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PHL economic freedom ranking improves

PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Reporter

THE PHILIPPINES’ economic freedom ranking went up four places after improved scores in “sound money” measuring inflation and money growth, according to a global report that measured 2019 data.

The Economic Freedom of the World report released by Canadian conservative think tank Fraser Institute on Tuesday said that the Philippines ranked 58th out of 165 jurisdictions in 2019 compared with adjusted 2018 data, with a rating that went up by 0.8 to 7.42.

The report measures economic freedom based on five categories, in which the Philippines performed best in “sound money,” with higher scores in inflation measures.

Philippines moves up in economic freedom list

The country retained its 7.08 score in international trade and increased its regulation score to 7.48 from 7.45 through improvements in credit market regulations and private sector credit.

The legal system and property rights was still the country’s lowest score at 4.41, although it grew from 4.31 through more judicial independence. The Philippines’ size of government score went down to 8.39 due to government consumption.

The index measures voluntary exchange, freedom to enter markets and compete, and security of privately owned property. Economies with the highest scores are Hong Kong, Singapore, New Zealand, Switzerland, and Australia.

“The apparent increased insecurity of property rights and the weakening of the rule of law caused by the interventions of the Chinese government during 2020 and 2021 will likely have a negative impact on Hong Kong’s score, especially in Area 2, Legal System and Property Rights, going forward,” the report said.

“A number of developing nations have a small fiscal size of government but rate low in other areas and, as a result, have a low overall rating.”

Despite the year-on-year improvement, the Philippine score is lower than its 2015 rating of 7.45, in which it ranked 52nd. Its scores declined under the government size and regulation categories, along with legal system and property rights, in which judicial independence, integrity of the legal system, and police reliability ratings fell.

University of Asia and the Pacific Senior Economist Cid L. Terosa said institutional reforms in the judicial system can help the Philippines improve perception.

“Perceptions of the impartiality of the judicial system are closely linked to perceptions that influence peddling and military interference in the rule of law and politics have heightened. The reliability of the police, particularly in the conduct of activities that seek to stamp out social ills, has been intensely questioned both domestically and internationally,” Mr. Terosa said in an e-mail.

“As regards government size, I believe there are perceptions that the government has not done enough to stamp out socio-economic problems. Although the government has instituted broad tax reforms and has ramped up investments in capital formation, many continue to believe their impact has yet to be maximized.”

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail the country still has work to do in terms of institutional strength.

“From my own readings, I have come to understand that the strength of institutions in one country is a function of economic freedom. This means that the stronger the institutions that we have, a higher level of economic freedom can be achieved,” he said.

Mr. Asuncion recommended changes to the electoral process and a “big push for digitalization and transformation of processes should be done to eliminate red tape and corruption.”

British Chamber of Commerce of the Philippines Executive Director Chris Nelson said in a phone interview that the country should look at regional trade agreements to improve its ranking.

“The other which I think is going to be important going forward is how much has the Philippines done to digitalize the economy, because that’s obviously going to be a critical factor.”

Competition watchdog resumes M&A reviews

PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PHILIPPINE Competition Commission (PCC) has resumed its review of “potentially problematic” mergers and acquisitions (M&A) after a year-long suspension.

This comes as the effectivity of Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II) expired on Wednesday (Sept. 15). Bayanihan II had suspended the PCC’s motu proprio review power on “non-notifiable” mergers and acquisitions for one year.

The law also raised the compulsory merger notification threshold to P50 billion for two years or until September 2022. This is much higher than the original P2.4-billion transaction size threshold and size of party threshold of P6 billion.

The lifting of the suspension and increased market monitoring efforts will allow the commission to flag potentially anti-competitive mergers and acquisitions, regardless of transaction value, PCC Chairperson Arsenio M. Balisacan said.

“We are hopeful that the return of PCC’s motu proprio review powers would discourage deals that are potentially anti-competitive. We continue to encourage firms to voluntarily notify the Commission to avoid the taxing possibility of unwinding their transactions after,” he said.

