I.

Name of Firm

REBISCO- Republic Biscuit

Corporation (Formerly New England
Biscuit)
Tagline: “Sarap ng filling mo”

Republic Biscuit Corporation or

REBISCO, is a food company in the Philippines specializing on snacks. Its main office is
in Pasig and its main factory is in Quezon City. It was founded by Jacinto Ng, the
corporation's Chairman and Chief Executive Officer, on the 15th of August year 1963. The
company used to be England Biscuit Factory up until 1972. As a group of companies,
REBISCO put up several subsidiaries in order to dominate other market segments, some
of those are Creamline Dairy and Suncrest Foods Incorporated.

Through time, REBISCO were able to make noise as one of the main players in the
Philippine industry of snack food. Now that they are over 55 years, they continue on
dominating the industry. The corporation only started in a neighborhood bakeshop in old
San Juan, Metro Manila, but through hardwork they were able to become the REBISCO
known today. REBISCO's successes did not come in an instant, they have strengthen their
position in the industry and still continue to grow. They extended their distributions and
research. Also, they adapt to modernization through various innovations, product
improvements and developments. With all the company's achievements, they give back to
the people by contributing in building the Filipino nation.

II. Mission, Vision, Core Values & Objectives

2.1Vision
To be the dominant Filipino food company offering innovative and best value
products created by people committed to making deliciously delightful moments for
everyone, everywhere.

1| Rebisco Incorporated; A Firm Analysis

 2.2 Mission
To achieve this, we shall:
Explore and enter new markets to build and intensify our business.
Innovate our products and services to meet the dynamic needs of
consumers.
Ensure availability of our products in all channels of distribution.
Develop our capability in people, systems and productive work
environment.
Constantly seek improvement and upgrade facilities to achieve international
standards of quality and cost-effectiveness.
Provide support in the communities where we operate to contribute and be
part of Nation Building.

2.3 Core Values

Excellence - "Go for the best."
Innovation - "Stay ahead. Think differently."
Customer Satisfaction - "Connect and Delight."
Commitment - "Work with Passion and Pride."
Teamwork - "Win together."

2.4 Objectives
Rebisco is committed to bringing out the finest of its people with good
benefits, compensation, and a team that will guide you in laying out a career path
that suits you best. Each day presents an opportunity to practice your learning. Each
day is a challenge to test your skills and create an impact not only locally but
internationally, with Rebisco's continuing expansion in countries like Vietnam,
Hong Kong, and Dubai.

2| Rebisco Incorporated; A Firm Analysis

III. History

Republic Biscuit
Corporation
(REBISCO) began in a
neighborhood bakeshop,
producing biscuits from
a tiny, rented second-
hand factory in San Juan,
Metro Manila in 1963. It
was first known as
England Biscuit Factory,
with only US$5,000 in
start-up (approximately ₱15,000 to ₱20,000). The company eventually moved out of its
San Juan site to a new and more spacious factory in Novaliches, Quezon City when the
company grew steadily.

In 1972, England Biscuit Factory was renamed Republic Biscuit Corporation, the
REBISCO that we knew today, and adopted a new image. With its growing extensive
distribution network, market research, and technology and product development, Rebisco
soon positioned itself as one of the major players in the snack food industry. From a basic
portfolio of biscuits such as the famous and pioneering Rebisco Cracker Sandwiches that
generations of Filipinos have loved, Rebisco now carries a wide variety of snack food
ranging from nuts and seeds, cakes, wafers, breads, chips and curls, candies and gums, and
chocolates. This growth transpired though the creation of new partners over time such as
JBC Food Corp. (1989), Suncrest Foods Inc. (1995), Multirich Food Corp. and Pinnacle
Foods Inc. (both in 1999), and SPI Corp.(2003).
In February 2011, Y&R Philippines won the branding work for Rebisco. Y&R was
tasked to create a new global brand for Rebisco. It will include the creation of a new logo
and packaging unified mark to strongly identify the vast array of products.

3| Rebisco Incorporated; A Firm Analysis

 Until now, Rebisco is still true to its claim of providing "Best-Value Products" by
maintaining quality at par with the best in the country. All products that leave the Rebisco
plant, put under strict quality control, are now reaching delighted consumers in many
corners of the country.

