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Range of food-related businesses

The Company is involved in a wide range of food-related businesses, including the manufacture and distribution of branded consumer foods, reduction of hogs and day-old chicks, manufacture of animal and fish feeds, glucose and veterinary compounds, flour milling, and sugar milling and refining. The Company is a dominant player with leading market shares in Savory Snacks, Candies and Chocolates, and is a significant player in Biscuits, with leading positions in Cookies and Pretzels. URIC is also the largest player in the RED Tea market, and is a respectable 2nd player in the Noodles and 3rd in Coffee businesses.

The Company’s financial condition has remained solid in the said period. The Company operates its food business through operating divisions and wholly- wend or majority owned subsidiaries that are organized into three core business segments: branded consumer foods, agro-industrial products and commodity food products. Company History Universal Robins Corporation (URIC) traces its beginnings all the way back to 1954. John Koenig 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 (CUP), the first linchpin of the company that would become the URIC 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 county like Nestle and Procter & Gamble. In a sense, he wanted to put up the first ‘local’ NCR borne out oftener 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 “Pinot coffee”.

This became the largest-selling coffee brand in the market, even beating market leaders CafeĀ© Purr and Unsafe. In 1 963, Robins Farms started operations, beginning with poultry products. This was also the beginning of the vertical integration of the Koenig businesses, as the farms would be able to purchase feeds from LCP in the future. Later that decade, Robotics Laboratories would be put up, to cater to the veterinary needs Of the farms businesses. Robins Farms expanded as it entered the hogs business in the latter part of the ass. 966 saw the establishment of Universal Robins Corporation, which pioneered the salty snacks industry through Chic Curls, Choppy, 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, Opiates, and Max. The coming decades saw more acquisitions and expansion. In the early sass, the family entered the commodities business through the formation of Continental Milling Corporation, for flour milling and production.

The late sass brought the acquisition of three sugar mills and refineries, under URIC Sugar. These two businesses provided stable cash flows, and allowed for further vertical integration in the supply chain, to help URIC weather any volatility in the cyclical commodities markets. In line with this strategy, the late sass saw the entry of ISRC into the plastics business, through URIC 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 group was completed.

All the different companies are now organized under the Universal Robins Corporation umbrella, divided into 3 focused groups: the Branded Consumer Food Group, comprised of BEG Domestic (including packaging) and International the Agro-Industrial group, comprised of universal Corn Products, Robins Farms, and Robotics and the Commodities group, with the Sugar and Flour divisions Board of Directors John L. Koenig, Jar. Founded URIC in 1954 and has been the Chairman Emeritus of URIC effective January 1, 2002.

He had been Chairman of the Board until his retirement and resignation from this position effective December 31, 2001. He continues to be a member of Arc’s Board and is the Chairman Emeritus of JOG Summit and certain of its subsidiaries. He also continues to be a member Of the Executive Committee of JOG Summit. Mr.. Koenig received a Masters degree in Business Administration from De La Sale University and attended the Advanced Management Program at Han. ‘radar Business School. James L. Go is the Chairman and Chief Executive Officer of URIC.

He had been President and Chief Executive Officer and was elected to his current position effective January 1, 2002 upon the resignation of Mr.. John Koenig, Jar. As Chairman. Lance Y. Koenig is the President and Chief Operating Officer of URIC. He had been Executive Vice President and was elected President and Chief Operating Officer effective January 1 , 2002. He is the President and Chief Operating Officer of JOG Summit Holdings, Inc. And JOG Summit Petrochemical Corporation and the Vice Chairman and Deputy Chief Executive Officer of Robinsons Land Corporation and Litton Mills, Inc. Patrick Henry C.

Go is a director and Vice President of CIRCA. He is also a director of JOG Summit Holdings, Inc. , RL, CUFF Corporation, JOG Cement Corporation, Robinsons Savings Bank and JOG Summit Petrochemical Corporation where he is also Deputy Chief Operating Officer. He is a trustee of the Koenig Brothers Foundation, Inc. Frederick D. Go has been a director of URIC since June 2001. He is the President and Chief Operating Officer of RL. He is an alternate director of United Industrial Corporation and Singapore Land Limited. Johnson Robert G. Go, Jar. As elected director of the Company on May 5, 2005.

