Gardenia Cebu

[sharkey360]

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It's in the news. Gardenia is indeed coming to Cebu and eventually in other provinces of the southern Philippines!

Release #1

Gardenia Bakeries, the country’s biggest breadmaker, is expanding in Cebu with P100-million bread plant to cater to Cebu markets and Northern Mindanao areas even as plans for the establishment of a similar plant in Davao is underway as the country’s biggest breadmaker aims to attain a nationwide coverage soon.

Simplicio Umali Jr., Gardenia Philippines president, said in a press conference that the Cebu plant is already starting construction and is expected to start full commercial operation in January next year.

Umali announced this expansion amid a robust sales growth this year. Gardenia’s sales volume has been up 21 percent this year and expects to end the year with 25 percent growth in sales volume.

“Growth in sales is due to consumer confidence because everyone is positive now unlike before when consumers were trying to save their money,” Nestor Constancia, Gardenia making and sales manager.

This increased in sales is expected to translate to P2.5 billion to P2.6 billion in gross sales this year from P2.2 billion last year. Next year, the company expects P3 billion gross sales.

For its Cebu plant, it will have a capacity of 2,000 loaves per hour daily capacity or daily capacity of nearly 50,000 loaves such as Classic White Bread, High Fiber Wheat Bread and some flavored loaves. It will employ 100 people.

The 4.500 square meter Cebu plant, which is located in Lapu-Lapu City near the Mactan bridge, will serve the entire Cebu markets, Bohol and supply Northern Mindanao areas from a drop off point in Cagayan de Oro City for distribution to nearby provinces such as Iligan, Butuan and Malaybalay, Bukidnon.

“We received lots of inquiries from Cebu consumers and supermarkets to deliver to Cebu, but unfortunately it will take 24 hours for a Roll-on Roll-off (RORO) vessel to bring our products to Cebu and we do not want to serve Gardenia breads that are no longer fresh,” Umali said.

Source - Gardenia Sets Up P100-M Cebu Plant | Manila Bulletin


Release #2

TO BE able to cater to the Visayas and Mindanao markets
, Gardenia Bakeries Philippines Inc. is putting up a manufacturing facility in Mactan, Cebu with an initial investment of P20 million.

Gardenia president Simplicio Umali Jr. said the said amount covered only the most basic equipment and some vehicles for distribution. Total investment in the Cebu plant could reach P100 million.

The additional investment, he said, would depend on the take-up of Gardenia products in Cebu, the nearby province of Bohol, and Mindanao markets Butuan, Cagayan de Oro, Iligan and Malaybalay.

He said Gardenia had no presence in the Visayas and Mindanao. Shipping
from its Laguna plant all the way to the Visayas and Mindanao markets was not feasible as the amount of time it would take for the products to reach their destination would compromise their quality.

“Gardenia guarantees freshness and quality. We can’t compromise that. The only way for us to reach the Visayas market is to put up a plant in Cebu,” he said.

The company’s Cebu plant, which will start full commercial operations by January, will have the capacity to produce 2,000 loaves of bread an hour or almost 50,000 loaves a day.

Products to be initially produced in the plant and distributed in the Cebu and certain Mindanao markets included Gardenia’s Classic White Bread, High Fiber Wheat Bread, and some flavored loaves.

Depending on the take-up of the products, Umali said Gardenia could opt to further expand in the medium term.

He said the company was also considering putting up a manufacturing facility in Davao, one that would be of similar scale to the Cebu plant.

The decision to set up shop in Cebu was prompted by numerous inquiries from groceries and other potential distributors about the possibility of bringing Gardenia products to the province.

Business - Gardenia puts up plant in Cebu - INQUIRER.net

[sharkey360]

GARDENIA Bakeries Philippines, Inc. -- the market leader in supermarket loaf bread sales -- is building another factory in Cebu and planning a similar expansion in Davao to expand its reach outside Luzon, officials yesterday said.

The bread firm is investing an initial P20 million on equipment and may eventually hike spending to a total P100 million by end-2011 for the new plant in Lapu-Lapu, Cebu which will start running in January, president and general manager, Simplico P. Umali, Jr. said in a press briefing.

This will increase the company’s production capacity by 17% to 14,000 loaves per hour from the current 12,000-unit output of its Laguna factory, Mr. Umali said.

“Supermarket chains have been pressuring us for years to sell in Cebu,” Mr. Umali said, adding that bread consumption is expected to continue growing despite rising input costs.

Already, the company expects sales to rise by roughly 16% to P2.55 billion in 2010 even without the Cebu plant coming onstream yet, he said. Sales volume is meanwhile forecast to grow by 25%.

This comes even as the firm may dampen demand if it is forced to impose a P2.00 hike on its P54.50 loaf price depending on whether or not millers hike flour prices by another P40.00 per 25-kilo bag, Mr. Umali said.

The new Cebu facility will enable Gardenia Bakeries’ entry into Central Visayas and Northern Mindanao, its marketing and sales manager Nestor E. Constancia said.

The company commits to selling only those loaves made within the day and the shipping time from Laguna to several provinces would have taken more than 24 hours, Mr. Constancia explained.

In the medium-term, the Cebu factory should be contributing P350 million to P500 million additional sales to the total annual figure, Mr. Umali said.

The factory will rise on a 4,500-hectare lot adjacent to another 3,000-hectare property, allowing for even more expansion in the future, he said.

“And we may have to put up a factory in Davao ... in another two years,” he added, noting that shipping infrastructure in Cebu may not be enough to accommodate the larger Mindanao market eyed by the firm.

The firm is aiming to be the market leader in the Visayas and Mindanao, Mr. Umali said.

“We’re quite concerned [sales] might not take off quickly [at the Cebu plant]. Our prices are high,” Mr. Umali said.

“But even when we first entered Manila, our price was 20% higher than [the average],” Mr. Constancia said.

Despite this, the firm has managed to corner 65% of Luzon loaf sales, Mr. Constancia claimed.

BusinessWorld Online Edition: Gardenia building factory in Cebu; Davao eyed

Great bread is coming at last to Cebu!

[z3robeLow]

Cebu is such a hard market to penetrate for manila based companies. It always has been. I think the cebu chambers is doing pretty good in protecting local entrep.. aside from the fact that cebuanos are proud and would rather choose cebu based products. I guess Gardenia will find their niche here eventually. I am waiting for Polly's or Conti's.. hehe

OT: finally S&R will be opening in cebu. long wait is over.

[sharkey360]

Gardenia's arrival in Cebu might just be the biggest thing since Starbucks opened in Cebu.

[sharkey360]

Since Gardenia's putting up a factory here in Cebu, it is obvious that varied job opportunities await locals and that the products that will be sold locally will be made by them.

Cebu deserves high quality bread from Gardenia.

[KASAAC]

cool! more jobs for cebuanos then

[sharkey360]

Let me share with you that during my time working and living in Metro Manila cities temporarily, Gardenia is well known for its premium price and quality offerings. Every time I go back home, I brought with me a few loaves for myself, family and friends - and everyone loved eating Gardenia regardless of what flavor.

Currently, I buy my bread at Corner Bakery in Mabolo (their bread are much better than those offered by Julie's Bakeshop). Once Gardenia's offerings are in the market, I'll stick to Gardenia for good (though I'll go back to Corner Bakery for their unique offerings).

[kamber11]

ide like to taste the kind of bread which they been airing in TV...murag lami man tanawon

[iVladz]

nice to hear that gardenia will open soon in cebu...

[kimberlirae]

when man mo open?