3.1 Subsidiaries
Suncrest Foods Incorporated (SFI)

In 1995, the strong potential of cake snacks in the local

market inspired the birth of Suncrest Foods Incorporated
(SFI). It currently carries Fudgee Barr, Cupp Keyk, and
Topps, to name a few. To further expand the market, SFI has
introduced packaged breads such as Crossini. More so, it has
also produced its line of baked products like the Mrs.
Goodman Chunkee Cookies, a chewy premium baked cookie
offered at a very affordable price.

Starting 2016, manufacture of quality chips and curls snacks will now be
under SFI (from Pinnacle Foods Inc or PFI). The company is committed to provide
the best snacks that are fun and filling at the same time. Current line-up includes
Funky, Criss Cross, Potato Plus, Pier 28, Kruffs, and Pop-O, to name a few.

SPI Corporation

Formerly known as Storck Products Inc., the

company was established in 1968 as a licensee of Storck
Germany Incorporated with a production plant in Pasig City.
Among its initial products are Storck Eucalyptus Menthol,
Storck Durchbeisser and Riesen Schoko. The company
concentrated in establishing Storck Eucalyptus Menthol as its flagship brand. Its
product line grew with the introduction of Lipps with Strawberry as its initial flavor.

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 In 2003, Rebisco acquired SPI along with all the brands under it - Storck, Lipps,
and Judge, and is known as SPI Corporation.

Multirich Food Corp.

In 1999, the company launched its flagship brand, Superstix,

a creamy-crunchy creation of chocolate wafer sticks. In the
following year, the company soon ventured into cream paste
snacks with Krimstix. The company's portfolio was further
expanded in 2001 when MFC was formally launched with the opening of its plant in
Bulacan. It has since ventured into jelly snacks with the introduction of Mr. Jiggles in the
market. Today, the company is proud of its biggest hit - Choco Mucho, a crunchy wafer
topped with rich caramel, rice crispies and enrobed in milk chocolate.

JBC Corporation

Jbc Corporation is a family owned snack food company

established in the year 1988. The company is mainly engaged in
the production of snacks like peanuts, mixed snacks, cracker
nuts, squash seeds, melon seeds, peas, beans, and confectionery
products for the domestic and export market. The foremost brands the company produces
include Happy, Dingdong, Hi-Ho, Chikito, Dragon Sid, Captain Sid, Barnuts, and Milkee.
At present, the company continues to expand its business to offer a wider array of quality
snacks products to its growing market both here and abroad.

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 IV. SWOT & PEST Analysis
4.1 SWOT Analysis
To be able to assess the internal and external development of the firm, SWOT
Analysis is employed and is shown below.

STRENGTHS WEAKNESSES
-Patent
-Established brand image

-Good reputation among customers

-Various brands got
-Cost advantages from proprietary know-how commoditized over time
exclusive access to high grade natural -high cost structure
resources
Over dependency on the biscuit
-Favorable access of distribution of network business
know-how
-exclusive access to high grade natural
resources
-favorable access to distribution networks
-Overseas Market

THREATS
OPPORTUNITIES -Competition in the market

-Price of raw material

-arrival of new technologies
-Shift of consumer’s taste
-loosening of regulations
-removal of international trade -Emergence of substitute
barriers products

-Creation of new tax policies

-Increased trade barriers

Figure 1.0 SWOT Analysis

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4.1.1 Strengths
Rebisco has been in the industry for more than 55 years and has established its
name in the Philippines as one of the leading competitor when it comes to Philippine Snack
Industry .They have managed to do it from being the ‘England Biscuit Factory’ to being
the Rebisco that we know of today. It has been great ever since because the company has
also great access to high grade natural resources which is essential for the production of
their products. Rebisco’s factory being placed in the capital is a great help in satisfying and
supplying customer demands in the metro and places nearby. As of March 2019, Rebisco
has been expanding its market overseas which can be beneficial since Filipino consumers
are uprising abroad.

4.1.2 Weaknesses
Being in the business industry is not all ‘sticks and stones ‘even for an established
brand. A lot of brands rises overtime and is also leading the market trend and were able
commoditized the market at some time. Rebisco being one of the lead in the market
produces more than just biscuits but they have invested a huge amount in its production
and advertisement which makes it a high cost structure.

