Philippines: Gardenia still expects growth

Manila / PH. (div) Despite a «very challenging» first five months, Gardenia Bakeries (Philippines) Inc., subsidiary of Singapore-based QAF Limited, is sticking to its original growth target that includes increasing its market share to about three-fourths of the bread sales in supermarkets, groceries and convenience stores.

Nestor E. Constancia, Gardenia marketing and sales manager of the Philippines biggest bread maker, said while some of its competitors are experiencing up to ten-percent sales decline due to low demand, Gardenia believes a 25-percent sales growth for the year can be achieved easily. «We are maintaining our target for the year. Last year, we hit a little more than two billion Philippine Pesos (PHP), and this year it will be a minimum of 25-percent growth», Constancia told the BusinessMirror in Manila.

Exchange rate on June 19th, 2009 (InterBank):
1’000’000,000 Philippine Pesos (PHP) = 14’681,615 Euro (EUR)
1’000’000,000 Euro (EUR) = 68’112’400,000 Philippine Pesos (PHP)

Gardenia, he said, is the dominant brand in the supermarkets, groceries and convenience stores with a share of 70 percent. With Gardenia continuing its aggressiveness, Constancia said the company´s share in this segment could climb to 75 percent by the end of the year. The company, he said, has lined up for the year several new product launches, which are reportedly doing well particularly in outlets near in call centers. Aside from this, Constancia said Gardenia is ramping up marketing efforts to penetrate the communities and expand product reach through Gardenia carts and the territorial distributors.