Fewer people in the US drank coffee during the pandemic — survey

April 8, 2021 | 12:06 am

NEW YORK — Fewer people drank coffee in the United States during the pandemic compared to levels seen before it, although the drink remained by far the most popular in the country, according to results of a national survey released last week.

The survey commissioned by the National Coffee Association (NCA) found that 58% of people in the US had at least one coffee the day before responding to the survey in January, versus 62% a year earlier.

The results, however, do not necessarily indicate a reduction in coffee volumes consumed in the US, the world’s largest market for the product, since many people while working from home drank more coffee than they normally would in offices.

Major coffee retailers in the US posted increases in overall volumes sold during the pandemic.

It is unclear if those increases offset the fall in out-of-home consumption.

The fact coffee shops are still operating with limitations might be one of the reasons for the coffee drinking fall.

The survey says people are drinking as much coffee in the morning as always, but drinking in the afternoon — a habit often linked to coffee shops visits — fell four percentage points.

“Coffee continues to be America’s undisputed favorite beverage, even with the entire country in various stages of lockdown and footfall in coffee shops down massively this year,” said NCA President and CEO Bill Murray.

He expects consumption to increase in coming months as the country recovers from the coronavirus.

According to the survey, people continued to be divided about when they would feel comfortable to go out for coffee, with 33% saying they feel comfortable now and another 31% saying they will not be comfortable until the pandemic is over. — Reuters

YouTube discloses prevalence of rule-breaking videos for first time

April 8, 2021 | 12:05 am

ABOUT 1.6 million views on YouTube out of every 1 billion are of a video that violates its content policies, about even with a year ago, the streaming service owned by Alphabet, Inc.’s. Google said in a new disclosure on Tuesday.

The “violative view rate” (VVR) has dropped over 70% since it was first tracked in the fourth quarter of 2017, YouTube said, and demonstrates its progress in blocking hate speech and other videos it considers dangerous before they go viral.

Critics have said inadequate policing by YouTube and other social media companies enables false and hateful rhetoric to spread, fomenting deadly violence such as the US Capitol attack in January.

YouTube’s VVR was steady over the last six quarters measured, according to the new data, which run through 2020.

Jennifer O’Connor, a product director at YouTube, told reporters that she hoped releasing the estimate each quarter “continues to hold us accountable.”

She said the rate, like other enforcement data YouTube releases, could fluctuate as its technology, rules and users evolve. For instance, YouTube removed nearly 171,000 channels for hate speech in the fourth quarter, three times more than the preceding period. It attributed the jump to improved detection technology.

The VVR comprises all policy violations and is derived from a sampling of videos. It does not include comments on videos.

Facebook, Inc. releases a similar estimate but excludes bullying, spam, and other violations. Added up, Facebook has said at least 15 million views out of 1 billion in the fourth quarter were of content violating its rules against adult nudity and sexual activity, violent or graphic material, and hate speech.

Countering criticism about “grading” itself, Facebook last year said it would hire an outside auditor to assess its disclosures.

YouTube’s Ms. O’Connor on Monday declined to commit to an external audit but said she “wouldn’t rule it out.” — Reuters

Cebu Landmasters posts lower income, hits record reservation sales

April 8, 2021 | 12:05 am

CEBU Landmasters, Inc. (CLI) reported a net income attributable to the parent firm of P1.85 billion, or down by 8%, which the listed real estate developer said was within its profit guidance for 2020.

“[The company immediately deployed] catch-up measures shortly after the relaxation of lockdowns triggered by the pandemic in the first half of 2020,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said in a statement on Wednesday.

The company said the single-digit profit decline was due to its “market-leading VisMin (Visayas-Mindanao) advantage and sustained demand [across residential] product line.”

Consolidated revenues for the year amounted to P8.3 billion, inching down by 2.4% from P8.5 billion. Meanwhile, revenues for the fourth quarter went up by 18% to P2.59 billion from P2.2 billion in the previous quarter.

CLI reservation sales went up by 12% in 2020 to P14.25 billion, a record for the company, from P12.67 billion the previous year. It also noted that strong sales take-up led to an unrealized revenue worth P20.4 billion.

“The company’s economic housing brand Casa Mira accounted for 69% of 2020 sales, [while] its mid-market Garden Series [contributed] 19%, and high-end Premier Masters, 10%,” it said.