4.1.3 Opportunities
The Philippines and the society being not immutable and is evolving gives rise to
various modernizations and technological advancements in particular which carries greater
opportunity for Rebisco to utilize technologies in producing more products or make
product improvements for the benefit of the consumers and corporation as well although
investments on machineries and technologies is undeniably costly it is viewed as one with
a higher chance of great turnover.

Certain international laws can also be a blessing as trade barriers can be broken and
may open be a great opportunity for Rebisco to emerge abroad, to pronounce the brand and
to cater more consumers.

4.1.4 Threats
There are of course external factors that limits the full potential of the firm and
Rebisco is not exempted to it. Since Rebisco is under a Monopolistic Competition, there is
7| Rebisco Incorporated; A Firm Analysis
a presence of various competitors for profit and consumer’s trust. Such competitors are
enumerated in 5.1. (please refer).Another is the competition in the market involving
emergence of the price of raw materials and Rebisco as using natural raw materials for the
production of their goods may experience a greater intensity of threat than the other who
are using processed materials for final production. There are also uncontrollable ones like
the shift in consumer taste and the tightening of trade barriers in other countries.

4.2 PEST Analysis

To be able to assess the external macro-environmental factors that affects
the firm, PEST Analysis is done as shown below.

Political
There are different laws implemented by the national government, including
a regulation for food safety. Republic Act No. 10611, known as "Food Safety Act
of 2013", was signed into law by the former President Benigno S. Aquino III,
concerned with the strengthening of Philippine food safety regulatory system.

To every person, food is very important because it provides energy to keep

individuals going in their daily lives. As food being a necessity, the government
has to assure its safety and sufficiency to demand. With the law being implemented,
food safety regulatory agencies (FSRAs) and local government units (LGUs) are
expected to carry out regulations, food safety standards, and other activities for food
safety, such as prevention of food borne-diseases.

Abiding by such laws is in utmost importance for food-producing businesses. With

laws like this, consumers can have an assurance for their health and the producers
as well may gain good credit if they were to follow.

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 Economical
The growth of food manufacturing in the Philippines remains the second
fastest among the south-east Asian nations as of 2016. Significantly in 2015, labor
productivity increased by as high as 6%. This leaves no question of how big the
opportunity is for food-producing businesses. Data provided by the Food and Drug
Administration (FDA) showed that there are 12,000 food-processing
establishments nationwide in 2015.

As a basic need, food makes up almost half of the total output of Philippines
manufacturing sector. Food manufacturing industry has also been identified by the
government as a priority sector because of its 8 to 10% average annual growth rate.
Generally it contributed to around 23 to 24% of the annual GDP.

Figure 1.1 Economical- PEST Analysis Pie Chart

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 Socio-Cultural
Preference over global brands is significantly growing among consumers
around the world, but despite this, Filipinos still choose locally manufactured
snacks and other food products. This is because when it comes to foods, local taste
matters to Filipinos.

Snacks plays a big part in Philippine tradition. Around three to five in the afternoon
it has been a Filipino practice to spend at least fifteen minutes to have some
"merienda", whether in school, office, and other places. Most of the times, they
choose snacks which they have used to eat growing up, this includes variations of
breads and biscuits. Origins of products matter to consumers. Both locally and
globally, brands that target consumers’ needs and tastes, behaviors and lifestyles
win consumers' hearts.

Technology
Times flies so fast, and it affects everyone and everything. To be efficient
and effective, snack food manufacturers and any other businesses must adapt to
changes. Technological innovations play a vital role to those changes. With the use
of technology, product improvements can be achieved much easier, also with it and
the internet, promotions may come in handy.

There is no question that the Philippines is being technologically-driven, for

Secretary Fortunato Dela Peña of the Department of Science and Technology
(DOST) said, during the Science and Techology week in Butuan City, that they are
to improve the life of every Filipino through the use of science and technology.
Also, he is encouraging Filipinos to foster interests in finding innovative solutions
through a wide range opportunity in science and technology.

