2. Universal Robina Corporation (URC) is among the
Philippines' pioneers in the food manufacturing business
having been operating in the country for over 40 years. URC
is engaged in manufacturing, marketing and the distribution of
a wide range of consumer food products such as snacks,
candies, biscuits and crackers, instant coffee, instant noodles,
tomato sauces, pasta, and ice cream, among others.
URC is like a second home to its employees because of its
family-oriented culture. We foster an environment wherein
everyone would feel like an important member of one big
happy family. We believe that each member has an important
role in the family's success.
3. Delighting our consumers with
trusted brands
of exceptional quality and
value, making lives a truly fun
experience.
John L. Gokongwei, Jr.
4. URC is the customer's FIRST
CHOICE in FUN SNACKS. We
are the dominant market leader in
the Philippine snack food
industry. Our leading brands offer
consumers the best in enjoyment,
quality, value and convenience.
James L. Go
5. • Leading world-class brands
• Customer-focused, lowest cost organization
• Innovative new products and processes
• Inspired and competent Human Resources
• Responsible business and community partner
• Superior return to shareholders
Lance Y. Gokongwei
6. Innovation. We are open to change and respectfully challenge the status quo.
We are always learning particularly from our customers.
Proactivity. We believe in our ability to act with a sense of urgency and
make a difference, and take responsibility for and ownership of the quality of
our work.
Professionalism. We pursue excellence and self improvement while
possessing integrity and discipline.
Responsibility. We team up with our co-workers, and together seek mutually
beneficial long-term partnerships with the trade suppliers and service
providers, government and community.
Cost leadership. We are a culture that safeguards our resources against
wastage and rewards efficiency. We pursue growth and development
opportunities ensuring responsibility in maximizing cost and resource
effectiveness.
8. Universal Robina Corporation has three main business lines:
•The Branded Consumer Foods Group is the largest business and the key
driver of growth and profitability. It is composed of the Philippine,
international and packaging businesses. In the Philippine BCFG, our main
divisions are Snack Foods, Beverages, Grocery (which include the joint
ventures Nissin-URC and Hunts URC), Exports, and Packaging. Our
international investments are in Thailand, Indonesia, Malaysia/Singapore,
China/HK, and Vietnam.
•The Agro-Industrial Group is composed of hog and poultry farms,
branded feeds, and animal health products.
•The Commodity Foods Group has both flour and sugar.
The latter two groups provide URC with consistent cashflows and, in the
case of commodities, consistent supply of raw materials for the Branded
Consumer Foods Group.
9. The Company has developed an effective nationwide
distribution chain and sales network that it believes provide its
competitive advantage. The Company sells its branded food
products primarily to supermarkets, as well as directly to top
wholesalers, large convenience stores and two types of sub-
distributors, large scale trading companies and independent
business managers which in turn sell its products to other small
retailers and down line markets through the Company’s Grand
slam Program, an innovative distribution scheme for
downscale accounts, which enabled URC Philippines to solidify
its presence in sari-sari stores and groceries, effectively locking
out competitors in the consumer foods segment in the
Philippines.
10. The Company’s branded consumer food products are
distributed to approximately 114,000 outlets in the
Philippines and sold through its direct sales force, regional
distributors and independent business managers. URC
intends to enlarge its distribution network coverage in the
Philippines by increasing the number of retail outlets that its
regional sales force and distributors directly service. By
deploying larger and financially stronger regional distributors
over the next two years, URC plans to increase the number of
outlets serviced directly from 114,000 accounts being
serviced as of fiscal year 2006 to 120,000 accounts . URC
also plans to increase the product focus of its distribution
network by ensuring that relevant products are targeted
towards appropriate retail outlets.
11. The branded consumer food products are generally sold by
the Company either direct from delivery vans to small retail
outlets or by traveling salesman to wholesalers or
supermarkets, and regional distributors with delivery
subsequently being undertaken by third party road carriers.
Direct delivery sales are normally made on cash basis,
while 15- to 30- day credit terms are extended to
wholesalers, supermarkets and regional distributors. The
Company believes that its emphasis on marketing, product
innovation and quality, and strong brand equity has played
a key role in its success in achieving leading market shares
in the different categories where it competes. In particular,
URC launched Jack and Jill as a master umbrella brand in
order to enhance customer recognition of its products.
12. URC devotes significant expenditures to
support advertising and branding to
differentiate its products and further expand
market share both in the Philippines and in its
overseas markets, including funding for
advertising campaigns such as television
commercials and radio and print
advertisements, as well as promotions for new
product launches by spending on average 8%
of its branded consumer food division’s net
sales per year.
13. Growing international operations
URC also has a growing regional presence in the
branded consumer foods segment and has
established operations in Thailand, Malaysia,
Indonesia, China, Hong Kong, Singapore and
Vietnam. URC continues to launch products in each
of its international markets, both from its existing
portfolio of products and brands and new products
specifically formulated and branded for the local
markets. In its most established international
operations in Thailand, URC has attained leading
market share positions in several product categories
