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AdSpark, Inc. unveils insights on Filipinos’ obsession over celebrity couples

AdSpark, Inc., Globe Telecom’s digital advertising subsidiary, unveils insights on how the online views modern celebrity love teams in the age of social media in its white paper called “The New Romantics.”

The research, which was divided into five subtopics, showed interesting aspects regarding the obsession with celebrity couples. These are:

Perfect combination. Audiences seem to be demanding authenticity from brands — and love teams are no exception. After all, there’s nothing more exciting than real people finding true love.

From reel to real. Offscreen couples might not get as much airtime or online attention as love teams do, but they are still much-needed proof of how celebrity couples can thrive.

Noon at ngayon. Love teams may not be forever, but the current nostalgia wave allows viewers, and even celebrities, to relive the honeymoon period.

I love you, hater. Despite inter- and intra-fandom wars, people still show a preference for positive news about their favorite idols. Love conquers all — and, most importantly, thrive.

Better together. Solo careers aren’t going anywhere, but love isn’t dead: it’s just taking on a new form where they can flourish together and independently, as long as they stand behind each other.

Love is a theme that remains central to all Filipinos, therefore knowing how the online Filipino interacts and views love teams is important to brands and marketing practitioners.

“Using our brand planning proprietary tools, we wanted to understand why Filipinos are obsessed with celebrity couples. It’s a key marketing proposition, that if the consumer loves the celebrity couple then they will support the brand they are endorsing,” said Onat Roldan, AdSpark president and chief executive officer.

AdSpark generated the report by using its own AdSpark intelligence platform. AdSpark intelligence uses social listening that tracks mentions and comments across the internet; and content consumption which measures what Filipinos are reading and viewing on the internet.

To find out more about online Filipinos and love teams, download the full report here: https://adspark.ph/new-romantics/.

Senate body approves CITIRA bill

A SENATE COMMITTEE on Wednesday approved a priority bill of President Rodrigo R. Duterte that seeks to lower corporate income tax and streamline fiscal incentives.

The Ways and Means committee endorsed the proposed Corporate Income Tax and Incentives Reform Act (CITIRA), which will gradually cut the tax on companies to 20% by 2029 from the current 30%, for Senate plenary debates.

Senator Pia S. Cayetano, who heads the committee, said there’s a “very good chance” the Senate would approve the bill on final reading by March 13, before Congress goes on a Holy Week break.

Senate Bill 1357 (SB 1357) also seeks to gradually lower the income tax on resident and non-resident foreign corporations to 20% by 2029.

Regional operating headquarters, which pay 10% of their taxable income, must pay the regular income tax two years after the law is enforced.

The measure also grants an income tax holiday for two to four years. After this, companies will have to pay a special corporate income tax of 8% this year; 9% in 2021; and 10% in 2022 based on gross income earned, in lieu of all national and local taxes, according to the bill.

At present, companies enjoy four to six years of income tax holiday, and afterwards have to pay 5% tax based on gross income earned.

The bill also gives as much as 50% additional deduction on labor and power expenses during the taxable year, or up to 100% additional deduction on research and development expenses.

This may be granted for five to eight years, but may not be availed of simultaneously with the income tax holiday and special corporate income tax.

The duration of the tax holiday, special tax and enhanced deduction will depend on the location and industry of a registered business.

The measure classifies registered businesses as basic, enhanced or advanced. Basic enterprises are those engaged in agriculture, fishing, forestry and agribusiness in the National Capital Region (NCR) and other cities.

Enhanced enterprises cover those engaged in agriculture-related activities and local suppliers in areas adjacent to the capital.

Advanced enterprises are those in the agriculture industry and providers of local products in less developed areas, as well as businesses engaged in highly technical manufacturing and service activities.

Senate Bill 1357 will exempt capital equipment, raw materials, spare parts and accessories from import duties.

‘VERY BALANCED’
The Senate version addresses many concerns, including the one-stop shop feature of the Philippine Economic Zone Authority (PEZA), power cost issues, provisions for footloose firms and the length of the sunset period, Finance Secretary Carlos G. Dominguez III said in a statement.