Technology and internet brings the sales and industry to greater heights. UM
Philippines Head Chito Usi said that brand and publishers of content can "put
themselves in an extremely powerful position." Also, a study done by Mastercard

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 stated that, more Filipinos are turning to the internet for shopping. It also provided
that "Most of the Filipino respondents are satisfied with online shopping, describing
it as easy (73.3 percent), convenient (71.9 percent), or fun (64.4 percent), and
expressing greater likelihood to purchase in the next six months (79.2 percent)."

V. Product Line & Competitors

REBISCO is recognized as one of the leading chosen firms which caters delightful
snacks among Filipino consumers (Kantar Worldpanel, 2016). Due to the demand and the
uprising status of the firm in the country, it has led them to conduct more researches and a
variety of offer that excites every Filipino. Some of which are on Assorted Biscuits,
Biscuits with filling (Combi, Extreme, Premium, Cream Witz, Marie Gold), Cookies with
filling (Choco Rio, Cookie Crunch, Chokies, Fast Break), Flat Wafers (Wafer Time),
Gourmet Biscuits (Mrs. Goodman Chunkie), Chocolates (Choco Mucho, Havana, Rax),
Cream-Filled snacks (Jumpee), Cream Paste (Kream Stix), Jelly Juice (Jiggels), Jelly Sticks
(Jiggels), Wafersticks (Superstix, Tigerstix), Breads (Crossini), Cakes (Cup Keyk, Choco
Topps, Cake Jam, Fudgee Bar, Mini Keyk, Cup Keyk Treats, Cheesy Melt, Doowee Donut),
Cashew Nuts (Happy), Chocnut (Barnut), Coated Nuts (Chikito, HI-ho), Green Peas
(Sinbad), Melon Seeds (Captain Seeds), Mixed Nuts (Ding Dong), Polvoron (Milkee), Pop
Beans (Mr. Bean), Squash seeds (Butong Pakwan), Bubble Gums (Bubble Joe, Judge),
Hard Candies (Starr, Lips Fruit Blast, Vita Cubes), Lollipop (Lips Pop Stick, Loco Pops),
Soft Candies (Chubby, Mr. Yema), Corn (Crunchos, Ban Chee, Ranchos, Pop-O, Funky,
Frititos, Texas Wild, Criss Cross, Samurai, Flippers, Chiskalog, TamTam). REBSICO has

11| Rebisco Incorporated; A Firm Analysis

been continuing expanding their product lines to cater wider scope of market as according
to their market strategy (Nolido, 2019)

5.1 Competitors

The firm has been standing still for about 50 years and therefore many competitors
appeared. The competitors of REBISCO are every company who manufactures the same
products as they were but mainly these are the major competitors according to Owler
(2019) & Nolido (2019); Monde Nissin, Universal Robina Dot Com, Gardenia Bakery
Phillippines. This is concluded on the basis of their previous year revenue.

Monde Nissin Corporation is a Philippine-based

company that manufactures noodles, biscuits, packaged baked
goods, and culinary aids under the brands Lucky Me!, Nissin,
Voice, Bingo, and Monde.

Universal Robina Corporation (URC) is one of the

largest branded consumer food and beverage product companies
in the Philippines. It has been operating for over 50 years since
Mr. John Gokongwei, Jr. established Universal Corn Products Inc. in 1954, a cornstarch
manufacturing plant in Pasig City.

Since the start of its operations, Gardenia’s distribution

had grown rapidly. Gardenia is now considered as the most
widely distributed loaf brand in Metro Manila. Since Gardenia's
establishment in 1998, the brand’s success has been starkly evident with its continuous and
rapid sales growth.

12| Rebisco Incorporated; A Firm Analysis

 VI. Marketing & Pricing Strategy
6.1 Market Structure
Rebisco group of companies is under Monopolistic Competition since
numbers of competitors as stated above (refer to 5.1) are present and all are operating for
profit and were offering differentiated products.

REVENUE
AS OF 2018 IN $
Rebisco Monde Nissin Gardenia

9%

11%

80%

Figure 1.2 Competitive Analysis based on Estimated Annual Revenue

5.2 Marketing Strategy

REBISCO as mentioned above, one of the leading firm in the country uses Paid
Advertising, Cause Marketing, Internet Marketing, Transactional Marketing and the basic
Word-of-Mouth to influence potential consumers. In advertising, their medium is through
TV and Radio Advertisements and Print Media. Publicity on the other hand since they are
using their good reputation and image to promote their products.