CLI pointed to its digitization efforts as early as April last year, which the property developer said also boosted its online selling capability.

Real estate sales for the year amounted to P8.15 billion, inching down by 2.9% from P8.39 billion. Revenues from rentals declined by nearly 13% to P55.2 million from P63.15 million the previous year. Revenues from hotel operations surged to P54.6 million from P8.52 million.

The company said its balance sheet breached $1 billion in 2020.

“We are just approaching our fourth year as a listed company, and we are proudly already a $1-billion company in terms of assets due to our progressive construction of residential units and build-up of our recurring income business,” CLI Director and Chief Operating Officer Jose Franco B. Soberano said in an online briefing on Wednesday.

The company currently has 25 projects in the works.

This year, 15 of these will be launched, which are P19-billion residential developments with more than 7,500 units.

CLI also said its gross leasable area is expected to grow by 48% to 28,000 square meters (sq.m.) from 14,000 sq.m. in 2020.

It will allot P12 billion in capital expenditure for project development. The company aims to grow by 15-20% this year.

The CLI director said he was positive about the opportunities in the region this year, saying they “understand very intimately, very strongly” their market in the region.

“No other developer on the market or came out and said that VisMin will be my only focus, but our only focus has become our greatest strength because there is so much opportunity in Visayas and Mindanao,” he said.

On Wednesday, CLI shares at the stock exchange went up by 2.01% or P0.12 to close at P6.10 apiece. — Keren Concepcion G. Valmonte

Axelum eyes bigger market share in US via e-commerce

April 8, 2021 | 12:04 am

AXELUM Resources Corp. seeks to increase its market share in the United States e-commerce business after receiving positive customer response for its products.

In a disclosure to the stock exchange on Wednesday, the listed coconut products manufacturer and exporter said some of its products such as organic coconut flakes had placed among the top 20 bestsellers in their segment and received positive reviews from customers.

In 2018, the company launched an introductory product line-up under local brand Fiesta Tropicale with global e-commerce platform Amazon.

Axelum said the initiative aims to take advantage of new methods of advertising and connecting with customers through a fast and cost-effective manner.

Axelum President and Chief Operating Officer Henry J. Raperoga said the company is encouraged by the growth of its e-commerce business segment amid the limited resources initially given to the venture.

“As we continue to realize its transformative impact, we are determined and committed to further harness the potential of this revenue stream,” Mr. Raperoga said.

“This undertaking involved years of product incubation, including extensive market research to develop the most suitable offerings that meet the taste profile and nutritional values of a thriving health-conscious retail population in the United States,” he added.

Meanwhile, Axelum said it is planning to create a professional marketing team to lead its digital initiatives such as increasing online traffic and accessibility via social media platforms.

“In addition, Axelum is seriously exploring another key geography with a mature e-commerce industry and proven export market for coconut products for future rollout,” the disclosure said.

The company added that it is preparing the launch of a new set of organic variants that have redesigned packaging styles to match its current lineup, together with digital marketing campaigns that will maximize untapped opportunities.

On Wednesday, shares of Axelum at the stock exchange improved 0.86% or three centavos to finish at P3.50 apiece. — Revin Mikhael D. Ochave

Samsung profit surges 44% as mobile sales cushion fab loss

April 8, 2021 | 12:04 am

SAMSUNG Electronics Co.’s profit for the first quarter rose 44% from the prior year as the early release of a new flagship smartphone and strong gadget sales softened the blow from a Texas power failure that took one of its factories offline.

South Korea’s biggest company posted operating income of 9.3 trillion won ($8.3 billion) for the three months ended March in preliminary results released Wednesday. That compares with a 8.88 trillion won average of forecasts. Sales for the quarter were 17% higher than the same period a year ago at 65 trillion won. The company didn’t provide net income or break out divisional performance, which it will report later this month.

Shares were down about 0.5% in Seoul on Wednesday morning.

The world’s largest memory maker had warned about profitability declining in the first quarter, anticipating weaker demand, but instead the economic rebound from the pandemic happened faster than expected and semiconductor prices are now on the rise. “Improving DRAM supply-demand conditions will boost the profits,” said Bloomberg Intelligence analyst Masahiro Wakasugi, adding that “the launch of next-generation DRAM, DDR5 (double data rate 5), in 2H21 may stimulate demand, further boosting the sales.”

