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Pepsi-Cola Products Philippines, Inc. (PCPPI) presents this 2019 Annual and Sustainability Report, Win the Game, in fulfillment of our commitment to transparent sustainability reporting. This report shows the Company’s performance, our wins, and continued goal-setting as we raise the bar for excellence. Win the Game is a reminder for PCPPI to always master the game and come out on top.
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SUSTAINABILITY
FRAMEWORK

PCPPI’s Sustainability Framework provides the structure for our sustainability commitments.
With this guide, we are able to prioritize based on three sustainability pillars:

Inclusive Business

Empower the communities where we operate to spur mutual, inclusive prosperity, and economic development

Circular Economy

Embed circularity into our business by working to align our actions with circular economy principles

Water Stewardship

Respect water as a fundamental right, promote integrated water management within local watersheds, and establish water solutions that meet local water needs

United Nations Sustainable Development Goals (UN SDGs)

Our sustainability initiatives and programs also support the following UN SDGs:
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COACHES’ WELCOME

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More and more of us in the industry are embracing our responsibility to the community, and are willing to take that extra step to be better corporate citizens. More and more of us in the industry are embracing our responsibility to the community, and are willing to take that extra step to be better corporate citizens.

 

OSCAR S. REYES

Chairman and Independent Director

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In the process of making the report, we were able to identify the strengths of our programs and initiatives, as well as how we can further improve our sustainability play.

 

YONGSANG YOU

PCPPI Managing Director

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Uncertainty is inevitable; and we have trained our people to roll with the punches— whether this means external conditions that are beyond our control, or internal changes in leadership and direction.

 

FRED D. ONG

President and CEO

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Year in Play

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In 2019, we launched 2 new SKUs (1.75 and 2.25mL) for more quantity options and added Gatorade Ion to the healthy beverage line.
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Our “Gatorade Win as One” marketing campaign, led to a 2% growth in our financials, a turnaround from the double-digit decline we experienced in 2017.
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We renewed several exclusive partnerships, including PCPPI Davao plant securing a renewal of Exclusivity Agreement with wellloved local food chain, Penong’s Barbeque Seafood and Grill.

PHP 40.1
BILLION
Gross Sales

PHP 6.7
BILLION
Gross Profit

PHP 3.6
BILLION
EBITDA

PHP 2.7
BILLION
CAPEX

PHP 100.3
MILLION


Invested in sustainability efforts for the benefit of society and the environment

PHP 108
MILLION


Cost savings from resource management

450
METRIC TONS


Reduction in carbon footprint across all plants, due to efficiency initiatives

AWARDS &
RECOGNITIONS

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Pepsi Philippines wins big at 7-Eleven Suppliers' Night 2019

The Pepsi Philippines Core Team for 7-Eleven line to receive the awards on behalf of the bottling company.

(L-R: Jose Ang Jr., 7-Eleven General Merchandise Division Head; Raffy Meñeses; Yunheon Lee, PepsiCo Franchise Director; Chiqui Palileo, PepsiCo National Sales Manager; Jun Amanse, PepsiCo Commercial Director; Janelle Bueno, PCPPI Key Account Manager; Maricelle Narciso, PepsiCo Country Manager; Gian Carlo Enriquez, PCPPI Customer Development Senior Manager; Armi Cagasan, 7-Eleven Strategic Merchandise Division Head; Maricel Guro, PCPPI AVP/General Manager; Leila Dionora, PCPPI Sales Director; Cary Crook PepsiCo VP/GM for 7-Eleven International Customer Team; Jackie Lai, 7-Eleven Marketing Director)

 

Pepsi-Cola Products Philippines, Inc. (PCPPI) continues its streak of excellence and outperformance by bagging three big awards during the 7-Eleven Suppliers’ Night last March 21.

 

"This is one of the big victories we’ve had in recent years, the last one was for our stellar performance in 2018," said Maricel Guro, PCPPI AVP/General Manager for Modern Trade Operations. "We've been a long-time supplier-partner of 7-Eleven and our collaboration strengthened our businesses to face new industry challenges so we can continue delivering quality products to our customers."

 

PCPPI was recognized for its implementation of various creative, customer-intuitive sales and marketing initiatives which contributed to 7-Eleven's business growth in 2018.