13| Rebisco Incorporated; A Firm Analysis

Brochure TV Ads.

Promos

5.2 Pricing Strategy

The firm also uses Market Penetration (Diola & Tichepco, 2009) to target
consumers that are interested in lower, bundles or volume discounts. They also employ
Going-Rate Pricing since their product’s price range is not different from their
competitors’. In a consumer point of view, the firm may also be using Psychological
Pricing given the prices set for the products (e.g 99.99 pesos per 12 pcs bundle). As shown
below the effects of the strategies implemented by the firm.

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 Figure 1.3 Growth Percentage Rate as of June 2017

15| Rebisco Incorporated; A Firm Analysis

VII. Corporate Social Responsibility

The Rebisco Biscuit Corporation (REBISCO) fostered a feeling of social

responsibility among its employees, facilitating large-scale efforts to improve the lives of
the families – the community that have become instruments in helping REBISCO reach its
vision, mission, and goals, these families are the main factor behind the growth and success
of the Republic Biscuit Corporation. This is when Rebisco realized that these families were
comprised of economically disadvantaged families. Rebisco began to create programs that
would address poverty by targeting the basic unit of the society—the family. This corporate
social responsibility shows exactly on one of their mission: to provide support in the
communities where we operate to contribute and be part of Nation Building. This
commitment to help led to the establishment of the Rebisco Foundation Inc. (RFI) as the
signature project of the company’s 45th year in business.

The Rebisco Foundation, Inc. (RFI) is duly registered with the Securities and
Exchange Commission (SEC), as a non-stock, non-profit organization on April 27, 2009
as the corporate social responsibility arm of the RBC Group of Companies.

Rebisco Foundation Inc. Mission

To be a vital component towards the economic development and growth of
communities through Education and Youth Development; to become intermediary for
positively influencing the lives of poor families through the provision of both formal and
non-formal methods of instruction and programs that will hone the skills of the youth
towards the development of their mental, physical, social, spiritual, emotional and
economic well-being; to provide scholarships to poor but deserving and financially
challenged students and to provide opportunities for the economic upliftment of families
in the communities where the RGC operate by undertaking programs and projects that will
enhance income generation.

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 Since April 2009, RFI’s programs and services have continuously evolved to ensure
that it remains responsive to the needs of the target beneficiaries. The foundation has
touched lives and created a positive impact in the communities through its Education and
Health initiatives. Through the years, Rebisco had helped numerous students through their
scholarship program. It was emphasized that Rebisco is not after the quantity of scholars
helped, but on the quality of scholars willing and committed to do their best and thrive
amidst the challenges of sustaining RFI’s scholarship requirements. In December 2016, the
program Fighting Hunger with Rebisco Foundation Inc., a feeding program was organized
by Rebisco through Rebisco Foundation, Inc. (RFI). One hundred and twenty-one students
from the Bienvenido Fojas Elementary School in Tanza, Cavite was given better nutrition.
This is the first time for the company to organize a program like Fighting Hunger, the
program ran from July to December 16, it was build to help address students classified as
malnourished by the school administration.

Rebisco Corporation has established a foundation, Rebisco Foundation that

supports economically disadvantaged families by creating programs that would address
poverty by first targeting the basic social unit—the family. The company also encourages

17| Rebisco Incorporated; A Firm Analysis

the feeling of social responsibility among its employees, facilitating large-scale efforts to
improve the lives of these families.

Since its formal incorporation in April 2009, RFI’s programs and services have
continuously evolved to ensure that it remains responsive to the needs of the target
beneficiaries. The RFI has touched lives and created a positive impact in the communities
through its Education and Health initiatives.

Aside from their foundation, REBISCO has already expressed their support to the
Philippine sports volleyball. Just recently Rebisco president Jonathan Ng has offered to
support the Philippine women’s national volleyball team through the 2019 Southeast Asian
games. Prior to sponsoring the national team, Rebisco has previously supported the Ateneo
de Manila women’s volleyball team, and then the Philippine Super Liga, before unveiling
its own club team in the Premier Volleyball League, the Creamline Cool Smashers.