Still, the company’s Austin, Texas plant was suspended for more than a month by statewide power failures, leading to about 300 billion won of losses, according to analysts’ estimates. That lost output will have affected its auto parts and mid-range smartphones, said Greg Roh, a senior vice-president at HMC Securities.

The Galaxy S21 family of flagship Android devices was released earlier than Samsung’s annual refresh cadence, giving its phone business a January boost. With major rival Huawei Technologies Co. derailed by US sanctions, Samsung and a cohort of Chinese contenders have rushed to fill the void left in the market.

Samsung’s first-quarter smartphone shipments are estimated at 76 million, up 25% from the previous quarter, with an average selling price more than 20% higher, according to Eugene Investment & Securities. The S21 series outsold its predecessor S20 by a two-to-one margin in the first six weeks after launch, helped by a lower starting price and strong support from US carriers, according to Counterpoint Research. — Bloomberg

Prince Harry and Meghan’s first Netflix project to focus on Invictus Games

April 8, 2021 | 12:04 am

BRITAIN’S Prince Harry and his wife Meghan will produce their first Netflix Inc. series that will focus on athletes competing in the Invictus Games for injured veterans in The Hague in 2022.

Harry will appear on camera in the documentary series called Heart of Invictus and serve as an executive producer through the couple’s Archewell Productions, Netflix said in a statement on Tuesday.

The series will provide behind-the-scenes stories of athletes and organizers as they prepare for the event, which has been delayed until next spring due to the COVID-19 pandemic, Netflix said.

Orlando von Einsiedel will direct the multi-episode series and Joanna Natasegara will be its producer, Netflix said. The duo produced the Oscar-winning short documentary The White Helmets about a rescue group in Syria.

The Invictus Games is a multi-sport event created in 2017 by Prince Harry — who served as a soldier in Afghanistan — for military personnel wounded in action.

The couple, who has been in the news following an interview with US chat show host Oprah Winfrey last month, signed a multi-year production deal with Netflix in September.

Harry and Meghan now live in Southern California after making a final split with the British royal family. — Reuters

Yields on BSP’s term deposits drop on lower March inflation

April 8, 2021 | 12:04 am

THE CENTRAL BANK’S term deposits fetched lower yields following the slower inflation print recorded in March. — BW FILE PHOTO

YIELDS on the central bank’s term deposits inched down on Wednesday following the slower inflation print recorded in March.

Bids for the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) amounted to P651.115 billion on Wednesday, higher than the P490-billion offer but failing to beat the P685.078 billion in tenders seen last week.

Broken down, the seven-day term deposits attracted bids worth P191.731 billion, surpassing the P140 billion on the auction block but lower than the P226.288 billion in tenders last week.

The one-week tenor fetched rates ranging from 1.7% to 1.825%, slightly narrower than the 1.7% to 1.85% band seen on March 31. With this, the average rate of the debt papers inched down by 4.38 basis points (bps) to 1.7842% from 1.828% in the previous auction.

Meanwhile, bids for the 14-day deposits amounted to P459.384 billion, above the P350-billion offering on Wednesday and the P458.79 billion in tenders seen a week ago.

Banks asked for yields spanning from 1.75% to 1.8625%, narrower than the 1.7% to 1.8924% range last week. This caused the average rate of the two-week papers to decline by 2.96 bps to 1.8431% from 1.8727% previously.

The BSP did not offer 28-day deposits for the 24^th straight auction to give way to its weekly auction of bills with the same tenor.

The TDF and the BSP bills are tools used by the central bank to gather excess liquidity in the financial system and guide market interest rates.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the decline in term deposit yields reflected market sentiment on the March inflation data released by the government on Tuesday.

Inflation eased in March after climbing for five consecutive months, the Philippine Statistics Authority reported on Tuesday.

Headline inflation was at 4.5% in March, slowing from the 4.7% print in February but faster than the 2.5% seen in March last year. It also fell within the 4.2-5% estimate given by the BSP for the month.

Inflation averaged at 4.5% for the first quarter, beyond the BSP’s 2-4% target for 2021.

