Technical Reports 01Mar2001 INDIA: Role of biofertilizers in vegetable production. PROGRESSIVE USE of biofertilizers offers the best alternative to intensive chemical fertilizers. Moreover, the biofertilizers are an economically viable. Biofertilizers are living cells of different types of microorganisms (bacterial, algae, fungi), which have an ability to mobilise nutritionally important elements from non usable to usable form. These microorganisms require organic matter for their growth and activity in soil and provide valuable nutrients to the plants in the soil. Biofertilizers are grouped broadly into three categories. Biological nitrogen fixers, phosphate solubilizers, mycorrahizae. Biological nitrogen fixers The process of biological nitrogen fixation is carried out by forming nodules on the roots of the plants. Rhizobium and Bradyrhizobiium form root nodules in leguminous plants like peas and beans, legumes are also known to leave behind some residual nitrogen in soil besides increasing the crop yield. Similarly Azotobacter and Azospirillum play a key role in nitrogen nutrition of vegetables, cereals etc. Phosphate solubilizers When water soluable phosphate fertilizers are applied to soil, they are converted to unavailable forms due chemical fixation in soil. This problem is otherwise referred to as phosphorous fixation. In such situations, a set of microorganisms viz. Bacillus megaerium Bacillus polymyxa, Pseudomonas striata, Aspergillus awamori, Pencillium can produce several organic acid (butyric acid, citric acid, fumaric acid etc.) and covnert unavailable phosphorus to available phosphorus which is called as phosphorus solubilization. Use of phosphorus solubilizers certainly enhances phosphorus availability and crop yield. Mycorrhizae Mycorrhizae denote symbiotic association between certain fungi and roots of plants. This is one of the recent biofertilizer which is known to help in uptake of several nutrients (P, Zn, Cu, Mn, Fe etc). It produces growth promoting substances, help in drought tolerance and impedes soil borne root pathogens. Biofertilizers are applied to seed, seedling, seed material or soil. For seed treatment; 200g of biofertilizer is dissolved in 500 ml. of 10 per cent gur solution. Rub the mixture thoroughly on seeds and treated seeds are dried in shade for 30 minutes and then sown with in 24 hours. For seedling treatments, 40 g of biofertilizer is dissolved in 15 litres of water and then root portion or seed material is dipped in the suspension for 10 minutes before planting. For soil application, 800 g of biofertilizer is mixed with 10-20 kg of well powdered compost manure and then broadcast in an acre of crop. R. K. Dhall Department of Vegetable Crops Punjab Agricultural University, Ludhiana. 01Mar2001 INDIA: Protection of plant varieties. The link between agriculture and the fulfilment of basic food needs should acquire primacy while introducing intellectual property rights on plant varieties. The most immediate consequence of the relevance of fundamental rights and basic needs is the need to circumscribe commercial activity so that it does not impact on food security at the individual level. The present Bill does not consider the impact of the strengthening of patent rights on the realisation of fundamental rights such as the right to food and health, despite their close links. This is the second part of a four part series on biodiversity, patents and plant variety bills that reflect India's obligations under the TRIPS and Biodiversity Convention. THE PROTECTION of Plant Varieties and Farmers' Rights Bill constitutes the Government's response to its obligations under TRIPS concerning plant varieties. It is specifically required by a provision which forces all states to introduce intellectual property rights over plant varieties but allows them to choose the form of protection. The Bill was introduced in December 1999 and referred to a parliamentary committee which submitted its report in August last together with a substantially revised version of the Bill. This Bill should have been adopted by January 1, 2000 according to TRIPS deadlines and is to be considered in priority in the current session. The Government has chosen not to impose patents over plant varieties but rather to devise its own system of intellectual property rights. Further, it was agreed that the UPOV Convention should not be ratified but that a law suited to the specific conditions of the country should rather be drafted. In its present form, the Bill focuses on the establishment of plant breeders' and farmers' rights. It is striking that the proposed regime for plant breeders' rights largely follows the model provided by the International Convention for the Protection of New Varieties of Plants (UPOV). It introduces rights which are meant to provide incentives for the development of the commercial seed industry. The criteria for registration are thus the same as those found in UPOV, namely novelty, distinctiveness, uniformity and stability. The Bill not only incorporates elements from the 1978 version of UPOV but also includes some from the much more stringent 1991 version, such as the possibility to register essentially derived varieties. The second main aim of the Bill is to introduce farmers' rights. It is here that the Joint Committee has substantially changed the proposed law. Indeed, the first version only contained a short provision on farmers' rights which did not do justice to the complexity of the issue and was definitely not sufficient to justify the title of the Bill. After a series of hearings, the committee came to the conclusion that the Bill was unbalanced and decided to add a whole chapter on farmers' rights. In the new version, the Bill seeks to put farmers' rights on a par with breeders' rights. It provides, for instance, that farmers can, like commercial breeders, apply to have a variety registered. Generally, the Bill envisions that farmers should be treated like commercial breeders and should receive the same kind of protection for the varieties they develop. The new provisions are significant in theory because they try to establish farmers' and breeders' rights as equal rights but they are unlikely to have a major impact in practice. This is due to the fact that the Bill accepts the registration criteria of the UPOV convention. These criteria have been developed exclusively with commercial breeders in mind and can generally not be applied for the registration of farmers' varieties since these are unlikely to fulfil all the conditions. Benefit-sharing In its 1999 version, the bill tried to compensate the lack of substantive farmers' rights with the introduction of two schemes for channelling to them some financial compensation. The idea behind `benefit-sharing' is that actors who have contributed to the development of a protected variety but cannot claim property rights are awarded monetary compensation instead. The first scheme allows individuals or organisations to submit claims concerning the contribution they have made to the development of a protected variety. The final decision is taken by the authority established under the Act which determines the amount taking into account the importance of the contribution in the overall development of the variety and its commercial potential. The second benefit-sharing avenue allows an individual or organisation to file a claim on behalf of a village or local community. The claim relates to the contribution that the village or community has made to the evolution of a variety.Benefit-sharing in the plant variety Bill is problematic in several regards. First, it formalises the fact that some actors involved in plant variety management, such as farmers, cannot easily obtain property rights even though the possibility is now open to them in principle. Second, the Bill only conceives benefit-sharing as financial compensation even though other sharing schemes exist. Third, benefit-sharing focuses mainly on the genetic material that has been used in the development of a protected variety. Possible intellectual contributions to the development of a variety are not taken into account. The Bill in context It is important to keep in mind that the Bill has only been drafted in response to TRIPS obligations. It is therefore surprising to see that some of the core provisions of the Bill derive directly from an international treaty devised for countries with fundamentally different ground realities. Nothing in TRIPS forces states to adopt or even refer to UPOV. After the revisions proposed by the committee, the Bill has acquired a much more balanced approach. However, the fact that the criteria for registration of plant varieties are those devised for commercial breeders may not allow farmers to benefit much from the provisions of the Bill. In its current form, it is clearly visible that the chapter on farmers' rights was added as an afterthought to a regime meant to benefit mostly commercial breeders. There is a need to recognise that the variety of actors engaged in agricultural management have rights to their resources or knowledge. More fundamentally, the link between agriculture and the fulfilment of basic food needs should acquire primacy while introducing intellectual property rights on plant varieties. The most immediate consequence of the relevance of fundamental rights and basic needs is the need to circumscribe commercial activity so that it does not impact on food security at the individual level. Patents Amendment Bill The Patents Act of 1970 deals with patents in general and is not specifically related to biological resources. However, it addresses a number of issues that are of relevance in the present context. It rejects, for instance, the patentability of all methods of agriculture and is generally much more restrictive than similar laws in western countries. TRIPS now forces significant alterations to this Act. Thus, where only a product patent could be obtained for no more than seven years for food or medicine related inventions, TRIPS now requires the availability of product and process patents for 20 years. The Patents (Second Amendment) Bill of 1999 generally seeks to modify the Act to allow compliance with TRIPS. There is not much scope to diverge from the rather precise TRIPS obligations if Parliament wants to avoid further confrontation with the World Trade Organisation (WTO). However, the exceptions contained in TRIPS have not necessarily been used to their full extent. Further, the present Bill does not consider at all the impact of the strengthening of patent rights on the realisation of fundamental rights such as the right to food and health, despite their close links. With regard to environmental protection, the Bill includes some of the TRIPS exceptions related to environment and health. It also addresses the question of biopiracy by imposing the disclosure of the source and geographical origin of biological material used in a patented invention. Further, non-disclosure of the geographical origin or the anticipation of the invention in local or indigenous knowledge constitute grounds for opposing or revoking a patent. Philippe Cullet (The author is with the International Environmental Law Research Centre, Geneva. E-mail: pccullet@vsnl.net) Market Reports 27Feb2001 THAILAND: Instant-noodle war looms. AMID intensifying competition and the tight economic situation, Thai instant noodle manufacturers are expected to go on a price-war footing this year to boost sales and increase market share. Pipat Paniangvanit vice president of Thai President Food Plc, maker of Thailand's leading instant noodle brand, Mama, said yesterday that the instant noodle market is expected to grow 7-10 per cent this year due to increased competition among the big players. The overall instant noodle market grew about 3.8 per cent to Bt8 billion last year. Before the economic crisis erupted in 1997, the industry enjoyed annual growth of 12-15 per cent. A decline in the availability of raw materials such as wheat flour and palm oil would lead some manufacturers to increase their budget allocations for sales promotions, Pipat said. "It's expected some manufacturers will adopt a price-war strategy and allocate large portions of their budgets to sales promotions," he said, adding that this strategy has already been in place at some noodle makers for two or three months. The price of a box of 30 packages of noodles has fallen from Bt140 to Bt126.5, while the price of a 10-pack has dropped to Bt42.5 from Bt50. Last year, Thai President Food Plc took in Bt4.4 billion in sales revenue, up 3.4 per cent from a year earlier. Bt1.1 billion came from export sales. The company expects sales revenue to reach Bt4.7 billion this year. With instant noodle consumption growing around the world, nine countries are expected to join the Third World Ramen Summit in an effort to set international standards and seek cooperation among instant noodle manufacturers, said Pipat, who is the summit's chairman. The summit, to be held in Bangkok on March 15-16, will be attended by representatives from nine member countries of the International Ramen Manufacturers Association (IRMA): Switzerland, Brazil, South Korea, Taiwan, China, Indonesia, the Philippines, Japan and Thailand, plus four observer nations. Pipat said the main objective of the summit was to exchange views on technical and environmental aspects of instant noodle production, in order to promote good product quality. "This will allow individual manufacturers to set benchmarks by which they can improve their product quality and develop appropriate marketing strategies to boost their local and export sales," Pipat said. The summit will also give IRMA members the chance to establish a Codex, or set of international manufacturing standards. Member countries will discuss in principle a framework for establishing standards relating to use of chemical substances, packaging materials and other aspects of manufacturing. Pipat added IRMA has been studying the possibility of using packaging made from cereals rather than foam, a non-biodegradable product that can cause damage to the environment. However, IRMA is still awaiting the results of a cost-benefit analysis of using cereals in instant noodle packaging. Pennapa Dhanasarnsilp, deputy director-general of IRMA and a member of the board of directors of Saha Pathana Inter-Holding, said the summit would feature seminars on various topics. Among the planned seminars are "Instant Noodles: The World's Best Alternative Basic Food for the New Millennium", "Fortification of Instant Noodles in Thailand", and "Future Trends and Development of Instant Noodles". "World consumption of instant noodles has grown significantly due to the product's low price, convenience and ease of preparation. Last year, China's consumption of instant noodles stood at 16 billion packages, while Taiwan, Thailand and the Philippines had a combined consumption of 43.4 billion packages," Pennapa said. Consumption is expected to increase to 100 billion packages by 2010, he said. 27Feb2001 THAILAND: Market for Western food still 'immature'. THAILAND'S $US2.7-billion (Bt116-billion) food-service market is one