COURSE TITLE
:
EXECUTIVE RISK MANAGEMENT
CHAPTER I
INTRODUCTION
Today's food industry has to deal with multiple challenges ranging from
maintaining and improving overall sensory and nutritional quality (food quality),
protecting against the accidental spread of infectious organisms (food safety),
preventing accidental transboundary importation of insects and pests along with
fresh produce (phytosanitary quality), and preventing un-necessary food wastes
at both production, processing and retail (food waste). Additionally, the food
industry's supply chains must be resilient enough to withstand natural or
deliberate perturbations in them so that food continues to be available to the
billions (food security). No other food processing technology has been studied as
extensively as food irradiation technology. Yet, for reasons beyond just the
science, many in the food industry are still unclear about how much this
technology had improved and become commercially available since 1905 when
this technology was first patented. Significant changes have occurred in the
commercially available food irradiation technologies, including the acceptance of
this technology around the world and the thinking as to how this technology
needs to be made available so that widespread adoption of the technology can
occur.
The researcher would like to have depth knowledge, assess and evaluate
the risk management of the food industry for companies listed in the Philippine
Stock Exchange and the Hongkong Stock Exchange.
COMPANY PROFILE
PHINMA
The PHINMA Group’s Mission is to help build our Nation through competitive
and wellmanaged business enterprises that enable FIlipinos to attain a better
quality of life. With professional and effective management as our distinctive
edge, we aim to give communities, not only in the Philippines but wherever else
we might find the need, improved access to the essentials of a dignified life. In
the pursuit of our Mission, we look to our tradition, our experience, our
reputation, and above all, our people, as the principal factors that will enable us
to achieve our lofty goals. The PHINMA Group will demonstrate that private
business can mutually serve the needs of society and the aspirations of
shareholders.
Vision
PHINMA is a proudly Filipino conglomerate that seeks to make lives better and
build the nation through successfully run and profitable businesses while
remaining consistent with our core values of Integrity, Patriotism, Competence
and Professionalism.
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PHINMA believes that life can be better. Our goal is to help build our Nation
through competitive and well-managed business enterprises. We have clearly
outlined the businesses we will focus on: Construction Materials, Education,
Property and Hospitality. These businesses can support an ever-growing younger
demographic in different ways: from the facilities that meet the needs of business
and leisure travelers, to quality education within the financial reach of the
bottom quintiles.
In 2019, your Company posted consolidated revenues of P11.3 billion, an
increase of 14% over the previous year due to increased revenue from both our
Construction Materials and Education Groups. Union Galvasteel Corporation
posted another record year, improving margins and supply chain systems, while
Philcement Corporation accelerated traction of our Union Cement brand in the
local market, almost doubling sales volume over the previous year. Despite the
challenge posed by the Universal Access to Private Education Act to the private
tertiary education industry, PHINMA Education Holdings, Inc. posted increased
revenue due to strong growth in its freshmen cohort in school year 2019/2020.
Income from operations of PHINMA Corporation correspondingly increased 28%
to P1.1 billion. PHINMA Property Holdings Corporation and Coral Way City Hotel
Corporation both posted improved financial results in 2019, partially offsetting
a loss from our consulting company Integrative Competitive Intelligence Asia,
Inc. due to higher than anticipated project costs.
In June 2019, PHINMA Corporation completed the sale of its energy business,
allowing the company to focus investments in core businesses such as education
and construction materials. Consolidated net income of your Company more
than doubled to P437 million in 2019 from P175 million in the previous year
while net income attributable to shareholders of the parent grew from modest
results of P25.9 million in 2018 to P233 million in 2019. 2019 Highlights
PHINMA Education Holdings, Inc. (PHINMA Education) holds your Company’s
investment in seven tertiary education schools in the Philippines, and also
manages or owns educational institutions in Myanmar and Indonesia. In 2019,
the funding mechanisms under the Universal Access to Quality Tertiary
Education Act were in place at government universities and colleges. A large
portion of PHINMA Education’s students were qualified to receive tertiary
education subsidies for use at private higher education institutions. The PHINMA
Education schools correspondingly outperformed other private tertiary
education institutions, with PHINMA Cagayan de Oro College notably accepting
the greatest number of private tertiary subsidized students in the country.