“The Senate version has made these adjustments, while remaining consistent with the key principles of this tax reform,” he added.

Trade Secretary Ramon M. Lopez in a mobile phone message cited the “very balanced” version of the Senate bill, particularly the clause on the transition period.

PEZA would review the Senate version and suggest possible changes, Director General Charito B. Plaza said in a separate text message.

The measure forms part of the Duterte administration’s comprehensive tax reform program, which includes proposals to simplify the tax structure for financial instruments, provide a uniform framework for real property valuation and increase state share in mining revenue.

The government has enacted a measure cutting personal income taxes and increasing or adding levies on several goods and services.

Another tax law grants estate tax amnesty and amnesty on delinquent accounts, while two more laws separately increased the excise tax on alcohol products and conventional and electronic cigarettes.

Senator Ralph G. Recto said he found the pace of the tax cuts “too slow,” adding that he preferred a “one time, big time” reduction.

“I’m supportive of reducing the corporate income tax, although the 1% yearly cut for the next 10 years is too slow,” he said at a briefing.

Mr. Recto also said he might propose a separate fiscal regime for exporters in the manufacturing and service industries.

“I don’t think we should impose too much taxes on exporters and the business process outsourcing industry,” he said.

Mr. Recto said he might also introduce separate tax rates for micro, small, medium and large enterprises.

Senate President Vicente C. Sotto III earlier said the chamber was unlikely to approve Senate Bill 1357 by March, citing intricacies of the measure. — Charmaine A. Tadalan

S&P trims Philippines 2020 growth outlook

S&P GLOBAL RATINGS trimmed its growth outlook for the Philippines this year, even as it expects the economy to be one of the “least affected” by the coronavirus disease 2019 (COVID-19) outbreak in the Asia-Pacific region.

In a note sent to reporters on Wednesday, S&P said it lowered its gross domestic product (GDP) growth outlook for the Philippines to 6.1% in 2020, from the already downgraded 6.2%. The global ratings agency maintained its Philippine growth forecast at 6.4% for 2022.

This comes after Moody’s Investors’ Service on Tuesday reduced its GDP growth forecast for the Philippines to 6.1% from the 6.2% it gave last year.

While S&P and Moody’s forecasts are above the 5.9% growth recorded last year, these are still lower than the government’s downgraded target of 6.5-7.5%.

S&P said the Philippines is expected to be one of the economies “less affected” by the COVID-19 outbreak, along with Japan, Indonesia and Malaysia.

It noted that the Philippines’ tourism-related exports make up 3% of GDP, and less than a fifth of visitors are from China. Chinese travelers accounted for 1.74 million out of the 8.26 million international tourist arrivals to the Philippines in 2019, tourism department data showed.

“Most uncertain is the impact on supply chains. The Philippines is both upstream and downstream from China with processed intermediate trade with the country accounting for about 15% of overall trade. This is dominated by electronics components which may experience region-wide disruptions,” S&P said.

The Department of Finance on Wednesday released data showing the volume of containers coming into the Philippines from mainland China plunged 62.15% year on year in the first half of February.

Data showed the total number of containers coming from China dropped to 29,195 in the first 18 days of February from 77,878 during the same comparable period in 2019.

The decline is all the more apparent after January saw an 8.24% year-on-year increase in the volume of containers to 66,828.

Finance Secretary Carlos G. Dominguez III on Tuesday said: “We’re concerned, but we believe that the slack will be taken up in other markets.”

DRAG ON GROWTH
S&P lowered its growth forecast for the Asia-Pacific region by 0.5 percentage point (ppt) to 4.3%, “which assumes China’s economy will expand at a coronavirus-dented 5% in 2020.”

“We expect significant growth drags of 1 ppt or more in Hong Kong and Singapore, given their close linkages with, and heavy reliance on mainland China. Australia, Korea, Taiwan, Thailand, and Vietnam will also suffer,” the debt watcher said.