of the most immature in Asia in terms of embracing Western cuisine, but signs are emerging that the nation is about to catch up with leaders such as Singapore, Taiwan and Hong Kong, says a study by the Australian marketing research firm BIS Shrapnel. The study, "Food Service in Thailand 2000-2002", says some evidence of change in taste has emerged from the flood of coffee outlets that have opened in the last two to three years, particularly in Bangkok, and the demographic group that patronises them, young upwardly mobile professionals, many of whom have travelled overseas and absorbed Western culture. Consumption of bakery products has grown alongside the new "coffee culture", with the emergence of chains such as Au Bon Pain, Dunkin' Donuts, Mister Donut, Black Canyon and S&P. Starbucks established its coffee-shop chain in 1998, quickly followed by Black Canyon, and both have reported increases in coffee consumption of between 20 and 30 per cent annually, says the principal author of the study, international food-industry specialist Sandro Mangosi. "Overall, however, Thai people tend to be nationalistic in terms of cuisine, and with good reason given the quality and taste of most Thai dishes," says Mangosi. "Thai consumers prefer traditional cooking methods and domestically prepared foods. No demand exists for portion-controlled prepared foods, international catering firms have failed to penetrate, and distribution is dominated by local marketers." Accordingly the penetration of Western dishes is very low. "In the longer term this position is bound to change, and Thailand will become an increasingly important market for international food companies." The study notes that the Thai food-service industry was less affected by the Asian economic downturn than other sectors and has recovered faster. Consumers have tended to "trade down", that is to eat at cheaper restaurants. However, business at the four-and five-star hotels and top-class restaurants did not decline significantly because of increased numbers of tourists. The study has identified 193,000 food outlets in Thailand, 95 per cent of which are hawker stalls and Thai budget restaurants. Some 10.5 billion meals were served in the year 2000, of which only 0.6 per cent were take-aways and light snacks, a much smaller proportion than in other Asian countries. The short-term future of the Thailand food-service industry is reasonably bright with demand steadily increasing, driven in part by improved distribution and changing tastes. Consumer confidence increased during 2000, and the urban middle class is starting to spend on eating out more frequently. Home deliveries are increasing, particularly for pizza, dim-sum and kebabs. Sandwiches and pastries are becoming more popular, and coffee-vending machines have started to appear. Western cuisines are beginning to stake a foothold, led by Japanese and Italian. Bangkok already has 300 Japanese restaurants, and the Japanese chain Sushi King is planning to open a further 30. In the long term, trends towards Western-style dishes and fast food will be driven by the younger and more affluent generation and by the booming tourism sector. "The combination of a strong and diversifying local food-production sector and a lower take-up of Western-style foods means obstacles have to be overcome if food-service suppliers are to achieve rapid growth and market penetration," Mangosi says. "But demand will inevitably increase." Mangosi forecasts that the industry will grow by 4.2 per cent in 2001 and 5 per cent in 2002, compared with forecast GDP growth of 3.5 per cent and 4.5 per cent respectively. 26Feb2001 JAPAN: Asahi Breweries fuels low-malt war. Asahi Breweries fuels low-malt war - Top beer maker devises splashy product launch to challenge forerunners in - fast-growing segment. The only sector of the beer market with any fizz is low-malt beer, and the battle among breweries over share just entered a new phase. Asahi Breweries Ltd. finally jumped into the fray with its first low-malt brand, while Kirin Brewery Co. and others are rolling out new low-malt brands. Asahi mobilized some 3,000 employees on the morning of Feb. 20, the day before the release of Honnama low-malt beer, to stick up posters at supermarkets and convenience stores around the country. Not just salespeople, but even administrative staff and plant workers turned out in force. The operation was dubbed "red storm" after the bright-red label. The low-malt market in 2000 jumped 15% year on year to 123 million cases, accounting for 22% of the overall beer market. (A case equals 20 633ml bottles.) Low-malt is made from malt, hops and water, like ordinary beer, and is brewed in roughly the same manner. The big difference is the tax on the malt content. Whereas a 350ml can of beer made from more than two-thirds malt carries a tax of about 78 yen (67 cents), the same size can of beer with less than one-quarter malt - technically classified as a sparkling drink - is taxed just 37 yen. The difference is reflected in the retail prices, which average about 145 yen for low-malt brands, some 70 yen less than ordinary beer. Although consumer spending has been in a prolonged slump, beer lovers have been lured by the low price of low-malt labels. On the continued strength of its Super Dry label, Asahi passed Kirin in 1998 ordinary beer sales, but Kirin clings to the top in the overall beer market due to its lead in low-malts. Kirin currently holds a lion's share 53.5% of the low-malt market with its Kirin Tanrei, which the brewery reformulate at the end of January for the first time in three years. Seattle Mariners star reliever Kazuhiro Sasaki featured in commercial spots, and 5 million people taste-tested the brew by early March. Sapporo Breweries Ltd. marketed a new beer in February 2000, but annual sales failed to meet even a fifth of the company's target. In May, it brought out the low-malt Reisei Karakuchi earlier than planned, and it proved a hit. Thanks to that, the brewery managed to maintain a 15% share of the overall beer market. It aims at higher share with the March release of the Hokkaido Nama Shibori label. For giant whisky distiller Suntory Ltd., its low-malt Magnum Dry label accounts for 61% of all beer shipments, making low-malt its mainline brew. There has been some friction between the three low-malt pioneers and Asahi, which had for a long time ridiculed low-malt as "pseudo-beer" and pointedly stayed out of the segment. But Asahi experienced difficulties expanding its overall market share with Super Dry alone, and eventually converted. Beer brewers are putting more stress on the low-malt business despite the intensive competition. They intend to make low-malt beer an advance guard in their corporate transformation. "We will become a comprehensive marketer of liquor by fully utilizing the technology and sales power of group firms," said Koichiro Aramaki, senior managing director of Kirin, who will become president at the end of March. Domestic beer shipments in 2000 declined 4.5% from a year earlier to 436.97 million cases, falling below year-earlier levels for the fourth straight year and down 20% from 1996 levels. The decline is attributed to not only the inroads made by low-malt beer but also growing demand for wine and other alcoholic beverages. Against this background, Kirin has decided to expand its product lineup by enhancing its linkage with group makers of foreign-type liquors and beverages. While sales to the restaurant trade account for a large part of the beer business, most low-malt beer demand is from households. Kirin first aims to move away from depending solely on beer sales to two-pillar management handling ordinary and low-malt beer, and expand its product lineup by making the most of know-how gained during the process. Asahi has also decided to integrate in April its sales division with that of Nikka Whisky Distilling Co., the No. 2 whisky distiller, which was turned into a wholly owned subsidiary in February. The marketing function will be consolidated into the parent, while Nikka will specialize in production of whisky and low-alcohol beverages. "With the taste of consumers changing greatly, we cannot expect the beer market to grow in and after 2007 when the population will peak," said Asahi President Shigeo Fukuchi. With the deregulation of liquor-sales licenses in 2003, the breweries see a chance to expand sales channels into mass-volume discount chains and convenience stores. Limited shelf space and emphasis on high turnover, however, mean that convenience stores will handle only the top-selling labels. This spring's low-malt battle could presage the results of the overall war among breweries. 01Mar2001 FRANCE: Bottled water - a global survey. The ongoing concern over the quality of tap water and the search for healthier lifestyles has helped underpin growth in the bottled water market between 1995 and 1999. The demand for bottled water became year-round rather than seasonal, and prices were driven down by the growth of private label and budget-price brands. The market was characterised by constant packaging innovation, with some single-serve bottles featuring push-and-pull sports-style caps. PET (polyethylene terephthalate) plastic packaging has come to dominate the market due to its lighter weight and greater convenience, although Germany continues to be dominated by glass packaging. Still water, with its health associations, forms the largest sector in most key markets as, its nature, it can be sipped easily throughout the day in large quantities. Carbonated water, by contrast, generally requires cooling and immediate consumption, and can cause discomfort if drunk in large quantities. Flavoured water achieved only niche status and suffered consumer confusion as the result of an association with soft drinks. Brands such as Evian, Volvic and Perrier are recognised throughout the world, but regional brands continue to hold sway in a number of key markets. This scenario is likely to change with the entry of soft drink giants Coca-Cola and PepsiCo into the bottled water arena. Regional brands are likely to have to think in national terms to compete. Sales by packaging format and size - volume Packaging types in relation to sales varied widely. In France and Italy, 92% and 98% respectively of bottled water sales were packaged in plastic. The review period saw a significant trend towards the use of PET plastic rather than PVC (polyvinyl chloride) in France. The recyclable PET bottle is considered by manufacturers to provide them with a more environmentally friendly image, which will encourage good consumer relations. In Germany, glass bottles remained the most important packaging type for bottled water over the review period. This is partly due to the strict regulations controlling the quality and purity of water in Germany. In the opinion of the German centralised distribution organisation, Genossenschaft Deutscher Brunnen (GDB), the glass bottle is the most suitable packaging type for maintaining standards. The vast majority of German brands are distributed in this way. However, the share of glass bottles declined over the review period. This is attributable to the success of PET bottles. PET bottles proved very popular among consumers as they are more convenient than glass. As PET bottles increased their share of the market, a variety of packaging sizes gained inimportance. In Japan and Spain, the most dominant packaging format for bottled water is PET plastic. In 1999 almost 85% of all volume sales in Japan were accounted for by plastic bottles. In Spain, the purchase of bottled water is still very much related to the frequency of drought conditions in many parts of Spain and poor-quality tap water. The UK volume share of plastic bottles continued to expand in 1999, reaching almost 75%. Innovation of plastic packaging, reflected in the introduction of sports caps, became more widespread over the latter stages of the review period. US packaging is focused on PET bottles, which accounted for 89% of the market in 1999. Both glass bottles and aluminium cans are marginal packaging types, together taking less than 5% of the market. Market Size by Sector - Volume and Value With the notable exception of Germany, still water constituted the largest sector of the bottled water market in both volume and value terms in all the key markets in 1999. Some 90% of volume sales in Japan, Spain and the US were due to still water. Although the carbonated sector led in Germany, with 58% of volume sales and 53% of value sales, the sector has a reduced presence in most other key markets. Carbonated waters often have a premium positioning, but do not have the same health associations as still water and cannot be drunk over a long period of time or in large quantities. Flavoured water failed to establish a significant presence in most key markets, largely because of confused positioning and competition from soft drinks. The sector rarely exceeded 2% of the overall market in most key countries. Within the still sector in France, Germany and Spain, mineral water led the market. In Italy, standard water is the closest approximation to tap water and led the still sector over the review period. In Japan, loyalty to domestic brands gave them a lead over imports. In the UK, the still sector is segmented in terms of packaging size, while the carbonated sector followed a similar pattern to the still sector in France, Spain and the UK, with mineral products outselling spring waters. Still products led the flavoured sector in France and Japan, but carbonated flavoured water was more popular in the US. This sector is relatively new in many countries, with Italy witnessing its launch as recently as 1996 with the brand Bevi il Gusto from San Benedetto. Market size by sector - growth The still sector is the only sector of the bottled water market to witness positive growth in both volume and value terms in all seven key markets over the 1995-1999 review period. In France, Japan and the UK, the flavoured sector was the strongest performer in both volume and value terms. Spain was the only country in which the carbonated sector achieved the strongest growth (in both volume and value terms) over the review period. Within the still sector in France, spring products experienced the more dynamic growth over the review period, as consumers substituted this cheaper alternative for tap water. In Germany and the US, the increased popularity of PET-packaged brands underpinned growth. In Italy, special/diuretic varieties of still water were the most dynamic as new product launches. Japan saw dynanism in the still water sector as it was marketed as a cooking ingredient and stock equipment for earthquake emergency kits. The mineral water market performed well in Spain as traditional spa names were given importance. In the UK, larger packaging sizes performed well. Perceptions of health benefits underpinned the growth of the carbonated mineral water market in France and Spain. In Germany, the popularity of carbonated water declined over the review period as German consumers became enamoured with wassersprudlers, devices that enrich tap water with carbon dioxide. In