PHINMA Education’s freshman enrollment increased 24%, with total systemwide enrollment increasing to 74,187 students in the school year 2019-20.
Consolidated net income of PHINMA Education increased 29% to P434 million
in 2019. In 2019, PHINMA Education continued its expansion. In February,
PHINMA Education signed a joint venture to manage tertiary schools in
Indonesia. STIKES Kharisma in Karawang West Java, a nursing and IT school,
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is the first school under this arrangement and, together with PHINMA Saytanar
Education Ltd. in Myanmar, is PHINMA Education’s second venture outside the
Philippines. In December, PHINMA Education acquired Republican College, a
tertiary institution in Quezon City offering courses in business, education, and
criminology. Republican College joins St. Jude College as the second PHINMA
Education school in an envisioned Metro Manila network which will eventually
serve over 30,000 students. PHINMA Education forged a partnership with
Kaizenvest, the Asian Development Bank, and the Netherlands Development
Finance Company (FMO) involving the infusion of P1.875 billion in new capital
into PHINMA Education, to support the acquisition of new schools as well as
local and regional expansion. This partnership not only provides PHINMA
Education fresh capital for accelerated growth but also affirms the trust and
confidence of the international finance community in the prospects of our
affordable education business. The schools continued to focus on quality, with
the various schools posting a 100% first-timers passing rate in 40 different board
licensure exams in 2019. In 2019, our Construction Materials Group continued
to grow. In a highly competitive market, Union Galvasteel Corporation (UGC)
maintained its industry leadership, again selling nearly 10 million equivalent
roofing sheets and increasing net income to a record P275 million on improved
margins from cost management and rationalization of supply chain systems.
Philcement Corporation (Philcement), our new cement subsidiary, continued
developing traction of our legacy Union Cement brand in the market, nearly
doubling revenue in 2019 through development of markets and increased
coverage. In 2019, the company revived partnerships with key customers and
channels, widening the availability of Union Cement nationwide and building the
Union reputation for high quality cement. Although delayed by several months,
construction of the company’s cement facility in Mariveles Bataan was
substantially completed in 2019. By early this year, the facility was fully
operational, delivering on our promise to efficiently process and make available
our high-quality cement nationwide. In September 2019, PHINMA Corporation
signed an agreement to invest USD50 million in Song Lam Cement Joint Stock
Company, the flagship plant of The Vissai, the largest private cement
manufacturing group in Vietnam. The investment will be used to expand the
capacity of the flagship plant and will cement our relationship with The Vissai,
who are also our partners in Philcement. These mutual partnerships assure
Philcement a steady supply of high quality cement for our customers, out of our
world-class facility in Mariveles Bataan. The Company hopes to finalize this
investment by end 2020. In 2019, PHINMA Solar Energy Corporation (PHINMA
Solar), the group’s latest venture in the solar rooftop market, expanded its
portfolio of clients, installing rooftop solar solutions equivalent to around 11% of
total solar installations in the industry. On our other businesses, PHINMA
Properties over the year continued strategic changes to its business, resulting in
a 62% increase in net profits in 2019. The company also started development of
a pipeline of projects within and outside Metro Manila to secure future growth
and profitability for the company. In 2019, in its second full year of operations,
the PHINMA Hospitality Group’s new Tryp by Wyndham hotel in the Mall of Asia
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area increased average occupancy rates to 76% and ended the year with a
modest profit. Equitized income from PHINMA Properties and Coral Way
amounted to P28.7 million and P5.6 million respectively. Our strategic
consulting company Integrative Competitive Intelligence Asia, Inc. (ICI-Asia),
however, posted a loss of P50.6 million in 2019 due to higher than anticipated
costs to deliver on projects. PHINMA Corporation ended 2019 with a strong
balance sheet, with total assets of P22.4 billion and a current ratio and debttoequity ratio of 1.93:1 and 1.68:1, respectively. We are pleased to report that in
light of the improved financial results, the Board declared a cash dividend of
P0.40 per share payable on March 27, 2020.