Just four transactions breached the P50-billion threshold since the effectivity of Bayanihan II, the PCC said. Some transactions were still reviewed under old thresholds during this period as they were completed before the law took effect.

Mergers and acquisitions notifications during the pandemic significantly declined. PCC received four so far in 2021, compared with 26 in 2020 and 46 in 2019.

“Keeping watch over M&As in the post-COVID-19 economic environment is critical to ensure that consolidation does not remain unchecked and is not allowed to lead to highly concentrated markets,” Mr. Balisacan said.

Grab Philippines’ acquisition of Uber’s domestic operations in 2018, for example, was reviewed even though the transaction did not meet the commission’s threshold for compulsory notification at that time. — Jenina P. Ibañez

Ferry route of Megawide’s Cebu project questioned

By Arjay L. Balinbin, Senior Reporter

TRANSPORTATION Secretary Arthur P. Tugade said on Wednesday that his department will review Megawide Construction Corp.’s planned ferry system with a route from the Carbon Market, which it is currently redeveloping, to the Mactan-Cebu International Airport after a lawmaker raised concerns from vendors opposed to the project.

ACT Teachers Party-list Rep. France L. Castro said during a House budget hearing on Wednesday that the project should not be implemented until issues with the affected vendors are resolved.

She said that the vendors are worried about being displaced and that a “win-win solution” is needed.

“Can we request that the DoTr (Department of Transportation) suspend consideration of the ferry route until and unless local concerns are resolved?” Ms. Castro asked Mr. Tugade during the hearing.

“With that manifestation, we will review and look at the ferry route, and we will talk to the stakeholders,” Mr. Tugade said.

Mr. Tugade delegated Transportation Assistant Secretary Mark Steven C. Pastor the task of meeting with stakeholders to discuss how they can reach an agreement on the project.

Sought for comment, Megawide said in a statement sent to BusinessWorld that its ferry terminal project is pegged to be operational in at least two years’ time.

“It will provide a direct connection from Carbon to the Mactan Cebu International Airport so that passengers can avoid the heavy traffic from the city to Mactan Island. An integrated transport terminal, including land and water connections, is a vital part of the project and will greatly improve mobility for passengers in the area,” it added.

Megawide also said it is still studying the viability of possible routes,” which should also go through all the proper consultations and processes before launch.

The project is part of Megawide’s redevelopment of the Cebu Carbon Market.

“Megawide stands firm to its commitment that all vendors are protected by the joint venture agreement. We reiterate that 100% of registered vendors will be accommodated. The new market facility will even have more total floor area than the current market — and that’s because each vendor will now have the appropriate space and individual connections they need,” the company said.

“To date, we have already presented the stall designs and locations to vendor leaders and they have already submitted their inputs, which have been incorporated in the project plan. These include the rental rates for Carbon, for which there will be no upward adjustments. In fact, we are offering wider and better space at more affordable rates compared to the prevailing market rates,” it added.

The company said it is coordinating with stakeholders, especially the local government of Cebu, involved in the project. “As such, we will adhere to the instructions of the local government unit and market authority regarding the work and timelines.”

Ayala, AYC Finance plan notes issue, tender offer

AYALA Corp. is planning the offer of dollar-denominated perpetual notes to be issued by wholly owned subsidiary AYC Finance Ltd., which is also eyeing a tender offer.

“The notes issuance and the tender offer are part of AC’s (Ayala’s ticker symbol) active liability management exercise that aims to take advantage of capital markets opportunities if and when they arise,” the listed company said in a disclosure to the exchange on Wednesday.

The conglomerate said its Regulation S dollar-denominated senior fixed-for-life non-deferrable perpetual notes will be issued by AYC Finance. 

Ayala has assigned BPI Capital Corp, Citigroup Global Markets Singapore Pte. Ltd., Credit Suisse (Singapore) Ltd., JPMorgan (S.E.A.) Ltd., Mizuho Securities (Singapore) Pte. Ltd., and UBS AG Singapore Branch as the joint lead managers and joint bookrunners.

