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Tender offer of Pepsi-Cola shares discontinued

THE tender offer of shares in Pepsi-Cola Products Philippines, Inc. (PCPPI) in relation to its acquisition by Lotte Chilsung Beverage Co., Ltd. has been discontinued due to noncompliance with the Securities Regulation Code.

In a disclosure to the stock exchange yesterday, the listed soft drinks manufacturer said it has been notified by Lotte of the offer’s suspension as advised by the Securities and Exchange Commission (SEC).

Lotte’s letter, addressed to PCPPI and the Philippine Competition Commission, said the corporate regulator ordered it to cease the conduct of the tender offer “pending resolution of certain issues” and to allow shareholders that have tendered their shares to withdraw the same.

A statement by the SEC yesterday said its Markets and Securities Regulation Department (MSRD) made the decision after finding that there were issues in Lotte’s conduct of valuation and fairness opinion of PCPPI shares.

“Among others, the fairness opinion attached to the tender offer report filed by Lotte was issued by P&A Grant Thorton, which is currently providing bookkeeping services to two entities related to PCPPI,” it said.

“The MSRD finds that the business relationship of P&A Grant Thorton with the two entities, where PCPPI holds substantial shareholdings, could reasonably be perceived to undermine its independence to conduct and issue the fairness opinion,” it added.

Rule No. 19.2.6.1 of the Securities Regulation Code says “only independent firms…may conduct valuation and issue fairness opinion,” where independence is defined as “absence of any business interest or family relationship with any party to the transaction or of any of its directors, officers or major stockholders.”

Following the notice from the regulator on Tuesday, Lotte said its tender offer agent, First Metro Securities Brokerage Corp., had stopped the tender offer and abstained from accepting any shares from being tendered. PCPPI shareholders that have already tendered their shares and intend to withdraw may coordinate with the agent.

But it noted Lotte will push through with the tender offer and is “working with the SEC to clarify and resolve the concern raised.”

“Once this matter is resolved, (Lotte) will re-open acceptance of PCPPI shares to be tendered,” it added.

Lotte is a South Korean conglomerate which holds a controlling stake in PCPPI. It started the tender offer of PCPPI shares in December to increase its stake in the listed firm by buying up to 2,134,381,838 of its common shares at P1.95 each. This is equivalent to 57.78% of PCPPI’s total issued and outstanding capital stock as of end-September.

The offer is expected to lead to the delisting of PCPPI from the local bourse as it may result in a reduction of the company’s public float to below 10% — the minimum requirement by the SEC. But Lotte said it does not deliberately intend to delist PCPPI.

Shares in PCPPI at the stock exchange closed at P1.81 each after the announcement, down five centavos or 2.69% from Tuesday. — Denise A. Valdez

Remaining healthy in the age of social media

AS MORE and more people spend their time online, particularly on social media, the risks on one’s health grow. Thus, the need to take action before it is too late.

That was the focus of a recent talk organized by global brand Herbalife Nutrition, which sought to foster the conversation of remaining healthy in the “age of social media.”

Held at the Makati Shangri-La Manila on Jan. 24, Herbalife Nutrition brought in Dr. Dana Ryan, its director for Sports Performance and Education, to talk about available data regarding health risks in relation to time spent by people online and give suggestions how to combat them.

“Unless you’re doing a physical activity while you’re online, it’s not healthy to stay inactive for long periods of time. In fact, according to the World Health Organization (WHO), insufficient physical activity is one of the leading risk factors for death worldwide. It increases the chances of serious diseases, such as cancer and diabetes,” Dr. Ryan said.

Spending an average of 10 hours a day online, four hours of which spent on social media, data show, Filipinos are susceptible to such risks, the Herbalife official underscored.

Dr. Ryan, who came to the country the first time for Herbalife in 2018, said making it all the more challenging to stay healthy these days is that the internet is bombarding people with so much information not all of which are helpful and which tend to mislead.

That is why Dr. Ryan suggested that apart from making a truly conscious effort to give ample time for physical activity, people must also learn to be discerning about what they see and are being fed on social media and the internet.

To achieve the latter, curating one’s feeds would go a long way in creating positivity, motivation, and inspiration towards healthy lives.

Dr. Ryan said people should be mindful of where they get advice. Do not fall for those pushing trendy diets and quick fixes and promising overnight result with an exercise program. Look for the credentials of those giving such advice — how much time they invested in studying and crafting what they are pushing for — and read opposing opinions to help you to form your own.

Dr. Ryan suggested following people that focus on health over image, those who promote balance, and preferably health organizations which can back up their studies.

“Try to look up helpful tips on how to remain fit from reliable organizations. Look at the celebrity or influencer you admire as an inspiration, but don’t stress yourself into achieving what he or she has. The important thing is to remain active and healthy,” Dr. Ryan said.