Entering 2020, Philippine economic growth looked to be supported by the timely
approval of a record P4.1 trillion budget where over P1 trillion was allocated for
infrastructure and another P1.5 trillion toward social services including
education. Local inflation and interest rates were also stable at relatively low
rates, maintaining a positive local business climate. However, the COVID-19
pandemic looks to have impacted the favorable outlook for the Philippine
economy with GDP growth projected to be flat to slightly lower in 2020 especially
as a result of the Extended Community Quarantine, a decline in travel and OFW
remittances, and reduced trade. In this time of global crisis, we are all the more
committed to our mission of Making Lives Better. PHINMA has investments in
companies providing goods and services that our country needs more than ever.
This year, PHINMA Education anticipates strong financial results as another
college freshman batch further reduces the missing college cohorts since the
introduction of the K to 12 system. PHINMA Education is already in discussions
with and hopes to acquire two more schools this year to add to its growing
network in the Philippines. Outside the country, PHINMA Education views
Indonesia as the most exciting market for our affordable education outside of the
Philippines. Our long term goal is to broaden the geographic reach of our
affordable education within Southeast Asia and to become the largest affordable
education network in the Philippines. We feel that PHINMA Education will
continue to be a school of choice for our target market due to its strong academic
performance and its track record of improving employability for its students. For
2020, the Construction Materials Group hopes to benefit from the timely passage
of the national budget, a substantial amount of which is earmarked for the Build
Build Build program. The increased capacity from Philcement’s Mariveles facility
will enable further inroad of our Union Cement brand into the market as PHINMA
supports the nation’s infrastructure development by ensuring a stable supply of
quality cement in the market. The Construction Materials Group (CMG) also
expects to develop more synergies across the three companies while its
strengthened regional partnerships unlock the potential of a larger Asian market
for our products and services in the future. CMG is well positioned to support
the government’s efforts to spur economic growth through infrastructure
spending. PHINMA Properties this year will continue developing a pipeline of core
affordable projects as well as new lines including shared economy rental models
to secure future growth and profitability for the company. PHINMA Properties
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has been focusing on developments outside of Metro Manila and can benefit from
nationwide growth. Despite significant challenges to its industry posed by the
COVID-19 outbreak, PHINMA Hospitality in coming years still looks forward to
further expanding the Microtel and Tryp brands across the country. PHINMA has
focused our COVID-19 response efforts into three key areas: the safety of our
people, the continuity of our businesses, and the well being of our communities.
Your company has implemented Work From Home policies except for essential,
skeletal staff that have to report to the office. We also ensured full pay for our
employees while financial assistance was provided through the PHINMA
Foundation to third party, no-work no-pay employees. Our businesses have
engaged in financial planning and stress testing exercises with an emphasis on
liquidity management. OSCAR J. HILADO Chairman of the Board RAMON R.
DEL ROSARIO, JR. President and Chief Executive Officer JOINT MESSAGE
FROM THE CHAIRMAN AND PRESIDENT Due to the rapid nature of the
pandemic, key assumptions are continuously being reviewed. Lastly, through
the PHINMA Foundation, PHINMA has committed an initial P30 million for
pandemic relief efforts in our communities. We are confident that our nation and
your company have the resilience to emerge from this crisis and that we will all
heal as one. While our might be more muted now than it was at the start of the
year, we have fundamentally strong businesses that will continue to make lives
better for our fellow Filipinos.
Universal Robina Corporation (URC) was founded in 1954 by Mr. John
Gokongwei, Jr., and for over 60 years, URC has delighted its customers with
brands of exceptional quality. The winning innovations of URC captured strong
market positions and further drove the company to go beyond the Philippines
and build a PAN ASEAN OCEANIA footprint spanning 13 markets. Today, URC
is the number one or two snack food company in the Philippines & Australia, the
market leader in Thailand and New Zealand on biscuits, and a top beverage
player in Vietnam. Our credibility of building successful brands through the
years, our distribution reach, and our technical capabilities in R&D and
manufacturing made us the preferred partner of global players, as evidenced by
our five strategic partnerships with top international snack foods & beverage
players. Last but not least, URC is one of the largest and most profitable players
in Agro-Industrial & Commodities in the country. We are the largest sugar miller
in the Philippines and a top 3 leader in flour milling and animal feeds milling.