The company said it mandated the firms to “arrange a series of fixed income investor calls” on Sept. 15.

Meanwhile, AYC Finance will conduct a tender offer of its $400-million 5.125% senior fixed-for-life notes (ISIN: XS1681502537) and $400-million 4.85% senior fixed-for-life notes (ISIN: XS2068075980). It will set a maximum acceptance amount for the tender offer, which will expire on Sept. 24 at 4:00 p.m. London time.

“Proceeds of the notes issuance will be used to refinance [AYC Finance’s] outstanding USD (US dollar)-denominated guaranteed undated notes including, among others, through funding of the tender offer, and other USD-denominated obligations,” the listed company said.

Shares of Ayala on Wednesday went down by 0.93% or P7.50, closing at P803 each. — Keren Concepcion G. Valmonte

Filipinos opt to pay more for sustainable products

‘BUY Local, Go Lokal’ program promotes sustainable business practices. — GO LOKAL FB PAGE

CONSUMERS now prefer products that are considered sustainable or are created by companies and brands with ESG (environmental, social and governance) policies. 

“For the very first time, Filipinos are now starting to be willing to walk the talk when it comes to sustainability,” Bain and Co. Associate Partner Bennett Aquino said during BusinessWorld Insights on Wednesday.

He noted that one of the more prominent consumer behavior shifts amid the pandemic is the rise of “social commerce.”

Citing a survey by the consulting firm, Mr. Aquino said nine out of 10 consumers are willing to pay a higher price for ESG-focused companies and products.

“Eight out of 10 of them are actually willing to pay up to 10% more premium and some would attribute this actually to the heightened sense of social responsibility or just the general bayanihan sense that has been reinvigorated during this pandemic,” Mr. Aquino said, referring to the Filipinos’ culture of finding unity in community. 

The Department of Trade and Industry (DTI) has a “Buy Local, Go Lokal” program to support Philippine MSMEs (micro, small and medium enterprises), as well as an initiative to promote sustainable business practices.

“We also have the advocacy on sustainable consumption and production so that we can preserve the blessings of the environment, all these products come from the environment naturally, and we of course need to be able to protect our source,” said DTI Undersecretary for Consumer Protection Group Ruth B. Castelo.

Anna Melissa Nava, co-founder and chief executive officer of 1Export, said that consumers are also consciously trying to buy local, homegrown brands.

Local companies are facing greater market demand both here and abroad despite the global supply chain problem, as consumers are looking for more “authentic products.”

“We run an e-commerce company where we bring products from the Philippines to the rest of the world and we’ve seen a trend where people are willing to pay more if they know that the products are authentically made and done by certain people from the Philippines, from a certain group in the Philippines,” Ms. Nava said.

The trend of consumers leaning towards companies and products with an emphasis on sustainability and social responsibility may also be observed in other countries even before the pandemic struck.

“We expect this trend to continue for years to come and is something that businesses and brands need to keep in mind as they move forward with their strategies,” Mr. Aquino said. — Keren Concepcion G. Valmonte

PCPC becomes fully Filipino-run

PALM Concepcion Power Corp. (PCPC) said the operations and maintenance of its 135-megawatt (MW) power plant in Concepcion, Iloilo is now performed by an all-Filipino management.

PCPC said in a statement on Wednesday that the First Northeast Electric Power Engineering Corp. (NEPC) transferred the operations and management of the circulating fluidized bed combustion power plant to PCPC on Aug. 16.

“NEPC, which is affiliated to China Energy Engineering Corp., is likewise PCPC’s contractor for the engineering, procurement, and construction of the power plant,” it said.

According to PCPC, the all-Filipino operations and maintenance team conducted technical training with their Chinese counterparts amid the coronavirus disease 2019 (COVID-19) pandemic.  