 

The bottling firm was given the Innovation Award for its initiative in developing activities and projects tailor-made for 7-Eleven, particularly their exclusive launch of Pepsi Vanilla 500ml in stores.

 

"This also includes our consistent run of price promotions for summer and Christmas on multi-serve drink variants which helped maximize sales in the soft drink category," said Guro. These efforts helped delivered an increase in sales to the convenience store giant.

 

Related to the accolade is the Brand Activation Partnership Award which acknowledges PCPPI’s strong support for 7-Eleven's activities through promotions or events. Last year, the company contributed to campaigns for Gulp and Slurpee, as well as the annual Run 2018, Trail 2018, and New Year New Ride Promotion.

 

 

 

(PCPPI’s Core Team L-R: Raffy Meñeses, Trade Marketing Manager; Maricel Guro, AVP/General Manager; Leila Dionora, Sales Director; Janelle Bueno, Key Account Manager; Jun Amanse, PepsiCo Commercial Director; Gian Carlo Enriquez, Customer Development Senior Manager)

 

Finally as a testament to PCPPI's commitment as a service partner, they were bestowed with the Account Management Award which recognizes their sales team's dedication in client-servicing.

 

"Our Quality & Sales Assistants rigorously do daily store visits to assess product assortment quality as well as execution," Guro said. "Consistent coordination with us eventually helped regain sales for Slurpee in spite of TRAIN and price increases."

 

Coming from the success of the previous business year, Guro is optimistic about their performance for this year.

 

"Tonight's wins celebrate the fruits of our P.E.P.S.I. Values: Passion, Excellence, Professionalism, Service, and Integrity. They're also evidence that even with market challenges, our strong working partnership with 7-Eleven can still definitely give us avenues for mutual growth."

 

 
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Pepsi Philippines wins big at 7-Eleven Suppliers' Night 2019
 

The Pepsi Philippines Core Team for 7-Eleven line to receive the awards on behalf of the bottling company.

(L-R: Jose Ang Jr., 7-Eleven General Merchandise Division Head; Raffy Meñeses; Yunheon Lee, PepsiCo Franchise Director; Chiqui Palileo, PepsiCo National Sales Manager; Jun Amanse, PepsiCo Commercial Director; Janelle Bueno, PCPPI Key Account Manager; Maricelle Narciso, PepsiCo Country Manager; Gian Carlo Enriquez, PCPPI Customer Development Senior Manager; Armi Cagasan, 7-Eleven Strategic Merchandise Division Head; Maricel Guro, PCPPI AVP/General Manager; Leila Dionora, PCPPI Sales Director; Cary Crook PepsiCo VP/GM for 7-Eleven International Customer Team; Jackie Lai, 7-Eleven Marketing Director)

 

Pepsi-Cola Products Philippines, Inc. (PCPPI) continues its streak of excellence and outperformance by bagging three big awards during the 7-Eleven Suppliers’ Night last March 21.

 

"This is one of the big victories we’ve had in recent years, the last one was for our stellar performance in 2018," said Maricel Guro, PCPPI AVP/General Manager for Modern Trade Operations. "We've been a long-time supplier-partner of 7-Eleven and our collaboration strengthened our businesses to face new industry challenges so we can continue delivering quality products to our customers."

 

PCPPI was recognized for its implementation of various creative, customer-intuitive sales and marketing initiatives which contributed to 7-Eleven's business growth in 2018.

 

The bottling firm was given the Innovation Award for its initiative in developing activities and projects tailor-made for 7-Eleven, particularly their exclusive launch of Pepsi Vanilla 500ml in stores.

 

"This also includes our consistent run of price promotions for summer and Christmas on multi-serve drink variants which helped maximize sales in the soft drink category," said Guro. These efforts helped delivered an increase in sales to the convenience store giant.

 

Related to the accolade is the Brand Activation Partnership Award which acknowledges PCPPI’s strong support for 7-Eleven's activities through promotions or events. Last year, the company contributed to campaigns for Gulp and Slurpee, as well as the annual Run 2018, Trail 2018, and New Year New Ride Promotion.

 

 

 

(PCPPI’s Core Team L-R: Raffy Meñeses, Trade Marketing Manager; Maricel Guro, AVP/General Manager; Leila Dionora, Sales Director; Janelle Bueno, Key Account Manager; Jun Amanse, PepsiCo Commercial Director; Gian Carlo Enriquez, Customer Development Senior Manager)

 

Finally as a testament to PCPPI's commitment as a service partner, they were bestowed with the Account Management Award which recognizes their sales team's dedication in client-servicing.