Our Vision
Delighting consumers with brands of exceptional quality and value, making lives
a fun experience.
Our Ambition
To be the Leading Food & Beverage Sustainable Enterprise from the Philippines
Core Values
PASSION TO WIN
We build organizational capability by being entrepreneurial and proactive, driven
by a sense of urgency and purpose. We continuously challenge ourselves to
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deliver world-class brands and consistently rally our people to strive for
excellence.
INTEGRITY
We are guided by transparency, ethics, and fairness. We build the business with
honor and are committed to good governance. Our processes and products meet
the highest standards. We are credible in our dealings with both internal and
external stakeholders.
DYNAMISM
We cultivate a culture of innovation and productive working relationships. We
continuously find ways to improve organizational and people capabilities to meet
constantly changing consumer needs.
COURAGE
We seize opportunities in building long-term, sustainable businesses. We make
tough people and business decisions to ensure competitive advantage.
Branded Consumer Foods (BCF)
This is the largest business segment of URC, with a range of strong household
brands that consumers love in the snacking, beverage, and noodles categories.
We participate in 4 branded super categories that continue to grow across our
markets in the ASEAN and Oceania regions.
Agro-Industrial & Commodities (AIC)
This segment comprises the Agro-industrial Group, Sugar and Renewables
Group, and Flour and Pasta Division. As a vertically integrated business, AIC
supports the branded consumer foods business through its end product such as
sugar and flour.
Global Exports
Branded Consumer Foods’ one global export team allowed us to approach
existing customers in over 50 countries worldwide, including America, Europe,
Middle East, Africa/Indian Ocean, North Asia, and Oceania/Pacific Islands
markets with our complete portfolio of diverse, globally accepted quality
products. It allowed us to maximize our sales resources and manufacturing
capabilities to serve better our established distributors and retail partners in
existing markets and penetrate and explore opportunities in new markets.
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JOLLIBEE FOOD CORPORATION
Jollibee is the largest fast-food chain in the Philippines, with over 1,150
stores nationwide. A dominant market leader in the Philippines, Jollibee enjoys
the lion’s share of the local market more than all the other multinational brands
combined. The company has also embarked on an aggressive international
expansion plan in Vietnam, Brunei, Hongkong, Singapore, Macau, Malaysia, US,
Canada, Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman, Italy, and the
United Kingdom.
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JOLLIBEE FOODS CORPORATION doing business under the name and style of
Jollibee (formerly Jollibee Foods Corporation), was incorporated in the
Philippines and registered with the Philippine Securities and Exchange
Commission (SEC) on January 11, 1978. The Parent Company and its
subsidiaries (collectively referred to as “the Jollibee Group”) and affiliates are
involved primarily in the development, operations, and franchising of quickservice restaurants (QSRs) under the trade names “Jollibee,” “Chowking,”
“Greenwich,” “Red Ribbon,” “Yong He King,” “Hong Zhuang Yuan,” “Mang
Inasal,” “Burger King,” “Highlands Coffee,” “Pho24”, “Hard Rock Cafe,” “Dunkin’
Donuts,” “Smashburger,” “Tim Ho Wan” and “Tortas Frontera.” The other
activities of the Jollibee Group include manufacturing and property leasing to
support the quick service restaurant systems and other business activities.