“We have been through a lot, including this long running pandemic we have to deal with alongside the daily grind of operating the plant. But I am very proud of how we at PCPC all adapted and evolved, and rose to the challenge even in the face of adversity,” PCPC President and Chief Executive Officer Nicandro R. Fucoy said.

PCPC said Rene Marlon Castigador is the new plant manager, while the turnover on Aug. 16 also marked the fifth anniversary of the plant’s commercial operations. — Revin Mikhael D. Ochave

Help small restaurants: Order the HAIN menu this weekend

A NEW ROUND of lockdowns rolls out today. The government has placed the capital under General Community Quarantine (GCQ) Alert Level 4, which means that some activities will be allowed again, including dining in at restaurants (albeit at 30% capacity outdoors, and 10% capacity indoors, but only for fully vaccinated individuals). This easing on dining restrictions comes just in time as a new initiative to help smaller food establishments kick off this weekend.

Unknwn, an experiential events company under CC:Concepts brought the country’s first film concert experience with Harry Potter in Concert and Call Me By Your Name in Concert; as well as several pop-up events across the islands. Its co-founder, Samantha Nicole, is programming director for bar Futur:st, the surviving Poblacion sibling of closed-down Cubao bohemian bar Today x Future (story here: https://www.bworldonline.com/the-future-is-now-past/).

This weekend, Unknwn is launching the HAIN initiative to boost support for small, local, and independent food establishments that have been gravely affected by the ongoing pandemic. For HAIN’s first edition, happening on Sept. 17 to 19, 13 restaurants in Metro Manila have put together special takeaway menus and set meals exclusively for HAIN. The participating restaurants include Angel’s Kitchen, The Bowery NYC Comfort Food, Lampara, OTO, Borough, Nic’s Park Terraces, Hai Shin Lou, Futur:st, Square One Hospitality, Cheech & Chang Hong Kong Roasts, TETSUO, Mijo Comfort Food, and The Bistro by Element Boutique Hotel.

In an e-mail to BusinessWorld, Ms. Nicole said, “It only made sense for Unknwn to extend its reach — and reactivate during a pandemic after one and a half years of nightlife and events being halted — as a vehicle to aid small spaces, where Unknwn’s origins and first few parties started, in a different but still community-driven way. It only made sense for us to utilize our market and our reach to help these surviving restaurants, and tap our audience who have always given high regard to personal and communal experiences.”

These set meals are available on HAIN’s official website, www.hain-mnl.shop, for P1,500. Customers can already order these special set meals until the last day of the HAIN weekend on Sept. 19. The complete menu can be found on the website, with treats like Future Rocket Salad and US Rib Eye Gyukatsu from OTO, vegetarian feats from Nic’s, and roasted pork belly from Mijo.

Fifteen percent of sales from the HAIN weekend will go to Rise Against Hunger PH in support of their projects to end hunger by empowering communities, nourishing lives, and responding to emergencies.

“We are working hard to make sure that this is only the beginning of HAIN’s efforts in further empowering small, independent, non-franchised restaurants, restauranteurs, and cooks,” said Ms. Nicole. “We invited this first batch of restaurants because of this currently dire situation. As a restaurant and space owner myself, I understand exactly what these places are going through, some of them we personally know, and we have heard all their stories of hardship and resilience. Hopefully, we can continuously make things happen for HAIN in different ways and be able to touch on more establishments and cooks.”

Initiatives like this will help make more people aware of the existence of these small restaurants. “We saw HAIN as an opportunity to let people know that all these establishments are working their hardest to offer diverse courses. It is important for people to know that they have access to delicious, comforting, and carefully made meals that are worth the price and hype. Having HAIN as the platform means further widening and increasing their market and, hopefully, cushion them a bit financially through the orders in the next three days.”

For the HAIN weekend, HAIN has partnered with indoor farm Future Fresh to provide the participating restaurants with hydroponically grown and pesticide-free greens. HAIN is also working with upcoming events IFEX Philippines and Sustainability Solutions Expo (SSX) to provide sustainable food packaging throughout the weekend.

