now become an essential in the metro.

The pandemic did put a hitch in Grab Philippines’s original plans — they had been slated to open three GrabKitchen branches in 2020. It is now catching up.

The newly opened Sampaloc branch carries the following brands: CoCo Fresh Tea and Juice, Conti’s, Omakase Sinangag Express, Mister Kabab, Army Navy, Pizza Telefono, and Happilee.

The soon-to-open Malate branch will have Omakase, Frankie’s, Recovery Food, Paper Moon, Yogorino, Pepi Cubano, Dapo at Tisa, King Chef, La Tita, Selecta, So Mot, Blu Kouzina, Coco Fresh Tea and Juice, Merienda by Pan De Manila, and Go! Salads.

The Parañaque branch will service select areas nearby in Cavite, Las Pinas, and Muntinlupa. It will offer 24 Chicken, Alishan at the Alley, Army Navy, Cara Mia, La Titas MNL, Pizza Telefono, Kyoto Sushi Bake, Bahn Mi Kitchen, El Nacho Libre, Sheikh’s Kebab, Breakfast for 2, and Black Kimchi, Selecta, Omakase, and Dapo at Tisa.

According to a company press release, “Filipinos can look forward to the opening of many more GrabKitchen branches soon.”

“These new GrabKitchen branches in these locations help to bring a wider variety of delicious food options to consumers. People can sample new tastes as well as enjoy their most well-loved favorites such as Japanese, Korean, Chinese, Filipino, European, and American. We want consumers and their friends and families to really enjoy their meals, and they can choose from our wide selection of cuisines and restaurants, mix and match their orders, and pay for one delivery fee,” Josephine Kamiyama, Project Lead for GrabKitchen in the Philippines, as quoted as saying in a press release.

It is the mixing and matching option that has pushed the concept, she said in an e-mail to BusinessWorld.

“Since the launch of GrabKitchen Makati, we’ve been seeing continued interest in the idea of mixing and matching orders to satisfy the different palates of friends and family. I think this is one of the driving factors why the concept works,” she said.

The app’s historical data provided the information needed to come up with precise mix of food on offer and the best locations for the kitchens.

“We also see that consumers are responding well to the different cuisines of GrabKitchen merchants, which we identified in the first place by leveraging historical data from the app and use that as the basis for our expansion plans. By leveraging on data, we saw the demand from consumers, and expanded to the three new locations of GrabKitchen,” Ms. Kamiyama told BusinessWorld.

“Our end goal is to provide a variety of cuisines to cater to the diverse demands of consumers,” she said. “We use our data to identify what the cuisine gaps are in the area, and look for merchants who may be interested to expand with us through GrabKitchen. For example, Frankie’s is a well-loved chicken restaurant in the QC, Pasig areas, but customers in Manila wouldn’t have access to it because of the distance. Now that it’s in GrabKitchen Malate, customers in the Manila area can not only order their favorite chicken dish from Frankie’s, they can also mix-and-match it with a variety of choices from other restaurants — all in one delivery fee. ”

The company sees the opening of more GrabKitchens soon.

The benefit to the consumer is easy to see, but what about for the merchants?

Ms. Kamiyama told BusinessWorld that merchants earn through “a revenue-sharing agreement with our partner merchants, which varies depending on different considerations.”

“I think it minimizes the risk, as opposed to opening a brick and mortar [restaurant],” said Vicente Raphael del Rosario IV, Senior Vice-President of Viva International Food and Restaurants, Inc., the dining division of the Viva Group of entertainment companies.

Viva International Food and Restaurants’ brands — Paper Moon, Botejyu, Wing Zone, Pepi Cubano and Yogorino — are well-represented in the new GrabKitchens.

“It’s really an extension of your restaurant, or of your brand. You’re able to bring it to more places. It’s a big help to be present everywhere,” said Mr. Del Rosario.

If one happens to live in the Makati, Malate, Sampaloc, and Parañaque areas, one can order through GrabKitchen on the Grab App. Delivery is free with a minimum purchase of P500 with the use of the promo code GRABKITCHEN! — Joseph L. Garcia

NGCP ‘on track’ with planned IPO

May 20, 2021 | 12:09 am

NATIONAL Grid Corp. of the Philippines (NGCP) is on schedule with its planned initial public offering (IPO), it said on Wednesday, shortly after the energy regulator gave the privately led company a six-month extension to complete its listing requirements.

