Universal Robina Corp in Soft Drinks

(Philippines)
Local Company Profile | 08 Feb 2017

STRATEGIC DIRECTION
Universal Robina Corp is currently focused on joint ventures and partnerships with
foreign companies to bring premium, healthy and affordable products to the people of the
Philippines.

Its joint venture with Danone paved the way for the group to successfully enter bottled
water with the launch of the new brand Blue in 2015. This new brand has been
supported with above-the-line and below-the-line marketing activities such as television
advertising campaigns and social media marketing and activations.

Universal Robina was founded in 1954. One of the largest food and beverage companies
in the Philippines, it is publicly-owned and listed on the Philippine Stock Exchange
(PSE).

The company has a presence in numerous consumer goods industries including packaged
food and soft drinks as well as having interests in sugar, flour, packaging, livestock and
animal feed. Within soft drinks, it is the category leader in RTD tea with its C2 brand.
The groups product portfolio also includes brands such as Blue, Hidden Spring and
Rush in bottled water, Great Taste in RTD coffee and Refresh in juice.

KEY FACTS
Summary 1 Universal Robina Corp: Key Facts

Full name of company: Universal Robina Corp

www: www.urc.com.ph
Activities: Manufacturer of soft drinks, packaged food, packaging and animal feed

Source: Euromonitor International from company reports, company research, trade press, trade
sources

Summary 2 Universal Robina Corp: Operational Indicators

Year end September 2014 2015

Net sales PHP92.4 billionPHP109.1 billion
Net profit PHP11.7 billionPHP12.5 billion
COMPETITIVE POSITIONING
Universal Robina Corp was the second largest domestic player and fourth largest
company overall in the Philippine soft drinks industry in 2016. The companys overall
market share is mostly derived from its leadership in RTD tea as its C2 brand has
dominated the category since its launch.

Between 2012 and 2016, the company has been recording year-on-year growth in its off-
trade value sales, which has led to consistent increases in its overall market share in soft
drinks. In 2016, its off-trade value share in RTD tea stood at 79%. Meanwhile, the
companys value shares in bottled water and juice were at 2% and 1% respectively.

Despite the declines seen in the companys value shares in bottled water, juice and RTD
tea, the retail market share of Universal Robina Corp in soft drinks grew by 30% in 2016,
which was considerably faster than the 11% off-trade value growth recorded in current
terms in the soft drinks industry in 2016.

The company has a narrow product portfolio consisting of C2 RTD tea, Hidden Spring
bottled water and Refresh juice drinks (up to 24% juice). It is, however, expanding its
product portfolio. Most notably, in 2015, it entered into a joint venture with the France-
based multinational company Danone to introduce the Blue functional bottled water into
the Philippines.

Universal Robina Corps products are positioned to appeal to young and trendy middle-
income consumers looking for healthier and affordable alternatives to carbonates. The
companys key brand C2 was a resounding success when launched in 2004. C2 is a
naturally healthy beverage with flavours that appeal to the local palate. C2s unit price is
approximately PHP43 per litre, which is higher than unit prices of carbonates. However,
the introduction of C2 Solo Pack in 2013 has made it affordable for low-income
consumers to purchase C2 because of its lower unit price compared with the standard
355ml pack. For example, in supermarkets, C2 Solo Pack is sold at PHP35 per litre,
while the brands 355ml pack size costs around PHP44-45 per litre.

With C2 and Blue, the company is not a mere follower in the industry as it is responsible
for changing the mindset of Philippine consumers in certain soft drinks categories. The
marketing and distribution capabilities of the company have enabled the company to be
an innovative player and generate substantial profits.

Summary 3 Universal Robina Corp: Competitive Position 2016

Category Value shareRank

Soft drinks 5.0% 4
Carbonates - -
Juice 0.6% 11
Bottled water 1.8% 5
Sports drinks - -
 Category Value shareRank
Energy drinks - -
Concentrates - -
RTD tea 78.9% 1
RTD coffee - -
Asian speciality drinks - -

Source: Euromonitor International from company reports, company research, trade press, trade
sources, trade interviews