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CEBU CITY, Philippines - After working nearly two decades in two separate multinational beverage companies, Conrado Espinosa decided to make his own drinks — healthier, non-carbonated beverages that he can sell cheap to the public.
“My passion is good health but the companies I previously work for produce drinks which are detrimental to people's health, so I told myself why not make an alternative beverage?,” said Espinosa, president and general manager of Alternative Foods Manufacturing Corp. (AFMC).
In September 2004, Espinosa and business partner Andrew Quinońes produced two containers (at five gallons each) of “Orange Drew.”
From this backyard operation sprang AFMC which built a plant in Talisay City that produces 1,200 containers of juice daily.
The juice drinks are sold at P3 and P5 per plastic cup and has five flavors––strawberry, iced tea, apple, lemon and grapes.
“People now look for affordable goods but they also want nutritious and quality (food). We incorporate these three in our juice drinks,” he said.
In April 2008, the company introduced a new product called Drew Iced Tea in 355 ml bottles and sold at P11 to P12.
“We created this product to diversify. We have to participate in a segment where there is convenience,” Espinosa said.
AFMC's products bear the Department of Health's Sangkap Pinoy Seal, a program which encourages companies to incorporate vitamins and minerals in their products as a way to solve malnutrition.
Espinosa said it did not take long for “copycats” to imitate Orange Drew barely a few months after it came out in the market.
“I even went to the extent of approaching the Intellectual Property Rights' office to seek protection but to no avail,” said Espinosa, an agriculture graduate of the University of the Philippines Los Bańos.
Quality control
Espinosa said he was worried because they found out that their competitors use magic sugar which is prohibited because it has carcinogenic or cancer-causing properties.
To ensure the quality of their products Espinosa said their beverages underwent strict inspection and tests from the Bureau of Food and Drugs.
Espinosa showed their certificates of product registration and the Sangkap Pinoy Seal certificate among others.
The product's affordability and its appealing flavors became two of its unique selling points.
Because of limited finances, Espinosa adopted direct distribution as his marketing strategy, visiting store after store to introduce the product.
Soon after, the product gained wide following from people in public markets, sidewalks and schools.
“This way, the retailer does not have to bother himself with logistics requirement. We lend to them ice bucket, dispenser for the business to start immediately,” he told Cebu Daily News.
Espinosa said those interested to sell the juice drinks can start the business with P310 as initial capital.
From that amount, Espinosa said one can get five gallons of Orange Drew juice, a bucket of purified ice, sets of 7-ounce and 12-ounce plastic cups, and a dispenser.
If the five-gallon juice will be sold everyday, Espinosa said it will enable the entrepreneur to earn P500 or a profit of P190.
“They can rotate the earnings. If business is brisk, they can ask for additional container. They just need to know where to strategically locate the product so that it will really sell,” he said.
To starting entrepreneurs, Espinosa has this advice: “Always have a positive outlook and maintain passion for real results.”
(Business Focus comes out every Mondays of the month. For the month of July, this section will feature ways on how people can start small business ventures based on the experience of micro-entrepreneurs in Cebu.)