JFC operates the largest food service network in the Philippines. As of June
30, 2019, it was operating 3,195 restaurant outlets in the country: Jollibee brand
1,163, Chowking 590, Greenwich 284, Red Ribbon 479, Mang Inasal 577, Burger
King 101, and PHO24 1. Abroad, it was operating 1,418 stores: Yonghe King
(China) 323, Hong Zhuang Yuan (China) 45, Dunkin’ Donuts (China) 9, Jollibee
238 (Vietnam 118, Brunei 17, Hong Kong 8, Singapore 7, Macau 1, Malaysia 1,
United States 37, Canada 4, Saudi Arabia 13, UAE 14, Qatar 7, Kuwait 6,
Bahrain 1, Oman 1, Italy 1, United Kingdom 1, and Guam 1), Red Ribbon in the
US 31, Chowking 47 (US 15, UAE 21, Qatar 4, Oman 2, Kuwait 3, and Saudi
Arabia 2), Highlands Coffee 340 (Vietnam 297, and Philippines 43), PHO24 34
(Vietnam 18, Indonesia 16), Hard Rock Cafe 6 (Vietnam 2, Hong Kong 3, and
Macau 1); and, Smashburger 345. The JFC Group’s worldwide store network
reached 4,613 stores.
JFC is also committed to serving its host communities through socio-civic
projects through the Jollibee Group Foundation. The foundation has focused its
work on feeding programs for malnourished children in poor communities,
developing farmers to become better entrepreneurs and suppliers of agricultural
products, and providing disaster relief for calamity-stricken regions.
Jollibee Foods Corporation has grown brands that bring a delightful dining
experience to its customers worldwide, “Spreading the joy of eating to everyone.”
A company that values family
Tony Tan and his family founded Jollibee with its humble beginnings as
an Ice Cream Parlor which later grew into an emerging global brand. At the heart
of its success is a family-oriented approach to personnel management, making
Jollibee one of the most admired employers in the region with an Employer of
the Year Award from the Personnel Management Association of the Philippines,
Best Employer in the Philippines Award from Hewitt Associated and a Top 20
Employer in Asia citation from the Asian Wall Street Journal.
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Aside from promoting a family-oriented work environment, the brand’s
values also reflect their advertising and marketing. Jollibee knows its target
audience very well: the traditional family and all communication materials focus
on the importance of family values, making Jollibee the number one family fastfood chain in the Philippines and a growing international QSR player.
A Well-Loved Brand
Customer satisfaction has always been key to Jollibee’s success. Never
losing sight of its goals, Jollibee has grown to be one of the most recognized and
highly preferred brands in the Philippines. Now the market leader among fastfood chains in the Philippines, claiming a market share totals more than half of
the entire industry.
Great tasting products and quality systems
Jollibee’s growth is due to its delicious menu line-up – like its superiortasting Chickenjoy, mouth-watering Yumburger and Champ hamburger, and
deliciously satisfying Jollibee Spaghetti -ably complemented with creative
marketing programs and efficient manufacturing and logistics facilities. It is
made possible by well-trained teams that work in a culture of integrity and
humility, fun and family-like. Every Jollibee outlet welcomes customers with a
clean and warm in-store environment and friendly and efficient service.
And it is this tried and tested formula of delivering great-tasting food,
adherence to world-class operating standards, and the universal appeal of the
family values the brand represents that are driving the expansion of Jollibee both
locally and in the overseas market.
Most expansive store network in the Philippines and an emerging global
player
Jollibee is the largest fast-food chain in the Philippines, operating a
nationwide network of more than 750 stores. A dominant market leader in the
Philippines, Jollibee enjoys the lion’s share of the local market more than all the
other multinational brands combined. The company has also embarked on an
aggressive international expansion plan. Currently, it has 80 stores outside the
Philippines-USA (26), Vietnam (32), Brunei (11), Jeddah (7), Qatar, Hong Kong,
and Kuwait (1 each), firmly establishing itself as a growing international QSR
player.
A Triumph for and of the Filipino and a source of Filipino pride.
Jollibee dedicated its continuous success to the Filipinos who have been there
from the very start.
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Jollibee is so well-loved every time a new store opens, especially overseas,
Filipinos always form long lines to the store. It is more than home for them. It is
a stronghold of heritage and a monument of Filipino pride.
OUR VISION
To be one of the Top 5 Restaurant Companies in the World
All our brands are trusted and well-loved, craved around the world:
 Renowned for consistently great-tasting food.
 Recognized for high value for money.
 Endeared for warm and sincere distinct service to our customers.