He is the President and Chief Operating Officer of Litton Mills, Inc. Effective August 28, 2006, the textile manufacturing business of JOG Summit. Robert G. Cutout, Jar. – Director of URIC. He is also an independent director of RL. He is Chairman of Prudential Guarantee & Assurance, Inc. , PAGAN Cars, Inc. , and Ionians North Deeds, and Vice-chairman of First Guarantee Life Assurance Company, Inc Customers None of the Company’s businesses is dependent upon a single customer or a few customers that a loss of anyone of them would have a material adverse effect on the Company.

The Company has no single customer that, based upon existing orders, will account for 20. 0% or more Of the Company’s total sale of goods and services. Distribution, Sales and Marketing The Company has developed an effective nationwide distribution chain and sales network that it believes provide its competitive advantage. The Company sells its branded food products primarily to supermarkets, as well as directly to top wholesalers, large convenience stores, large scale trading companies and regional distributors, which in turn sell its products to other small retailers and down line markets.

The Company’s branded consumer DOD products are distributed to approximately 120,000 outlets in the Philippines and sold through its direct sales force and regional distributors. URIC intends to enlarge its distribution network coverage in the Philippines by increasing the number of retail outlets that its sales force and distributors directly service. The branded consumer food products are generally sold by the Company from salesmen to wholesalers or supermarkets, and regional distributors to small retail outlets. 5 to 30 day credit terms are extended to wholesalers, supermarkets and regional distributors. The Company believes that its emphasis on marketing, product innovation and quality, and strong brand equity has played a key role in its success in achieving leading market shares in the different categories where it competes. In particular, URIC launched “Jack ћn Jill” as a master umbrella brand for all its snack food products in order to enhance customer recognition.

URIC devotes significant expenditures to support advertising and branding to differentiate its products and further expand market share both in the Philippines and in its overseas markets, including funding for advertising campaigns such as television commercials ND radio and print advertisements, as well as promotions for new product launches by spending on average 5% of its branded consumer food division’s net sales this year. Competition The BCC business is highly competitive and competition varies by country and product category.

The Company believes that the principal competitive factors include price, taste, quality, convenience, brand recognition and awareness, advertising and marketing, availability of products and ability to get its product widely distributed. Generally, the Company faces competition from both local and multinational companies in all of its markets. In the Philippines, major competitors in the market segments in which it competes include Alleyway Manufacturing Corp.. , Columbia Foods International, Republic Biscuit Corporation, Sincerest Foods Inc. , Del Monte Phil. Inc. , Monde Missing Corporation, Nestle Philippines Inc. San Miguel pure Foods Company Inc. And Kraft Foods Inc. Internationally, major competitors include Procter & Gamble, Fame Foods/Mars Inc. , Lotto Group, Perfect Van Melee Group, Mayor India p T, Callable Group, Apollo Food, Frito-Lay, NestsĀ© S. A. , Academy Speeches ply, Grouper DEANNE S. A. And Kraft Foods International. Enhancement and Development of New Products The Company intends to continuously introduce innovative new products, product variants and line extensions in the snacked (snacks, biscuits, candies, chocolates and bakery), beverage and grocery (instant noodles and tomato-based) products.

This fiscal year alone, the Company’s Philippines Branded Consumer Foods has introduced 55 new products, which contributed to 2% of sales. The Company has selectively entered and expanded its presence in segments of the Philippine beverage market through the addition of branded beverage products designed to capture market share in niches that complement its existing branded snack food reduce lines. In 2004, the Company introduced and manufactured ready-to- drink tea in PET bottles, CO. The Company continues to expand the beverage product line to include functional beverages such as fitness and energy drinks.

Over a couple of years, the Company has also acquired water manufacturing facilities from Nestle Water Philippines, Inc. And entered into licensing agreements to manufacture and sell bottled water carrying the “Nestle Pure Life” and “Hidden Spring” trademark in the Philippines. In December 201 0, the licensing contract to carry the “Nestle Pure Lie’ trademark was rescinded. In December 2009, the Company likewise, acquired the coffee plant facilities of GEM to add capacities to its existing coffee business.

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