“We are on track with our planned listing. We will inform the ERC (Energy Regulatory Commission) of the developments, in line with its directive for us to submit a monthly compliance report,” NGCP Spokesperson Cynthia P. Alabanza told BusinessWorld in a Viber message Wednesday.

The ERC order was issued on March 10.

In a briefing with reporters on Wednesday, Ms. Alabanza said that NGCP has been preparing for the listing even before the pandemic.

“This is something we’ve been doing for quite a while. We’ve [been] preparing for it as early as 2010, so we will just make sure that we will comply with the ERC order,” she said.

The company earlier asked the ERC for an extension of its IPO deadline, explaining that market conditions were unsuitable for the listing.

In its order, the ERC said NGCP failed to establish why the pandemic is deemed unsuitable for IPOs, since two companies — grocery retailer MerryMart Consumer Corp. and internet service provider Converge Information and Communications Technology Solutions, Inc. — were able to hold public offerings at the height of the pandemic and lockdown, which were well-received by the public.

Citing BDO Capital and Investment Corp. President Eduardo V. Francisco, the ERC estimated the value of NGCP’s planned IPO shares to be at around $1 billion. He was the expert witness whom NGCP asked to support its appeal for an IPO extension.

The ERC added the transmission service provider had begun complying with its IPO requirements and “only needs to complete the process.”

‘MARKED DECLINE’ IN TRIPPING INCIDENTS
Separately, NGCP said in a press release on Wednesday that there were fewer tripping incidents recorded across the three major island grids last year, compared with values recorded in 2008, or just after the consortium behind it won the 25-year concession in 2007 to operate the country’s power transmission network.

In the Luzon grid, tripping incidents were down by 76% to 0.932, from the 3.985 recorded in 2008. The Visayas grid reported a decline of 92.6% to 0.335 last year, from 4.542; while the Mindanao grid logged a 93.6% drop to 0.504 in 2020, compared to 7.951.

“The FOT (frequency of tripping) is the most tangible proof of our performance felt by end users. Our improved numbers are attributed to the continuous improvement and upgrading projects such as wood pole replacement, substation additions, capacitor bank projects, and new transmission lines, effectively reinforcing the stability and reliability of the grid in any condition,” NGCP said.

The FOT measures the number of times high-voltage transmission lines had tripped or experienced forced outages for every 100 circuit kilometers.

NGCP added that it had improved the grid’s capacity to mitigate the effects of power interruptions last year, citing indicators such as system availability (SA) and the system interruption severity index (SISI).

“In 2020, Luzon’s SA scored 99.208%, Visayas at 99.764%, and Mindanao at 99.736%. For the SISI, Luzon only recorded 0.869 system minutes of interruptions in 2020 compared to 9.537 in 2008; 10.010 from 83.559 in Visayas; and 9.124 from 10.434 in Mindanao,” the firm explained. — Angelica Y. Yang

‘Buttery, creamy, sugary, delicious’: a sneak peek of Harry Potter’s butterbeer in NYC

May 20, 2021 | 12:08 am

HARRY Potter fans will soon get to clink glasses filled with “buttery, creamy, sugary, delicious” butterbeers at an official Harry Potter flagship store in New York City, which opens on June 3.

Actress Evanna Lynch, who played Luna Lovegood in the Harry Potter film series, likened the taste to butterscotch.

“Butterbeer is the drink that all the Hogwarts students drink,” she said.

Ms. Lynch said she was thrilled that the bottled butterbeer — which is non-alcoholic — came in a vegan version.

“I actually didn’t drink any butterbeer in the movies,” she said. “That’s more for like the cool kids, the Gryffindors.”

When Harry Potter New York officially opens its doors to the public on June 3, customers will be able to choose from draft or bottled butterbeers and eat butterbeer ice cream. Nearly 1,000 bottles hover over the bar while butterbeer moves through copper pipes.