 

"Our Quality & Sales Assistants rigorously do daily store visits to assess product assortment quality as well as execution," Guro said. "Consistent coordination with us eventually helped regain sales for Slurpee in spite of TRAIN and price increases."

 

Coming from the success of the previous business year, Guro is optimistic about their performance for this year.

 

"Tonight's wins celebrate the fruits of our P.E.P.S.I. Values: Passion, Excellence, Professionalism, Service, and Integrity. They're also evidence that even with market challenges, our strong working partnership with 7-Eleven can still definitely give us avenues for mutual growth."

 

 
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Pepsi Philippines wins at Asia Responsible Enterprise Awards
 
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Pepsi Philippines wins at Asia Responsible Enterprise Awards
 

TAIPEI, TAIWAN – Pepsi-Cola Products Philippines Inc. (PCPPI) was one of the 64 businesses and business leaders honored at the recently-held Asia Responsible Enterprise Awards (AREA) in Taiwan, regarded as the top recognition for Corporate Social Responsibility (CSR) led by Enterprise Asia. Rising above 200 entries across 16 Asian countries, PCPPI received the accolade for Social Empowerment for the bottling firm’s “Water for Peace” project in Marawi. Following the siege in 2017, PCPPI partnered with Philippine Disaster Resilience Foundation (PDRF) to provide a long-term sustainable solution to address the needs of the Muslim Internally Displaced Persons during the time of Ramadan. PCPPI donated 20,000-liter water tanks to six camps, gave ten schools 3,200-liter water tanks each, and culminated the project by breaking ground for a 50,000-liter water tank for a new transitional village in Rorogagus earlier this year. Water Sanitation and Hygiene (WaSH) trainings were integrated into the project with the distribution of hygiene kits to teach the Maranaos how to be responsible over this precious resource while caring for themselves. This project strengthens PCPPI’s commitment to sustainability in empowering communities through initiatives anchored on Water Stewardship, Circular Economy, and Inclusive Growth.

Ernando "Bob" Flores, PCPPI General Manager for Cagayan de Oro Plant receives the award from Enterprise Asia Team.

 
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PCPPI earns spot in the Asia CEO Award's Circle of Excellence 2019

Pepsi-Cola Products Philippines Inc. (PCPPI) joins Asia CEO Awards Circle of Excellence for Corporate Social Responsibility through the company’s commitment to uplifting the Filipino community.

 

Dubbed as the Oscar award for businesses, Asia CEO Award acknowledges corporate and non-corporate organizations for their contributions to nation-building through projects promoting environmental protection and awareness, livelihood programs, and youth development.

 

PCPPI made it to the list of esteemed corporations with notable entries that include its national Luntiang Yaman Program and “Water for Peace in Marawi”.

Embarking on sustainability early on, PCPPI kicked off its Luntiang Yaman program in 2014, which is its overall sustainability goal for water, electricity and fuel consumption. Last year, through the Luntiang Yaman program, the bottling firm reduced water use by 32.1%, electricity by 36.2%, fuel by 6.5%, and recycled 81% of in-plant waste. With the efficient use of natural resources, PCPPI increased cost savings and market recovery while reducing its environmental footprint.

“We started our Luntiang Yaman program to create a culture of environmental responsibility within our operations,” PCPPI Senior Vice President Allan Frias said. “We wanted to uphold our commitment to sustainability within the company to positively impact the many communities that surround us. Through their engagement with PCPPI, we hope to encourage these communities to start their own sustainability journey and magnify the impact of sustainable practices across the country.”

In 2018, PCPPI further strengthened its commitment to sustainability through the launch of its sustainability framework anchored in a three-pronged approach to 'Engage, Transform and Lead'. Focusing on three priority areas – Water Stewardship, Circular Economy and Inclusive Business, the company bolstered its commitment to uplifting communities, which led to more impactful initiatives like "Water for Peace in Marawi”.