In closing, the Herbalife official reiterated that going online is not bad in itself but one should never forget the importance of being active and having the proper nutrition, and take better control of one’s health. — Michael Angelo S. Murillo

Sony raises profit outlook on strong sensor demand, warns of virus risks on supply chain

TOKYO — Sony Corp. raised its annual profit outlook on strong sales of smartphone image sensors after reporting a smaller-than-expected decline in quarterly profit, but it warned of an impact from the Wuhan coronavirus on its global supply chain.

Demand for image sensors has been strong enough that even with its plants operating at full capacity Sony has been unable to pile up planned inventories, Chief Financial Officer Hiroki Totoki said at an earnings briefing on Tuesday.

But he said sensor shipments could be disrupted if the spread of the coronavirus forces client smartphone makers to suspend their assembly plants in China for a prolonged period.

The virus outbreak could also rattle supply chains for its PlayStation gaming hardware and other consumer electronics, he said.

“We can’t deny the possibility of the virus threat expanding to a scale large enough to wipe out our latest upward earnings revision,” Totoki said.

The Japanese entertainment and electronics firm raised its annual operating profit forecast by 5% to 880 billion yen ($8.1 billion), roughly in line with the 878.47 billion yen consensus of 22 analysts compiled by Refinitiv.

For the October-December quarter, profit dropped 20% to 300.1 billion yen, still beating the 271.07 billion yen average analyst estimate. Excluding an accounting gain linked to the acquisition of music publisher EMI and that boosted profit a year earlier, the latest quarter marked a profit increase.

Sony’s sensor business continued to thrive as smartphone makers compete to adopt larger image sensors and multiple lenses on embedded cameras for improved picture quality, driving quarterly profit at the business by 62% to 75.2 billion yen.

The Japanese firm controls about a half of the world’s image sensor market, supplying most global smartphone makers including Apple, Inc. and Huawei Technologies Co. Ltd.

To reduce dependence on smartphones, Sony has been working on sensors for automotive applications.

Meanwhile, Sony’s gaming business saw profit fall 27% to 53.5 billion yen as sales of its six-year-old PlayStation 4 console continued to decline.

The firm has said the PlayStation 5, scheduled for release this year, will feature better graphics, advanced haptic controllers and other improvements.

Sony’s share price has shot up more than 40% over the past year to its highest in nearly two decades — a vote of confidence for Chief Executive Kenichiro Yoshida’s ability to retain momentum after a corporate turnaround led by his predecessor. — Reuters

RFM earnings up 10%

EARNINGS of RFM Corp. in 2019 grew 10% to P1.22 billion, buoyed by a 9% increase in revenues to P15 billion.

In a statement Wednesday, the Concepcion-led food company said its milk and ice cream products led the outperformance of its sales last year to push its profits higher than in 2018.

“Our Selecta Fortified Milk is our way of providing affordable and ready-to-drink milk to the Filipino family… At the same time, our affordable Selecta ice cream products continue to lead the category and provide livelihood to big and small retailers including the thousands of sari sari stores across the country,” RFM President and Chief Executive Officer Jose Ma. A. Concepcion III was quoted as saying in the statement.

“For 2020, we plan to sustain the growth of our key brands and businesses in light of the strong economic momentum and consumer income growth,” he added.

RFM also said its board of directors had approved yesterday a cash dividend of P0.106 per share for its shareholders, which amounts to P366 million in total, based on the company’s unaudited and preliminary data for 2019 financial results.

“For the income of 2019, RFM is looking at a higher payout rate of 60% due to the accumulation of cash and strength of the RFM balance sheet arising from the continuing growth of Selecta Ice Cream, Selecta Milk, RFM Flour as well as Royal and Fiesta Pasta and Sauces,” Mr. Concepcion said.

“Even if we pay out 60% of 2019 income, the company still has ample liquidity notwithstanding that RFM has invested P1.7B in capex (capital expenditure) in the previous years to expand or upgrade its ice cream, milk, pasta and flour production as well as warehousing capabilities,” he added.

RFM is in the business of selling dairy, pasta, wheat, flour, juices, margarine and other food and beverage products. It also owns the White King, Sunkist Orange Pulp and Vitwater brands.

The company’s shares at the stock exchange closed flat on Wednesday at P5.33 each. — Denise A. Valdez

Valentine’s Day (02/06/20)

Diamond Hotel Philippines

YOUR Valentine’s date will want for nothing at Corniche with a special Lunch or Dinner buffet from Feb. 13-16, with a complimentary glass of champagne on the 14th and live instrumental music to spark the mood on the 14th and 15th. Meanwhile, Yurakuen will offer an eight-course Lunch and Dinner Menu from Feb. 13-15. The Lobby Lounge will have a four-course set menu and Valentine-themed pastries from Feb. 14-15, with a saxophonist performing during dinner. The Poolside will be ready for romance on Feb. 14 with a five-course dinner set menu with entertainment by a duo. At the 27th floor, Bar27 offers a view plus a four-course dinner set menu, a signature cocktail or two, plus a live band on Feb. 14. Ladies dining at the hotel on Feb. 14 during dinner will receive a heart-shaped macaron giveaway and a long-stemmed rose. For details, call 8528-3000 ext. 1121.

