As new Pampanga plant opens, Gardenia sees P8 B sales in 2019

MANILA, Philippines — Gardenia Bakeries Philippines Inc. expects its sales to grow by 17 percent to P8 billion this year as it increases its production capacity with the opening of a new plant in Pampanga.

“We hope to close the year with about P8 billion in sales value,” Gardenia Philippines president Simplicio Umali Jr. told reporters during the inauguration of the Pampanga facility yesterday.

Last year, he said total sales reached between P6.6 billion and 6.8 billion.

The Gardenia official said the higher sales outlook is linked to the opening of the new facility located within the TECO Industrial Plant in Mabalacat.

Umali said Gardenia invested P2 billion for the new Pampanga plant, the firm’s second largest in the country next to the Laguna facility.

“This new factory has a white loaf production line, a flavored loaf line, a bun and pandesal line and a snack toast line. With these four new production lines, the Pampanga factory will be able to produce nearly 400,000 loaves and buns every day, ready for delivery to supermarkets, groceries and convenience stores,” he said.

The new plant, which is fully automated from the use of an upgraded concept in the ingredient handling and makeup systems, proofing, use of robotics in handling baking pans and a unique technology in the depanning process, will bring Gardenia’s total production capacity to 1.8 million loaves and buns per day, and allow the company to serve increasing bread demand in the country.

“While we are a rice-eating country, but due to lifestyle changes and increased health consciousness of Filipinos, bread consumption is growing,” Umali said, noting the market is growing by 10 to 15 percent.

Gardenia currently accounts for 60 percent of the market.

Apart from the Gardenia brand, the firm also produces breads under affordable brand NeuBake to cater to those in the low income segment.

Of Gardenia’s production, 10 percent is accounted for by NeuBake.

“As the market demand improves, we will expand it (NeuBake). In fact, we intend to make that as much as 40 percent in the future because the low income market is very large. So, we want to make this product available for them as a second brand,” Umali said.