 Admired for our beautiful stores in an excellent location.
 We are acknowledged as one of the Best Companies to Work for, regarded
for our efficient systems and processes, highly engaged teams, and peoplefocused culture.
OUR MISSION
To serve great tasting food, bringing the joy of eating to everyone.

Core Values
Through the years, JFC has formed its foundation from good business
practices and strong core values of Customer Focus, Speed with Excellence,
Integrity, Spirit of Family and Fun, Humility to Listen and Learn. JFC continues
its steadfast commitment to upholding these core values:
Customer focus
 We provide great taste and superior value to all our customers.
 We treat our customers with sincere service and a warm smile.
 We take part in creating an exceptional customer experience.
Speed with Excellence
 We plan, decide, and act quickly.
 We set challenging goals and execute well.
 We constantly find ways to improve and innovate.
Humility to Listen and Learn
 We seek, welcome, and value feedback
 We acknowledge and learn from our mistakes
 We aspire to learn from people from all walks of life
Spirit of Family and Fun
 We take care of each other and bring out the best in everyone
 We are true to our name, hard-working, and happy.
 We recognize individuality and foster teamwork.
Integrity
 We live by honesty, and we do what right all the time is.
 We act as responsible stewards of the company.
 We speak our minds constructively when needed.
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RFM CORPORATION
RFM Corporation is a food and beverage company. The Company is
involved in the processing and manufacturing flour, bread, flour-based products,
such as pasta and cake, mixes, sauces, milk and juice drinks, and ice cream.
The Company also operates non-food businesses, including barging services
through Rizal Lighterage Corporation and leasing commercial/office spaces. The
Company's segments include institutional business and consumer business.
The Institutional segment primarily manufactures and sells flour, pasta, bakery,
and other bakery products to institutional customers. The Consumer segment
manufactures and sells ice cream, meat, milk and juices, pasta products, flour,
and rice-based mixes. The Company's branded products include White King,
Fiesta, Sunkist, and Selecta. The Company's food businesses include UnileverRFM Ice Cream Inc. and Engrain-RFM Pacific Inc. (ERPI). Its non-food
businesses include RFM Equities, Inc. and Invest Asia Corporation.
The Company has unclassified common shares that are available to both Filipino
and foreign investors. These are listed and traded in the Philippine Stock
Exchange under the stock symbol RFM. As of 28 February 2021, RFM
Corporation has 3,369,549,358 outstanding common shares
DACHAN FOOD (ASIA) LTD.
DaChan Food (Asia) Limited (the “Company” or “DaChan”) is a
conglomerate with operations in the People’s Republic of China (“PRC”), Vietnam,
and Malaysia. The Company’s shares have been listed on The Stock Exchange of
Hong Kong Limited (the “Stock Exchange”) since 2007. The Company (together
with its subsidiaries and its jointly-controlled entities, the “Group”) is a leading
fully integrated animal protein product provider. Their products range from
feeds, poultry, and advanced nutritional formulas for aquatic animals to
processed foods.
In 2019, the operating income of the Group was approximately
RMB8,035,206 thousand, representing a year-on-year increase of approximately
11.7%. The meat segment, domestic feeds segment, food segment, and feed
segment in Southeast Asia accounted for 20.1%, 20%, 25.4%, and 34.5% of the
Group’s total operating income. The revenue of the food segment ranked first
among the three domestic segments in the PRC. The Group’s gross profit
amounted to approximately RMB981,575 thousand, representing an increase of
approximately 29.1% as compared with last year. The meat segment, domestic
feeds segment, food segment, and feeds segment in Southeast Asia accounted
for 20.3%, 13.8%, 35.1%, and 30.8% of the Group’s gross profit. Driven by the
continuous development of food-based development strategies, the food segment
has become the Group’s most essential and stable source of profit. The gross
profit of the Group increased by approximately RMB221,275 thousand as
compared with 2018. On the other hand, due to the following: 1. the real estate
project invested by the Group in Tianjin generated a profit attributable of
approximately RMB17,484 thousand last year, while the profit attributable for
this year is approximately RMB2,858 thousand;
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In 2019, due to the adverse impact of the factory's commencement of
operation set up in Thailand by our Japanese customers and changes in Japan's
domestic consumer patterns, the processed food segment's export revenue
decreased by approximately 7.2% compared with 2018. The gross profit
decreased by approximately 32.8% due to the increase in raw material cost. The
domestic food segment's regional sales and channel structure have become
increasingly perfect, and the market size is growing steadily. Under the pressure
of soaring raw meat price, the Group has been actively adjusting its product
structure, optimizing the technical process as well as research and development
formulas, which led to an increase of 21.2% in revenue and a growth of 27.4%
in gross profit as compared with the same period last year.