Marco Polo Ortigas Manila

GUESTS dining at any of the Marco Polo Ortigas Manila’s restaurants or bars on Feb. 13 and 14 may choose to celebrate with glasses or bottles of Moët & Chandon Rosé Imperial or Impérial Brut champagne as they will be available at limited promotional prices on those days. Meanwhile, Cucina will have a special à la carte menu on those days too. Dining rates per person for the dinner buffet spread is P2,988. At Vu’s Sky Bar and Lounge, guests can look forward to celebrating Valentine’s Day with a tapas buffet while enjoying the performance of Real Groove Band beginning 8 p.m. Door charge per guest is P3,000++, inclusive of a Strawberry Daiquiri welcome drink. From Feb. 13 to 15, Lung Hin features two special set menus good for two, with the “Beloved” menu for P4,380++ for every couple, and the “One and Only” menu for P5,880++ for two persons. Finally, Café Pronto’s Love Bites include chocolate lollipops, chocolate pots, Strawberry Tart, and Berry Lamingtons. For details and reservations, call 7720-7720 or e-mail restaurant.mnl@marcopolohotels.com.

Discovery Shores Boracay

FALL in love all over again with the Boracay sunset at the background at a special Valentine dinner at Discovery Shores Boracay on Feb. 14 (P5,200++ for two persons). Spa lovers can enjoy a rejuvenating 90-minute deep tissue treatment that comes with a complimentary 30-minute head massage at Terra Spa. This head-to-toe pampering is available all days of February and is priced at P3,750 nett per person. For inquiries and reservations, visit www.discoveryshoresboracay.com or call (632) 7720-8888.

Club Paradise Palawan

This tropical paradise has prepared a romantic dinner under the stars for two on Feb. 14. This special intimate dinner setup by the beach comes with a bottle of Champagne or Prosecco for the couple to enjoy. Guests can pair a glass of their favorite wine with the resort’s special Valentine chocolate cake, compliments of the club when they order a bottle of red, white, or rosé wine. The resort has also concocted His and Hers cocktails to let love flow in the air. Couples can continue the romantic journey the whole month of February at the Glow Spa with the Couple Wellness Treatment. This couple’s package includes an aromatic hair spa, facial treatment, and anti-stress massage and is priced at 5,228.57 net for two persons. For inquiries and reservations, visit www.clubparadisepalawan.com or call (632) 7719-6971.

Sofitel Philippine Plaza

SOFITEL offers romantic dining options for Valentine’s day, starting with a dinner at the helipad. Say “I Love You” in a grand gesture and spend a luxurious getaway at the Opera Suite or the Imperial Suite, complete with an exclusive helipad dinner date. The evening features a bespoke French menu prepared by a private chef and served by a private butler. Rates start at P200,000 nett inclusive of room stay and helipad dinner valid for Feb. 14-16. A couple can also Dine by Design by the seawall — amidst the hotel’s iconic poolside landscape and the panorama of the Manila Bay — underneath one of Sunset Bar’s private canopies with a bottle of champagne, a bouquet of roses, a box of pralines, and an exclusive five-course menu served by a private butler. Dine by Design is available at P25,000 nett for two persons. Three days advanced reservation is recommended. Spend Valentine’s Day at Spiral and dine at its 21 interactive dining ateliers with live jazz saxophone musical entertainment. Rates are set at P3,000 nett for lunch and P5,000 nett for dinner. At Le Bar, enjoy a five-course French menu paired with a glass of sparkling wine on Feb. 14, between 6 to 10 p.m. Rate is set at P3,000 nett per person. For inquiries and reservations, call 8832-6988 or e-mail H6308-FB12@sofitel.com.

Andrew Café

ANDREW CAFÉ’s newest is the Valentine Succulent Strawberry Chocolate Cake — three layers of chocolate cake complemented with strawberry cream filling, cream cheese frosting, melted chocolate drips, fresh strawberries, and white chocolate shards on top. The cake is available for pre-orders two days in advance. Andrew Café is at the De La Salle-College of Saint Benilde Taft Campus, corner of Estrada and Leon Guinto Sts., Malate, Manila, and is open Mondays to Fridays from 7 a.m. to 6 p.m. and on Saturdays from 7 a.m. to 5 p.m. Contact Andrew Café at 230-5100 local 1888.

Burrow’s Café and Tahanan Bistro

FOR A consummate date in an intimate artsy ambiance, Burrow’s Café at Antipolo Beehouse and Tahanan Bistro are offering a gourmet dinner package for a memorable evening. Burrow’s Café has a six-course tasting menu at P6,000 couple, while Tahanan has a five-course treat, two glasses of wine, and a bouquet of flowers for P3,695. Contact Burrow’s Café through 0917-622-9795, or send a message through its Facebook page, https://www.facebook.com/burrowcafe.ph/. Contact Tahanan Bistro through 0925-880-1487 or send a message through its Facebook page, https://www.facebook.com/tahanan.bistro/.