“At this point, we anticipate a recovery will take a firm hold in the third quarter but risks are tilted to the downside. We expect more policy easing in the most affected economies, especially rate cuts,” it added. — LWTN with Beatrice M. Laforga

Auto sales fall as Taal eruption disrupts operations

AUTOMOTIVE SALES dropped by 12% in January after manufacturing plants and dealerships in Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) temporarily halted operations due to the eruption of Taal Volcano, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) reported on Wednesday.

The joint CAMPI-TMA sales report showed vehicle sales fell 11.8% to 23,723 units in January from 26,888 units sold in the same month last year, as sales of light commercial vehicles and passenger cars slipped.

January sales were also 29.6% lower than the 33,715 units sold in December 2019, which the groups described as a consistent seasonal pattern.

CAMPI President Rommel R. Gutierrez said the industry expected a growth slowdown after the Taal Volcano eruption on Jan. 12 disrupted operations.

“Majority of plants and some dealerships located in South Luzon were badly hit by ashfall, also affecting operations in some areas of Metro Manila. Some companies were also forced to temporarily suspend its operations for safety reasons,” he said.

However, Mr. Gutierrez said the industry is optimistic that it will recover as companies resumed operations in the Calabarzon Region.

“We will continue to work double time to catch-up on last month’s losses. We assure our customers the highest level of quality in our products and services because safety and consumer satisfaction are our priorities,” he said.

Commercial vehicle sales, which account for 72% of total car sales, dipped 6.6% to 17,180 units in January. Broken down, sales of light commercial vehicle slid 7% to 13,988 units, while those of light trucks dropped 28.7% to 365 units and those of trucks and buses (category IV) declined 29.8% to 233 units.

On the other hand, Asian utility vehicle (AUV) sales grew 2.9% to 2,479 units during the month.

Meanwhile, passenger vehicle sales fell 22.9% to 6,543 units in January.

Toyota Motors Philippines Corp. (TMPC) continued to have the largest market share of 37.47% as of January, even as it saw car sales drop 21.7% to 8,890 units.

Mitsubishi Motors Philippines Corp.’s market share stood at 21.12%, with sales dipping 1.9% to 5,011 units.

Nissan Philippines, Inc. retained the third spot at 11.91% share and a sales drop of 8.9% to 2,825 units.

Honda Cars Philippines followed with 7.46% share, with sales falling 9% to 1,769 units. Ford Motor Company Philippines held 6.29% of automotive market share, its sales dropping 16.6% to 1,492 units in January.

CAMPI-TMA has yet to disclose its sales target for 2020. In 2019, automotive sales rose 3.5% to 369,941 vehicles.

At the same time, Mr. Gutierrez, who is also a first vice-president at Toyota, said in an event on Monday that the company experienced a few days with no sales due to delivery delays caused by the ashfall, noting that demand was sustained.

TMPC had to halt operations at its assembly plant in Sta. Rosa, Laguna for two days in January because of ashfall from the Taal Volcano eruption.

Mr. Gutierrez said the company has since resumed operations. — Jenina P. Ibañez

REITs seen to drive development outside Manila

THE TAKEOFF of real estate investment trusts (REITs) in the Philippines this year, starting with Ayala Land, Inc. (ALI), is seen to drive developments in cities outside Metro Manila and spark growth in new segments for real estate firms.

In its report “First Mover Advantage” published yesterday, real estate consultancy firm Colliers International Philippines said it expects more REITs to be launched soon following the regulatory adjustments made by the Securities and Exchange Commission (SEC).

“Colliers believes that REIT implementation in the Philippines will likely result in the further differentiation and innovation of domestic property development projects which should eventually benefit Filipino investors and end-users,” it said.

It said the revised REIT rules lowering the minimum public float to 33% and the paid-up capital requirement to P300 million makes the investment tool an attractive option for developers to raise fresh capital.

“Colliers recommends that developers use REITs to access a cheaper source of capital and renovate and reposition assets such as offices, malls, and warehouses,” it said.

Colliers noted the new guidelines, which the SEC published last month, came at the perfect time as the country’s property market is on an upswing. For instance, the office market is growing about 1 million square meters every year, and take-up is likewise reaching above 900,000 square meters every year, it added.

