The History of The Universal Robina Company

 

 

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Universal Robina Corporation

Universal Robina Logo.png

Type

Public

Traded as

PSE: URC

Industry

Manufacturing

Founded

1954

Headquarters

Ortigas Center, Pasig, Philippines

Area served

Nationwide

Key people

John Gokongwei (Founder and Chairman Emeritus)

Products

Confectionery, snack foods, grocery and convenience foods, beverages

Parent

JG Summit Holdings

Divisions

Griffin's Foods (New Zealand)

Website

www.urc.com.ph

 

Universal Robina Corporation (URC) is a Filipino company based in Pasig City, Philippines. It is one of the largest food and beverage companies in the Philippines.[1]

 

 

Contents  [hide]

1 History and profile

2 See also

3 References

4 External links

 

 

History and profile[]

 

Universal Robina Corporation (URC) traced its beginnings all the way back to 1954. John Gokongwei, Jr. 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. Gokongwei decided to construct a corn milling plant to produce glucose and cornstarch, Universal Corn Products (UCP), the first building block of the company that would become URC.

 

For a time, business was good. However, Mr. Gokongwei 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, the future billionaire had to diversify by producing and marketing his own branded consumer foods, similar to the multinational companies in the Philippines like Nestle and Procter & Gamble. In a sense, he wanted to put  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 Café Puro and Nescafe. After coffee came s. Nips, a panned  similar to M&Ms, was 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 , 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 savory snacks industry in the Philippines through its 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 Jack 'n Jill Pretzels (pretzels), Piattos (fabricated potato chips), and Maxx (hard ).

 

The coming decades saw more acquisitions and expansion. In the early 1970s, the Gokongwei 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 sply 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.

 

As the businesses became more diversified, the companies were slowly integrated in order to streamline operations and minimize costs. In 2005, the present structure of the gro was completed. All the different companies are now organized under Universal Robina Corporation, divided into three focused gros:

the Branded Consumer Foods Gro, composed of BCFG Domestic (including packaging) and URC International, for the production and sale of snacks, beverage, and grocery products,

the Agro-Industrial Gro, composed of Universal Corn Products, Robina Farms, and Robichem, for the production and sale of animal feeds, day-old chicks, hogs, and veterinary medicine,

and the Commodity Foods Gro, with the Sugar and Flour divisions, for the production of flour and sugar, and for sugar milling and refining services.

 

URC is a core subsidiary of JG Summit Holdings, Inc. (JGSHI) which is one of the largest business conglomerates listed in the Philippine Stock Exchange.[1]

 

URC owned the Philippine Basketball Association franchise Great Taste Coffee Makers which played from the inaugural 1975 season to 1992 when the company sold the team to Sta. Lucia Realty. The Coffee Makers won 6 PBA championships.

 

Universal Robina Corporation (URC), the first "Philippine multinational", is the leading branded snackfood and beverage company in the Philippines, which enjoys a loyal and consistent following from its many delighted customers. URC has consistently grown due to its constant innovations, strong distribution capabilities, and effective marketing campaigns. The company's constant efforts caused URC to have market leadership in salty snacks, candies, s, canned beans, and ready-to-drink tea while maintaining strong positions in coffee, biscuits and noodles.

 

Universal Robina Corporation (URC) is one of the largest branded consumer food and beverage product companies in the Philippines and has a significant and growing presence in the ASEAN markets. URC is among the Philippines' pioneers in the industry. It has been in operations for over 50 years since John Gokongwei, Jr. established Universal Corn Products, Inc, a cornstarch manufacturing plant in Pasig, in 1954.

 

URC is engaged in a wide range of food-related businesses, including the manufacture and distribution of branded consumer foods and is also in commodities namely sugar million band refining and flour milling and in Agro industrial businesses of farms mainly hogs and animal feed milling and related products.

 

URC is the leading branded snackfoods and beverage company in the Philippines. URC is the first "Philippine Pan ASEAN Multinational" and has proven itself to be a trailblazer in manufacturing with a strong and loyal consumer base. The company has unswervingly showcased its innovation and excellence through its groundbreaking products, wide distribution network, and effective marketing. This is also evident in URC's formidable market leadership in snackfoods and beverages.

 

John Gokongwei Jr. established a vision for URC to become one of the leading pan Asian players in snack foods and beverages. This vision is gradually being realized as URC has managed to transform itself from a Philippine operation to a recognized Asian multinational with full scale operations in eight countries outside the Philippines, and soon in emerging markets like Myanmar, Laos and Cambodia. In addition, URC's products are already being exported to mainstream markets in the US, Europe, Japan, Korea the Middle East and frontier markets in West Africa, like Ghana and Nigeria.

 

URC has built three strong regional brands over the years; "Jack 'n Jill" for snack foods, "C2" for ready to drink tea, and "Great Taste" for coffee, with these brands becoming popular across the ASEAN region. URC's key to success is to build very strong branding through a robust product innovation pipeline, consumer-centric marketing and world-class manufacturing and sply chain management. URC will continue to transform itself in line with the changing external dynamics in line with increasing opportunities in Asia and beyond.

 

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  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 s. Nips, a panned  was 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 , 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 sply 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 gro was completed. All the different companies are now organized under the Universal Robina Corporation umbrella, divided into 3 focused gros:

•the Branded Consumer Food Gro, comprised of BCFG Domestic (including packaging) and International

•the Agro-Industrial gro, comprised of Universal Corn Products, Robina Farms, and Robichem

•and the Commodities gro, with the Sugar and Flour divisions

See also

 

Portal icon Companies portal

Portal icon Philippines portal

John Gokongwei

JG Summit Holdings

 

References[]

 

1.^   to: a b http://www.urc.com.ph/ Universal Robina Corporation Website

 

Official website

Flag of the Philippines.svg PSE Composite Index companies of the Philippines

 

JG Summit Holdings

 

Categories: Universal Robina

JG Summit Holdings

Confectionery companies

Snack companies of the Philippines

Beverage companies of the Philippines

Food companies of the Philippines

Companies established in 1954

Companies listed on the Philippine Stock Exchange

Companies based in Pasig

Philippine brands

Interaction

 

This page was last modified on 26 January 2016, at 07:35.

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