The retail store, at over 21,000 square feet (1,950 square meters) and spanning three floors, will also sell a huge collection of Harry Potter and Fantastic Beasts products.

Author J.K. Rowling’s seven Harry Potter novels about a boy wizard have sold more than 500 million copies worldwide and were turned into eight blockbuster movies. She followed up with a spin-off movie franchise, Fantastic Beasts and Where To Find Them. — Reuters

First Gen allots $530-million capital expenditure for 2021

May 20, 2021 | 12:08 am

By Angelica Y. Yang, Reporter

FIRST Gen Corp. is allocating $530 million of capital expenditures (capex) this year, with majority going to projects of its geothermal subsidiary Energy Development Corp. (EDC), an official of the firm said on Wednesday.

“In 2021, we are expecting to spend about $530M in capital expenditures, mainly driven by EDC, the LNG (liquified natural gas) terminal (in Batangas City), and the Aya Pumped Storage Project (in Nueva Ecija),” First Gen’s Chief Financial Officer Emmanuel Antonio P. Singson said during the firm’s virtual annual stockholders’ meeting on Wednesday.

The amount will cover $280 million of funding for EDC’s drilling activities, investments, and binary geothermal projects; $120 million for First Gen’s planned offshore LNG terminal; and $60 million for the 120-MW Aya Pumped Storage in Pantabangan, Nueva Ecija.

“EDC is targeting a higher capex this year… as the COVID-19 pandemic resulted in the postponement of key activities last year. The ($280 million) figure also includes the capex for the development of EDC’s binary growth projects —specifically the 3.6-MW Mindanao 3 and the 29-MW Palayan Bayan project,” Mr. Singson said.

In his speech, First Gen Chairman and Chief Executive Officer Federico R. Lopez said that EDC is working on lowering the cost of geothermal power, but he clarified that the adjustments will not yet be “as dramatic” as those related to renewable energy and battery storage, which have considerably gone down in the past five years.

During the event, First Gen President and Chief Operating Officer Francis Giles B. Puno said that the firm’s LNG interim offshore terminal is on track with its timeline. The company aims to complete the project in the third quarter of 2022.

“The plan is to modify First Gen’s existing jetty facilities in Batangas to enable LNG to be shipped to the country from anywhere in the world and regasify the LNG molecules via a floating storage and regasification unit,” Mr. Puno said in his speech during the stockholders meeting.

This year, the firm will focus on the terminal’s construction, and finalize the list of LNG suppliers, he added.

Earlier, the Lopez-led company received a permit to construct from the Department of Energy. First Gen also tapped McConnell Dowell of Australia for the turnkey construction contract and awarded the vessel chartering contract to BW Gas Ltd. of Norway.

“Our own transition to a decarbonized future will be anchored in the next few years by our efforts to bring in liquefied natural gas before the end of Malampaya,” Mr. Lopez said, referring to the imminent depletion of the country’s only natural gas field.

“While we are embarking on this timely shift to LNG, we are, at the same time, also planning for its eventual phaseout in ways that complement a pathway to carbon neutrality by 2050 and consistent with a 1.5 degrees Celsius target,” he added, citing the goal of the Paris agreement of which the Philippines is a signatory.

Mr. Puno also gave updates about the firm’s 120-MW Aya pumped storage project, which has secured key permits, including one from the Board of Investments, amid the global health emergency. He said that the project’s environmental impact assessment study is underway.

First Gen earlier reported that its attributable net income to its parent firm rose 29% year on year to P4.01 billion ($84 million) in the first quarter amid higher recurring earnings from its natural gas and renewable energy portfolios.

Shares in First Gen at the local bourse inched down by 0.97% or 30 centavos to finish at P30.60 apiece on Wednesday.

Remembering Pio Boffa

May 20, 2021 | 12:07 am

_Pio-Boffa-3 — PIO BOFFA during his 2012 visit to Manila — PHOTO CREDIT SHERWIN LAO

The COVID-19 pandemic is really getting out of hand.