“Restaurants’ needs and demands vary but we all share the same plights: Lack of sales, inability to serve our customers the way we used to, ever-changing regulations, losing our staff whom we consider as family, the list goes on,” said Ms. Nicole.

“The solution is to help one another; widen our minds and receive the subsidy we all deserve. If we are all capable to be more empathic to each other, and understand that there is strength in togetherness, we can hopefully, somehow, make it through. Community is key. Getting out of your comfort zone is also key. We’ll be happy to know that more collective initiatives like HAIN could be on the horizon. It’s all about working together for all of us to thrive, and not just survive.”

The set meals can be ordered through hain-mnl.shop. Each HAIN kit will also come with a complimentary Singleton of Dufftown 12YO Pocket Single Malt Scotch together with custom cocktail recipes concocted by each partner restaurant. —  Joseph L. Garcia

TRB: Some motorists exploit barriers-up system along NLEX

THE Toll Regulatory Board (TRB) said on Wednesday that some motorists use the North Luzon Expressway (NLEX) in Valenzuela without paying because of the barriers-up policy, resulting in revenue loss.

“As to the problem, I already gave an opinion to the NLEX Corp. that they can apprehend motorists [who are abusing the barriers-up system],” TRB Executive Director Alvin A. Carullo said during a House budget hearing. 

He said NLEX Corp. is now apprehending non-paying motorists.

“Kaya ‘yung sinasabi na pagkawala ng income ng NLEX at siyempre ng gobyerno [addressed] na po ‘yun (The problem that results in revenue loss has been addressed),” Mr. Carullo added.

The Valenzuela City government suspended the business permit of NLEX Corp. in December last year over the heavy traffic caused by the implementation of its cashless toll payment system. 

Valenzuela City Mayor Rex T. Gatchalian lifted the suspension after both parties agreed to keep the toll barriers up on all lanes for vehicles with RFID (radio-frequency identification) stickers.

Terry L. Ridon, convenor of infrastructure-oriented thinktank InfraWatch PH, said in a statement on Sept. 9: “While the intention of Valenzuela to ensure the seamless flow of traffic is laudable, this is the big picture: at least 8,000 motorists are exploiting the barriers up policy within the NLEX open system every day.”

“This constitutes a revenue loss of P500,000 per day and more importantly, a loss of value-added tax revenue of P18.7 million per year.”

He said a “no contact apprehension system” will put a rest to such risks and ensure that the barriers-up policy will remain a viable policy. — Arjay L. Balinbin

A Philippine rum with a hint of Magellan

WHEN Ferdinand Magellan set sail for the East, we don’t think he thought he would meet his end on these islands, a bit more than halfway round the world from home, nor that he would inspire a new rum.

More than 500 years stand between Ferdinand Magellan’s birth in Portugal in 1480 and 2021, when Don Papa Rum’s new expression, the Don Papa Port Casks, take inspiration from the navigator’s origins as the son of minor nobles in Portugal.

To make Don Papa Port Casks, Don Papa Rum (made with Philippine sugar from Negros, in Negros) is aged first for two years in ex-bourbon casks, then in port casks for five more years. Port, a dessert wine, comes from Portugal’s Douro Valley and takes its name from the city of Porto. The right to name its products has been legally protected since the mid-1700s, making it the third-oldest appellation in Europe.

The latest expression was launched via a dinner (delivered at home — safety first) on Sept. 8. The menu was prepared by chef Victor Magsaysay, and included boat tarts, gazpacho, porchetta, smoked lapu-lapu, and ylang-ylang leche flan. These were paired with two cocktails: Two Worlds (fig-infused Don Papa 7, spiced syrup, Peychaud’s Bitters) and San Lazaro (Don Papa Port Casks, Ferrand Dry Curacao, Cocchi Vermouth di Torino, Mancino Vermouth Secco, homemade grenadine).