 

 “Water for Peace in Marawi” is a program between PCPPI, the Philippine Disaster Resilience Foundation (PDRF) and the Local Government of Lanao del Sur to bring aid to the internally displaced persons (IDPs) in Marawi after the city’s five-month siege. Providing access to clean and safe water much-needed by the communities especially at the time of Ramadan, PCPPI turned over seven 20,000-liter tanks to a total of six transitional shelters, and one 3,200-liter water tank each to ten underserved schools.  The company also conducted trainings on water efficiency and promoted proper hygiene and waste management through Water Sanitation and Hygiene (WaSH) activities which include series of lectures and workshops for both student and parent attendees.

 

In the recently held Global Handwashing day, PCPPI conducted WaSH trainings in Tuca Boganga Elementary School and Marantao Elementary school. Nearly 500 students received hygiene kits, and parents and teachers participated in seminars further discussing proper hygiene and vaccination in relation to the recent Polio outbreak.

 

PCPPI also activates its large network of employee volunteers, led by the company’s Bukluran Council, for annual programs such as the Department of Education’s Brigada Eskwela and the coastal clean-up drives.

PCPPI’s nationwide Brigada Eskwela 2019 benefitted over 500 students with high-grade drinking fountains in five schools surrounding their Modern Trade Operations, Central Luzon, Southern Tagalog Region, Cebu, and Davao offices. The company also promoted hygiene and sanitation by conducting proper handwashing demos and donating handwashing facilities with hygiene kits that has served over 1,000 students.

Recently, PCPPI actively participated in the local observance of the International Coastal Cleanup (ICC) Day 2019, which is the largest volunteer effort for ocean’s health. The company had over 321 volunteers joining the operation with the Department of Environment and Natural Resources (DENR) local units nationwide. The volunteers cleaned an estimated 5km of distance, picking up a total 3,102 kg of trash that filled 242 trash bags. 

“As we champion sustainability in every aspect of our operations, we strengthen our cause with the values we uphold in the company and carry it on outside the walls of our offices and plants. Everything PCPPI achieves and continues to achieve is because of our concerted efforts ultimately aimed at uplifting the lives of every Filipino.” Frias concluded.

 

 

 
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PCPPI earns spot in the Asia CEO Award's Circle of Excellence 2019
 

Pepsi-Cola Products Philippines Inc. (PCPPI) joins Asia CEO Awards Circle of Excellence for Corporate Social Responsibility through the company’s commitment to uplifting the Filipino community.

 

Dubbed as the Oscar award for businesses, Asia CEO Award acknowledges corporate and non-corporate organizations for their contributions to nation-building through projects promoting environmental protection and awareness, livelihood programs, and youth development.

 

PCPPI made it to the list of esteemed corporations with notable entries that include its national Luntiang Yaman Program and “Water for Peace in Marawi”.

Embarking on sustainability early on, PCPPI kicked off its Luntiang Yaman program in 2014, which is its overall sustainability goal for water, electricity and fuel consumption. Last year, through the Luntiang Yaman program, the bottling firm reduced water use by 32.1%, electricity by 36.2%, fuel by 6.5%, and recycled 81% of in-plant waste. With the efficient use of natural resources, PCPPI increased cost savings and market recovery while reducing its environmental footprint.

“We started our Luntiang Yaman program to create a culture of environmental responsibility within our operations,” PCPPI Senior Vice President Allan Frias said. “We wanted to uphold our commitment to sustainability within the company to positively impact the many communities that surround us. Through their engagement with PCPPI, we hope to encourage these communities to start their own sustainability journey and magnify the impact of sustainable practices across the country.”

In 2018, PCPPI further strengthened its commitment to sustainability through the launch of its sustainability framework anchored in a three-pronged approach to 'Engage, Transform and Lead'. Focusing on three priority areas – Water Stewardship, Circular Economy and Inclusive Business, the company bolstered its commitment to uplifting communities, which led to more impactful initiatives like "Water for Peace in Marawi”.

 

 “Water for Peace in Marawi” is a program between PCPPI, the Philippine Disaster Resilience Foundation (PDRF) and the Local Government of Lanao del Sur to bring aid to the internally displaced persons (IDPs) in Marawi after the city’s five-month siege. Providing access to clean and safe water much-needed by the communities especially at the time of Ramadan, PCPPI turned over seven 20,000-liter tanks to a total of six transitional shelters, and one 3,200-liter water tank each to ten underserved schools.  The company also conducted trainings on water efficiency and promoted proper hygiene and waste management through Water Sanitation and Hygiene (WaSH) activities which include series of lectures and workshops for both student and parent attendees.