Italy, consumers shifted away from products perceived to cause greater stomach problems, towards moderately carbonated water. Domestic carbonated waters out-performed imports over the review period in Japan. By contrast, carbonated spring water gained from UK consumer confusion over classification. Mineral water attracts a higher margin and some consumers assumed that spring water was a similar cheaper product, and purchased that instead. In the US, carbonated water failed to carve out a niche in the bottled water market, and maintained a significant presence only as a premium-positioned brand such as Perrier. Within the flavoured sector, carbonated products suffered from soft drinks comparisons and although the waters tend not to be high-calorie and sugar-laden, consumer confusion impacted negatively on these products. In France, the sector performed well over the review period, largely due to strong launch activity and promotions targeting children. Flavoured water in Germany is generally regarded as a seasonal drink and under-performed due to a succession of weak summers. Japan saw a dynamic growth in flavoured brands, especially the carbonated brands, although the low range of flavours constrained the market. In the UK, flavoured waters are perceived to be healthy alternatives to soft drinks, but the US market was characterised by a lack of new product innovation in the flavoured water sector. Market shares - by company The French bottled water market underwent dramatic changes in terms of brand ownership in 1992, when the Swiss food giant Nestle bought all of Perrier's mineral water brands except Volvic, which was sold to BSN (now called Danone). Nestle added Perrier and its subsidiary Contrexeville to a portfolio which already included Vittel and Hepar. However, in 1993, Nestle was ordered by the European Commission to sell eight Perrier businesses to redress the market balance. In 1997, Perrier Vittel France expanded again by adding the Italian bottled water brand San Pellegrino to its portfolio. The German market for bottled water has been very fragmented, with distribution often only on a regional scale. There are only a few nationally distributed brands, such as Apollinaris, Gerolsteiner and Volvic. There are also companies producing both national and regional brands, for example Blaue Quellen AG with its nationally distributed brands, Vittel and Perrier, and its regional products, Fnrst Bismarck and Harzer Grauhof. The Italian bottled water market is characterised by the presence of about 160 companies and about 250 brands. The forerunner has been San Pellegrino, belonging to the Nestle group, with its leading brand, Levissima. Manufacturers involved in the rapidly expanding Japanese bottled water market are those generally involved in the beverages market as a whole. Apart from Nestle Japan, the majority of companies involved have only one or a maximum of two brands in their portfolios. In 1999, the Spanish market for bottled water had about 100 companies - more than 50% of domestic companies are based in Catalonia. Two companies lead this market, the multinational Danone and Vichy Catalbn. Danone operates in Spain through Font Vella SA (with its Font Vella, Evian, Font Picant and Fonter brands) and Aguas Lanjaron (with its Lanjaron, Fonteforte, Neval and Agua de San Vicente brands), and these brands had a combined share of just over 28% in volume terms in 1999. Vichy Catalbn was placed second with a volume share of 9.5% in 1999. The UK bottled water market remained highly concentrated with the top five players and private label taking a combined share of some 86% in 1999. Over the review period the market became steadily more concentrated with the acquisition of various brands by multinationals, such as Perrier Vittel's acquisition of San Pellegrino and the purchase of Coca-Cola & Schweppes Beverages by Coca-Cola Enterprises. Foreign companies using PET packaged water are still heavily represented in the US. Market leader Nestle is somewhat unusual from the other top manufacturers in that it holds a strong presence in each of the three sectors of the market - still, carbonated and flavoured. Foreign companies led the US bottled water market for much of the review period but with the entrance of PepsiCo and the Coca-Cola Co, this is likely to change in the near future. Tables compiled by Euromonitor, taken from un-rounded data, for further information please contact Daryl Warner on tel +44 (0)20 7251 8024 or email: daryl.warner@euromonitor.com Volume sales of bottled water by packaging format: % analysis 1999 % volume France Germany Italy Japan Spain UK US analysis Plastic 91.8 8.9 98.2 84.6 87.4 74.7 89.0 Glass 8.1 89.4 1.3 3.9 11.6 24.8 4.6 Carton 0.1 1.6 0.5 1.2 1.0 - - Can 0.1 0.1 - 0.3 - 0.5 0.3 Others - - - 10.0 - - 6.1 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Volume sales of bottled water by sector and by country: % analysis 1999 % volume France Germany Italy Japan Spain UK US Still 82.5 40.7 71.3 97.9 96.6 61.9 92.7 Carbonated 15.8 58.3 28.7 0.9 3.4 33.7 4.9 Flavoured 1.7 1.0 0.0 1.2 0.0 4.4 2.4 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Volume sales of bottled water by sector and country: % growth 1995/1999 % volume France Germany Italy Japan Spain UK US Still 21.1 18.3 10.9 78.6 21.9 34.4 87.7 Carbonated 15.2 -2.3 4.6 95.8 944.0 13.3 -3.6 Flavoured 27.1 -13.3 - 157.4 - 81.1 5.0 %TOTAL 20.2 5.0 9.0 79.4 25.7 27.8 76.2 Volume sales of bottled water by sector and by country: % analysis 1999 % volume France Germany Italy Japan Spain UK US Still 21.4 11.6 16.2 88.1 19.2 28.6 60.7 Carbonated 15.7 -7.6 8.5 79.3 733.0 1.6 -6.6 Flavoured 27.5 -15.1 - 159.4 - 69.3 1.4 %TOTAL 20.0 0.1 14.0 89.1 30.3 19.4 49.7 Sources: BRAND STRATEGY 03/2001 P24 28Feb2001 SOUTH KOREA: S.Korea says 2000 beef consumption rises yr/yr. South Korea's Agriculture Ministry said on Wednesday domestic beef consumption rose 2.6 percent to 402,000 tonnes in 2000 from a year earlier, according to preliminary data. Imported beef consumption, in particular, rose 23.5 percent to 189,000 tonnes last year from 1999, while domestic consumption of home-bred beef fell 10.9 percent to 213,000 tonnes, an agriculture ministry official said. He said final figures for beef consumption last year would be released in March. Domestic beef consumption for this year was not yet available. Korea ended its beef import quota from this year but it still imposes a 41.4 percent tariff. The country imported 5,335 tonnes of fresh or chilled beef and 212,479 tonnes of frozen beef between January and November of 2000, Korea Trade Information Services data showed. December figures are not yet available. Of the total fresh and chilled beef imports, 4,443 tonnes came from the United States and 676 tonnes from Australia. The rest came from Canada and New Zealand. Of the total frozen beef imports, 117,500 tonnes came from the United States, 63,022 tonnes from Australia and 17,268 from Canada. The rest came from New Zealand and other countries. The agriculture ministry said a total of 1.59 million head of cattle were raised in Korea as of the end of last year, down 18.5 percent from 1.95 million a year earlier. Vendors of home-bred and imported beef in Korea said earlier this month that sales had declined partly due to the mad cow disease scares. Mad cow disease, or bovine spongiform encephalopathy (BSE), has been found in herds in Europe, igniting worries that people may get the human version of the fatal disease from eating or using products made from infected cattle. Nearly 90 people in Britain and France have died from or been diagnosed with the human version, vCJD. No one outside of Europe is known to have contracted variant CJD. 02Mar2001 USA: USDA Reports On Biotech Labeling In South Korea. The following is the text of a report on enforcement of biotech labaling for certain commodities in South Korea. The report was produced by a U.S. Department of Agriculture attache and released Friday. Report Highlights: On Feb.19, 2001, the Ministry of Agriculture & Forestry issued a press release on an enforcement plan on biotech labeling for unprocessed soybeans, corn and bean sprouts. MAF will focus on educating and guiding the domestic industry that improperly label products during the six months of the new regulation, rather than penalizing. However, MAF will start to collect samples and test for biotech ingredients beginning March 1. And, it will impose penalties against businesses that intentionally falsely mislabel. On February 18 and 19, major Korean newspapers and a wireless news service reported on the Ministry of Agriculture & Forestry (MAF)s plan to give a six-month interim enforcement of labeling requirement period for unprocessed agricultural commodities, enhanced through biotechnology (hereinafter refer to as biotech ag. commodity) on March 1, 2001. The newspapers quoted a press release issued by MAF on Feb. 19 as a source of information. News articles reported a market rumor that MAF would postpone enforcement of labeling requirements for biotech ag. commodities for six months. Following is what FAS/Seoul has confirmed with officials at MAF on media coverage on alleged postponement of biotech labeling and details on a MAF plan for enforcement of biotech labeling requirements. - On Feb. 19 MAF released a plan and guidelines about enforcement of labeling requirements for biotech ag. commodities. In the press release, MAF provided a three-step plan; 1st step (January and February) - for the two months prior to March 1, MAF is doing promotion activities and education programs on new biotech labeling requirements. MAF is sending letters industry to inform them of new biotech labeling requirements and conducting preliminary monitoring in markets, analysis and others. 2nd step (March to August) - for six months after the new requirement goes into effect on March 1, MAF will focus on education and guidance programs to industry so as to lead to smooth enforcement of new biotech labeling requirements. During this period MAF will continue to visit industry and conduct PR, education programs, and others. 3rd step (after September 1) - MAF will regulate GMO labeling in a full scale using both social verification (e.g. documentation, others) and scientific verification (e.g. test monitoring). - Some industry sources misinterpreted the second step as MAF postponement of enforcement of biotech labeling until September 1. MAF clarified that this is not postponement of enforcement of biotech labeling requirements. MAF explained they would rather focus on education and guidance programs to industry for six months after March 1. This is to pursue smooth enforcement of new biotech labeling. During the second step period, however, MAF will collect samples and test for presence of biotech ingredients. If companies unintentionally mislabel products during that period, MAF will advise or give guidance to them instead of imposing penalties. However, companies that intentionally mislabel will be subject to penalties. - Again, please note that there is no change in the enforcement date of MAF biotech labeling. Beginning March 1, MAF will require biotech labeling for anyone who sells three commodities, soybeans, corn and bean sprouts and collect and test samples. * A person responsible for labeling is a seller (this includes importers, wholesalers, retailers, bean sprout producer). Details on labeling requirements for biotech commodities can be obtained from a voluntary report on biotech labeling prepared by FAS/Seoul on Feb. 9, 2001. * Penalties for false labeling and others are as follows; - for false labeling: jail sentence for three-year or less or fine for 30 million won or less - for no labeling: fine for 10 million won or less. 27Feb2001 JAPAN: Japan industry - Battling over beer. TOKYO: Happoshu, or low-malt beer, seems an unlikely battleground for Japan's top brewers. But Asahi, the second-biggest beer maker, is hoping that Honnama, its first low-malt offering, launched on February 21st, will oust Kirin from its traditional position as industry leader. Low-malt beer was concocted several years ago by brewers looking to take advantage of the fact that beer is taxed in Japan according to its malt content. Happoshu is made with all sorts of malt substitutes. Thus, although it looks like beer and tastes more or less like beer (except to finicky beer lovers), it is not taxed like beer. With recession-weary consumers counting their pennies, the budget brew, which costs two-thirds of the original, has been a surprise hit. It is, in fact, the only bit of the beer market that is growing. Although they barely existed six years ago, low-malt brews now account for over one-fifth of beer sales in Japan. Kirin's dominance of the low-malt market has helped it retain the top spot. But it is fast losing its lead, having ceded ground to Asahi in most other categories. Seven years ago, half the beer drunk in Japan was Kirin's, while Asahi had only a quarter of the market. But the global success of Asahi's Super Dry, the world's third-best-selling beer, has badly dented Kirin's sales; now it has 38% of the market, only slightly above Asahi, with 36%. If Asahi's new brew is a hit, Kirin could lose its crown within a month, reckons Hiroshi Saji of Mizuho Securities. Before its launch, orders for Asahi's low-malt offering were coming in at triple the usual rate for new beers. The brewer's trendy brand and marketing skills will help. But Kirin is fighting back. It relaunched its own low-malt beer last month. It has also decided to publish its sales data bi-annually instead of monthly. That way, even if it is overtaken, it cannot be officially dethroned until its next batch of numbers comes out in June. For all the vigour the brewers are putting into their latest battle, it is a fight they could both end up losing. Sales of ordinary beer have been falling for four years; with no signs of a robust economic recovery, the industry's prospects look bleak. And as promising as the growth in low-malt beers has been, it has come at the expense of other beers. Even Asahi, which has high hopes for Honnama, knows that it is not a question of whether its flagship Super Dry will be cannibalised by its cut-price product, but by how much. Such worries pale in the face of an even scarier prospect: that the finance ministry might take the fizz out of low-malt brews by raising tax rates on them next year. It has tried this before, insisting that what looks, tastes and is made like normal beer should also be taxed like it. Beer makers, arguing that such changes deter them from developing creative new products, were told that they should not be inventing new goods just to exploit tax loopholes. Although the beer firms won the first round of this battle-thanks to the ruling Liberal Democratic Party, which feared a consumer backlash-the bureaucrats have not given up. But the brewers may be worrying too much in any case. Anecdotal evidence suggests that more and more customers prefer low-malt beer to the ordinary sort. In trying to devise a tax dodge, the brewers may have accidentally stumbled on a winning recipe. China News 02Mar2001 CHINA: CHINA BANS IMPORTS OF BRITISH MEAT PRODUCTS. The Ministry of Agriculture and the State Administration for Entry-exit Inspection and Quarantine issued a circular yesterday to ban imports of British cloven-hooved animals and products. The circular was made to close the door against foot-and-mouth disease, which was found in southeast Britain on February 20, causing mass panic. Any British cloven-hooved animals - such as cows, pigs and sheep - and products that have already arrived in China or have been brought in by tourists must be returned or destroyed, the circular said. If such animals or products are found on any international ships, planes or trains that pass or stay in China, the vehicles will be sealed up. All means of transport from Britain will receive epidemic prevention and disinfection treatment under the supervision of the entry-exit inspection and quarantine authorities, according to the circular. The circular calls on all related departments to co-operate in quarantine and epidemic prevention. China also bans imports of cloven-hooved animals from Myanmar, Mongolia, Kazakhstan and other countries which have seen outbreaks of foot-and-mouth disease, according to an official from the State Administration for Entry-exit Inspection and Quarantine. Xinhua reported on Wednesday that the disease had occurred in pigs in Hong Kong during the winter, killing more than 460 between November and January. The Agriculture, Fisheries and Conservation Department of Hong Kong said the disease has been controlled using vaccination and there is no evidence to suggest it was more serious this year than in previous years, according to the Xinhua report. 27Feb2001 CHINA: Anger over GM food labels. GUIDELINES for the voluntary labeling of food containing genetically modified ingredients were "too loose" to be effective, legislators said yesterday. They also questioned the need for a 5 per cent threshold for labeling. Under the proposal, only food in which the genetically modified (GM) ingredients exceeded 5 per cent would require labeling. The criticisms followed the release yesterday of the Environment and Food Bureau's three-month, three-option public consultation document on a labeling mechanism for GM food. The options are: encourage the food trade to label GM food voluntarily following government guidelines; mandatory labeling; or finally, voluntary labeling to be followed by mandatory labeling taking into account international developments. Secretary for Environment and Food Lily Yam Kwan Pui-ying emphasized that "there was no scientific or medical evidence to date to suggest that GM food was unsafe for human consumption". The guidelines were put forward because of growing public concern over GM foods, the document stated. It would also help those allergic to GM foods and those who refused to eat such foods for personal or religious reasons. The labeling mechanism would only work for pre-packaged food as loose food items, such as produce sold mainly in wet markets, were difficult to cover. Lau Kong-wah, a Democratic Alliance for Betterment of Hong Kong legislator, was sceptical of voluntary participation. "If some industries refuse to join the system, consumers will be confused as to whether food contains GM products," Mr Lau said. Legislator Michael Mak Kwok-fung, who represents the health service functional constituency, said the 5 per cent threshold was not necessary. "What's the difference between 1 per cent or 5 per cent?" he asked. Dr Leung Pak-yin, deputy director of Food and Environmental Hygiene, explained that the threshold would help in instances where there was "unintentional and unavoidable mixing of GM or non-GM crops during plantation, harvest, transportation and storage". It also would "lower the margin of error in laboratory analysis". It was estimated that each product would cost $1,500 to test. The bureau said the voluntary system could be in place as early as the end of the year while the mandatory system - with all manufacturers, importers and packers using the same labeling standard and wording - would take at least two years. Meanwhile, Greenpeace yesterday staged a protest and displayed a banner outside government offices in Admiralty, urging a "comprehensive and compulsory labeling". "We certainly want a labeling system and we insist the threshold be as low as possible," Greenpeace campaigner Lo Sze-ping said. 26Feb2001 CHINA: H.K. plans to require labeling of genetically modified food. The Hong Kong government said Monday it plans to require food containing 5% or more genetically modified (GM) ingredients to be labeled. The move came as environmental activists urged a mandatory labeling system for all GM food products as soon as possible. But the government has yet to decide whether the proposed labeling system will be on a voluntary or compulsory basis. Secretary for the Environment and Food Lily Yam told a press conference that there is no scientific or medical evidence to date to suggest that GM food is unsafe for human consumption. "Some groups and members of the public have called for the labeling of GM food to provide more information for consumers," Yam said. The government plans to seek public views on the matter for three months before introducing such a system in Hong Kong. Nearly 20 local nongovernmental organizations, including environmental and pressure groups, signed a joint petition Sunday backing Greenpeace's initiative for a compulsory labeling system. "Greenpeace opposes genetic manipulation of food because of its possible threat to human health and the environment. There are concerns that genetically engineered foods may trigger new allergic reactions, affect antibiotics treatment or alter nutritional value," the group's Hong Kong spokesperson Lo Sze-ping said. The group hung a huge banner reading "Labeling Now" outside a government office tower in the Admiralty district Monday to demand the government take immediate action. At least 15 European countries already require mandatory labeling of all GM foods. In the Asia-Pacific region, Australia, New Zealand, Japan and South Korea are planning to enforce similar labeling guidelines in the next 12 months, Greenpeace said. Taiwan, Brazil, Mexico, Russia and Poland are finalizing details for similar guidelines, it added. 27Feb2001 CHINA: GM labelling may go ahead in 18 months. A mandatory labelling system for genetically modified (GM) foods could be phased in within 18 months if a proposal by the Environment and Food Bureau meets public support. Outlining options for a GM labelling system yesterday, Secretary for Environment and Food Lily Yam Kwan Pui-ying said mandatory labelling could be phased in after a grace period in which the industry could label GM foods voluntarily. Any pre-packaged food product with more than five per cent GM content would have to be indicated on the label. There would be no requirement for labelling loose foods, such as fresh produce, or food served in restaurants. "We are adopting an open-minded approach, but it is a fact that a mandatory system will take time," Mrs Yam said. "The option of introducing a voluntary system now and a mandatory system later might be preferable because it provides a clear signal to the industry that it will become law." Consumer and green groups gave qualified support, but warned a timetable would have to be set for legislation. Greenpeace campaigner Lo Sze-ping said: "A mandatory system should be introduced as soon as possible, at least within 12 to 24 months." But Mrs Yam said there was no urgency for legislation as GM food was not considered a health concern and international GM labelling standards were still being developed. "If we enact legislation now there is a distinct possibility we may have to amend it again when there is consensus in the international community on labelling," she said. Supermarket chain Wellcome said it supported plans for voluntary labelling but was concerned legal requirements would unnecessarily limit shoppers' choice and push up prices. ParknShop also welcomed a period of voluntary labelling. 27Feb2001 CHINA: More Dairy Farm stores, HONG KONG IMAIL. DAIRY Farm plans to open 16 stores this year, concentrating mainly on new residential and high-traffic areas. The company currently has 237 stores, six of which are open 24 hours. "Stores are opening and closing all the time," said Douglas Brown, marketing director at Dairy Farm. "It always happens." Mr Brown said the company makes bids as new property becomes available. Some of these developments are still two to four years in the making. Wellcome has looked at big Chinese restaurants that have closed in the last two years, as well as struggling Japanese department stores and Carrefour, from which Wellcome took two shops. Mr Brown also said that the company is looking forward to opportunities with the light-rail expansion in Tsuen Wan to Tuen Mun and Yuen Long, and the lengthening of the MTR line past Sheung Wan. 01Mar2001 CHINA: HK Dairy Farm Denies Plans To Sell Wellcome Chain. Dairy Farm International Holdings Ltd. (H.DFI) Thursday denied renewed speculation that it plans to sell its Wellcome supermarket chain in Hong Kong. "It's complete nonsense and fabrication," said Simon Mawson, the company's group treasurer. "We're not in talks with anyone," he said. An unsourced Hong Kong Economic Times report said China Resources Enterprise Ltd. (H.CRE), which runs a rival supermarket business in Hong Kong, was in talks with Dairy Farm to buy 17 Wellcome supermarket stores for HK$1.2 billion. There has been rampant talk recently about Dairy Farm selling its Wellcome and 7-Eleven chains in Hong Kong, after it sold its stake in distribution company Sims Trading to Citic Pacific Ltd. (H.CIP). Dairy Farm reported earlier this week that it swung to a net loss of US$194.5 million in 2000, citing price pressure in Hong Kong's retail food market and the poor performance of its Australian discount grocery chain Franklins. Last year was tough for supermarket operators Wellcome and Hutchison Whampoa Ltd.'s (H.HUW) Park-n-Shop, when their near-monopoly status was shaken by upstart online grocer Admart. Admart, owned by media mogul Jimmy Lai, later collapsed after suffering massive losses but its presence prompted a price war among supermarkets. It's also widely expected that Dairy Farm will sell the loss-making Franklins, although the company only said it has appointed J.P. Morgan to review the business. Dairy Farm is a subsidiary of Jardine Strategic Holdings Ltd. (H.JDS). Both companies are listed in Singapore. 02Mar2001 CHINA: People's Food launches IPO. CHINA'S largest meat products maker, People's Food Holdings, yesterday offered 142.5 million shares at 45 cents each. The main board listing, managed by Vickers Ballas, comprises 134.5 million placement shares and 8 million shares for the public. Members of the Securities Investors Association of Singapore (SIAS) can also apply for the placement shares. Mak Lye Mun, managing director of Vickers Ballas Capital Markets, said distribution through SIAS will help ensure a wide shareholder base. Allocation will be on a first-come-first-served basis, SIAS said. Of the total number of shares, 120 million are new and 22.5 million are vendor. The IPO, which aims to raise 232 million renminbi ($48.6 million), closes at noon on Mar 12. Trading is expected to begin on Mar 14. People's Food will use the proceeds to buy equipment and processing plants in China and expand its chain of retail shops there from 20 to 300 by the end of this year. "We are sure that there is huge room to grow," executive director Zhou Lian Kui told a news conference yesterday. "We are very confident of our company's performance, and a successful listing in Singapore will make us a very internationalised company." Set up in 1994, People's Food provides frozen and fresh pork, processed meat products and frozen chicken meat throughout China under the Jinluo brand. The group recorded turnover of 2.3 billion renminbi in 1999 and estimates turnover for 2000 to hit 3.2 billion renminbi. It has plants in Shandong, Sichuan, Hunan and Inner Mongolia. Vickers Ballas analyst Jacqueline Low reckons the company's strong branding and the growing appetite for its products will drive profit higher. "The group dominates pork production in the largest pork market in the world," she said in a research note. "It is well-positioned to capture the growing demand... and pick up market share from traditional suppliers." News Updates 28Feb2001 THAILAND: Dairy Plus promises 'revolutionary' bottle. DAIRY Plus, a member company of the Dutch Mill Group, has invested Bt1 billion in a new plant to manufacture UHT milk in special, hi-tech bottles. The company's commercial director, Panya Sainamthip, said the bottles would preserve the freshness and nutrients of ultra-high temperature processed milk. "The plant will mark a revolutionary development in the Asian milk industry. With the latest technology, it will be the most advanced milk-manufacturing site in Asia," Panya said. Panya said the new milk bottle has three layers of polyethylene and a layer of black carbon to protect the contents from sunlight and ultraviolet rays. The processing line has been approved by the Food and Drug Administration under the "Good Manufacturing Practice" certification. The company expected to snatch 10 per cent of the total UHT milk market within a year of launching the new Dairy Plus products. The total annual market value of milk products is about Bt20 billion, of which Bt8 billion comes from sales of UHT milk. The plant is located on 100 rai in Nakhon Sawan province. Panya said the company had conducted market research on milk consumption in Thailand before launching the new products. The research showed that people over 20 years old consume less milk than younger people. Moreover, the average annual consumption of milk is quite low - only six litres per person, compared to 16 litres for Westerners. Youngsters over 11 years old tend to choose to buy milk themselves rather than drink milk purchased by their mothers. The survey found that the gap in market share between the market leader and the second-and third-largest brands was very wide. While the total capacity of the leading company, Foremost, was 126 million litres, with a market share of 35 per cent, the runner-up, Thai-Danish Milk, produced only 48 million litres. Dairy Plus has only a minor share of 3 per cent of the UHT milk market. Panya said the outcome of the study had convinced the company of the great potential to increase revenues by launching the new product. The company would target older consumers as well as youngsters over 11 years old. The company has budgeted more than Bt50 million for marketing campaigns and public relations activities, including a Dairy Plus television commercial featuring Thai movie star Taya Roger. 