Tag: capital

Economic study finds Starbucks and Dunkin’ leading Philippines coffee market while local brands are gaining

Economic study finds Starbucks and Dunkin’ leading Philippines coffee market while local brands are gaining

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Are you fond of buying drinks at a local coffee shop or at a small stall that sells coffee? Recently the University of Asia and the Pacific-Center for Food and Agri Business (UA&P-CFA) announced the results of its research revealing that the local coffee market (cafés and small sellers specifically) of the Philippines are being dominated by Starbucks Coffee and Dunkin’ (formerly Dunkin’ Donuts) while several local brands are gradually gaining market share, according to a Philippine Star business news report.

To put things in perspective, posted below is an excerpt from the business news report of the Philippine Star. Some parts in boldface…

Global brands continue to dominate the country’s coffee industry, but homegrown brands are gaining traction, helping to diversify and enrich Filipinos’ caffeine options, according to the University of Asia and the Pacific-Center for Food and Agri Business (UA&P-CFA).

In a policy brief, UA&P-CFA said the local café market is led by a “few dominant” global brands, based on a Euromonitor report.

These global brands, the UA&P-CFA noted, maintain their strong presence through solid branding, extensive branch networks and loyal customer base.

The policy brief indicated that Starbucks Corp. remains as the industry leader, accounting for almost 54 percent of total value share among chain café and bar operators.

It was followed by Dunkin’, a foreign brand under Inspire Brands Inc., with a 12.1-percent market share, according to the policy brief authored by Cy Reyes, a research assistant at UA&P-CFA.

Meanwhile, McDonald’s Corp. held a market share of 5.8 percent while Jollibee Foods Corp., which operates The Coffee Bean & Tea Leaf, accounted for 5.6 percent.

“In addition to global chains, the Philippine café scene is vibrant and diverse, featuring several strong homegrown brands that continue to gain traction and shape local consumer habits,” UA&P-CFA said.

UA&P-CFA said one of the most prominent local cafés is Mary Grace Food Inc., noting that it is known for its “cozy, sit-down atmosphere” and its handcrafted baked goods. The other notable local players, according to the policy paper, are Bo’s Coffee, Figaro Coffee, Coffee Project and But First, Coffee.

The local coffee industry has also been enriched by the growth of specially and so called third-wave coffee shops like Yardstick, % Arabica and El Union, the UA&P-CFA said.

These coffee shops focus on artisanal brewing methods, single-origin beans and minimalist shop designs, it added.

Furthermore, coffee kiosks like Big Brew, Pickup Coffee and various regional iced coffee stalls catering to the fast-growing market for convenient, budget-friendly caffeine options contribute to the vibrant coffee industry.

The emergence of various coffee brands outside the traditional, huge global names indicate the “rich” and “expanding” influence of local café innovators, UA&P-CFA said.

“Though these smaller and niche players hold modest individual shares of the market, collectively they play a vital role in the evolution of the industry,” it said.

“They offer localized flavors, elevate coffee standards, and respond to the preferences of a wide and increasingly discerning customer base,” it added.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the coffee market and coffee sellers industry of the Philippines will keep modernizing as more people keep on buying coffee? Do you think the recent study should focus more on convenience stores selling coffee? What is your favorite coffee shop here in the Philippines?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Nomura says America’s 19% tariff may cut Philippines GDP growth slightly

Nomura says America’s 19% tariff may cut Philippines GDP growth slightly

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In the middle of mixed reactions towards the United States’ 19% tariff on Philippine exports, Nomura Global Markets Research stated that the country’s gross domestic product (GDP) growth could be cut by 0.4%, according to a BusinessWorld news report. Recently, US President Donald Trump and Philippine President Ferdinand “Bongbong” Marcos, Jr., met in the White House which resulted in the new tariff.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…

THE United States’ 19% tariff on Philippine goods could cut the Philippines’ gross domestic product (GDP) growth by 0.4 percentage point (ppt), Nomura Global Markets Research said.

In a report, Nomura said the US tariff of 19% on Philippine goods is “fairly high” and poses downside risks to growth.

“We estimate the direct effects could reduce our baseline GDP growth forecasts by a still-substantial 0.4 ppt in the Philippines.”

Nomura said this projection is “relatively substantial” compared to its baseline growth forecasts of 5.3% and 5.6% for this year and 2026, respectively.

“This is partly because we assigned 10% as the level where the reciprocal tariff rate could settle, on the assumption that the Philippines is a strong ally of the US and is not a third country for transshipments,” Nomura said.

“As it turns out, despite the visit to Washington by President Marcos and both sides reiterating the need for a strong partnership, the tariff was still set at 19%, which is even higher than the ‘Liberation Day’ level of 17%.”

Last week, Philippine President Ferdinand R. Marcos, Jr. met with US President Donald J. Trump at the White House in Washington, DC. Mr. Trump announced a 19% tariff would be imposed on Philippine goods, which will take effect starting Aug. 1.

“The trade ‘deals’ therefore represent upside surprises in terms of tariff rates, especially for the Philippines,” Nomura said.

“As a result, if implemented and these tariff rates are sustained, these will likely further weigh on growth in both countries relative to our current baseline forecasts.”

The government expects GDP to grow by 5.5-6.5% this year, lower than its previous target of 6-8%.

“While these ballpark estimates make sense to us, uncertainty remains high and these are ‘only’ taking into account the direct effects on these ASEAN countries’ exports to the US,” Nomura said.

These estimates do not account for sectoral tariffs, such as in semiconductors and pharmaceuticals, which are currently exempted, it added.

“But as our US team highlights, the risk is these could be set higher, though some countries could be exempted, adding to the uncertainty. As mentioned above, the details of the trade deals with Indonesia and the Philippines are still limited.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines is in a serious disadvantage with the American tariff of 19% imposed on the nation’s exports? Do you think the Philippine economy still has strong momentum to reach 6% GDP growth by the end of this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Investment firm Cerberus Capital Management will invest P15 billion more in the Philippines

Investment firm Cerberus Capital Management will invest P15 billion more in the Philippines

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While a lot of economists stated that the economy of the Philippines is unlikely to achieve 6% growth this year, the New York-based investment firm Cerberus Capital Management is investing an additional P15 billion in the country, according to a Philippine News Agency (PNA) news article. For the newcomers reading this, Cerberus is the operator behind the Agila Subic Shipyard.

To put things in perspective, posted below is an excerpt from the first PNA news article. Some parts in boldface…

New York-based alternative investment firm Cerberus Capital Management is investing an additional PHP15 billion in the Philippines within a year, as it sees progress in its existing operations and government support for foreign investors.

The company, which operates the 300-hectare Agila Subic Shipyard, the former Hanjin Shipyard in Subic Bay that it acquired in 2022, disclosed the plan during a meeting with President Ferdinand R. Marcos Jr. in Washington, DC earlier this week.

In a press release Friday, the company said the additional investments will be used to update the shipyard and introduce new projects in logistics, energy, and transport infrastructure.

Cerberus managing director Alexander Benard said they are “encouraged by the progress we’ve seen and by the strong support from the Philippine government.”

“We believe the Philippines holds significant long-term potential as a regional hub for industrial and logistics activity. We look forward to building on this momentum and supporting the development of our key strategic assets in the Philippines,” he said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will experience a breakthrough of additional foreign investments over the next six months?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco