FULL COMPANY

OUTPUT
(Annual Reports from 2012-2015)

A requirement to be submitted in
Management 26

Kurtlyn Ann N. Oliquino

(Thursday 9:00-10:30 am)
 Company History
Universal Robina Corporation (URC) traces its beginnings all the way back to 1954. John Gokongwei was
doing very well then as a trader/importer. He had learned the trade when his father died before the war,
and had worked hard through the war and postwar years to prosper. However, while he thrived, he took
a long hard look at his company, and correctly predicted that trading would remain a low-margin
business.
On the other hand, a successful manufacturer controlling its own production and distribution would
command more profitable margins. Mr. John decided to construct a corn milling plant to produce glucose
and cornstarch, Universal Corn Products (UCP), the first linchpin of the company that would become the
URC we know today.
For a time, business was good. However, Mr. John was still looking ahead, working with an eye towards
the future. While the business was doing very well, it was producing essentially a commodity, which a
customer could easily access elsewhere. To stay ahead in the game, Mr. John had to diversify by
producing and marketing his own branded consumer foods, similar to the multinational companies in the
country like Nestle and Procter & Gamble. In a sense, he wanted to put up the first 'local' MNC, borne out
of their best practices.
Thus, in 1961, Consolidated Food Corporation was born. Their first 'home run' product was Blend 45, the
first locally-manufactured coffee blend, dubbed as the "Pinoy coffee". This became the largest-selling
coffee brand in the market, even beating market leaders Cafe© Puro and Nescafe.
After coffee came chocolates. Nips, a panned chocolate were a staple of Filipino childhood.

In 1963, Robina Farms started operations, beginning with poultry products. This was also the beginning of
the vertical integration of the Gokongwei businesses, as the farms would be able to purchase feeds from
UCP in the future. Later that decade, Robichem Laboratories would be put up, to cater to the veterinary
needs of the farms businesses. Robina Farms expanded as it entered the hogs business in the latter part
of the 70s.
1966 saw the establishment of Universal Robina Corporation, which pioneered the salty snacks industry
through Chiz Curls, Chippy, and Potato Chips, under the "Jack 'n Jill" brand. Other snack products would
follow over the years, as the company successfully introduced market leaders like Pretzels, Piattos, and
Maxx.
The coming decades saw more acquisitions and expansion. In the early 1970s, the family entered the
commodities business through the formation of Continental Milling Corporation, for flour milling and
production. The late 1980s brought the acquisition of three sugar mills and refineries, under URC Sugar.
These two businesses provided stable cash flows, and allowed for further vertical integration in the
supply chain, to help URC weather any volatility in the cyclical commodities markets. In line with this
strategy, the late 1990s saw the entry of URC into the plastics business, through URC Packaging.
While the businesses became more diversified, the companies were slowly integrated in order to
streamline and minimize costs. In 2005, the present structure of the group was completed. All the
different companies are now organized under the Universal Robina Corporation umbrella, divided into 3
focused groups:

 the Branded Consumer Food Group, comprised of BCFG Domestic (including packaging) and
International
 the Agro-Industrial group, comprised of Universal Corn Products, Robina Farms, and Robichem
 and the Commodities group, with the Sugar and Flour divisions
 Mission, Vision and Core Values

Mission

Universal Robina Corporation (URC) is one of the largest branded food product companies in the
Philippines and has a growing presence in other ASEAN markets.

Vision

URC's vision is to be the best Philippine food and beverage company, with a powerful presence
throughout the ASEAN region, carrying a wide portfolio of delightful brands of exceptional quality and
value, equipped with efficient systems and motivated people. We are committed in making lives a truly
fun experience.

Values

Passion to Win: We build organizational capability by being entrepreneurial and proactive, driven by a
sense of urgency and purpose. We continuously challenge ourselves to deliver world-class brands and
consistently rally our people to strive for excellence.

Dynamism: We cultivate a culture of innovation and productive working relationships. We continuously

find ways to improve organizational and people capabilities to meet constantly challenging consumer
needs.