Colliers said that as Metro Manila continues to grow while developable land remains limited, it is expected that property developers may soon move to provincial cities to utilize REITs. Among the areas it mentioned are Cebu, Davao, Iloilo, Bacolod and Pampanga.

“Given the dearth of developable land and surging land values in Metro Manila, firms may also use REIT proceeds to develop integrated communities in key cities outside the country’s capital… We also encourage provincial players that meet the capitalization requirement to tap REIT,” it said.

Aside from typical real estate assets namely office, retail, warehouses and hotels, the consultancy firm said there is an opportunity for other segments to take advantage of REITs.

“With the government being more active in attracting private sector investment, property firms should also explore possible public-private partnership (PPP) projects that cover hospitals, schools, and toll roads as these assets meet the requirement to generate recurring income,” it said.

“The Philippine REIT landscape can now truly develop, which should entice homegrown developers such as those in Cebu and Davao to participate in this new capital fund-raising option,” it added.

ALI led the country’s first REIT application with an offer to sell up to 478,639,700 shares in its subsidiary AREIT, Inc. This covers divesting in three commercial buildings in Makati City, namely Solaris One, Ayala North Exchange and McKinley Exchange. — Denise A. Valdez

SEC flags another illegal investment scheme

THE Securities and Exchange Commission (SEC) is warning the public against engaging with Kapiboma Networking/Kapiboma Global Marketing, Inc., which it said is not authorized to operate for investing purposes.

In an advisory on its website yesterday, the corporate regulator said it found Kapiboma operating an illegal investment scheme after receiving numerous reports from the public.

“The public is hereby informed that Kapiboma Networking/Kapiboma Global Marketing, Inc. are not licensed or granted a permit by the SEC to sell or offer securities or solicit investments from the public,” it said.

The regulator said the group works by inviting investors to put in P5,000 into the company in exchange for P5,000-worth Kapiboma herbal products. Members are also required to give P1,000 every month as “monthly dues,” which is used to pay for the company’s water and electricity bills and compensation for employees.

Among the products members may get are Golden Moringa 4 in 1 Malunggay Coffee, Golden Moringa Mangosteen Stevia Coffee, Golden Moringa Stevia Coffee, Mangosteen Guyabano, Mangosteen and Guyabano Herbal capsule.

On top of that, Kapiboma commits a condominium incentive if members recruit five individuals, who also each must invite five more into the company. Those that are successfully able to do so may move into the condominium in 45-60 days. The interior design of the unit priced at around P75,000-100,000 will also be given for free.

Other incentives are a P1,000 direct referral fee, a car plan, an international cruise, a parking slot, a P4-million business package and a P1-million life insurance.

The SEC said this operation is against the Securities Regulation Code, as Kapiboma does not have the required license from the SEC to solicit investments.

“[T]he public is hereby advised to exercise caution in dealing with any individual or group of persons soliciting investments for and on behalf of Kapiboma,” it said. “The public is further advised not to invest or stop investing in any investment scheme being offered by aforesaid entities/individuals.”

As penalty, Kapiboma may be charged up to P5 million or a maximum of 21 years in prison, or both. The SEC said it also submitted to the Bureau of Internal Revenue the names of the involved individuals. — Denise A. Valdez

MPIC ties up with Dusit for hospitality venture

MPIC Chairman Manuel V. Pangilinan says listed firm’s aspiration is to ‘play a significant role’ in the growing tourism industry in the Philippines. — BW FILE PHOTO

METRO Pacific Investments Corp. (MPIC) is venturing into the hospitality and real estate business starting with a P1.6-billion partnership with Thailand-based hotel firm Dusit International.

In a statement to the stock exchange, the listed conglomerate said it had signed an investment deal with Dusit yesterday for the joint development and management of hotels and condominiums in the Philippines.

The partnership will commence this year with the development of two hotels and three condominiums in MPIC’s properties in Batangas. Existing properties of Dusit in the Philippines will also be upgraded.

Among Dusit’s properties in the country are five-star hotel Dusit Thani Manila in Makati City, private island resort Dusit Thani Lubi Plantation Resort in Davao, contemporary hotels dusitD2 in Davao and dusitD2 The Fort in Bonifacio Global City, Dusit Thani Residence in Davao, and Dusit Thani Mactan in Cebu.