28Feb2001 THAILAND: TUF profits dropped 14 per cent in 2000. Low world tuna prices led to a 14 per cent drop in annual profits for Thai Union Frozen Products (TUF) in 2000, a report in Krungthep Turakij said. In 2000 TUF and its subsidiaries made net profits of 1.51 billion baht on income of 19.12 billion baht. Net profits were 14 per cent less than in 1999 and ncome was two per cent less. The main reason for the drop in profits was a drop in world tuna prices. Average prices were down to about $400 - 450 a tonne, but already in the beginning of this year they have risen back up to $700 - 750 a tonne. TUF expects its profits will rise this year since world tuna fishermen agreed to restrict catches in order to keep prices up. TUF makes 40 per cent of its income from frozen and tinned tuna, 27 per cent from frozen prawn, 18 per cent from cat food, five per cent from frozen squid, four per cent from other seafood, and one per cent from tinned fruit and vegetables. The major export markets are the US (32 per cent) and Japan (31 per cent). Another ten per cent of TUF's products go to the EU, five per cent to Asia, five per cent to Africa, four per cent to Canada, four per cent to the Middle East, three per cent to Australia, one per cent to South America and five per cent are sold locally. 03Mar2001 INDIA: Coke, Pepsi respond by cutting prices. THE first signs of the Union Finance Minister's excise exemption to the food processing industry are beginning to show, with MNC beverage companies slashing prices across the board today. And even as Coca-Cola India (CCI) and Pepsi Foods Ltd drop prices, consumers can anticipate more with Pepsi promising a cut on its Tropicana brand of fruit juice and Frito Lays brand of chips and namkeens. Dabur also indicates a possible drop on its Real fruit juices and Nestle, before it decides on relevant product categories. Pepsi today announced a slash in prices in the different packsizes, across its brands - Pepsi, Mirinda Orange, Mirinda Lemon and 7Up. Mr P.M. Sinha, Chairman, Pepsico India Holdings Pvt Ltd, said that the net impact, following the reduction of abatement, was about two per cent. This creates a problem of coinage in passing the benefit to the consumer across all packs. Subsequently, the benefit has been passed to relevant categories and prices have been dropped on its two litre and 1.5 litre packs by Re 1, from Rs 50 to Rs 49 and Rs 43 to Rs 42 respectively. The litre packs would see a drop from Rs 22 to Rs 20 and the 200 ml would drop from Rs 7.50 to Rs 7. Coca-Cola's Senior Vice-President, Mr Sanjiv Gupta, said that the reduction in the prices of its products varied from seven to 10 per cent, higher than the effective rate of excise relief given to the segment. While the 200-ml pack size will see a seven per cent price cut, the one litre category will see prices drop from Rs 22 to Rs 20 across its key brands - Coke, Thums' Up, Fanta, Limca, Sprite and Maaza. However, company officials did not want to estimate the projected growth in demand, following the price cut. "While the cut in juice prices would bring in more consumers, the advent of summer would also see an increased consumption among existing consumers," they said. The big guns of the industry apart, small units are also evidently happy with the excise exemption and project that the benefit would bolster a 25 per cent quantum growth in the forthcoming years. But then, industry officials point out, the projected growth levels can be achieved, provided the supporting infrastructure such as storage, transportation and marketing are also put in place. Dr Subodh Jindal, Vice-President, All-India Food Processors' Association (AIFPA), told Business Line that the 25 per cent growth may not be achieved in the first year of the implementation. "However, the situation now is more conducive to growth. Small units will now certainly look at making more investments in improving their infrastructure, quality standards and packaging." According to another AIFPA representative, of the about 10,000 food processing units in the country, a large percentage of them are in the red. "They will first have to get their act together, before really looking at growth." "The support to cold storage given in last year's Budget would really translate into benefits to the food processing sector only this year," according to a representative of the Confederation of Indian Food Trade and Industry. 01Mar2001 PHILIPPINES: Philippines says has shortlist for San Mig post. The Philippine government said on Thursday it had a shortlist of people who may possibly replace businessman Eduardo Cojuangco as chairman of the country's biggest food and beverage firm, San Miguel Corp . The shortlist included Renato Valencia, former administrator of state pension fund Social Security System. Asked in a radio interview about Valencia possibly replacing Cojuangco, Finance Secretary Alberto Romulo said: "He is in the shortlist." Romulo earlier said the government was preparing an executive order to declare a 27 percent bloc in San Miguel as government-owned on the basis that it was allegedly bought with funds from a levy on coconut farmers during the regime of the late dictator, Ferdinand Marcos. "The one that is recommended is to restate the position of the old executive order that the coconut levy is a tax and therefore public funds. That's just it, there are no personalities there," Romulo said, referring to reports the government was seeking to oust Cojuangco due to his close relationship with former President Joseph Estrada. A court had given Cojuangco voting rights over a separate block of 20 percent in San Miguel which he claimed he bought using his own money. The courts have yet to decide on the true ownership of the shares, as the government claims the block was bought also using the coconut levy. "We do not want to engage in personalities. These are principles, these are policies, you know. I think we have said...that this government will govern based on principles and policies. And the principle and the policy is that the coco levy is a tax and therefore represents public funds," Romulo said. The comments indicate that if control of the two blocks of shares revert to the government, Cojuangco will be replaced. Romulo said on Wednesday the move had the support of President Gloria Macapagal Arroyo. San Miguel lost one peso to 49 pesos by 0200 GMT, while its B shares fell 1.50 pesos to 57. Analysts have said Cojuangco is perceived as a good manager and the market would react negatively to moves to replace him. 02Mar2001 INDIA: McDowell says 2000/01 revenues seen flat. Revenues at McDowell & Co Ltd, India's largest spirits firm, are likely to remain flat for the year ending March 31, due to a fall in consumption and pressure on margins. Though overall liquor sales in the country declined by two or three percent in 2000/01 (April-March) over the previous year, McDowell has managed to keep its head above the water, the firm's managing director, Vijay K. Rekhi, said late on Thursday. "It (revenues) could be flat for us," he told reporters. Bangalore-based McDowell, which leads the spirits business of Indian liquor conglomerate United Breweries Ltd , posted revenues of 11 billion rupees ($236.5 million) and a net profit of 252 million rupees in 1999/2000. During the first nine months of the year that ended December 31, 2000, McDowell's revenues grew 2.4 percent to 6.06 billion rupees from 5.92 billion in the year-ago period. Rekhi said McDowell faced pressure on its operating margins due to growing costs and stiff government controls on liquor pricing. "Despite the re-engineering and cost cutting, our margins continue to be under pressure due to the price controls," Rekhi said. India's 50-60-billion-rupee spirits industry is governed by tough federal and provincial laws that impose high taxes but do not allow liquor manufacturers to easily hike prices. The spirits industry - which makes whiskey, rum, gin, vodka and brandy - along with beer brewers has for long been lobbying for tax cuts and the freedom to hike prices. ($1 = 46.52 rupees). 02Mar2001 THAILAND: TABLE-Selected annual results of listed Thai firms. The following is table of selected annual results from listed Thai companies. Net profit/loss is in millions of baht. Consensus estimates are from Multex Global Estimates. 2000 1999 Pct change Consensus Net Net estimate PTTEP 5,433 2,190 +148 4,883 EGCOMP 1,217 2,648 -54 2,213 NPC 2,160 135 +1,500 2,693 Big C 774 -421 N.A. 823 Makro 1,027 571 +80 943 CP Foods 3,388 3,914 -13 3,665 Thai Union 1,510 1,762 -14 1,500 Minor Food 107 207 -48 166 Land & Houses 216 -629 N.A. 184 Sansiri 750 -1,294 N.A. 41 BECL 172 -45 N.A. 193 SCCC 952 -618 N.A. 1,233 BEC World 1,545 1,106 +40 1,512 Grammy 317 241 +32 338 Advanced 6,598 2,750 +140 6,374 Shin Corp 2,384 9,388 -76 2,692 Shin Sat 710 263 +170 943 UCOM 450 -5,911 N.A. 755 TA -3,308 -6,361 +48 -4,073 TTNT -4,420 -2,527 +75 -2,311 Delta 4,042 2,763 +46 3,372 Hana 2,002 1,136 +76 1,846 KCE 520 417 +25 488 (See related story). 02Mar2001 THAILAND: Plenty of positive surprises in Thai 2000 results. Most major listed Thai companies have surpassed market expectations with their annual results for 2000 despite the country's fragile recovery, but firms with heavy foreign debt were hit by the weak baht. Despite sluggish domestic consumption, the telecoms, commerce, entertainment and energy sectors posted their strongest results since the 1997 economic crisis, and the outlook for this year is positive given optimism over the economic policies of the new government, analysts say. The baht's weakness in 2000 had a mixed impact. Firms with large foreign debts were hit by foreign exchange losses, while export-oriented sectors like food processing and electronics showed impressive results. The baht was down about 16 percent to 43.35 per dollar at end-2000 compared with 37.45 at end-1999. "Generally speaking, the results are quite good with some firms having strong dividend payments," said Rod Macmillan, head of dealing at ABN AMRO Asia Securities in Bangkok. Defensive energy and chemical stocks showed a strong performance. Strong demand for natural gas helped boost Thailand's biggest upstream oil and gas firm, PTT Exploration and Production (PTTEP), which posted a 150 percent jump in its net profit for 2000. "PTTEP reported 2000 EBIT (earning before interest and tax) of 9.4 billion baht, up 54 percent year-on-year. This is significantly ahead of our estimate of 8.6 billion," said Nithi Wanikpun at Merrill Lynch. Boosted by a sharp gain in global olefin prices, National Petrochemical posted a huge 1,500 percent surge in its 2000 net profit to 2.16 billion baht ($50.05 million). PTTEP and NPC plan to pay dividends of three baht and five baht respectively per share. FIRST NET PROFIT SINCE CRISIS Several companies in the commerce, property and transportation sectors showed a turnaround with their first annual net profit since the Asian financial crisis in 1997. Among them were Big C Supercentre, Bangkok Expressway, Land and Houses and Sansiri. Big C posted a net profit of 774 million baht in 2000 compared with a loss of 421 million in 1999. This was due to strong gains in sales following store expansion last year. Supported by a downtrend in interest rates and rising housing sales, Land and Houses posted a net profit of 216 million baht in 2000 after a loss of 629 million baht in 1999. Analysts said the telecoms sector, especially cellular firms, was among the most impressive, mainly due to robust growth in demand for mobile phones as a result of promotional campaigns and cheaper handset prices. Advanced Info Service reported a 140 percent jump in its 2000 net profit, slightly beating forecasts. Its subscriber base surged 61 percent to 1.97 million in 2000. Despite posting a profit from operations, fixed line firms like TelecomAsia and Thai Telephone and Telecommunication were still in the red in 2000 net due to large foreign exchange losses. TA and TTNT booked foreign exchange losses of 2.64 billion baht and 2.41 billion baht respectively. Another shining sector was entertainment, which gained from strong growth in advertising spending last year. Television operator BEC World recorded 40 percent growth in net profit. Despite a weak economic outlook due to a slowdown in exports, advertising spending is expected to grow further given optimism over the economic policies of the new government. In spite of a global slowdown, electronics firms reported better-than expected results. Delta Electronics posted a 46 percent gain in 2000 net profit to 4.04 billion baht, mainly boosted by a one billion baht foreign exchange gain. Firms with disappointing results included Charoen Pokphand Foods, which posted a 13 percent drop in 2000 net profit due to falling product prices and surplus supplies. "CPF posted poor earnings as expected. We keep a 'hold' recommendation on the stock as prices of agricultural products are still on a downtrend," said Sasikorn Chareonsuwan, head of research at Phillip Securities. 02Mar2001 ASIA: Asia outperforms global beer market for Heineken. Asia is becoming an important growth centre for Dutch brewer Heineken, which more than doubled operating profits in the region last year. Amsterdam-based Heineken reported a 24 million euro (about HK$172.41 million) rise in operating profits in the Asia-Pacific region to 40 million euros. Overall group operating profit increased by 15.3 per cent to 921 million euros. The Asian beer market last year grew by 5 per cent, double the rate of growth of the global beer market, according to the company. Heineken reported a 5.9 per cent rise in world-wide sales of the Heineken brand to 21.6 million hectolitres, with "important increases realised" in China, Hong Kong and Thailand. Sales of Heineken beer in China alone reached almost half a million hectolitres and resumed their growth in Hong Kong. "A position in Hong Kong is important because of its positive appeal to mainland China," the company said. The network of sales offices in China had again been expanded, it added. Heineken sees opportunities for growth in the region, where it has already formed several joint ventures. The 128-year-old brewer has a 43 per cent stake in Hainan Asia Pacific Brewery and owns 32 per cent of Shanghai Mila Brew and 17 per cent of Tee Yih Jia (Fujian) Brewery. Its majority Indonesian subsidiary Multi Bintang Indonesia, by far its largest operating company in the region, managed to increase volume and profitability despite the troubled economy, recovering to the pre-crisis level by the end of last year. Heineken also owns 43 per cent of Singapore's Asia Pacific Breweries. 27Feb2001 JAPAN: JAPAN'S SNOW BRAND MILK TO STREAMLINE DECISION-MAKING. Snow Brand Milk Products Co.plans to abolish its divisional headquarters and close three regional branches on Thursday, in an effort to improve in-house communication and speed up decision-making, company officials said. The move follows criticism that Snow Brand was slow in recalling products after a food poisoning last summer, partly because of the time it took the president to get wind of the problem. One divisional headquarters is in charge of production and sales of dairy products and chilled foods, another handles milk products and frozen sweets. Snow Brand will also close its sales and production technology headquarters. Of four regional intermediary branches, only the Hokkaido branch will remain. Communication will go directly from local supervisory offices to head office staff in charge of sales or production. Snow Brand also intends to set up a food hygiene laboratory to research dangerous bacteria. 