Eugenio Lopez Center

BE SERENADED as you feast on fine food at Oscar’s Fine Dining at the Eugenio Lopez Center in Antipolo. It is a sit-down dinner which features a six-course menu, glass of wine, and souvenir. There’s also a buffet for two at P2,499 or P1,250/person at the Dining Hall, and a post-Valentine treat on Feb. 16 with the regular Sunday Brunch Specials at P588/person. For reservations, call 8255-3607, 8255-3518, 8255-3565, or 0917-515-6225.

Vieux Chalet

ANTIPOLO’s Vieux Chalet, a pioneer fine dining resto, offers the Hymne a l’amour (Ode to Love), a by-reservation only dinner on Feb. 14 and 15, 6 p.m., featuring a Swiss menu of raclette, bunder gerstensuppe, rotkraustsalt, chateaubriand or prawns a la Flo, confectionery, and suitable pairings. Strictly by reservations, contact the restaurant via Facebook at www.facebook.com/vieuxchaletswissrestaurant or through Instagram at www.instagram.com/vieuxchaletphilippines/.

Crimson Hotel

TREAT your loved one to a perfect date at Crimson Hotel Filinvest City on Feb. 14, when the Deck Bar offers an al fresco Valentine’s Day four-course “Dine Under the Stars” dinner. The rate per person is P2,200 net. There will also be a romantic buffet set-up at Café Eight (P2,200 net). For a pizza date night, Firehouse Pizza restaurant features the “You Got a Pizza My Heart” promotion on Feb. 10 to 14. This Valentine’s special set is comprised of salad and pizza with a bottle of Prosecco (P2,000 for two). For details visit http://www.crimsonhotel.com/manila/ or call 8863-2222.

New Coast Hotel Manila

EXPERIENCE a romantic dinner date at the New Coast Hotel Manila’s Market Café on Feb. 14 and 15. The dinner buffet is priced at P3,300 per person. For an intimate Valentine’s date, go to The Lounge and try its special Valentine’s drink, Amore Mio, a mix of whiskey, strawberry, Mango Manila tea, and vanilla syrup, blended with lemon and mint, and topped up with soda water. Couples may enjoy the cocktail for the price of one at P450. If your Valentine has a sweet tooth, the Strawberry Caramelito cake is a thoughtful gift idea — strawberry mousse filled with caramelito choco chips and fresh strawberries for P1,500, available at the Pastry Boutique. For reservations and inquires, call 8252-6888 or e-mail contactus@newcoasthotels.com.

New World Makati Hotel

NEW World Makati Hotel’s Café 1228 has an extensive buffet selection concluded with an array of pink and red hued desserts for lunch and dinner on Feb. 14. On Valentine’s Day dinner, there will be live entertainment and a special token for the ladies. The Valentine’s weekend buffet is P2,888 nett per person for lunch and dinner. An optional upgrade for free-flowing wine is P599 nett per person. Free-flowing Prosecco Romio Extra Dry sparkling wine, is offered at The Lounge from 4 to 8 p.m. for P888 nett per person. In addition, a complimentary box of chocolate pralines comes with each order of a bottle of sparkling wine or champagne at The Lounge between Feb. 14 to 16. For details and reservations, call 8811-6888 or e-mail FBReservations.manila@newworldhotels.com.

Holiday Inn and Suites Makati

HAVE A dinner buffet with your special someone and enjoy a free-flowing sparkling and red wines and be serenaded by an acoustic duet at The Gallery. A special gift awaits the ladies. After dinner, enjoy the rest of the night at the Oz Bar for a cocktail fare. Dinner buffet is P2,250 nett per person on Feb. 14. Dinner starts at 6:30 p.m., limited seating only. For details visit www.makati.holidayinn.com or call 7909-0888 or 7909-0889.

Oracle adds cloud data centers in five countries, sets new target

SAN FRANCISCO — Oracle Corp. said on Monday it had added new cloud computing data centers in five countries and aims to have them in 36 locations by the end of 2020, as it races with Amazon.com and Microsoft Corp. for market share.

After a rocky start in the cloud business, Oracle, a longtime business software provider, is rolling out its second generation of cloud systems, in which it operates data centers and customers rent capacity from it.

Amazon Web Services and Microsoft are the two top players with more than two-thirds of the global market in 2019, according to Forrester Research, but Oracle is trying to win customers by extending its geographical reach.

Clay Magouyrk, the executive vice-president of engineering in Oracle’s cloud unit, said new data privacy regulations in the European Union and elsewhere mean many businesses must retain data in the country where it is generated, making it important to offer them cloud data centers in as many places as possible.

Oracle’s goal is to have at least two “regions,” in each country where it operates, so that customers can have one primary region and one as a backup in case of disaster, he said.