It was early last year when COVID first surfaced in the world, and here in this country we were seemingly not as concerned as at first it was not directly affecting us. But now, over a year and half since its discovery in Wuhan, China, the devastation is hitting much harder and closer to home. Suddenly it is truly scary, and we all may have direct relatives, close friends, and even heard of well-known personalities who have had the virus. My own sister and her entire family were infected – thankfully they have fully recovered already.

While my sister and her family were fortunate to win their bouts with COVID, a friend of mine, and a true bastion of the wine industry — not only in his country of Italy, but also of the world — Pio Boffa, the 4^th generation owner of the renowned Piedmont winery Pio Cesare, succumbed. He died of COVID related complications on April 17. Pio Boffa was 66 years old.

LARGER THAN LIFE PERSONALITY
The first time I met Pio Boffa was in late 2012 when Pio came to Manila. Pio was quite a dapper gentleman. He might have appeared intimidating at first with his authoritative tone and no B.S. manner of expressing himself, but this was what made him a legend in the industry. Wine people — as I have known throughout my career — are extremely passionate about their trade and Pio was as overly zealous as they come.

In this first meeting, I had the privilege of joining a private wine tasting of several Pio Cesare wines with fellow writer and local icon (and my good friend) chef Gene Gonzales. The Pio Cesare Barolo Classico, the Barolo Ornato (single vineyard), the Barbaresco Classico, the Il Bricco Barbaresco (single vineyard), and the Fides Barbera (single vineyard) were among the nine different wines we tasted in a private function room at the now defunct Tosca Italian restaurant of the Dusit Thani Hotel Makati. With no less than Pio Boffa presiding over the tasting, this was indeed a showcase of not only the best of Pio Cesare, but also the best of Piedmontese wines. Pio was very animated about his wines during our discussions, and indeed Pio was a major influence on me becoming a “Nebbioholic” (a term I coined to describe wine lovers who are addicted to Nebbiolo varietal wines like Barolo and Barbaresco).

The next year, when Pio found out I was going to Florence to attend a Tuscan wine event, he insisted that I visit his winery in Alba, some 400 kilometers away. Pio even arranged for his car and chauffer to pick me up one morning in Florence to comfortably drive me to Alba, which was three hours away. Aside from visiting their historic late 19^th century winery (the Pio Cesare winery is nestled enviably in the center of Alba itself), I was toured by his nephew Cesare Benvenuto, enjoyed good food and more Pio Cesare wines, and I was also billeted in Pio Boffa’s ancestral house which has a breathtaking view of the Alps. His hospitality and generosity were genuine and went way beyond just professional courtesy.

Pio may not have been the friendliest nor had the most approachable demeanor of a person you would meet, but he always had a good heart and soul.

INTERVIEW WITH PIO BOFFA
As a tribute to our late industry legend, Pio Boffa, I present here some excerpts from a nearly 10-year-old interview I had with him depicting a bit of who Pio Boffa was and how his unique character and strong dedication would be badly missed:

Author: When did you start with the Pio Cesare winery?

Pio: I started in 1972 when I was still in my teens. My dad was my boss. It was in the mid-1980s that the rein of the company was passed to me. But I still worked together with my dad a lot during those times.

Author: Why is Pio Cesare Barolo priced similarly to its Barbaresco, when most of the Piedmont wineries would price Barolo higher?

Pio: Why shouldn’t I price them the same? There is no reason for me to price Barolo and Barbaresco differently. Both wines are from low-yield harvest, [have the] same labor cost, same three years period in oak barrels, same kind of barrels — everything the same except the value of the vineyards. But I do not think like that. The value of the vineyards only matters when you need to sell them. These lands are for my family’s next generation. (Author’s Note: The regulation on Barolo is it has to spend a minimum of 18 months in barrel. For Barbaresco, the minimum is nine months in barrel. At Pio Cesare, both these classic wines undergo the same oak aging treatment, way beyond the required minimum.)

Author: Why are Pio Cesare’s Barbera and Dolcetto more expensive than other Piedmont brands?