28Feb2001 MALAYSIA: F&N RAISES PAID-UP CAPITAL BY RM95.8 MLN. Soft drinks and dairy products manufacturer, Fraser & Neave Holdings Bhd (F&N) has said that the company is now virtu ally debt-free after raising RM314.1 million from the conversion of 95.8 million of the outstanding warrants which expired on Feb 20, 2001. The company has raised its paid up capital by RM95.8 million to RM356.5 million. Some 84 percent of F&N 2000/2001 warrant holders exercised their conversion rights at RM3.28 per share. The closing price of the shares on the KLSE on Feb 20 was RM3.20, giving the company a market valuation of more than RM1.1 billion. The major shareholders, Singap ore's F&N Limited and Permodalan Nasional Berhad, accounted for about 82 percent of total warrants converted. The successful outcome of one of the largest warrant conversion exercises so far this year, despite the dull market, reflected strong investor confidence in the group's solid fundamentals and its prospects for generating improved returns, said Tony Lee, F&N's chief financial officer after the company's annual general meeting here today. He said that the RM314.1 million proceeds from t he warrants conversion would be used primarily to redeem the company's RM250 million, 0.75 percent 1996/2001 bonds, due on May 20 this year, with the balance utilised for working capital. "Upon redemption of the 1996/2001 bonds, F&N will become an almost zero-geared organisation with shareholders' funds of more than RM900 million. It also provides the financial capacity in our search for suitable investment opportunities." Lee said the strong response to the warrants conversion was attribut able to the company's return to profitability for the financial year ended Sept 30, 2000. "It is also due to the strong first quarter earnings which caused our attributable profit to grow by more than 190 percent to RM23.6 million, compared to RM8.1 million for the corresponding period of the previous year." Commenting on the increase in the water tariff in Selangor, Lee said that at the moment the rise will not affect F& N Holdings' operating costs and as such, prices for its products will not be increased. "F&N Holdings which require lot of water in its operations would certainly feel the pinch following the recent announcement of a water tariff hike but the impact is not significant enough to push up prices for the time being." The increase in the water tariff amounting to 20-75 percent in Selangor and the Federal Territory announced by Selangor Menteri Besar Datuk Dr Mohamad Khir Toyo on Feb 21, will take effect next month. 28Feb2001 PHILIPPINES: La Tondena allots P1 billion to fund capital expenses. Liquor firm La Tondena Distillers, Inc. (LTDI) will be spending more than P1 billion this year to finance capital expenditure requirements. LTDI president Enrique A. Gomez, Jr. told reporters yesterday that the bulk of the capex budget will go to the company's liquor business. "We have expanded and improved our facilities last year and that's continuing this year. We will be spending at least a billion. The majority of this amount will be used for the liquor business," he said. The San Miguel Corp. subsidiary is considering producing new liquor products to directly compete with foreign brands that currently dominate the market. Mr. Gomez said the capex budget will be sourced from internally generated funds. LTDI's cash position, as of December last year, stood at P235 million. Net income for 2000 reached P1.35 billion. The company is likewise considering tapping the debt market if existing resources will not be enough to finance this year's capex program. For the first quarter, Mr. Gomez said at least four to five products are scheduled for launching. Products which have already been introduced in the market include a new Vino Kulafu liquor product, Jelly Ace buko panda jelly dessert, and Magnolia IceTee powdered drink which were launched yesterday. "We plan to release more exciting, new products. Before the end of the month, we have another surprise. At least for the quarter, we have four or five new products - a combination of liquor and juices," he said. Last year, LTDI completed the planned expansion for powdered juice unit Sugarland Beverage Corp. and dessert maker Jelly Ace which was able to increase capacity by more than 20%. The LTDI president said that with the expansion program, the company sees better income prospects this year. "We're looking at a double-digit growth. The year 2000 was extraordinary and we hope to replicate that this year. But we will take it one quarter at a time. Almost all divisions are contributing to the group income. But the juice portion is becoming significant with the acquisition of Sugarland. So is the water business," Mr. Gomez said. This year's capex budget, however, does not include new acquisitions. Mr. Gomez said the company is still on the lookout for attractive companies also engaged in LTDI's core competencies. The cost of future acquisitions, he said, will depend on the businesses that will be acquired. Over the past two years, LTDI finalized two major acquisitions involving distilled water provider Metro Bottled Water and powder juice giant Sugarland. Investment News 03Mar2001 PHILIPPINES: British meat imports banned. The Bureau of Customs is still trying to determine what became of two shipments of beef that were imported from Ireland late last year despite a government ban on European beef products. Customs officials also announced that 25,451.16 kg of frozen boneless beef seized in Cebu City last month would be re-exported to Ireland. The officials denied that the seized beef would be auctioned off. Importer Monterey has supposedly agreed to shoulder the cost of shipping the beef back to Ireland. Trade and Industry Secretary Manuel Roxas II said it is not the problem of the government if Ireland refuses to take the shipment back. "The health of Filipinos is non-negotiable. Filipinos cannot be sacrificed for commercial gain," Roxas said during a break in the Philippine Business Outlook conference The seized shipment was actually the third importation of Irish beef by Monterey Food Corp. Monterey customs broker Abay-Abay Customs Brokerage Co claimed the first shipment arrived in Cebu in December but Department of Agriculture (DA) officials claimed that the cargo was not unloaded and immediately sent back to Ireland. The second shipment, on the other hand, amounted to 25,755.66 kg of Irish beef which was allegedly sold by Monterey raw while a portion was processed and sold as local sausages known as longganisa. The beef's sale in Visayan markets was supposedly admitted by Edson Yu of Monterey Foods Corp. to the Freeman News Service. Yu admitted that the beef products were imported shortly after the DA issued a ban on beef products from European countries because of the mad cow disease. Monterey's admission triggered a scare on beef products and pulled down the local demand for beef even as the National Meat Inspection Commission (NMIC) urged a ban on imported dairy products as well. NMIC Executive Director Efren Nuestro made the appeal on Wednesday [28 February] saying milk products may also pose another concern because there is no way of knowing, at least in this country, whether the sources of these products have been contaminated. The DA also banned the importation of beef, pork, sheep and goat products from Britain due to an outbreak of foot-and-mouth disease. Agriculture Secretary Leonardo Montemayor said the order also empowers Customs officials to seize all shipments of foreign livestock and by-products that they suspect came from Britain. 03Mar2001 PHILIPPINES: Milk supply safe, public assured. The Milk and Dairy Institute of the Philippines (MDIP) assured the public yesterday that milk and milk products are safe from the so-called "mad cow" disease. Last year, the World Health Organization (WHO), in its updated fact sheet on bovine spongiform encephalopathy (BSE), commonly known as "mad cow disease," made its conclusion that "milk and milk products are considered safe." In May 1999, a scientific committee in Europe also reported that it "sees no evidence for the transmission of BSE through milk." In a memorandum dated March 1, 2001, Director Teodoro A. Abilay of the Bureau of Animal Industry said "As per Office International des Epizooties Animal Health Code, the following commodities - milk and milk products, semen, hides and skins - do not pose any risk in the transmission of 'mad cow' disease. The ban (MO 19 s 2000) on the importation of meat and meat products does not include milk and milk products, semen, hides and skins." Recently, a team at the Harvard Center for Risk Analysis released a report saying that milk has been repeatedly tested but there is no evidence showing that the disease has been transmitted through milk. The so-called "mad cow disease" is a transmissible brain disease in cattle. The Department of Health said that the disease thrives in a heat-resistant protein particle called prion which is present in meat, and not in the milk." "We also wish to inform the public that all imported milk and milk products come with certificates from the source that these are free of contaminants, such as BSE, among others," said the MDIP. The MDIP is made up of the local milk industry. Its membes include Abbott Laboratories, Arce Dairy, Alaska Milk Corp., Glaxo Wellcome, Kawsek, Kraft Fodos, Mead Johnson, Nestle Philippines, New Zealand Creamery, New Zealand Milk, Philippine Dairy Products Corp., Selecta Dairy Products, Semexco, Sy Chi Siong, Wyeth Philippines, and Universal Robina Corp. 02Mar2001 VIETNAM: Shrimp production outpaces processing capacity - official. (SGT-HCMC) Vietnam may return to the old path of exporting unprocessed shrimp this year as the volume of raw material is estimated to strongly outpace processing capacity, a ministry official said. "Output is forecast to soar 50%, while the country's processing capacity will grow by a mere 16%," said Deputy Minister of Fisheries Nguyen Viet Thang. This means the country will have to export at least 30,000 tons of raw material given an estimated output of 150,000 tons versus a processing capacity of 120,000 tons. Last year, the processing industry bought up all the 104,000 tons of shrimps cultivated, and the ministry raised the processing capacity target to 120,000 tons this year, Thang said. "With the most optimistic view, on-going investments still cannot increase the processing capacity by 20%," Thang told the Daily, adding that many projects could only be commissioned by the year-end. Vietnam's new shrimp breeding areas have amounted to 110,000 hectares, and coupled with an additional 50,000 hectares rehabilitated this year for shrimp breeding, the total water space for this purpose has climbed to 330,000 hectares. The Fisheries Ministry earlier targeted expanding the total shrimp-cultivation area by a mere 2,000 hectares. As an oversupply of raw material looms large, processors are planning to operate their processing facilities at full capacity, according to Truong Dinh Hoe, southern chief of the Vietnam Association of Seafood Exporters and Processors (VASEP). Hoe said that a number of facilities processing other types of aqua-products would shift to shrimps. Some, meanwhile, say that exporting unprocessed shrimps will face difficulties as the local raw material is generally priced higher than in the region. According to a master plan on shrimp breeding expansion already approved by the Government, Vietnam's shrimp output will be between 380,000 and 400,000 tons by 2010. Deputy Minister Thang said that this target would be attained in much a shorter time at the current expansion rate. "There is no worry about outlets, but the processing industry will become overloaded," he added. 01Mar2001 INDIA: Desi dairies vs MNCs milkman By Archana Srivastava LUCKNOW - The milkman cometh. Not our `dudhiyas' ... Desi dairies vs MNCs milkman By Archana Srivastava LUCKNOW - The milkman cometh. Not our `dudhiyas' or `gwalas', but multinationals. Quick to realise the inherent threat, Uttar Pradesh dairy officials are treating the proposed lifting of the ban on milk import from April as a wake-up call. The state-owned Pradeshik Cooperative Dairy Federation has decided to take the bull by the horn. It will launch a `Parag fortnight' from March 17 to 31 in Lucknow, Allahabad, Varanasi, Kanpur and Meerut to take pasteurized milk right into `gallis' and `mohallas'. This would ensure an increased sale, and also make milk available to all segments of society. Says milk commissioner Alok Sinha - "We are taking preemptive steps in advance, for we have to ensure that both the milk producer and the consumer get a fair deal. We intend to increase milk procurement and sale by targeting the small and moffussil towns. The Parag fortnight is a step in this direction." Foreign milk, when it innundates the local market, will spell doom for dairy farmers. Expected to be priced around Rs 8 per litre, it does not augur well for an industry which operates on selling prices of Rs 14-18 per litre. UP, which has 13,444 village cooperative societies with 7.42 lakh milk producers as members, has charted its own success story in the milk sector. With 30-40 lakh litres of marketable surplus per day, which is a fifth of India's marketable surplus, UP has emerged as the largest producer and seller in the country. While the actual impact of the `white invasion' cannot be assessed till such time as foreign milk makes its appearance in the market, dairy officials have chartered many schemes to meet the onslaught. A `Parag marathon' from the Charbagh station to KD Singh Babu Stadium has been scheduled on March 18. Also in the offing is a `Parag debate' in schools all over the state, with emphasis on doodh, doodh, doodh, piyo glassful doodh.. 01Mar2001 PHILIPPINES: Gov't plans to declare coco levy public funds. Malacanang plans to rescind two executive orders of former President Joseph Estrada to reinstate a policy that coconut levy funds, used to purchase 27 percent of San Miguel Corporation (SMC), are public funds. "My recommendation is to go back to the original executive order (EO) that coconut levy funds are public funds," Acting Finance Secretary Alberto Romulo said. He disclosed that President Gloria Macapagal-Arroyo supports his recommendation by issuing a new EO that would virtually nullify and cancel the fiats signed by the former chief executive. "As far as I understand, the President has agreed with me," Romulo said, adding that a draft EO is now being readied. EO 312 and 313 signed by former President Estrada, EO 312 declared coconut levy funds as a private funds but imbued with public interest while EO 313 gave the authority for the government to establish a trust fund for coconut farmers, who are reportedly the true owners of the 27 percent contested SMC shares, following the sale of the controversial coconutfarmers' interest. In its stead, Romulo said the President will issue an EO that would reinstate the earlier decision of former President Fidel V. Ramos through EO 481 declaring coconut levy funds to be public funds. The new EO to be issued by Malacanang within the next few weeks would be on top of the thrust of the government to ask the courts to speed-up the decision on ownership issue of SMC. Shortly after its assumption, the Macapagal-Arroyo administration declared its plans to get back the voting rights for roughly about 47 percent of SMC from chairman Eduardo Cojuangco Jr. (FCS). 