Integrity: We are guided by transparency, ethics, and fairness. We build the business with honor and are
committed to good governance. Our processes and products meet the highest standards. We are credible
in our dealings with both internal and external stakeholders.

Courage: We seize opportunities in building long-term, sustainable businesses. We make tough people
and business decisions to ensure competitive advantage.
THE ORGANIZATIONAL STRUCTURE OR URC
 FULL FEATURES OF

COMPANY

FINANCIAL HIGHLIGHTS

AND THEIR

FINANCIAL STATEMENTS
FINANCIAL POSITION
(CNT’D)
INCOME STATEMENT
COMPREHENSIVE INCOME
My SECTOR:
Beverages
URC is the leading company in the Beverage industry due to its pioneering efforts in providing
products that are anchored on the Filipino taste and trends of on the go and convenient
consumption.

This started with its coffee business, launching brands such as Blend 45, the first locally
manufactured soluble coffee, Great Taste Granules, the first concentrated coffee in the country,
and Great Taste 3-in-1, the first complete coffee mix. The ready-to-drink (RTD) beverage
market segment was disrupted when URC introduced C2 Cool & Clean in 2004, the first locally
produced RTD tea brand in a market that was previously dominated by carbonated soft drinks.

URC currently has a strong presence on the powdered and RTD segments with the success of
Great Taste White, and C2 Cool & Clean. Great Taste has been a trailblazer on innovation in
the coffee mixes segment with Great Taste White which is currently the number one selling
brand in the market. The Company was also the first to introduce packaging innovation through
its twin pack that provides better value to consumers. C2 has maintained significant dominance
and leadership after 11 years from launch. Its unique selling proposition as the only tea brewed
and bottled on the same day from natural green tea leaves continues to resonate with
consumers.

URC also offers RTD juices, bottled water, and RTD chocolates in tetra format. In addition,
Danone Universal Robina Corporation (DURBI), the joint venture of URC and Danone, now
sells B’lue, a Water Plus drink with three different flavor variants namely Orange, Calamansi,
and Lychee.

URC will continue to maintain being the leader in the Beverage industry through innovation to
introduce new and exciting products for its consumers.

READY TO DRINK BEVERAGES

• Tea (URC is the largest player in RTD Tea)

• Juices

• Water

• Chocolate

POWDERED BEVERAGES

• Creamer

• Instant Coffee
(Pure Soluble and 3-in-1 Mixes) URC is a strong competitor for both instant coffee and coffee
mixes

MAIN FOCUS:

C2 GREEN TEA

HISTORY:

Back in 2004, the Philippines’ Ready-to-Drink (RTD) market was relatively undeveloped.
Carbonated soft drinks dominated store shelves, in
cans and large PET bottles for the modern trade
such as supermarkets and convenience stores,
and returnable glass bottles for the traditional trade
such as sari-sari stores. The non-carbonated
space was a small slice of the total beverage
business, and the available products – sports and
energy drinks, iced tea, and juices, among others
– were too pricey for regular consumption. However, URC saw an opportunity. Market research
at that time showed that sales growth of carbonated soft drinks was beginning to stagnate, as
consumption remained stable. A trend towards health and wellness was sweeping the globe, as
consumers became more conscious of what they ate and drank. Finally, with more and more
people having on-the-go lifestyles, convenience and affordability took on new importance. Thus,
C2 Cool and Clean Green Tea were born. This was the very first locally-manufactured RTD
green tea in PET bottles, and it took the market by storm. C2 was positioned as a lifestyle
brand, while educating the consumer about the health benefits of green tea. Consumer events
also continued to harp on the advantages of tea, while promoting an active, healthy and well-
balanced lifestyle. C2 also competed directly with carbonated soft drinks manufacturers at their
price points. C2 was a critical and commercial success, fueling the growth of a new category
(RTD Tea) and increasing the share of non-carbonated
beverages in the total market. I/t was a major home run for URC,
as C2 sales rapidly shot up, making it our number one brand. C2
led the charge for our fledgling beverage business, and provided
another ‘leg’ for URC to stand on besides snack foods, where it
remains number one. However, in the years since C2’s launch,
the market dynamics have changed dramatically. Other
companies began to take notice of the non-carbonated drinks
space, with most players adopting PET packaging and similar
pricing. The success of C2 spawned a host of players wanting a
piece of the pie, all seeking to cash in on the interest in tea-
based drinks. Other categories such as energy drinks and juices
also saw cutthroat competition and torrid growth, as
multinationals and locals alike piled into the market. The
carbonated soft drink manufacturers weren’t sitting pretty, either. After watching the gains in the
non-carbonated beverage space (at the expense of their own bread and butter), the main
competitors came out swinging. They poured advertising and promotions money into the
market, using placement and trade lockouts to stifle the non-carbonated players. They made
their products more competitive, with new SKUs at lower price points. And they revamped their
ad campaigns, pushing soft drinks as a lifestyle and heritage brand.