Pio: A dominant percentage of these wines come from our own vineyards. Since majority of our own vineyards are in the prime Barolo and Barbaresco areas, where we could have planted just Nebbiolos and make more Barolos and Barbarescos, we opted to also plant other cheaper varietals like Barbera and Dolcetto. That is why some people find us crazy for doing this as it makes no economic sense. We feel that we can make more complex versions of these varietals if planted in the prime locations. And that is why we do it, and price is actually very good if you look at our quality.

Author: When is the peak time to drink your Barolo or Barbaresco? (Author’s note: This question, though quite common, brought out some perked-up frustration from Pio — let the fireworks begin)

Pio: Let me first say I am disappointed that I am always asked this question. Is there really an answer to when a wine peaks? It is to me an exercise in futility. Wines over a period of time will be different. To say it is better or worse is entirely subjective. It depends on whether one likes wine with more tannin, more acid, more bouquet, and so on — all that affect wine during the bottle aging process. And there are the issues of storage, cork quality, and so on.

(When I interjected that the French Grand Crus always talk of aged Bordeaux and several new releases as being too young to drink, Pio became livid.) Well, what can I say… (some expletives). We cannot make excuses for young wines. When we release the wines, it is for drinking. The Italians created wines for pleasure of drinking with food. So even if a young wine like a Barolo is austere, it will still be good to taste with food.

Wines will change over time of course, but it really depends on the drinker’s preference. The beauty in drinking the same wines at different stages is to discover how these wines age and differ over time. I would refrain from giving a time for my wines to be drunk, though I can tell you that my Barolos and Barbarescos can last a very long, long time.

Author: Other countries, and other regions outside of Piedmont have been making Nebbiolo wines too. Have you tried any? And what is your opinion on these New World Nebbiolos?

Pio: I have tried Nebbiolos made in Australia, and it is also good. But while the New World can probably make good Nebbiolos, these wines still will not have the soul of a real Nebbiolo wine grown in a Barolo and Barbaresco.

Holding no punches in that interview, that was what Pio Boffa was all about, and that is reflected in the Pio Cesare wines too where quality and consistency are always the priority. With Pio Boffa’s sudden departure, the Pio Cesare winery will still be managed by the family, with daughter Federica (5^th generation), nephew Cesare, and cousin Augusto handling the day-to-day business of the winery, which is, incidentally, marking its 140^th year anniversary. Pio Boffa will long be remembered as the great Piedmont and Pio Cesare wine ambassador of the last half century. ‘Saluti a te’ up in heaven!

The author is the only Filipino member of the UK-based Circle of Wine Writers. For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, please e-mail the author at protegeinc@yahoo.com or via Twitter at www.twitter.com/sherwinlao.

2020 Doreen Gamboa Fernandez Food Writing Award: A literature teacher’s ‘magical’ kitchenette and her unforgettable pata tim, adobo, etc.

May 20, 2021 | 12:07 am

By Wilson Lee Flores

(Honorable Mention in the 2020 Doreen Gamboa Fernandez Food Writing Award)

ALTHOUGH I grew up in a lower middle-class family, with our widowed mother having to eke out a hardscrabble life for us, her two children, via her teaching and also her sideline of tutoring rich kids at our small, rented apartment unit in Quezon City, which was just a few minutes’ walk from school, my younger sister and I nevertheless had a blissful childhood because mom showered us with boundless love and she cooked so exceedingly well.

Among mom’s best foods were pork and beef dishes which she had braised, broiled, stewed, fried, boiled, slow-cooked, blanched, or barbecued based on the rich traditions of the Philippines, the Hokkien region (the southern part of Fujian province in southeast China, centered near ancient port city of Quanzhou, pronounced as “Chuanchow”), Spain, or a fusion of these three in fascinating eclectic degrees. Below are some of her foods, as lovingly remembered by me and my sister.

Mom used to adeptly cook adobo in the Filipino style — with vinegar, various spices (bay leaves, garlic, black peppercorns) and with her adding pineapple juice. Though adobo is usually pork, mom also cooked it well with chicken and hard-boiled eggs, chicken liver, chicken with pork, squid, vegetables like kangkong (water spinach) or sitaw (yardlong beans).