For projects under the partnership, MPIC’s newly-formed real estate, hospitality and tourism arm Metro Vantage Properties, Inc. will handle the design, development, marketing and sales. Then for Dusit International, its local unit Dusit Thani Philippines will take charge of hospitality and tourism responsibilities.

MPIC Chairman Manuel V. Pangilinan said it is the listed firm’s aspiration to “play a significant role” in the growing tourism industry in the Philippines.

“MPIC’s fundamental goal is to seek investment opportunities that create value for our stakeholders… With this endeavor, we will support the tourism industry by developing thoughtfully-designed properties offering unique leisure experiences to travelers,” he was quoted in the statement as saying.

“We will seek to develop additional sites over time as demand grows for tourism and travel in the country,” he added.

For Dusit, the partnership is also ideal as it wants to ride on the expanding tourism industry in the Philippines.

“This is an opportunity for us to demonstrate our expertise in bringing distinct Thai hospitality and MPIC’s place in the Philippine market to deliver unique hotel experiences fulfilling the needs of our guests,” Dusit International Group Chief Executive Officer Suphajee Suthumpun was quoted as saying.

Shares in MPIC at the stock exchange saw a two centavo or 0.64% uptick to P3.16 each at the close of Wednesday’s trading.

Metro Pacific Investments Corp. is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

PCC clears sale of San Carlos plant to Ayala unit

AC ENERGY Philippines, Inc. said on Wednesday that the Philippine Competition Commission (PCC) had approved the Ayala-led company’s acquisition of a solar farm in Negros Occidental from a group of investors that include a state-led insurer.

In a disclosure to the stock exchange, the Ayalas’ business unit for energy projects in the Philippines said it had received the PCC decision on Feb. 13 stating that the antitrust watchdog finds the transaction “will not likely result in substantial lessening of competition” and resolving “to take no further action with respect” to it.

The deal value was placed by AC Energy Philippines at around P2.772 billion, “subject to adjustments.”

“The amount was the result of negotiations between the sellers and the buyer,” AC Energy Philippines said.

The acquired company, San Carlos Solar Energy, Inc. (Sacasol), owns and operates a 45-megawatt (MW) solar farm in San Carlos City, Negros Occidental. The solar farm is operating under the feed-in tariff system under the Renewable Energy Act of 2008. As such, Sacasol enjoys a steady stream of revenues, usually at higher-than-market rates.

The PCC approval completes AC Energy Philippines’ acquisition of the project for which it signed a purchase agreement on Nov. 11, 2019 with Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System.

With the deal, a total of 6.996 common B shares and 36.246 redeemable B shares changed hands to give AC Energy Philippines a 70% controlling interest in Sacasol.

“Payment shall be made in cash upon the satisfaction of the agreed conditions precedent,” the buying company said.

AC Energy Philippines said the acquisition advances the company’s “strategic objective” to achieve at least 2 gigawatts, or 2,000 MW, of attributable renewable capacity by 2025.

It said upon the completion of the transaction, the company will be able to increase its cash flow from the San Carlos solar power plant. It also places AC Energy Philippines in a position to be a major player in the renewable energy business.

The sellers are investors in private equity fund Philippine Investment Alliance for Infrastructure (PINAI) that invests in infrastructure assets in the Philippines, among which is Sacasol.

On Wednesday, shares in AC Energy Philippines were unchanged at P2.13 each. — Victor V. Saulon

SMC food unit gets regulatory approval on P15-billion bonds

THE bonds are given the top credit rating by a local debt watcher, which means they are expected to have minimal credit risk. — HTTPS://WWW.SANMIGUELFOODS.COM/

SAN MIGUEL FOOD and Beverage, Inc. (SMFB) has gained the nod of the country’s corporate regulator for its planned issuance of P15-billion fixed-rate bonds.

In a statement yesterday, the Securities and Exchange Commission (SEC) said it had approved the application of SMFB to offer the bonds in two series at face value.