NISSIN CORPORATION
Nissin Foods Company Limited produces and sells instant noodles in Hong
Kong, the Peoples Republic of China, Canada, Australia, the United States,
Taiwan, Macau, and internationally. It sells retort and frozen foods, beverages,
snails, manufactures packaging materials of instant noodles products, and
provides administrative, human resources, and publicity services. It primarily
operates under the NISSIN and Doll brand names. The company was founded in
1984 and is headquartered in Tai Po, Hong Kong. Nissin Foods Company Limited
is a subsidiary of Nissin Foods Holdings Co., Ltd.
WANT WANT HOLDINGS LIMITED
Want Want Holdings Limited (Want Want; Chinese: 旺旺集團有限公司
; pinyin: Wàngwàng Jítuán Yǒuxiàn Gōngsī) is a food manufacturer from Taiwan.
It is one of the enormous rice cake and flavored drink makers in Taiwan. It
engages in the manufacturing and trading of snack foods and beverages,
divided into four businesses: rice crackers, dairy products and beverages, snack
foods (candies, jellies, popsicles, nuts, and ball cakes), and other products
(mainly wine).[4] It operates over 100 manufacturing plants in mainland
China and 2 in Taiwan and employs over 60,000 people.
The Group was founded in 1962 and started with I Lan Foods Industrial
Co.,
Ltd.
Want
Want
Brand
was
created
in
Taiwan
in
1983.
In the
early 90s, we ventured into
mainland china and invested in factories.
After many years of development, the Group now has a presence in 61 countries
and regions in Asia, Africa, North America，Central, South America, Oceania,
and Europe.
In 2008, Want Want China Holdings Limited (ticker: 0151.HK)，the
holding company of our food and beverage business, was listed on the Main
Board of the Stock Exchange of Hong Kong Limited. The Group will continue to
expand its business landscape and explore the Southeast Asia market for more
diversified industry cooperation. Meanwhile, the Group embraces its
management philosophy of “People-oriented, Self-confidence and Unity” in
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pursuit of the goal of being “a comprehensive food and beverage kingdom” and
“No.1 in China, No.1 in the world”.
CHAPTER II
RISKS
The food processing industry is currently attempting to recover from the
aftermath of the COVID-19 pandemic. As industry players attempt to recover,
they face various risks, such as supply chain disruptions, economic challenges,
and avoiding food contamination. Infiniti’s risk management solutions help food
processing industry leaders identify, evaluate, mitigate, and review the
significant risks in the market. Risk management solutions enable food
processing companies to reduce supply chain risks, ensure food safety, and stay
ahead in a dynamic and competitive industry.
“The demand for ready-to-eat meals, changing lifestyles, and an increasing
population of nuclear families is acting as highly impactful market growth
drivers. However, due to various risks in the food processing industry, companies
are finding it challenging to capitalize on these crucial growth drivers
efficiently,” says a food processing industry expert at Infiniti Research.
After the financial crisis of 2007-08, the food processing industry
recovered entirely in the mid-2010s and has continued to grow since then.
However, since the beginning of the COVID-19 pandemic, the industry has
witnessed substantial losses yet again. Food processing industry players have
started to shift their focus to identifying and mitigating potential risks so that
they may quickly recover from this global crisis. To assist companies in this
attempt, Infiniti’s risk management experts discussed significant risks present
in the food processing industry and detailed the benefits of risk management
solutions in their recent article. Each risk identified and discussed has been
significantly impacted by the COVID-19 pandemic, making them more
challenging and detrimental to the food processing industry.