Pre-colonial Filipinos were already preserving foods using vinegar and salt, despite the dish name coming from the Spanish colonizers’ word “adobar” or “marinade.” This is most likely another case of “lexical imperialism,” a term used by American food historian and journalist Raymond Sokolov. Can we rediscover the original pre-colonial name for this beloved Filipino dish?

Mom also told us early Chinese traders and migrants had contributed to the evolution of the unofficial Filipino national food, adobo, by bringing here the ancient Chinese invention of soy sauce, which is called “toyo” in the Filipino language and originating from the Hokkien or south Fujian term “taw-yu.”

One of my favorites from mom’s vast repertoire of almost magical concoctions was her Chinese-style adobo. She called it “loba” or “loma” in Hokkien. It is savory and sweet, different from her cooking of Filipino-style adobo because it didn’t have vinegar. This dish had additional ingredients like mushrooms, oyster sauce, soy sauce, star anise, chives, some drops of sesame oil, and black fungus which mom called “oh bok-ni” in Hokkien and which she said is called in Filipino as “tenga ng daga” or “rat’s ear.” Mom explained that according to traditional Chinese medicine, the delicious oh bok-ni is healthy, beneficial for better blood circulation, and can help lessen chances of stroke or heart problems. Wow!

Our mom also had her own inimitable version of pata tim. She told us this dish is another “yummy contribution of Chinese migrants to the rich diversity of Filipino cuisine.” Mom’s pata tim was almost similar to “paksiw na pata,” except that it had no vinegar. It had a heavenly smell during slow cooking, which my younger sister said was due to pork mixing with sesame oil and star anise. My sister also recalled that Mom first roasted the pork hock, before the next step of slow cooking in low heat.

“Pata” comes from the Spanish word for “leg,” while I believe “tim” comes from the Hokkien word “tim” or cooking food in a vessel within another vessel half filled with water.

Other unforgettable, wondrous pork and beef dishes which mom cooked well included pork or beef sinigang (sour soup); pork menudo (with liver stewed in tomato sauce); pork bistek (cooked in marinade of calamansi and soy sauce); fried porkchop, the healthy pork rib bone soup with radish or “makut theng”; bulalo or beef stew slow-cooked (with or without sibut or “four herbs” called “gu-ma theng”); braised beef noodle soup; kare-kare (ox tail with vegetables in a peanut stew); goto or cow tripe (from the Hokkien words “gu” for “cow or beef” and “to” for “tripe”); pork kidney misua or “yochi misua” (wheat noodles); stir-fried pork kidney or “cha yochi”; stir-fried pork liver or “cha ti kwa”; pork liver misua or “ti kwa misua”; pork siomai (dumpling); mechado (stew of larded beef); sweet and sour pork; shredded pork with tausi (fermented black beans); humba (from the Hokkien name “hongba” or red braised pork belly); tito or pork tripe (from the Hokkien words “ti” for “pork” and “to” for “tripe”); machang or savory sticky rice dumpling with pork belly and mushroom (a long process of overnight marination, then three hours final cooking); maki mi (soup with meat and noodles); taosi spareribs (cooked with fermented black beans); lumpiang Shanghai (fried spring roll with pork meat); pork asado (simmered in several Chinese ingredients); Ilocano pinakbet (vegetable stew); and many others.

Our cramped, rented apartment in Quezon City had a very small kitchen with only a scrawny forlorn gas stove, a sink, a refrigerator, and fraying, worn-out wooden cabinets atop the stove. However, under our mother as culinary wizard, that lowly kitchenette came alive as an enchanting place where meager portions of livestock, veggies, fishes, and spices were somehow concocted with love and resourcefulness into fragrant, zestful and delightfully sublime dishes.

THE DOREEN Gamboa Fernandez Food Writing Award (DGF Award) recently announced the winners of the 2020 competition. The subject matter was “Livestock,” which, in the Philippines refers to cattle, pigs, goats, carabaos, and horses. The DGF Award is now in its 19^th year. Named after the late dean of food writers, Doreen Gamboa Fernandez, it was founded to encourage writers to contribute to Philippine food literature. The winning essays of the first 15 years have been published in two books — Savor the Word and Sangkap.