Don Papa Port Casks by itself has some hints of vanilla and flowers in the scent, a gentleness that does not prepare you for its aggressive taste. It has a flavor as dark and deep as its color: brooding, spicy, and smoky, with a very pronounced flavor and scent of wood. Sipped out of a tiny port glass, it had a piquant spicy note that lingers on the tongue (and the throat), long after you’ve put the glass down.

If this expression is aggressive, it mellows down in a cocktail, lending some gravitas in the tart and tangy San Lazaro cocktail. It works well with food, demonstrated in how it accentuated the herbal flavors and firm texture of the porchetta (Mr. Magsaysay suggests pairing it with goat meat). It’s a drink for slow times; for sipping slowly and ruminating.

This new drink follows older siblings Don Papa Rare Cask, Sherry Cask, Sevillana Cask, and last year’s Rye Aged limited editions. Andrew Garcia, Don Papa co-founder and Managing Director, discussed these expressions and how they come up with them in a press conference before dinner.  

“We really played around with the different types of wood to bring out something new and spectacular for you to enjoy,” he said. “We explore the whole industry, not just in rum. We look at whiskies, vodkas, tequilas, and we also look towards food,” he said, speaking about the creative process. “At any given time, we have something like 50 experiments happening. You wouldn’t believe how many different types of rum we have to taste every six months.”

He shared a story about the Don Papa Sevillana Casks, flavored by casks that once held Spanish orange liqueur. Every six months, when they would taste it, it would change character and flavor, going from good to bad every so often. “Once it was beautiful again, I said, ‘let’s just launch it already!’.”

“It’s kind of a hit-or-miss,” he says about these experiments. “It’s part of the game to explore different types of flavors here and there,” he explained.

Meanwhile, while the limited editions can impress Don Papa veterans, will the multitude of ways to drink Don Papa confuse a Don Papa virgin? Monica Llamas-Garcia, Communication Director for Don Papa Rum said, “That’s the whole point of having these new expressions. We’ve created avenues for people to discover the world of Don Papa in different ways.

“There’s a Don Papa for everyone.”

Don Papa Port Casks is available at Ralph’s Wines & Spirits and Boozy.ph starting this September. — Joseph L. Garcia

Yields on term deposits decline as US inflation slows in August

BW FILE PHOTO

YIELDS on the central bank’s term deposits slipped on Wednesday on softer US inflation last month.

Total bids for the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) reached P607.663 billion on Wednesday, surpassing the P510 billion on offer but a tad lower than the P614.05 billion in tenders seen a week ago.

Broken down, demand for the seven-day papers amounted to P216.55 billion, surpassing the P150-billion program and the P191.356 billion in tenders logged in the previous week’s auction.

Accepted rates for the tenor ranged from 1.69%-1.73%, a slimmer band compared with the 1.69-1.85% margin seen a week earlier. This caused the average rate of the one-week term deposits to slip by 0.6 basis point (bp) to 1.7083% from the 1.7143% quoted last week.

Meanwhile, the 14-day term deposits fetched bids worth P391.113 billion, going beyond the P360 billion auctioned off by the BSP but lower than the P422.712 billion in tenders recorded a week earlier.

Banks asked for yields ranging from 1.7%-1.8999%, a narrower margin than the 1.705%-2% band logged last week. With this, the average yield on the two-week papers inched down by 0.94 bp to 1.7423% from 1.7517% in the previous auction.

The BSP did not offer 28-day term deposits for the 47th straight auction to give way to its weekly offerings of bills with the same tenor.

The term deposits and the 28-day bills are used by the BSP to gather excess liquidity in the financial system and to better guide market rates.

TDF yields inched down following the release of data showing slower US inflation, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

The US Labor department on Tuesday said the overall consumer price index rose 0.3% in August, slowing from the 0.5% in July, Reuters reported. This is also softer than the 0.4% estimate by economists in a Reuters poll.