Infiniti’s experts identified the following four significant risks that are
impacting the food processing industry:
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Disruptions in the supply chain due to transportation issues, storage
constraints, or environmental factors that affect the raw materials
Potential hazards to the safety of employees due to heavy machinery accidents,
and more recently, the possible spread of the virus
Ensuring the safety and hygiene of the processed food and raw materials due to
potential risks such as machinery issues, storage constraints, or direct human
contact
Consumers’ changing preferences can be a high-risk factor, particularly in the
secondary and tertiary sectors of the food processing industry
 Changes in national and regional statutory regulations
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Evolving demographic trends
Compromised quality of ingredients and materials
Contamination and poisoning of ingredients and end products
Development of incorrect product design
Unnecessary and unhealthy practices and processes in place
Mismatch in technological capabilities and market requirements
Manhandling of product and materials and resulting damage
Financial risks associated with various processes and practices
Third-party risks related to transport agencies, intermediaries, financiers,
retailers, and so on
Risks associated with sharing intellectual property
Risks associated with product information misrepresentation
Consumer safety risks
Loss mitigation risks and inability to manage risk
Considering the diverse and all-encompassing nature of risk, it stands to reason
that companies should equip themselves with the resources necessary to
mitigate risk to as great of a degree as possible.
CHAPTER III
RISK GOVERNANCE, RISK MANAGEMENT, AND VALUE CREATION
Food and beverage companies cater to a broader spectrum of customers
than in the past when they sold primarily to wholesalers, grocers, food service
providers, and food manufacturers. Today they are also selling to end
consumers, restaurants, hotels, institutions, vending suppliers, mass
merchants, and other retailers. Leaders in the industry are expanding their
technology and service capabilities to fully address and solve the unique
packaging, product, marketing, and logistics needs of these markets. By doing
so, they are shifting their vision from selling agricultural products to providing
full-service partially processed food and beverage solutions in specific markets
and helping customers promote their products successfully. Although services
and turn-key solutions have the allure of higher profit margins, they also carry
risks. For example:
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Companies take on more projects than they are equipped to handle
Unique customer requests disrupt and distract primary businesses
Employees underestimate the effort to meet contract terms
Management diverts the operational focus away from core strengths
The high cost of hiring top guns to staff projects hurts margins
Failing to live up to customer expectations results in financial losses
The industry is moving into uncharted territory, and those that will thrive as
market leaders are investing in advanced business systems. These systems give
them a continuing pulse of their operating performance in alignment with
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corporate goals, alert them to project delays or cost overruns, analyze their sales
and service profitability by type, and integrate all organization members into a
cohesive and collaborative body. Market leaders also strengthen system
functionality for R&D, costing, sales, marketing, and customer connectivity to
ensure greater accuracy, cost control, customer satisfaction, and profitability.
REFERENCE LIST
https://www.infrontanalytics.com/fe-EN/30081FA/Jollibee-Foods-Corp-/gprvrisk
https://www.coursehero.com/file/76686368/Jollibee-Foods-CorporationAnnual-Report-2019pdf/
https://www.jollibee.com.ph/risk-management/
https://www.want-want.com/en/about/clubsong.htm
https://www.nissin.com/en_jp/ir/library/annual/
https://www.want-want.com/en/about/
https://www.specpage.com/risk-management/
https://www.urc.com.ph/investors/urc-annual-reports?ref=menu
https://www.infinitiresearch.com/tags/food-processing-companies
https://www.urc.com.kw/wpcontent/uploads/2021/04/URC%20Annual%20Report%202020%20%20English%20final.pdf
https://www.rfmfoods.com/Home.aspx
https://edge.pse.com.ph/openDiscViewer.do?edge_no=8340a6df294db9ae5d5
42af6f1e997b9
http://www.ircloud.com/hongkong/03999/irwebsite/index.php?mod=finreports
http://www.ir-cloud.com/hongkong/03999/irwebsite/
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