AC Energy starts building largest local wind farm at 160-MW in Ilocos Norte

May 20, 2021 | 12:07 am

AC Energy Corp. has begun the construction of its 160-megawatt (MW) wind farm in Pagudpud, Ilocos Norte, which is set to be the country’s largest wind farm to date, it said in a press release on Wednesday.

The Ayala-led firm said its P11.4-billion “Balaoi & Caunayan” wind farm is its third wind energy development in the northern province, following the 52-MW NorthWind wind farm in Bangui and the 81-MW North Luzon Renewables wind farm in Pagudpud.

It will be building the project in partnership with renewable energy developer UPC Renewables. It added that once completed, the wind farm will be the “biggest of its kind in the Philippines to date.”

“Once completed, AC Energy will double its wind energy capacity in the country,” the firm said, referring to the Balaoi & Caunayan facility.

The farm is slated for completion by the fourth quarter next year and will supply power to the Luzon energy market.

The project will feature 32 wind turbines with a generation of 5 MW each from wind turbine supplier Siemens Gamesa.

For AC Energy Chief Development Officer Jose Maria P. Zabaleta, the project will strengthen the company’s generating capacity and contribute to its renewables portfolio as it scales up its sustainable investments.

“The site of the Balaoi & Caunayan wind farm has one of the best wind resources in the country and its construction marks the culmination of over ten years of development work,” Chief Executive Officer of UPC Renewables Philippines David Sutton said.

“We are grateful for the continuing support of the Ilocos Norte provincial government and the municipality of Pagudpud in helping to bring this project to fruition,” he added.

AC Energy hopes to become the largest listed platform in the region as it targets to reach a net attributable capacity of 5,000 MW by 2025.

It shares improved by 1.02% or 7 centavos to close at P6.93 apiece on Wednesday. — Angelica Y. Yang

Actor Charles Grodin, 86

May 20, 2021 | 12:06 am

AMERICAN actor and writer Charles Grodin, known for his deadpan comic delivery in Broadway, film and television roles, died on Tuesday at age 86 at his home in Winton, Connecticut, the New York Times reported. The newspaper, citing Mr. Grodin’s son, said the cause of death was bone marrow cancer. Mr. Grodin was born on April 21, 1935 in Pittsburgh, Pennsylvania. He was best known for his roles in Midnight Run (1988), King Kong (1976), The Heartbreak Kid (1972), and Beethoven (1993), among many other roles. — Reuters

GMA Network expects 15% earnings growth this year

May 20, 2021 | 12:06 am

GMA Network is studying the possibility of offering a subscription video-on-demand service. — BW FILE PHOTO

GMA Network, Inc. anticipates a 15% increase in its earnings this year, betting that vaccine rollouts across the country will further ease restrictions.

“With the reduction in the rate of infections and with the increase in vaccination towards herd immunity, on the optimistic side, I think we can project, hopefully, a 15% increase in 2021 over 2020,” GMA Network Chairman and Chief Executive Officer Felipe L. Gozon said at the company’s annual stockholders’ meeting on Wednesday.

“We’ve been confident that we might still increase our gross revenues and net income for 2021. Why do I say that? Even as we speak now, there are indications that the effects of the pandemic are easing up. As a consequence, the government is also easing up all the restrictions,” he explained.

He also pointed out that it is important for the government to revive the economy because the country has been “in a negative growth.”

“So many people are unemployed and many businesses have closed down,” Mr. Gozon said.

GMA Network saw its attributable net income in 2020 more than double to P5.98 billion from P2.62 billion in the previous year.

The company’s attributable net income jumped more than three times to P2 billion in the first quarter of 2021 from P583.41 million in the same period in 2020.

Its total revenues surged 54.7% to P5.46 billion from P3.53 billion previously.

Advertising revenue increased 56.6% to P5.09 billion in the first quarter from P3.25 billion in the same period a year ago.

The company is studying the possibility of offering subscription video-on-demand service like Netflix.

“We are studying everything. If it will bring us revenues or net income, definitely we will go into that… We are still studying it,” Mr. Gozon said.

GMA Network shares closed 1.65% lower at P8.94 apiece on Wednesday. — Arjay L. Balinbin