“Overall, the strategy is to put lots of regions around the world to give customers data sovereignty,” he said.

Each cloud vendor promotes its data center footprint with different terminology, but in most cases a “region” can have multiple data centers in physically separate locations called “availability” zones or domains. Microsoft has 56 regions. Amazon has 22 regions but has 69 availability zones.

Oracle on Monday added regions in Jeddah, Saudi Arabia; Osaka, Japan; Melbourne, Australia; Montreal, Canada; and Amsterdam in the Netherlands.

The company plans to add a second region in Saudi Arabia this year, as well as two in the United Arab Emirates.

Oracle said the 10 largest businesses in Japan were using its cloud computing offerings, but did not give any names.

Oracle’s cloud rivals, some with much bigger balance sheets, also continue to add data centers, with Amazon planning five more regions and 16 availability zones.

But Deepak Mohan, a research director at IDC, said aiming for geographical reach in the wake of new data regulations, is solid strategy given Oracle’s customer base of large businesses.

“Oracle’s taken a bad rap over the last couple years, but I think some of that has been them taking the time to get the ship righted,” he said. “There’s a lot they need to do — the leaders are still innovating — but I think they’ve shown that from a first step perspective, they are definitely on the right path.” — Reuters

Antitrust watchdog clears Ayala acquisition of group behind Pagudpud wind farm

AYALA-LED AC Energy Philippines, Inc. said on Wednesday that it had received the decision of the antitrust watchdog clearing its acquisition of the shares of a company with an energy project in Ilocos Norte.

It quoted the Philippine Competition Commission (PCC) as saying that the deal “will not likely result in substantial lessening of competition.” It bought the shares for P2.7 billion subject to agreed adjustments.

It told the stock exchange that the PCC’s decision on Jan. 28, 2020 also resolved that the agency will “take no further action” with respect to the transaction.

AC Energy Philippines received the decision on Feb. 4, 2020, or three months after the company signed a share purchase agreement with Philippine Investment Alliance for Infrastructure (PINAI) for the acquisition of the latter’s shares in Philippine Wind Holdings Corp. (PhilWind).

PhilWind directly and indirectly owns about 67% of North Luzon Renewables Corp., which owns and operates an 81-megawatt (MW) wind farm in Pagudpud, Ilocos Norte. It is a joint venture of AC Energy, Inc., UPC Philippines Hold Co I B.V., Luzon Wind Energy Holdings B.V., an affiliate of Mitsubishi Corp., and PINAI.

The wind farm started its commercial operations in November 2014.

AC Energy Philippines said it would be buying the entire shares of PINAI in PhilWind, and that after the transaction, it will directly and indirectly own 67% of North Luzon Renewables.

North Luzon Renewables is a power generating asset with stable cash flows from feed-in tariff under the Renewable Energy Act.

AC Energy Philippines said the acquisition supports its “strategic objective to be the growth platform” of the AC Energy group in the country, and helps meet its goal of achieving 2 gigawatt of attributable renewable energy capacity by 2025.

On Wednesday, shares in AC Energy Philippines gained P0.02 or 0.94% to close at P2.15 each. — Victor V. Saulon

Chronicling Nebbiolo Prima 2020

First of two parts

ALBA, Italy — I came back here to Alba to attend my 4th Nebbiolo Prima in the last six years. Organized by the Union of Alba Wine Producers or Albeisa, Nebbiolo Prima is an annual event purely created for wine journalists and influencers to preview newly released vintages of wines from the DOCG regions of Barolo, Barbaresco, and Roero — all made from Piedmont’s proudest indigenous Nebbiolo grapes.

In Nebbiolo Prima, wines are presented in flights grouped by DOCG, and by communes within the same DOCG. All wines are tasted blind, five glasses at a time, with the wine labels revealed only after the conclusion of each tasting day.

This year marked the 24th edition of Nebbiolo Prima. Like previous year, we had four intense days of tasting wines held conveniently at the I Castelli restaurant, not far from the hotel we were billeted in. This year we covered 303 wines from the following: Barolo DOCG 2016, Barolo Riserva 2014, Barbaresco DOCG 2017, Barbaresco Riserva 2015, Roero DOCG 2017, and Roero Riserva 2016. I was among the 49 wine journalists who attended this year’s Nebbiolo Prima. Thirty-seven came from the international markets, and 12 were from Italy.

For those who are curious about what participants do during these four days, I chronicled my activities below:

DAY 1
9-10 a.m.: Introduction to this year’s Nebbiolo Prima. Present to do their welcome speeches and introductory messages were Marina Marcarino, President of Albeisa; Francesco Monchiero, President of Consorzio del Roero; and Emanuele Coraglia, Technical Director of the Consorzio di Tutela Barolo Barbaresco Alba Langhe e Dogliani.