Meanwhile, core inflation, which excludes volatile food and energy components, rose by 0.1%, marking the slowest increase since February and also easing from the 0.3% in July. It was likewise softer than the 0.3% estimated by economists in a Reuters poll.

The government’s move to shift to an alert level system to curb the spread of the coronavirus also affected sentiment, Mr. Ricafort added.

Government officials on Tuesday announced new restriction measures which put areas under alert levels, with five being the highest. Alert Level 5 shall be imposed in areas where case counts are “alarming” and hospital utilization rates are at “critical” levels.

Presidential Spokesperson Herminio “Harry” L. Roque, Jr. said Metro Manila will be under Alert Level 4 starting Thursday until Sept. 30. This level means the area has high or increasing coronavirus transmission and a high healthcare system utilization rate.

Trade Secretary Ramon M. Lopez said some businesses including manufacturing firms would be allowed to operate in Metro Manila, restoring as many as 200,000 jobs. — L.W.T. Noble with Reuters

Monde Nissin puts sustainability at forefront

By Keren Concepcion G. Valmonte, Reporter

MONDE Nissin Corp. has increased its efforts on putting health and sustainability as the focus for its product development and innovation plans, the company’s president told BusinessWorld at the third episode of its Crisis Insights from Philippine Tycoons series.

“Our ramped-up research and development is focused on new product development that is aligned with our aspirations for sustainability and health for customers and for the planet,” said Betty T. Ang, president and director of Monde Nissin.

The company saw “significant progress” in several of its long-term growth plans in production capacity, new product developments, and brand awareness initiatives.

It will be expanding the lines for the production of its “healthy” Lucky Me! Noodles, which now uses high-speed airflow technology to reduce the oil content in the product by 70%. This is said to make the product healthier and more sustainable, while maintaining taste and texture.

“We believe our healthy Lucky Me! noodles will provide a unique value proposition to our consumers,” Ms. Ang said.

Meanwhile, the company is working on creating new products and expanding marketing initiatives for its meat alternatives brand. Quorn Foods is available in the US and the UK — where it is said to be the leading brand with a 28% retail market share by value as per OC&C Strategy Consultants — and 21 other countries.

“With our quick service restaurant strategy, we are in discussions with a number of many global and regional players in many different markets across Europe and Asia,” Ms. Ang said.

In the UK, Quorn Foods has inked partnerships with fastfood restaurants such as KFC, Greggs, Costa, and Pizza Hut. Meanwhile, in the US, it has partnered with Hooters for “unreal wings.”

The company is working on adapting the preferred taste of the new markets Quorn plans to penetrate. Compared to its global competitors, the selling price of Quorn products is also said to be lower.

“We understand that to grow the overall market, we need the taste, texture, and price to be competitive with traditional meat,” Ms. Ang said.

“With our scale and innovation, we will be more efficient in providing better and tastier products,” she added.

Monde Nissin’s near-term growth hinges on its in-home products, such as its Lucky Me! Noodles and brands under Mama Sita’s. Its international and export business is also experiencing strong growth.

Meanwhile, the company also hopes to see better policies on environmental sustainability in the Philippines, expressing concern over the health of people and the planet.

“We do hope to see policies driving positive practices and discouraging unsustainable practices. We hope to see policies to better address environmental issues, for example, the mitigation of plastic waste and the reduction of emission of greenhouse gases,” Ms. Ang said.

Monde Nissin plans to offset its plastic tonnage locally for its big brands. It hopes to use 100% renewable energy in its plants by 2022. On Wednesday, its shares at the stock exchange went up by 4.05% or 74 centavos to close at P19 each.

Apple’s new iPhone 13 touts faster 5G, sharper cameras

TRUSTPAIR.COM

APPLE, Inc unveiled the iPhone 13 and a new iPad mini on Tuesday, expanding fifth generation (5G) connectivity and showing off faster chips and sharper cameras without raising the phone’s price.