The central bank expects inflation to average 4.2% this year before easing to 2.8% in 2022. BSP officials have said the inflation path is likely to ease below the midpoint of the 2-4% target towards the fourth quarter.

BSP Governor Benjamin E. Diokno has said the central bank will remain accommodative to support economic recovery but will continue to watch out for potential second-round inflation effects, such as wage and transport fee hikes. — Luz Wendy T. Noble

Intel brings delayed technology to server, ready for ‘huge build-out’

April 8, 2021 | 12:03 am

INTEL CORP., the world’s largest chipmaker, said it’s offering a revamped version of its Xeon range in time for what it sees as the “biggest build-out of technology infrastructure in human history.”

The company has struggled with updating its manufacturing — a key part of improving the ability of processors — and is now bringing a technology called 10 nanometer to server chips. The new versions perform, on average, 46% better than their predecessors, Intel said on Tuesday.

Intel is trying to respond to a renewed challenge from Advanced Micro Devices, Inc., a company it had banished to less than 1% share in the lucrative server processor market. Intel plans to be “super aggressive” in competing, according to Navin Shenoy, who heads the Santa Clara, California-based company’s data center business.

Intel chips using the 10-nanometer process were initially scheduled to debut in 2017. Difficulties in making that technology work economically caused multiple push backs. That holdup allowed AMD to field processors, made by contract manufacturer Taiwan Semiconductor Manufacturing Co., that it touts as more advanced than Intel’s products.

The manufacturing delays were among the issues that plagued the once-dominant chipmaker, sending its stock down almost 17% last year and leading to the appointment in February of Pat Gelsinger as chief executive officer. Gelsinger, a former longtime Intel executive who left in 2009, last month announced a new strategy to revive the company’s technological prowess.

Shenoy said that regardless of the competitive dynamics, Intel’s new flagship is being rolled out at a time of unprecedented demand for computer and networking infrastructure. The pandemic helped accelerate what the technology industry is calling the digitization of the economy.

“We believe we’re headed for the biggest build-out of technology infrastructure in human history,” he said in an interview. “We’re seeing that in real time.”

Shenoy said the changes in the economy are profound, and not just confined to the effects of the pandemic. For example, online conference calls have replaced air travel, hotel use and the need for rental cars, he said. The use of computing over the internet in the cloud and the building of fifth generation, or 5G, cellular networks will change multiple industries and spur demand.

The new Intel chips will have as many as 40 computing cores built into one piece of silicon. They’ll also be able to access much more memory, a bottleneck for server performance, the company said.

Shenoy said Intel’s unique strength is its ability to offer a range of chips — memory and artificial intelligence software accelerators — that customers need as much as bumps in processor speed. — Bloomberg

Avon sees rise in demand for essential products

April 8, 2021 | 12:03 am

AVON Philippines’ intimate apparel and essential products sales are growing as demand for the company’s make-up and fragrance products remains low during the pandemic.

“Very interesting and somehow [surprising] at a certain moment: it’s intimate apparel, which is actually a category that was growing for us, particularly in quarter four last year,” Avon Philippines General Manager Razvan Diratian told ANC on Wednesday.

Avon Philippines’ sales was in line with a total market decline, he said, but noted that the company retained the largest market share in make-up, lotions, intimate apparel, and fragrances.

Mr. Diratian added that the company continues to recruit more sales representatives, many of whom work through digital means.

“More and more people at this moment, they are joining our network because making a direct selling business with Avon is quite easy,” he said.

“What we are noticing is the number of recruits, actually, it’s increasing campaign by campaign I would say double digits versus [the] previous year. And even some of the months were significantly better than the numbers before [the] pandemic.”

Avon in October last year said that personal care and home products continued to see demand during the lockdown. The company also has no plans to increase local manufacturing. — Jenina P. Ibañez

Kim Kardashian joins the billionaire club

April 8, 2021 | 12:03 am

KIM KARDASHIAN — EVA RINALDI/EN.WIKIPEDIA.ORG/

LOS ANGELES — Kim Kardashian has added billionaire to her resume.

The cosmetics and shapewear businesswoman, who launched her career off the reality TV series Keeping Up with The Kardashians, was included on Tuesday for the first time on Forbes magazine’s list of the world’s billionaires.

