philippines journaux

Journaux aux Philippines

REVIEW 200/PHILIPPINES

Bon Appetit

A good, cheap meal and a frothy beverage help our Philippine readers through tough times

By James Hookway/MANILA

Issue cover-dated December 27, 2001 - January 3, 2002

Company Leaders (Chart)

BURGERS AND BEER. That's what many Filipinos turn to when times are hard, and 2001 was no different.

With its fast-growing population, consumer-oriented companies are often the most successful in the Philippines. The art of selling the basics is the cornerstone of many balance sheets here. This year, two in particular stand out: Jollibee Foods and San Miguel.

For the fourth straight year, Jollibee edged out its rivals for the No. 1 overall leadership ranking. People have to eat, even during the bad times. And the cheaper the food is, the better. With their sweet-tasting burgers and a new line of Chinese fast-food outlets, Jollibee has persistently edged out better-known competitors such as McDonalds and Burger King. San Miguel, meanwhile, also raced ahead, taking the No. 1 ranking for highest quality products and services for the fifth successive year. A more efficient distribution network was put in place when Eduardo Cojuangco Jr. returned to the company's helm in 1998, and that, along with an upturn in its overseas beer business, has helped San Miguel keep its edge over rivals.

While traditional companies led the way in this year's survey, the Philippines also made some concessions to the future. Globe Telecom made a debut appearance in the top 10, landing at No. 6 in both leadership and quality surveys. Arch rival in the cellular-phone business, Smart Communications, climbed a place to No. 9 in the leadership ranking, and rose to No. 8 from No. 13 in the quality poll. Microsoft and Nokia were the two best-regarded foreign companies, underscoring the depth to which the Philippines has embraced new technology.

Television giant ABS-CBN Broadcasting, though, was hit by a weak year in advertising revenues--something which the company is now trying to address by selling more programming overseas. It dropped to fifth from third in the leadership rankings as the slowdown kicked in.