The Cupertino, California-based company did not announce any blockbuster features or products, but analysts expect customers hanging onto older models like the iPhone X will be eager to upgrade. To encourage trade-ins, participating wireless carriers are offering incentives ahead of the year-end holiday season that to make the new phones free to some customers.

The iPhone 13 will have a new chip called the A15 Bionic that enables features like automatically translating text. The phone also has a better display, longer battery life and a Cinematic mode for automatically changing focus while taking videos. Apple said the iPhone 13 will have custom 5G antennas and radio components for faster speeds and will come in five colors.

The phone will start at $699, and participating wireless carriers will offer up to $700 off for qualifying trade-ins. The iPhone 13 Pro starts at $999 and the Pro Max starts at $1,099, with trade-in offers of up to $1,000. All three models will be available Sept. 24.

The prices are unchanged from last year, but some carriers such as AT&T, Inc. will offer the devices for no additional charge with subsidies of up to $1,000 if customers trade in a previous model and sign up for an installment plan.

Verizon Communications, Inc. and T-Mobile US, Inc. offered similar deals but with slightly lower subsidies up to $700. The biggest subsidies will go to customers who turn in iPhone 11 and iPhone 12 models.

Ben Bajarin, head of consumer technologies at Creative Strategies, said he expects those aggressive subsides will increase as Apple and carriers try to hold onto customers.

“That offer is unique to Apple, and it’s a strength they have to keep these sales cycles going for them and for the carriers,” Mr. Bajarin said.

The iPhone is Apple’s most important product, but Apple has rolled out a web of service and other products that are seen as locking customers into a system they enjoy — and would find expensive to leave.

The Series 7 smart watch will feature a larger display and faster charging. It will start at $399 and be available later this autumn.

The company also updated its iPad Mini with 5G connectivity and a reworked design that makes it look like the higher-end iPad Air and Pro models. Bob O’Donnell, head of TECHnalysis Research, said the small tablet was Apple’s most surprising announcement and could lure in customers who want a device with 5G that can handle more powerful apps than a phone.

“I don’t think it replaces any other device, like we’ve seen Apple try to position some of the bigger iPads as PC replacements,” Mr. O’Donnell said.

The new iPad Mini’s price rose by $100, but it also added new capabilities like compatibility with the company’s Apple Pencil and a faster chip than the larger-screened base model iPad, bucking a trend of smaller screens being cheaper. Apple showed the Mini in use by professionals like doctors.

Apple also updated its base-model iPad with a new camera. The new iPad will start at $329 and the Mini at $499. Both will be available next week.

Apple shares closed down about 1%, a sharper fall than a slight downturn in broader markets.

“It seems like there’s nothing really revolutionary announced, but of course, as usual, they announced enough improvements to at least generate some enthusiasm among consumers,” said Rick Meckler, partner at family investment office Cherry Lane Investments.

Apple’s biggest product launch of the year comes as some of the shine has come off its stock as business practices such as charging software developers commissions on in-app payments have come under regulatory scrutiny.

Apple shares were up about 11.6% year to date as of Tuesday’s close, trailing the Nasdaq Composite Index, which was up 16.7% over the same period.

Kim Forrest, founder and chief investment officer at Bokeh Capital, said she was not concerned by the lack of splashy, unexpected products, since Apple’s upgrades would keep customers. “I think the consumer, once it gets the Apple chip in its head, it’s very hard to dislodge,” she said. 

The Apple Watch has become a cornerstone of its $30.6-billion accessories segment, which was up 25% in Apple’s most recent fiscal year even as its iPhone revenue declined slightly. Analysts widely believe that Apple users who buy more than one product — such as an Apple Watch and iPhone — are more likely to stick with the brand and spend on the company’s apps and services.

Apple focused on fitness features such as improving how the watch tracks bicycling workouts and dust protection for hiking. The watch is paired tightly with Apple Fitness+, a paid service offering guided workouts with Apple instructors. The company added pilates, skiing-oriented workouts and group workouts.

Shares of exercise bike and online training company Peloton were down about 1.6%. — Reuters

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