Aside from the usual pleasantries, there was a very nice Powerpoint presentation by Mr. Coraglia about the production of the new vintages we are all previewing. Barolo, as always, has the highest volume with over 14 million bottles produced in the 2016 vintage, followed by Barbaresco 2017 vintage with 4.2 million bottles, and Roero 2017 with around 482,000 bottles. What is interesting is that out of the 351 wineries producing Barolos, 164 or 46.7% (almost half) produce less than 10,000 bottles a year. Barbaresco is even more glaring, as out of 204 wineries, a staggering 123 or 62.4% produce less than 10,000 bottles a year. The 14 million bottles of Barolo is really not much given that St. Emilion AOC and Margaux AOC, both Bordeaux sub-regions, produce 24 million and 9 million bottles respectively. Barbaresco DOCG is to me quite similar in size to Pomerol AOC, as production of Barbaresco is 4.2 million, while Pomerol, which has slightly more vineyards of 800 hectares (against 750 of Barbaresco) produces around 4.5 million bottles a year.

10 a.m. — 2 p.m.: Blind Tasting. Seventy-three wines total: 14 wines from Roero 2017 and 59 wines from Barbaresco 2017

With one sommelier assigned for a table of eight journalists, I finished the 73 wines in one hour and 55 minutes, with no bathroom break. This is an average of 95 seconds per wine previewed. My only accompaniments were bread sticks and sparkling water. I finished probably 10 sticks and 1.5 liters of water during the whole tasting session.

Everyone who knows me, friends and wine industry people alike, know me as one guy who does not spit during wine tasting and appraisal. The reason is not just because I hate the idea of spitting, but also because I want to taste the wine in its entirety, from looking, to nosing, to tasting, to swallowing. I just feel that I am not good enough in determining a wine’s finish if I do not actually swallow the wine and experience the actual aftermath in my mouth.

While obviously, the more wines I imbibe, the more I get inebriated, I pace myself with a lot of breadsticks and water to keep my concentration and consistency in rating the wines. Seventy-three is actually not so bad for one-sitting of tasting, I have had 120 wines before.

4 — 6 p.m.: Open Tasting (with brands revealed) of 10 years. Retrospective of Barolo, Barbaresco & Roero (back vintages). Fourty-seven wines total: 20 wines from Barolo 2006, seven wines from Barolo Riserva 2004, 13 from Barbaresco 2007, two from Barbaresco Riserva 2005, one from Roero 2007, and four from Roero Riserva 2006

The pace on this one was slower as this was an open tasting of older vintages with limited supply (two bottles each to be shared by 49 journalists), and the sommeliers were pouring everyone the same flight of five wines at the same intervals to ensure all the wines were equally divided and enough for the whole group. We all basically finished the tasting just before 6 p.m.

7:30 — 10:30 p.m.: Dinner and Meet & Greet with Wine Producers at Ristorante Luna.

The main course was the Bollito Misto Alla Piemontese, literally translated as Boiled Mixed Piedmontese. This is the second time I have had this. And the first time was also at the Nebbiolo Prima last year. This time, the restaurant was different. Bollita Misto is a classic northern Italian meal in which various kinds of meats are boiled including beef brisket, veal tongue, cotechino pork sausage, stuffed pork trotter, chicken, oxtail, etc. to get a very tasty broth. It is a bit like our own nilaga except all sorts of meats are mixed into the broth and not just beef. In the Luna restaurant, the meats were removed from the hot broth to be served moist in individual plates. This Bollita Misto came with three sauces to choose from: horseradish, an onion and tomato sauce, and a typical Italian salsa verde (made with olive oil, parsley, mint, lemon and others). We had various wines hand-carried to the restaurants by the different wine producers. All wines we were drinking were from the Langhe region, ranging from Roero Arneis, Alta Langa (method champenoise sparkling wines), to other red varietals like Freisa, Dolcetto, Barbera, to, of course, more Nebbiolo wines from Barolo to Barbaresco.

DAY 2
9 — 10 a.m.: Technical Seminar on the Nebbiolo Grape

This is one of the best technical seminars on wines I have ever attended. Our expert speaker, Dr. Anna Schneider, is the head researcher at the National Research Council of Italy, Institute for Sustainable Plant Protection in Turin, Italy. She was also our speaker last year with pretty much the same materials, but because I had attended it last year, her talk this year was a lot more meaningful and, to a certain degree, less technical and intimidating. Dr. Schneider discussed the ancient history of the Nebbiolo grapes dating back to the 13th century, including discovery of ancient writings about a black grape called Nubiolum, the etymology of present day Nebbiolo. Very interesting to note that she spoke of plant morphology and genetic mutations within Nebbiolo, something that is similar to the creation of new related varietals like in the case Pinot Gris and Pinot Blanc coming from Pinot Noir.

10 a.m. — 2 p.m.: Blind Tasting. Seventy-eight wines total: 18 wines from Roero Riserva 2016, 15 wines from Barbaresco Riserva 2015, five wines from Barolo Riserva 2014, and 40 wines from Barolo 2016

With a good breakfast, and jetlag almost gone, I was more prepared for Day 2 of the tasting. I finished the 78 wines in one hour and 50 minutes, slightly faster, averaging 87 seconds per wine this time around.