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VIII. Conclusion
Republic Biscuit Corporation belongs to an industry in which there are many
competitors, it offers similar products but not absolute substitutes. Its products are sensitive
to price changes but still it is able to determine its own prices. Having snacks as its front-
runners, it has become well-known to consumers and has established familiarity to their
day to day lives. REBISCO made differentiations to help distinguish its products from
those of its competitors. Moreover, it tends to exert great efforts to marketing, such as
catchy advertisements in order to attract more consumers. These information show that
REBISCO has a "monopolistically competitive" market. REBISCO Group of companies
is a strong and long-established firm who aimed to cater millions of Filipinos, and
hopefully the global market, most especially children with their snack foods. Their
performance in this mixed economy is undeniably enormous. Their productivity and
growth increased the competition in the market which results to a better offer of products
from the other competing companies. Aside from that, REBISCO has been extending hands
to the poorest areas of the country and is giving opportunities for children with potentials
which may be useful in the future, as proven by their efforts to execute programs targeting
poverty. They extend these responsibilities not only to their administration but also to their
employees to help them grow further in life, for themselves and their families. No wonder,
REBISCO has become one of the leading and ever growing food-manufacturing
corporation in the Philippines today.

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References

Owler. Com, 2019. Retrieved from https://www.owler.com/company/rebisco

Diola & Tichepco, 2009. Marketing A Simpilfied Approach. Published by C&E Bookshop.

Rebisco Group of Companies, 2017. Retrieved from https://www.rebisco.com.ph/about-

us/the-rebisco-foundation

Impact. Ph, 2016. Rebisco Foundation Inc. Retrieved from

http://www.impact.ph/organization/rebisco-foundation/#

Yodiz,nd Marketing Strategies and Definitions.Retrieved from

https://www.yodiz.com/blog/8-types-of-marketing-strategies-and-definition/

A Primer on the Food and Safety Act of 2013, RA 10611, 2013. Retrieved from
(http://jlp-law.com/blog/a-primer-on-the-food-and-safety-act-of-2013-ra-10611/)

Nichols, M (2018) Top Challenges facing the snack food industry .Published by Manila
Bulletin. Retrieved from
https://www.google.com.ph/amp/business.inquirer.net/195931/more-filipinos-choosing-
to-shop-online-study-says/am.
GMA News Online, 2014, Pinoy Leads the world in social engagement-study. Published
by GMA News. Retrieved from
http://www.gmanetwork.com/news/scitech/technology/367983/pinoys-lead-the-world-in-
social-media-engagement-study/story/

Philippine Statistics Authority, 2017. 2015 Annual Survey of Philippine Business and
Industry (ASPBI) - Manufacturing Sector for Establishment with TE 20 and Over :
Preliminary Results. Retrieved from https://psa.gov.ph/content/2015-annual-survey-
philippine-business-and-industry-aspbi-manufacturing-sector-
establishment?fbclid=IwAR2AlpFVqqSnZXJg6gPwbaJqUbQovNU7OVDXsL8euu68Ag
oXuEvozcV1VhQ
20| Rebisco Incorporated; A Firm Analysis
Fernandez,L, 2018. How it all started. Published by Volleyverse Retrieved from
https://volleyverse.com/phi/rebisco-volleyball-league-w/rvl-history/

Manila Standard Sports, 2017. Rebisco Extends support to girl’s volleyball league.
Published by manilastandard.net Retrieved from
http://manilastandard.net/sports/volleyball/252006/rebisco-extends-support-to-girls-
volleyball-league.html
FilStop, 2019. Retrieved from https://www.filstop.com/rebisco-choco-sandwich-10-
pieces-per-package-1.06oz.html
Naredo, 2018. Aby Marano and co welcome Rebisco’s all out support for PH volleyball
team. Retrieved from https://news.abs-cbn.com/sports/08/29/18/aby-marao-and-co-
welcome-rebiscos-all-out-support-for-ph-volleyball-team

Other Sources.
Intervieweee: Zsa Zsa Diaz Nolido, Rebisco Manager

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