 

In the recently held Global Handwashing day, PCPPI conducted WaSH trainings in Tuca Boganga Elementary School and Marantao Elementary school. Nearly 500 students received hygiene kits, and parents and teachers participated in seminars further discussing proper hygiene and vaccination in relation to the recent Polio outbreak.

 

PCPPI also activates its large network of employee volunteers, led by the company’s Bukluran Council, for annual programs such as the Department of Education’s Brigada Eskwela and the coastal clean-up drives.

PCPPI’s nationwide Brigada Eskwela 2019 benefitted over 500 students with high-grade drinking fountains in five schools surrounding their Modern Trade Operations, Central Luzon, Southern Tagalog Region, Cebu, and Davao offices. The company also promoted hygiene and sanitation by conducting proper handwashing demos and donating handwashing facilities with hygiene kits that has served over 1,000 students.

Recently, PCPPI actively participated in the local observance of the International Coastal Cleanup (ICC) Day 2019, which is the largest volunteer effort for ocean’s health. The company had over 321 volunteers joining the operation with the Department of Environment and Natural Resources (DENR) local units nationwide. The volunteers cleaned an estimated 5km of distance, picking up a total 3,102 kg of trash that filled 242 trash bags. 

“As we champion sustainability in every aspect of our operations, we strengthen our cause with the values we uphold in the company and carry it on outside the walls of our offices and plants. Everything PCPPI achieves and continues to achieve is because of our concerted efforts ultimately aimed at uplifting the lives of every Filipino.” Frias concluded.

 

 

 
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Pepsi-Cola's San Fernando Plant wins Healthiest Workplace bags multiple awards

Pepsi-Cola’s San Fernando Plant named Healthiest Workplace, bags multiple awards

 

For the third year in a row, the local government of San Fernando city, Pamapanga recognized Pepsi-Cola Products Philippines Inc. (PCPPI) San Fernando plant for promoting the health, safety, and welfare of Fernandinos.

PCPPI's San Fernando plant has consistently maintained a safe and healthy working environment for its workers since 2016, setting a new standard of excellence when it comes to the city's guidelines. "Our third consecutive year winning in this category validates our uncompromising dedication to contributing to the positive growth of our workforce," said Ariel Flores, General Manager of PCPPI’s Central Luzon Operations. "We make sure to outperform every year not to merely follow regulations, but to truly provide our people with a great working environment that encourages productivity through the championing of their health."

Through the meticulous compliance with health laws and implementation of health and safety programs, PCPPI’s San Fernando plant has consistently championed employee welfare while preventing health risks in the workplace.

The winner was selected through strict evaluation of its appropriate waste management system, food safety, pollution-free environment, accessibility to health services, health and wellness programs, and Corporate Social Responsibility initiatives.

Along with the award, the San Fernando plant was given the honor of being inducted into the LGU's Hall of Fame for its consistent success in the Healthiest Workplace category consecutively since 2016. 

The 14 bottling plants of PCPPI across the nation have a united resolve to further the growth and interest of its people with integrated programs which underline its corporate values. Through this the bottling firm stands committed in upholding excellent working standards throughout its facilities, as it believes healthy employees are happy employees.

Supporting Pampanga's cultural heritage

Meanwhile, the San Fernando plant also bagged an award in the city's Inter-Commercial Establishment Décor Competition, in which it was awarded 2nd Runner-up for its rotating parol.

“Another highlight for us is our display of talent during the city’s parol festivities,” said Flores. “We demonstrate our core value of excellence through creative work not just within our facilities, as our people are also always eager to take every opportunity they can to share their skills with the communities that surround us.”

Supporting the preservation of Kapampangan culture and craftsmanship, the plant employees built a lantern mixing traditional designs with eye-catching accents showcasing the company's eight flagship products. Its entry garnered two more awards: Best in Automation/ Animation and People's Choice Award.

With these wins, Flores believes their plant is setting a good industry example local businesses in Pampanga can follow. "Whether it be for promoting healthy practices for employees and or encouraging their creativity, we want to continue setting a high standard for how businesses could operate."