Forbes said it estimated that Kardashian, 40, “is now worth $1 billion, up from $780 million in October, thanks to two lucrative businesses — KKW and Skims — as well as cash from reality television and endorsement deals, and a number of smaller investments.”

The Forbes estimate means Ms. Kardashian joins her soon-to-be ex-husband Kanye West in the billionaire’s club. Forbes on Tuesday estimated Mr. West’s net worth at $1.8 billion, mostly from deals on his Yeezy sneaker and fashion line.

Ms. Kardashian filed for divorce from West, 43, in February, citing irreconcilable differences.

Her half sister Kylie Jenner, however, lost her billionaire status, Forbes said on Tuesday. It valued the 23-year-old’s fortune at around $700 million, citing a tough year for cosmetic sales during the coronavirus pandemic and what it said were previous overestimates of revenue from Kylie Cosmetics, now 51% owned by Coty, Inc.

Ms. Kardashian founded KKW Beauty in 2017, promoting and selling the products online, helped by a social media presence that includes some 213 million Instagram followers. She launched the multihued shapewear line Skims in 2019.

Ms. Kardashian celebrated on Tuesday by posting a photo of herself in a bikini on a beach, with the caption “Bliss” and announcing the launch of the first Skims pop-up shop at a high-end shopping mall in Los Angeles. — Reuters

MAMTC plans to launch two new offshore funds

April 8, 2021 | 12:03 am

MANULIFE Asset Management and Trust Corp. is looking to launch two new offshore funds this year that aim to leverage on the changes caused by the pandemic. — MANULIFE.COM.PH

MANULIFE ASSET Management and Trust Corp. (MAMTC) is planning to launch two new offshore funds this year that will take advantage of the changes brought about by the global health crisis.

MAMTC President and Chief Executive Officer Aira Gaspar said in an interview last week that the new funds are scheduled to be launched this year, with one focused on the global market and the other being a single country-focused fund outside of the Philippines.

Ms. Gaspar said other details of the new funds cannot be disclosed yet as these still need approval from the Bangko Sentral ng Pilipinas.

“These two funds are positioned to leverage the changes that were amplified by the pandemic,” she said.

“There is increased volatility in different markets and there is no single asset class that outperforms across different cycles so our goal is to continue developing a wide range of differentiated products and encouraging investors to build portfolios rather than invest in a single fund,” Ms. Gaspar added.

She said they expect the two funds to be received well by investors, based on the company’s past experiences when launching new products.

The upcoming products will add to the pool of funds and reference portfolios managed by MAMTC, such as those focused on investments with lowest volatility, highest risk-adjusted return, highest total return, and steady flow of income.

Manulife’s global asset management arm recently launched its Global Healthcare Equity Feeder fund that invests mainly in health-related industries, and the Global Multi-asset Diversified Income Feeder fund which aims to generate income for investors who want to have a buffer against market volatility.

Ms. Gaspar said they will also continue to boost their digital channels to give clients access to more investment options. “We are looking to add a functionality that will allow clients to build portfolios instead of taking single concentration in a particular fund.” — Beatrice M. Laforga

Global Ferronickel targets to ship 6-M wet metric tons of nickel ore

April 8, 2021 | 12:02 am

GLOBAL Ferronickel Holdings, Inc. (FNI) announced that it is targeting a nickel ore shipment volume of 6 million wet metric tons (WMT) for 2021.

The listed mining firm said in a regulatory filing on Wednesday that its Surigao del Norte based operating arm, Platinum Group Metals Corp. (PGMC), has started the shipment of nickel ore to its customers in China on March 29.

“We are confident in hitting this year’s target, weather permitting, with the opening of CAGA 1 next month which is expected to boost capacity by 10%,” FNI President Dante R. Bravo said in the disclosure.

FNI said its operating arm has four operational mining areas with the opening of CAGA 1, combined with the other sites called CAGA 2, CAGA 3, and CAGA 4.

The company also disclosed that its forecast sales mix is 70% low-grade and 30% medium-grade nickel ore, while its capital expenditure for the year is set at $5 million.

On Wednesday, shares of FNI at the stock exchange rose 3.61% or nine centavos to end at P2.58 each. — Revin Mikhael D. Ochave