28Feb2001 INDIA: Cigarette, tea, coffee up - gold, cement, soft drink cheaper. Cigarette, pan masala and commonman's beverages tea and coffee will now cost more while soft drinks and gold will be cheaper thanks to the new tax proposals announced by Federal Finance Minister Yashwant Sinha in his Budget on Wednesday. Sinha announced wideranging changes in the existing duty rates to fulfill the twin objective of simplifying the tax procedure and increasing revenue both in direct and indirect taxes, including customs and excise. Guided by the pressures of earthquake in western state of Gujarat and his concern for the health of the economy, Sinha came heavily on tobacco and tobacco-products and levied a 15 per cent surcharge to support the national calamity contingency fund. Although the Finance Minister increased the excise duty on motor spirit and high speed diesel oil to 16 per cent, Sinha pointed out that the burden of the duty hike would not be passed on to the consumers. The custom duty on tea, coffee, copra and coconut has been raised from 35 to 70 per cent, while in the refined oil the custom duty has been hiked upto 85 per cent across the board excpet for soyabean oil at 45 per cent. To allay the fears of surge in imports of second hand cars in the country after abolition of quantitative restrictions in April this year, the government raised the basic import duty to 105 per cent taking the total duty to over 180 per cent. Sinha, however, clarified that from April this year second hand cars would become freely importable. He also proposed a similar duty structure for import of old multi utility vehicles, scooters and motor cycles. White cement and other special cements, arms and ammunitions for private use along with articles of fur skin will become dearer attracting a special excise duty of 16 per cent and a total duty of 32 per cent. While the ordinary cement would now become cheaper as the custom duty on its has been reduced to 25 per cent from existing rate of 35 per cent. Stating that India was world's second largest producer of fruits and vegetables, Sinha exempted fruits and vegetables from excise duty. The government has brought CNG on par with LPG at an excise rate of eight per cent. Sinha said there was no economic logic to continue with excise duty exemption on garments sold under the registered trade name, the government has imposed a duty of 16 per cent on such garments. In order to provide a level playing field to the domestic liquor industry, Sinha has levied a Countervailing Duty (CVD) at a suitable rate on imported liquor taking into account the levies of state excise on domestic production. With a view to checking smuggling of gold, the minister has slashed the custom duty on jewellery to Rs 250 per 10 grams from Rs 400 per 10 grams. Retail Bites 02Mar2001 MALAYSIA: Kenny Rogers Roasters opens in Shah Alam. SELANGOR'S capital has joined the Roasters club. Shah Alam's first Kenny Rogers Roasters restaurant is now open daily from 10am to 10pm, at the ground floor of Plaza Alam Sentral, adjacent to Dataran Shah Alam. Entrepreneur Development Minister Datuk Seri Mohamed Nazri Aziz opened the outlet on Feb 27. It is owned by Sailvest (M) Sdn Bhd, a 100 per cent Bumiputera company. The restaurant is the 25th Roasters in Malaysia, and the fourth run by a sub-franchisee of Roasters Asia Pacific, the Asia-Pacific master franchisee for the Roasters restaurant concept. The other three sub-franchisee Roasters restaurants are at the Johor Baru Waterfront, Gurney Drive in Penang, and the Taipan area (USJ 10) in Subang Jaya. Restaurant co-owner Mokhtar Hassan said Shah Alam did not have many family dining restaurants, and the company felt it was time to bring in a popular "chicken dinner" outlet. He said roast chicken was fast becoming popular as it was a healthy way of cooking chicken. The restaurant has table service instead of self-service, the second such outlet in the Klang Valley, after Mid Valley Megamall's. He said Sailvest, which signed its franchise agreement with Roasters Asia Pacific last September, targeted Shah Alam and Klang as its restaurant locations. The restaurant can be contacted at 03-50320104. 02Mar2001 AUSTRALIA: Fast food giant to go public. On 1 March 2001, McDonald's Japan announced a public float to finance an expansion in restaurant numbers. McDonald's Japan will triple the number of its restaurants to 10,000 by 2010. The sale of shares to the public, which will begin in July 2001, is the first such sale by any McDonald's branch outside the US. McDonald's Japan has been spectacularly successful. Hamburger sales in 2000 were 4.8 times those of 1999 and total sales rose 9.3% to Y431bn. 01Mar2001 SOUTH KOREA: Nudefish.co.kr provides prepared fish over Internet. For those who like fish but are loath to touch the squirmy flesh to prepare it, thus missing out on some tasty home cooked fish dishes, www.nudefish.co.kr will do all the dirty work. All the customer has to do is cook the fish.The Zone Food, a company originally specializing in supplying food for school lunches, opened the on-line fish market that will scale, clean, bone and even cut the fish according to the requests of customers.There are three shops on the site. In the main shop, fish, stockfish, shellfish and salted seafood are sold. The service shop handles hors doeuvres to be served with drinks and frozen fish. At the special shop, sales in bulk or customized fish, fish prepared in a special way, are available. For instance, the customer can ask to have a pack of cuttlefish cut in rings, or perhaps only want a certain part of the fish. Live fish and shellfish are bought on the morning of the requested delivery date to ensure freshness.For delivery of goods under 10,000 won, a fee of 2,000 won is added. No delivery fee is included for orders over 10,000 won.Because of delivery problems, the service is limited to Seoul, Puchon, Pundang and Ilsan. But the company is planning to expand it nationwide and even overseas. The site is only available in Korean. 01Mar2001 THAILAND: Pizza Hut plans 50 new outlets. STIFF competition and the high cost of opening restaurants have Tricon, the parent company of Pizza Hut, looking for a new franchisee after 116 outlets operated by its former franchisee, the Minor Food Group, closed early this year. To maintain the strength of the Pizza Hut brand, Tricon plans heavy investment of nearly Bt600 million this year to open 50 new Pizza Hut restaurants in Thailand, taking the number of outlets back to 100 by the end of the year. Tricon now has 63 Pizza Hut outlets. However, just 13 are dine-in restaurants - the rest are delivery/takeaway units. It hopes to capture 50 per cent of Thailand's pizza market by the end of the year. "Currently, our parent company has to inject a lot of money to open new restaurants here. It would be better if we could find a new franchisee," said Malinee Srutanond, marketing manager of Pizza Hut. Hester Chew, Tricon Restaurants International's managing director for Thailand, Singapore and Indochina, said Tricon was in discussions with two or three potential franchisees in Thailand, among them Thailand's largest fast-food restaurant operator, Central Group. Central Group has a 15-year relationship with Tricon as a franchisee of KFC, another Tricon brand. An executive of Central Group said the franchise contract would be signed in March, but Chew said nothing had been finalised. Central Group operates hundreds of fast-food restaurants, with many brands such as KFC, Mister Donut and Baskin Robbins. The group said it plans to introduce many new fast-food restaurants in the near future. Johnson Yahannan, Tricon's Pizza Hut operations director, said Tricon operated 25 per cent of Pizza Hut restaurants worldwide, while the remaining 75 per cent were operated by franchisees. "We are a franchisee business; we are always looking for franchisees," he said. Keen competition awaits Tricon as its former franchisee prepares to re-enter the market in the middle of March with "The Pizza Company". On February 1, the day after Minor Food Group closed its 116 Pizza Hut restaurants, Tricon launched a heavy advertising campaign to keep the brand in Thai consumers' minds, with a heavy focus on its delivery telephone number. It also ran a big Valentine's Day campaign. And yesterday Pizza Hut launched a new localised product featuring Thai spices called "Kai Jeed Jad". 01Mar2001 JAPAN: McDonald's Japan float McDonald's Japan float Ronald McDonald is to finance expansion in Asia through a public offering in Japan.The issue, which will probably be in July, will come from McDonald's Japan but the amount to be raised has yet to be decided.Japan is McDonald's star performer in Asia, and will be the first McDonald's chain outside the US to sell shares to the public.The chain is 55% controlled by the US parent, while two executives of Japan's Fujita group hold 42%. 01Mar2001 SRI LANKA: SRI LANKA BUSINESS BRIEFS - McCallum Brewery In JV. Sri Lanka's McCallum Brewing Co. said Thursday it has set up a joint venture with Riva of Belgium to produce a jointly branded wheat beer for the local market and for export. Officials of the Sri Lankan company said at a news conference this first-of-a-kind marketing strategy was to help offset a series of tax hikes on brewers in order to crimp local demand. The 50:50 joint venture, which will utilize McCallum's current production capacity, aims to begin exports to around 22 Asia Pacific countries within the next six months. 01Mar2001 THAILAND: Dunkin Donuts sets growth target at 20%. Dunkin Donuts (Thailand) plans to set up 25 new branches and expand sales 20 per cent this year, a report in Krungthep Turakij said. Dunkin Donuts has a 70 per cent share of the doughnut market in Thailand with 198 branches. The company plans to set up 25 new sales outlets, mainly kiosks, this year. Sales income is expected to rise 15 to 20 per cent. Dunkin Donuts' Siam Square branch has been chosen as the first branch in the world to test market a new concept developed in the US, the digital menu board. The menu board will provide greater entertainment for customers with colourful audio-visual presentations. Another new innovation concept will be introduced at the Siam Square branch later this year. 01Mar2001 THAILAND: Central expects to gain the Pizza Hut franchise. Central Retail Corp's fast food division is likely to get the Pizza Hut master franchise for Thailand, Krungthep Turakij quoted an executive from Central as saying. An adviser to Central's hotel and fast food business said that Tricon Restaurants International will probably give Central the Pizza Hut franchise since Tricon broke off their relationship with Minor Group's The Pizza. He said the details of the franchise agreement had not been finalised, but it was likely that the two would sign an agreement in March. Central has been running another Tricon business, the Kentucky Fried Chicken franchise, for about 15 years now. Since Central owns many department stores and discount stores it would be relatively easy for them to find good locations to set up new Pizza Hut branches. Tricon has been running the Pizza Hut franchise itself by investing in new branches for the past few months after terminating its franchise contract with The Pizza. The Pizza still owns the 116 Pizza Hut branches that it set up during its franchise agreement, but will re-open them under its own brand name, The Pizza Company, in mid-March following renovations. 01Mar2001 JAPAN'S ITO-YOKADO REDUCES EARNINGS PROJECTIONS TO US$409.2 MLN. Supermarket operator Ito-Yokado Co. (TSE: 8264) has scaled back its earnings projections for the fiscal year ended Feb. 28 and now anticipates a consolidated net profit of 48 billion yen (US$409.2 million), up 0.8 per cent on the year but well short of the previously forecast 60 billion yen. Parent-only operating profit, a performance indicator for its core business, is expected to come to no more than 20 billion yen, compared with the 30.5 billion yen total of the year before. Coupled with rival Jusco Co.'s (TSE: 8267) estimated 12 per cent rise in operating profit to about 23 billion yen, Ito-Yokado appears likely to have relinquished its top spot in the supermarket industry for the first time in 16 years. But because of dividends of nearly 12 billion yen from subsidiary Seven-Eleven Japan Co. (TSE: 8183), Ito-Yokado appears certain to remain No. 1 in pretax profit, which is forecast to dip 18 per cent to 42 billion yen. Jusco is estimated to have recorded a gain of 6 per cent to 25.2 billion yen. Nonconsolidated revenue edged down 2 per cent to 1.48 trillion yen, with same-store sales deteriorating about 7 per cent. The company also apparently booked massive charges on inventory valuation as it took steps to improve its finances to prepare for the receipt of a banking license. Ito-Yokado wiped out its roughly 35 billion yen shortfall in retirement and pension obligations, and also took a charge of around 15 billion yen as it wrote down the value of shareholdings in affiliates. It earned a profit of almost 32.3 billion yen on the sale of its own stock, but nonconsolidated net profit is down 40 per cent at 20 billion yen. The group figure is not affected by the disposal of the pension shortfall because Ito-Yokado uses U.S. accounting standards in compiling its consolidated earnings. 28Feb2001 JAPAN: Half-priced hamburgers beef up McDonald's sales. Favorable sales of half-priced hamburgers boosted earnings of McDonald's Co. (Japan) last year, with its sales for 2000 expanding 9.3% to a record high of 431.1 billion yen for the seventh straight yearly rise, the company said Wednesday. The Japanese unit of fast-food giant McDonald's Corp. of the United States has halved the prices of its hamburgers on weekdays since February 2000, resulting in the number of hamburgers sold on weekdays jumping 4.8 times from a year earlier. Den Fujita, president of the Japan unit, said the number of middle-aged customers wearing neckties has skyrocketed since the introduction of the half-priced hamburgers, reflecting the effect of the prolonged economic slump on their pocket money. Meanwhile, the company's pretax profit for the reporting year marked the first decline in seven years, falling 6.7% to 29.2 billion yen due to investment in new production equipment, it said. For 2001, the company said it expects earnings to grow further. Fujita said a possible reshuffle of Prime Minister Yoshiro Mori's cabinet will boost the yen against the U.S. dollar, enabling the company to reduce import costs for raw materials. "Japanese people are not fed up with rice, and in the same way, we have had people in the hamburger generation who do not get sick of hamburgers," he said. 28Feb2001 JAPAN: Seiyo Food to tie up with Nestle in Italian restaurant chain. Seiyo Food Systems Inc. said Wednesday it has agreed with Nestle Japan Group to jointly set up and operate a new chain of Italian restaurants. Pasta Bar Buitoni will offer pasta dishes priced at around 500 yen, with a takeout section to be set up in outlets in the future, the major restaurant operator said. The first outlet is scheduled to open in downtown Tokyo, with some 100 restaurants slated for launching by 2005 in the Tokyo metropolitan area, it said, adding that annual sales of more than 70 million yen are targeted for each outlet. Seiyo Food Systems said it will combine its know-how in chain store management with Nestle Japan's impressive track-record in marketing and developing new products. 