“The SEC on Feb. 18 considered favorably the public offering by SMFB of fixed-rate bonds worth P15 billion,” it said.

The Series A bonds from the P15-billion bond issuance will have a tenor of five years from issue date or in 2025, while the Series B bonds will have a maturity of seven years from issue date or in 2027.

The bonds will be offered in minimum denominations of P50,000 each, then in integral multiples of P10,000 thereafter. They will be listed on the Philippine Dealing & Exchange Corp. and traded in denominations of P10,000.

In terms of optional redemption, SMFB may redeem the outstanding Series A bonds in whole on the third year or at 100.5% on the fourth year, while the outstanding Series B bonds may be redeemed at 101.0% on the fifth year or at 100.5% on the sixth year.

The company is expected to net around P14.81 billion from the offer, which it will use to fund the redemption of its outstanding 15-million Series 2 Perpetual Preferred Shares on Mar. 12. Redemption price is set at P1,000 per share.

BDO Capital & Investment Corp.; BPI Capital Corp.; China Bank Capital Corp.; Philippine Commercial Capital, Inc.; PNB Capital and Investment Corp.; RCBC Capital Corp.; and SB Capital Investment Corp. are the joint lead underwriters and bookrunners for the offer.

SMFB filed its application for the bonds with the SEC in November. The bonds were given the top credit rating by local debt watcher Philippine Rating Services Corp., which means the obligations are expected to have minimal credit risk.

SMFB is the food and beverage unit of listed San Miguel Corp. (SMC). Shares in SMFB at the stock exchange lost P2.10 or 2.74% to P74.50 each, while shares in SMC erased P2.60 or 1.93% to P132.40 each on Wednesday. — Denise A. Valdez

Big Bad Wolf sparks joy

By Giselle P. Kasilag

IN THE AGE of digital libraries and online bookshops, the Big Bad Wolf book sale appears to be a stubborn relic from a bygone era that refuses to accept its irrelevance. After all, in a world advocating minimalism, downsizing, and the disposal of things that do not spark joy, books are high on the list of dust-gatherers that can easily be replaced with phones and tablets.

Around 750,000 Filipinos, however, beg to differ. In 2019, four Big Bad Wolf events all over the country successfully sold hundreds of thousands of physical books and posted a 10% growth from the year before. Metro Manila accounted for 300,000 customers while the balance was divided between Cebu, Davao, and Pampanga.

“The younger generations are starting to read,” declared Jacqueline Ng, co-founder and executive director of Big Bad Wolf Books. “That is the best thing! I think, for the past 10 years, the book industry has seen such a huge decline in readers. We are talking about countries where a lot of people are reading. They saw a huge decline. So in countries where a lot of people are not reading, book-selling is already difficult because you are catering to a very few people. So a small decline would be a big impact already to that particular country’s book-selling industry. So for the past 10 years, everybody’s [been] struggling.”

THE WOLD VS THE SCREEN
She attributed the decline to the rise of the popularity of gadgets. The explosion of sales of phones, and the advent of cable television and streaming services all contributed to the “busy-ness” and distracted lifestyle that has come to characterize today’s culture.

“The phone! You can’t even leave the phone. People can reach you instantly. You have to respond instantly, that’s the expectation. Before, you have to call in. They can’t reach you when you’re outside. You have more free time. Now there’s no such option anymore. It’s not a choice. We have so much distraction. There is so much happening that is at our fingertips. So everybody have so much more other priorities to do — career, family, and the amount of distraction. Some people are so hooked to their social media — it’s just looking at other people’s activities like what they eat and where they go. Sometimes it’s to relax but you don’t realize that one hour has passed just by doing things like that. So it’s part and parcel of life which we can’t avoid, in a way,” she added.

Ms. Ng, however, has a reason to be hopeful. As the new technology infiltrated people’s daily lives, studies are also being conducted to determine the impact of the gadgets on people. She noted that a number of these studies recommend less screen time for children. Some went as far as saying that smart phones should not be introduced to children until they reach the age of 10.