 

 
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Pepsi-Cola's San Fernando Plant wins Healthiest Workplace bags multiple awards
 

Pepsi-Cola’s San Fernando Plant named Healthiest Workplace, bags multiple awards

 

For the third year in a row, the local government of San Fernando city, Pamapanga recognized Pepsi-Cola Products Philippines Inc. (PCPPI) San Fernando plant for promoting the health, safety, and welfare of Fernandinos.

PCPPI's San Fernando plant has consistently maintained a safe and healthy working environment for its workers since 2016, setting a new standard of excellence when it comes to the city's guidelines. "Our third consecutive year winning in this category validates our uncompromising dedication to contributing to the positive growth of our workforce," said Ariel Flores, General Manager of PCPPI’s Central Luzon Operations. "We make sure to outperform every year not to merely follow regulations, but to truly provide our people with a great working environment that encourages productivity through the championing of their health."

Through the meticulous compliance with health laws and implementation of health and safety programs, PCPPI’s San Fernando plant has consistently championed employee welfare while preventing health risks in the workplace.

The winner was selected through strict evaluation of its appropriate waste management system, food safety, pollution-free environment, accessibility to health services, health and wellness programs, and Corporate Social Responsibility initiatives.

Along with the award, the San Fernando plant was given the honor of being inducted into the LGU's Hall of Fame for its consistent success in the Healthiest Workplace category consecutively since 2016. 

The 14 bottling plants of PCPPI across the nation have a united resolve to further the growth and interest of its people with integrated programs which underline its corporate values. Through this the bottling firm stands committed in upholding excellent working standards throughout its facilities, as it believes healthy employees are happy employees.

Supporting Pampanga's cultural heritage

Meanwhile, the San Fernando plant also bagged an award in the city's Inter-Commercial Establishment Décor Competition, in which it was awarded 2nd Runner-up for its rotating parol.

“Another highlight for us is our display of talent during the city’s parol festivities,” said Flores. “We demonstrate our core value of excellence through creative work not just within our facilities, as our people are also always eager to take every opportunity they can to share their skills with the communities that surround us.”

Supporting the preservation of Kapampangan culture and craftsmanship, the plant employees built a lantern mixing traditional designs with eye-catching accents showcasing the company's eight flagship products. Its entry garnered two more awards: Best in Automation/ Animation and People's Choice Award.

With these wins, Flores believes their plant is setting a good industry example local businesses in Pampanga can follow. "Whether it be for promoting healthy practices for employees and or encouraging their creativity, we want to continue setting a high standard for how businesses could operate."

 

 
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Pepsi-Cola's Zamboanga Plant bags multiple awards on health and safety

December 7, 2018, Zamboanga City – 2018 was a great year for the Zamboanga plant of Pepsi-Cola Products Philippines, Inc. as they received three major awards from the 2nd Industry Tripartite Councils Summit. The plant received 2018 Most Outstanding Company with Zero Accident, 2018 Most Outstanding Company for Regularly Submitting Occupational Safety and Health (OSH) Reports, and 2018 Most Outstanding Unionized Company for Sustainable Livelihood Program. Operations Manager Engr. Dan Israel D. Orina and EHS Officer Magielindo Navarette received the awards from DOLE Regional Director IX Ofelia B. Domingo CESO III.

 

 
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Pepsi-Cola's Zamboanga Plant bags multiple awards on health and safety
 

December 7, 2018, Zamboanga City – 2018 was a great year for the Zamboanga plant of Pepsi-Cola Products Philippines, Inc. as they received three major awards from the 2nd Industry Tripartite Councils Summit. The plant received 2018 Most Outstanding Company with Zero Accident, 2018 Most Outstanding Company for Regularly Submitting Occupational Safety and Health (OSH) Reports, and 2018 Most Outstanding Unionized Company for Sustainable Livelihood Program. Operations Manager Engr. Dan Israel D. Orina and EHS Officer Magielindo Navarette received the awards from DOLE Regional Director IX Ofelia B. Domingo CESO III.

 

 

KEY PLAYERS

We have set up two teams to help oversee the sustainability programs:
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PCPPI’s Bukluran Council

leads and engages employees to participate in the Company’s sustainability initiatives that promote diversity and inclusion in the business units.
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PCPPI’s Sustainability Task Force

helps operationalize the sustainability agenda through programs and initiatives that align the sustainability strategy with the business.