4 — 6 p.m.: Pruning Lesson. We were provided with boots and taken to a nearby vineyard to witness how actual pruning is done. This educational exercise was conducted by Professor Edoardo Monticelli. Pruning is a horticultural activity involving the selective removal of certain parts of a plant, such as branches, shoots, buds, or roots. In the case of vineyards, the concept is to ensure the development of foliage (to allow the grape to grow physiologically) by reducing number of shoots and branches. We were taught the Guyot vine training system, and how important pruning is even during the vine’s winter dormancy.

7:30 — 10:30 p.m.: Dinner and Meet & Greet with Wine Producers at Ristorante Museum

A cozier restaurant with a smaller capacity — the 49 journalists were split into two groups, and my group went to Ristorante Museum. Great food and equally enjoyable company of more producers to meet and chat with. I had the best gnocchi I have ever tasted, the Gnocchetti di Patate Fatti in Casa Al Castelmagno. The cheese used with the gnocchi, which is a local cheese called castelmagno, was simply delicious.

(To be continued.)

The author is a member of the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, e-mail me at protegeinc@yahoo.com.

Drones take to China’s skies to fight coronavirus outbreak

IN coronavirus-hit China, not wearing a face mask is a big no-no. Now, drones equipped with loudspeakers are out admonishing those who fail to follow public-health safety practices.

On microblogging platform Weibo, a video posted by Zhejiang News’s broadcasting channel shows a drone take off and scan the ground below for violators.

In one scene, it identifies an elderly woman who isn’t wearing a face mask. “Can’t you see? I’m talking about you. Put your face mask on and go home right away,” a polite but firm voice from the drone says. The woman seems confused at first, repeatedly glancing up at the hovering machine, then she puts on her mask and scurries back to her apartment building.

Footage posted by Global Times shows people in rural China publicly shamed by a drone for not wearing a face mask or for venturing outside unnecessarily. It’s unclear who created the segments.

“Isn’t it comfortable to stay at home, with food and drinks?” a voice asks a farmer out in the fields in Inner Mongolia. “You didn’t even wear a mask.” The farmer smiles, to which the drone responds that it’s not funny, adding: “Don’t come outside if not necessary.”

Drones are being pressed into service as China looks to stem the spread of the coronavirus, which has infected more than 20,000 across the world’s most populous nation. Many online appreciate the comedic relief these clips bring at a troubling time, as well as the practical use of technology to access remote parts of the country. Skeptics though see it as further evidence of a clamp down on individual freedoms.

The drones aren’t just policing mask offenders — reports from Chinese media have them deployed in everything from construction to farming.

Guangzhou-based agriculture drone manufacturer XAG is working to deploy a fleet of drones that can spray disinfectant on affected areas such as bus and train stations and other public spaces. Co-founder Justin Gong said the company had set up a 5 million yuan ($715,000) fund for volunteer teams around the country, including in Hubei, the epicenter of the outbreak.

Gong said using drones for the purpose of enforcing public-health practices wasn’t ideal. “It definitely will call attention, which is good PR. But for efficiency, it’s not as good as spraying.”

China has pioneered the widespread use of technology including cameras and facial recognition to keep tabs on citizens’ behavior, doling out fines for misdemeanors such as jaywalking and other traffic violations. Its public security bureau is estimated to own about 30 million surveillance cameras.

A government drone was tested in Chengdu in Sichuan province, to disperse a group of elders playing mahjong. In Shanghai, drones have been used to supervise traffic while in Wuhan they provided much needed night light for hospital construction.

A Twitter post from state media People’s Daily shows a drone measuring the temperature of residents in a high-rise apartment building in Jiangxi province.

“Most western citizens might freak out about this because of privacy concerns,” said Mark Tanner, managing director of Shanghai-based tech consultancy firm China Skinny. “In China, people are so used to surveillance they might not react as strongly.” — Bloomberg

Demand for term deposits declines amid concerns

BIDS FOR THE central bank’s term deposits declined as investors were looking ahead to a possible rate cut at this week’s policy meeting and amid concerns related to the coronavirus outbreak.

Tenders for the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) totaled P207.804 billion on Wednesday, going beyond the P200 billion on offer.

However, total tenders this week slipped from the P262.975 billion logged a week ago.

Bids for the one-week papers stood at P66.749 billion, lower than the P80- billion offered and also down from the P105.23 billion in bids logged a week ago.

Rates for the seven-day deposits ranged from 3.95% to 4.40%, a wider margin compared to the 4-4.05% band seen on Jan. 29. This caused the average rate for the one-week deposits to settle at 4.0240%, inching up by 0.07 basis point (bp) from last week’s 4.0233%.

For the two-week tenor, tenders amounted to P64.814 billion, higher than the P60 billion auctioned off by the BSP but failing to beat the P94.08 billion in bids last week.