In the last two years, she noticed a shift in people’s behavior. As parents attempt to curb their child’s gadget usage, they also find themselves being forced to decrease their own screen time. Children learn by example rather than lectures and telling a child not to play with their phones at the dinner table also means that the parents cannot use their devices during meal times. With less gadgets, books have become a favored alternative.

“The really good thing for the past two years is that globally we are recognizing it and even the phone is tell you to have less screen time. So the sale globally for the physical book has increased. There is a positive increase for the publisher’s numbers. They are publishing and selling more.”

The shift, however, is still quite subtle. While people are turning to physical books, how they make a purchase has changed.

“Retail is hard,” Ms. Ng admitted. “You still see bookstores closing down. Sometimes it’s not because there aren’t customers buying books but because of change in shopping patterns. So it’s not just books but you talk about even clothes. Retail’s costs has [been] raised so high that it’s not so easy to have a shop any more. You might be collecting the same sales collection but the cost keeps going up. And the book sales margin is not big. So now it’s not viable to have a brick-and-mortar store which is why you see that the shops are closing now, unfortunately. And you know that bookshops need space. You need to showcase the books. So how do you afford so much square footage of rental? That is one thing.

“The second thing is that people are buying things online all the time. You compare. Book Depository is cheaper. Amazon is cheaper. Everything is at your fingertips. And you’re at a bookshop and you see the book you like but you go online and buy. And online, you have so much options. They show you literally all your options and where you can buy from, and with different prices so you can choose where to buy from.”

THE WOLF VS THE CORONAVIRUS
The 10% increase in both sales and visitor count from Big Bad Wolf’s 2018 to 2019 events, however, is an indication for Ms. Ng that they are on the right track. People are reading and people are buying physical books. They were hoping to post the same growth rate for this year. Unfortunately, the coronavirus has forced them to rethink their targets.

It was a difficult decision to push through with the event given that it is expected to gathered a large number of people from different parts of the metro under one roof for 10 days. Other major events such as concerts and sports fests have already been canceled following the advisory from the Department of Health discouraging such activities at the moment. Instead, Big Bad Wolf put into place various measures to keep the visitors safe. Masks are encouraged. Alcohol and hand sanitizers are all over the site. Temperatures of guests are taken even before they enter the venue.

Ms. Ng shared that they are hoping now to just equal the figures from year before. But they worry that a 20% drop could devastate their bottomline given that their margins are very low.

But she remains optimistic. The event is in a unique position to effect positive change and she is in it for the long haul.

“We are about converting a non-reader to a reader. And you have no way to convert a non-reader into a reader unless you have a physical sale. If you want to go online to buy a book, you must already want a book, and what you want. I’m talking about someone who is not even reading. Why would they even go online to buy a book or search for a book? It’s not gonna happen. So we are talking about getting people to come, getting people to be interested. Not knowing that this book existed but when they’re here, they pick it up and say, ‘Hey, this is interesting!’ And then the price, of course, they can’t resist and they just buy it and try. And for people who are already readers, you buy and it’s so reasonable and so affordable that you say, ‘Hey! I should buy for my friend, or I should buy for my colleague.’ If you see a book that he or she likes. So that spread of books, that won’t happen unless it’s a physical sale.”

Spreading the love for reading two million physical books at a time is a daunting task but Ms. Ng is a determined woman and Big Bad Wolf will continue its march to literacy for all.

The Big Bad Wolf book sale is ongoing until Feb. 24 at the World Trade Center in Pasay City. Entrance is free.

Uber seen moving unit to Manila as LA office closes

UBER spokesman confirms closure of downtown Los Angeles office. — REUTERS/BRENDAN MCDERMID

UBER Technologies, Inc. is closing its office in downtown Los Angeles, where the ride-hailing company employs customer support staff, to focus on its bigger locations.

The move was reported earlier on Tuesday by the LA Times newspaper, which also added that the step will result in the elimination of about 80 jobs.

An Uber spokesman confirmed the closure in an e-mailed statement.

The jobs from the office being closed will be shifted to a customer support office of Uber in Manila, the LA Times reported, citing sources and a recording of comments from an Uber manager.