In 2009, C2 expanded its line, beginning with the introduction of its Sugar-free variant in May. In
the last quarter of 2009 URC launched the new C2 Solo, a 230ml product priced and sized for
the tertiary trade. This product goes head-to-head against the newer and cheaper soft drink
SKUs, with a suggested retail price of Php 9.00, making C2 more attractive to store owners and
more affordable to consumers. At the same time, URC also launched its C2 1.5 liter bottle for
the modern trade, bringing the all the goodness of
C2 into a bottle for family and friends to share.
These two new products were responsible for
bringing C2 sales volumes to new record highs!
Outside of C2, there have been other
developments on the beverage front, with
numerous product launches in the past year to
quench everyone’s tastes. First up was the
country’s first RTD coffee in resealable PET
bottles, Coffee Twist. Available in 230 ml bottles in
three flavorful variants, this brand has so far been a hit, as initial results have shown great
promise. URC also produced a new tea variant, Yin Yang. This gulaman-flavored tea drink
mixes a brew of green tea leaves with 3 traditional Chinese cooling herbs, which help even out
the body’s internal heat caused by consuming hot or spicy foods. Finally, URC recently entered
the energy drinks market with Xplode, its newest beverage offering. Endorsed by the World
Wrestling Entertainment (WWE®) Superstar Dave “The Animal” Batista™, Xplode offers to
consumers what most of its competitors on the market do not – a perfect balance of potent
energy and great taste. With its array of new product offerings and focused pricing and
packaging strategies, URC has geared up for battle. 2010 will be an interesting year indeed for
RTD beverages, and with its new resurgence, URC will be at the forefront of the charge.
 The
Board of
Directors
and
Executive
officers
BOARD OF DIRECTORS
URC Branded Consumer Foods Group
 Executive Officers
James L. Go Anne Patricia C. Go

CHAIRMAN VICE PRESIDENT

Lance Y. Gokongwei Alan D. Surposa

PRESIDENT AND CHIEF EXECUTIVE VICE PRESIDENT

OFFICER

Ma. Victoria M. Reyes- Beltran

Patrick Henry C. Go
VICE PRESIDENT
DIRECTOR, VICE PRESIDENT

Michael P. Liwanag
Cornelio S. Mapa, Jr.
VICE PRESIDENT
EXECUTIVE VICE PRESIDENT AND
MANAGING DIRECTOR

URC Branded Consumer Foods Group Socorro ML. Banting

ASSISTANT VICE PRESIDENT

Constante T. Santos

SENIOR VICE PRESIDENT Rosalinda F. Rivera

CORPORATE SECRETARY

Bach Johann M. Sebastian

SENIOR VICE PRESIDENT Francisco M. del Mundo

CHIEF FINANCE OFFICER

Chona R. Ferrer URC BCFG International

FIRST VICE PRESIDENT

Arlene S. Denzon

Ester T. Ang COMPLIANCE OFFICER

VICE PRESIDENT – TREASURER