Lenders asked for yields ranging from 3.98% to 4.05%, coming from the 4-4.07% margin logged the previous week. This led the average rate for the 14-day papers to settle at 4.0197%, slipping by 2 bps from the 4.0397% seen last week.

Meanwhile, the 28-day papers attracted tenders amounting to P76.241 billion, higher than the P60 billion up for grabs and also surpassing the P63.665 billion in bids last week.

Banks sought returns ranging from 4% to 4.0625%, a slimmer range compared to the 4% to 4.11% margin logged on Jan. 29. This caused the average rate for 28-day term deposits to settle at 4.0419%, down by 3.22 bps from the 4.0741% seen a week ago.

ING Bank NV-Manila Senior Economist Nicholas Antonio T. Mapa said the auction results came after the retail Treasury bond (RTB) issuance and amid expectations of a rate cut this week.

“Lower subscription likely because investors are staying liquid ahead of the settlement of the recent monster retail treasury bond where the government issued roughly P250 billion in fresh issuance,” Mr. Mapa said in an e-mail.

“Despite the lower amount of subscription, lower TDF yields reflect market expectation for a BSP rate cut in the near term,” Mr. Mapa added.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the lower yields may partly be due to market fears amid the coronavirus outbreak.

“On external factors, concerns over the latest novel coronavirus (nCoV)…led to the sharp decline in global crude oil prices as well as some increase in global risk aversion…thereby partly leading to the latest easing in most BSP TDF auction yields,” he said in an e-mail. — Luz Wendy T. Noble

Roxas Holdings reverses to net profit

ROXAS Holdings Inc. (RHI) reported a net income of P4 million during the first quarter of its fiscal year ending in December, reversing losses of P197 million in the same period in 2018.

The listed sugar and bioethanol producer attributed the gains during the October-December period to the sale of assets held for investment, it told the stock exchange on Wednesday.

The return to profitability came despite a 32% decline in its revenues to P1.3 billion from P1.9 billion a year earlier, with sales of goods falling 42% to P893 million and sales of services dropping 1.3% to P406 million.

“The volume of sales for refined sugar in the first quarter was low versus last year, because of the decrease in refined sugar produced by the Group in the previous crop year. The average sales price of sugar also dropped during the period,” RHI Chairman Pedro E. Roxas said in the statement.

He said the performance of the mills during the period was down, echoing the overall lower performance of the sugar industry based on national sugar production and tons cane milled.

Hubert D. Tubio, RHI president and chief executive officer, said that the group’s alcohol segment declined because of the high cost of feedstock.

“The average molasses cost in the first quarter was 32% higher than the average price in the past year. The increase in the feedstock cost dented the segment’s contribution for the period,” he said.

Celso T. Dimarucut, RHI executive vice-president and chief finance officer, said the company moved to manage its loans.

“As part of our debt management plan, we used the proceeds from the sale of our investment to significantly reduce the amount of our long-term loans. This is in line with the Group’s thrust to de-risk the business,“ he said.

Shares in RHI rose up P0.08 or 5% to close at P1.68 each on Wednesday. — Jenina P. Ibañez

SMC secures top rating for P60-B debt

SAN MIGUEL Corp. (SMC) has been assigned the highest credit rating by a local debt watcher for its planned shelf registration of P60 billion commercial papers.

In a statement yesterday, Philippine Ratings Services Corp. (PhilRatings) said it is giving the food and beverage conglomerate a credit rating of PRS Aaa (corp.) for the planned issuance.

The rating was also given a stable outlook, meaning it is expected to hold for the next 12 months.

Based on PhilRatings’ metrics, a company whose bonds have a credit rating of PRS Aaa means it has a “very strong” capacity to meet its financial obligations.

Aside from the credit rating for the P60-billion bonds, PhilRatings also maintained SMC’s PRS Aaa rating for its outstanding P70-billion fixed-rate bonds and notes. This rating was likewise given a stable outlook by the debt watcher.

PhilRatings said it based its ratings on SMC’s “well-entrenched market leadership” and the “solid track record” of its subsidiaries. It noted the stable demand and the growing domestic economy is expected to keep the company’s finances afloat.

A reduced need for debt financing due to the progressive completion of its capital-intensive projects was also accounted for by PhilRatings, along with its aggressive growth strategy in the coming years.

“SMC benefits from its diversified business portfolio, with a mix that balances the Company’s performance throughout the economic cycle, thus providing stability to SMC’s overall profitability,” it said.

It noted the company’s products are “relatively resilient” and “able to ride out to economic downturns,” therefore it is expected to keep its financials in check.

SMC’s attributable net income in the first nine months of 2019 inched up 2% to P20.24 billion, driven by its energy and food and beverage businesses that recorded higher volumes.

Shares in SMC at the stock exchange gained P0.60 or 0.46% to close at P132.10 each on Wednesday. — Denise A. Valdez