Uber did not comment on the job losses mentioned in the report.

Earlier this month, Uber, which is backed by Japanese technology investment giant SoftBank Group Corp., moved forward by a year its target to achieve a measure of profitability to the fourth quarter of 2020, but added it still expects to lose a total of more than $1 billion this year.

In the fourth quarter of 2019, the company’s total revenue rose 37% to $4.07 billion on a yearly basis while its net loss widened to $1.1 billion from a loss of $887 million a year earlier. — Reuters

A taste of Spain’s Rioja

It is understood that the people who work with wine somehow shape it too: while wine is indeed time, climate, and space distilled elegantly in a bottle, surely the hands who made it have left their imprint on it too?

Spanish wine company CVNE (pronounced cooh-neh) — standing for Compañía Vinícola del Norte de España — began in 1879. Marina Eito, Asia Area Manager for CVNE, said that the company has seven vineyards in different Spanish regions, but out of the seven, four of them are in Rioja. Rioja wines have the privilege and duty of having a DOC, a denominación de origen calificada conferred by the Spanish government. While it protects the name of the region’s products, it also expects that everything is to be made according to a high standard. Furthermore, Rioja has been cultivating vineyards since before the arrival of the Romans, due to the influence of another ancient civilization, the Phoenicians.

Ms. Eito points out the company’s logo is composed of the same colors as the flag of Spain. “We are the only company — not winery, company — that can have the colors of the flag of Spain in the logo,” she said, owing to the fact that, “This company is one of the oldest companies that have been making wine in Spain.” That, plus the family that owns it, the Real de Asua family, according to her, has close ties to the Crown. “Thanks to this relationship, we have always had a good position in the national market,” said Ms. Eito.

But the royal connection is not the only thing going for it. Consider that for the 2004 wedding of the present King Felipe VI to then-Letizia Ortiz y Rocasolano (now Queen), the then-Prince of Asturias chose a 1994 Imperial Gran Reserva from CVNE not because of their connections, but because it stood out during a blind tasting. The same line, a 2004 Imperial Gran Reserva, was pronounced the best wine in the world by Wine Spectator in 2013.

“We want to be the representative of Spanish wines and Spanish flavors,” said Ms. Eito. “Our strategy is to give a complete portfolio of Spanish flavors; the Spanish soul, to our partners in the international market.”

THE TASTE
BusinessWorld took part in a tasting of a line of CVNE’s wines at Salcedo Village’s Rambla earlier this month, paired with dishes prepared by Ignacio Alcala. The meal kicked off with Iberian presa air baguette with PX, piparras, and Parmesan cheese cream. This was paired with a Roger Goulart Rose 2017, which had a velvety mouthfeel and a light citrusy flavor. This was a wonderful contrast with the crisp baguette and the silky ham.

Next came a Pagos de Galir Godello 2018, which had a light, spicy aroma that might predict something stronger. The taste, however, was quite light, shy, and sweet. This was paired with Roasted Cabbage with Scallops, which livened up what could have been a very mild and wholesome dish. The same was paired with Huevos Rotos with Lobster, by itself a work of art, a lovely melange of eggs and tender lobster flesh, dressed in a strong lobster reduction. This, we felt, was a better pairing with the wine, for it tamed the stronger, briny flavors of the shellfish.

A mild Chicken Croqueton passed without much notice, but the wine pairing of Cune Reserva 2014 gave it some gravitas. An Imperial Reserva 2015, with a tempered, unhurried, and subtle spicy flavor was born for the Ribeye Paella that was served with it. The meal ended with a cheesecake with rosemary ice cream, which nicely cleaned the palate.

Ms. Eito, herself from Rioja, tried to describe how the character of the wine has somehow been infused with the character of the region’s people. “Normally, it’s people who are humble, hardworking, and very easy in conversation,” she said. “The major production of Rioja is in the Tempranillo grape. A characteristic of Tempranillo is high acidity. Thanks to this high acidity, you can prolong the life of the wine.

“When you meet a Rioja wine, or a Rioja person,” and here she smiled, “You have a friendship for a long time.” — Joseph L. Garcia