28Feb2001 PHILIPPINES: Jollibee to infuse additional capital to Delifrance retail unit. Fastfood leader Jollibee Foods Corp. (JFC) will be infusing a total of P105.92 million in unit Bakers Fresh Foods Philippines, Inc. to finance the latter's working capital requirements. JFC assistant corporate secretary Claro F. Certeza told the stock exchange yesterday that the company will be infusing new capital into Bakers Fresh whose authorized capital will be hiked from 50,000 to 210,000. The fastfood firm will subscribe to 105,922 shares of Bakers Fresh at an issue price of P1,000. Bakers Fresh is wholly owned by JFC and is the retail arm of French-style delicatessen Delifrance. JFC corporate affairs manager Rey Montoya said Bakers Fresh will seek approval of the Securities and Exchange Commission on the increase in capital stock. He added that the purpose of the increase in capital stock is to raise working capital. This year, JFC is planning to open seven to 10 additional Delifrance outlets to take advantage of the anticipated boost in consumer spending in the coming May elections. Last year, JFC has opened at least seven new Delifrance branches. In an analysts briefing held recently, JFC vice-president for finance Miguel Jose T. Navarrete said Delifrance will start contributing to the company's bottom line by April this year. "At the moment it's still a drag because we don't have the critical mass yet. But we will pursue business-restructuring opportunities for the company to make it more profitable," he said. JFC posted higher net income after non-recurring items last year amounted to P907.49 million from P804.51 mil-lion the previous year. The increase is attributed to strong sales during the period despite the huge costs of imported beef following a fall in the value of the peso. Revenues also grew by 19% to P15.37 billion from P12.89 billion in 1999. The company remains optimistic this year with plans to further expand its Jollibee, Chowking, Greenwich and Delifrance stores. The management said it will set aside P1.5 billion for capital expenditures this year. The bulk of the capex budget, or P700 million, will be used to improve manufacturing and distribution facilities. About P350 million will be spent within the Jollibee group while the rest will go to subsidiaries. Jollibee plans to open 40 to 45 stores this year; 30 to 36 stores for Chowking; and 15 to 20 stores for Greenwich. It is also expected to open five to 15 new outlets overseas. 28Feb2001 THAILAND: Central Group to sign Pizza Hut franchise deal next month. THE Central Group will sign an agreement with the US-based Tricon Group next month to operate "Pizza Hut" outlets in Thailand. Central will replace the previous long-time operator of the profitable franchise, William Heinecke's Minor Corporation. Tricon and Minor terminated their franchise agreement following a legal dispute. Dan Shinsupakkakul, an adviser to the Central Group's executive board, said Tricon had picked his group due to its strong businesses and capability for branch expansion. "The deal will be signed in March," he said. In fact, the two have been allies for more than a decade. The Central Group currently operates Tricon's "KFC (Kentucky) Fried Chicken" franchise. 28Feb2001 THAILAND: Tesco to invest Bt6.3 bn, open nine new stores. BRITAIN's largest retailer, Tesco Plc, has given a vote of confidence to the domestic market with plans to invest a further £100 million (Bt6.3 billion) in Thailand this year. The investment has been earmarked chiefly for opening new branches of Tesco Lotus hypermarkets, as well as developing the company's supply chain. Tesco chief executive Michael Raycraft said the Thai government and the company had agreed on a balanced approach to attract foreign investors while extending protection to local retailers. "It is too early to make any comment on the government's policy toward the retail industry," Raycraft said, adding that consumers would eventually pass judgement. "However, the government should be sure to balance preserving traditional trade with pushing the country forward." Tesco gained a controlling stake in Tesco Lotus Supercenter after Charoen Pokphand (CP) Group diluted its equity to 2 per cent. In Thailand, Tesco Lotus serves more than six million customers, or 10 per cent of the total population, every four weeks. In a recent parliamentary session, Commerce Minister Adisai Bodharamik said the government should give priority to amending the alien business law to boost the competitiveness of local small and medium-sized retailers. As it stands, the law restricts the expansion of foreign retail companies. Raycraft said modern retailers represent only 30 per cent of retail businesses. In a mature market, about 90 per cent is controlled by modern stores. "The Thai market has a long way to go to equal that of Britain, for example," Raycraft said. "We will continue to invest in Thailand and follow the rules set out by the government," he added. Tesco's investment plans for this year are part of a £650-million budget allocated to the company's operations in Thailand from 1998 to 2004, by which time the hypermarket chain expects to have opened 50 stores locally. Raycraft said that a further nine Tesco Lotus hypermarkets would opened this year, adding to the 26 stores already running. The next branch opening is scheduled for March 1 at Rattanathibet. The company also plans to open a 10,000-square-metre fresh food distribution centre, and a 50,000-square-metre warehouse for groceries and household products based at Wang Noi. Raycraft said Tesco Lotus has set aside Bt400 million for local marketing activities, including price promotions, and ensuring the quality of products and customer service. "We have been investing in Thailand for a long time. We operate here to the benefit of the country," Raycraft said. According to Raycraft, Tesco employs more than 12,000 Thais, with only 11 foreigners on the payroll here. The company also deals with more than 1,200 local suppliers, generating more than Bt35 billion in income for the companies. About 95 per cent of the products sold at its stores are made in Thailand. The company last year exported about Bt5 billion worth of Thai products to Britain. Raycraft said the company has experienced a slight increase in spending by consumers since the recent generation election. The average customer spends Bt590 per visit, and shops at a Tesco Lotus store three times a week. In cooperation with Thai Airways International and the Tourism Authority of Thailand, Tesco Lotus yesterday launched a promotional package offering 100 family vacations to Phuket. The offer is open to any shopper making a purchase of Bt650 or more at any Tesco Lotus branch from March 7 to April 3. The drawing is April 7. 27Feb2001 MALAYSIA: GIANT POSTS RM950 MLN SALES IN MALAYSIA. Giant TMC Bhd had a very successful first year operation under the Dairy Farm group, with sales close to RM950 million in year 2000, delivering both sales and profit growth to the group. The contribution from Giant, the group's 90 percent-owned hypermarket and supermarket operation, has more than doubled the Dairy Farm group's Malaysian businesses, Dairy Farm said in a statement today. Dairy Farm acquired Giant in December 1999, with the intention of leveraging its Asian hypermarket expertise and know-how. "This has resulted in the succesful deployment of the Giant hypermarket concept in Singapore," Dairy Farm said. It said that while the competitive environment is becoming tougher, there is ample opportunity for growth and consolidation in the food retail sector in Malaysia. Giant plans to open four hypermarkets and two supermarkets in Malaysia in 2001, it said. Giant serves more than 1.6 million customers monthly. As part of its long term strategy, the Dairy Farm group is currently seeking investments in Giant from potential Bumiputera partners. The Dairy Farm group's Gua rdian health and beauty channel also had a very successful year in 2000, with nine new stores opened giving the chain a total of 64 outlets in Malaysia. Guardian plans to open 18 new pharmacies in 2001 and is currently looking for additional `bolt-on' acquisition opportunities. As part of the Dairy Farm group re-organisation of its interests in Malaysia, Giant acquired a 70 percent stake in Guardian at year-end for US$13 million (RM49.4 million). Guardian was formerly 50 percent-owned by Dairy Farm, while the balance 50 percent was held by a third party. Last year, Giant absorbed four of the former Wellsave supermarkets and rebranded them as Giant Supermarkets, while another three Wellsave supermarkets were closed. Borrowing management expertise from Malaysia and leveraging the Giant supply chain, the Dairy Farm group opened its first Giant hypermarket in Jurong last year. The results for the first six months of trading have exceeded expectations and a second hypermark et site is currently being identified in Singapore, it added. Dairy Farm also intends to deploy a Giant hypermarket format adapted for the local market in Indonesia. Dairy Farm is a leading food and pharmaceutical retailer in the Asia-Pacific region and at the end of last year, the group and its associates operate over 2,200 outlets and employed 79,000 people in nine countries. Its total sales in 2000 was US$6.6 billion (RM25.08 billion). 27Feb2001 AUSTRALIA: Bleak winter fires Japanese retail surge. Japan is experiencing a brutally cold winter in 2000-01. An uncharacteristically hot summer boosted retail sales in Japan in 1999-00. The unusually cold winter has boosted retail sales in Japan for the second year in succession. According to the Japanese Ministry of Economy, Trade and Industry, retail sales totalled Y10.60trn ($A175bn) in January 2001, an increase of 1.2% on January 2000. It is the first increase in retail sales in Japan in 46 months. 26Feb2001 JAPAN: FamilyMart Plans Net Decrease of 50 Stores in Next Fiscal Year Japanese supermarket store chain FamilyMart Co. said Monday it plans a net decrease of 50 stores in the next business year to February 2002. Unveiling a business plan, FamilyMart said it will close about 500 unprofitable stores while opening 450 new stores during the year. The company foresees same-store sales in the reporting year to inch up 0.3 pct year on year, with all-store sales seen totaling 905 billion yen. In the year to February 2003, FamilyMart plans to close 500 new stores and shut down 450 stores, resulting in a net increase of 50 stores. All-store sales for that year are estimated at 942 billion yen. 26Feb2001 JAPAN: Online supermarket opening. Major supermarket operator Ito-Yokado Co. on March 1 will launch an online retailing service offering same-day delivery of orders, company sources said. Net Supermarket will offer some 1,000 food and household items, and first serve Edogawa Ward in Tokyo, expanding to other areas depending on its reception. The online market will operate 23 hours a day, and handle ordinary grocery items, kitchen products, home appliances, and other goods at retail shop prices. Some products, only available online, will be offered at special prices. Deliveries will take at least three hours from ordering and cost 500 yen. New Products 27Feb2001 MALAYSIA: New member in Drinho family. ACE Canning Corporation Sdn Bhd, a leading manufacturer of soft drinks and fruit juices, has added a new member to its Drinho "family". And, it is sweet as honey. The Drinho Honey Chrysanthemum Tea will be in the shops soon, and Ace Canning hopes it will be a favourite with people of all ages. Ace Canning marketing manager Paul Lim said the original Drinho Chrysanthemum Tea had always been popular with the public and the company chose to give it a variant with the goodness of honey. He said chrysanthemum tea had long been regarded as a cooling drink while honey was known for its soothing properties. 27Feb2001 PHILIPPINES: Jollibee says buys more shares in unit. Philippine fastfood giant Jollibee Foods Corp said on Tuesday it will buy additional shares worth 105.92 million pesos in wholly owned subsidiary Bakers Fresh Foods. A company official said the shares Jollibee will purchase comprise 66 percent of the total increase in Bakers Fresh's outstanding capital stock. The company said in a statement to the stock exchange that it would subscribe to 105,922 shares of Bakers Fresh at an issue price of 1,000 pesos per share. No further details were given. ($1 = 48.27 pesos). 27Feb2001 JAPAN: Skylark Plans 2,000 Stores In 5 Yrs. Skylark Co., a suburban family restaurant chain operator, will accelerate store openings better to fight stiff competition. It plans to open the doors of 2,000 new restaurants on a group basis over the next five years, compared with 2,266 restaurants as of Dec. 31, 2000. This will help boost its consolidated sales in the business year through Dec. 31 2005 to Y600 billion from Y347.68 billion in 2000. 27Feb2001 INDIA: MBL rolls out Bengal Premium beer. MYSORE Breweries Ltd (MBL) has rolled out Bengal Premium beer after its success in overseas markets. The beer, which comes in dark green 650 ml and 330 ml light protected bottles, is priced at Rs 45 and Rs 27 respectively in Karnataka. Bengal Premium beer, launched in the domestic market, is a variant of the brand, which MBL has introduced in Europe, South-East Asia, Australia and in the US. The brand is available across the 8,500 Asian curry restaurants in the UK. It was launched in Indonesia and recently entered the Australian beer market. Mr K. P. Balasubramaniam, Vice-Chairman and Managing Director, MBL, told a press conference here that Bengal Premium would soon be extended to the two other major beer markets in India - Maharashtra and Andhra Pradesh. The company is also mulling its launch in States like Tamil Nadu and Kerala. The three-decade-old MBL's strength in the domestic market has been in the strong beer segment, where its flagship brand, Knock Out, enjoys the number two position behind Shaw Wallace's Haywards 5000. MBL service its markets, mainly in Karnataka, Andhra Pradesh and Maharashtra, from the breweries in Bangalore and Aurangabad. It has sought licence for a high-capacity brewery near Hyderabad. MBL expects to sell approximately five million cases of beer in the domestic market during the current financial year. Mr K. P. Balasubramaniam, Vice-Chairman and Managing Director, MBL, with the President, MBL, Mr K.G. Nayak, at the launch of Bengal Premium beet in Bangalore on Monday.