A zest for local fruits

Bar favorite, calamansi soda or Philippine lime with the fizz added on, has filtered down to grade school students. Blame it on price. A can of Zest-O calamansi soda retails at P10.

"The young are more adventurous. They are more likely to try something new, especially if it doesn’t cost too much," Zest-O Corp. group product manager Francisco Cada.

Cada said Zest-O calamansi soda was a result of a corporate decision after the 1997 Asian financial crisis to concentrate its research and development on products using 100% locally sourced fruits. The decision was based partly on patriotism and partly on the higher cost of importation as the peso continued to weaken against the dollar.

Prior to calamansi soda’s launch 18 months ago, Zest-O imported the purees, even for mangoes, used in all its juice drinks.

Price has always been a Zest-O advantage. Already a cost leader owing to its integrated juice manufacturing operation, the company also does not pay royalties for any of its drink formulas.

Innovation

Because of the phenomenal reception to its calamansi soda entry, the soft drink segment, which includes a cola and a root beer, is now the fastest growing among Zest-O’s product lines.

It has not been easy, however, fighting the big boys, particularly in the soda industry which is dominated in the country by the most valued global brand.

But Cada said the Zest-O strategy of consistent product innovation has kept it in business.

"The first order is really to develop a quality product, which means it tastes good and it is acceptable to as wide an audience as possible. The second is to produce it efficiently so that we can price it significantly lower than a competing product. And third is to make it available through as many outlets as possible," he said.

While Zest-O does not directly export its products, its calamansi soda is among the "most requested" in Filipino stores in Canada, Japan and the Middle East. The product is purchased by independent dealer/exporters, many of whom snubbed the company 20 years ago when it introduced doy-packaging in the country.

Costs down

Zest-O used the aluminum-based doy packaging for its first product, the Zest-O Juice Drink, which remains the company’s core brand. Unlike the tetra pack, the doy-pack is faster to chill, stays cool longer and doesn’t become soggy when it is frozen or kept in ice-filled chests. The doy pack is also cheaper than the tetra pack.

Its success in ready-to-drink juices led Zest-O to develop other product lines for budget-conscious mothers with school-aged kids. "That’s how the company got into milk, table sauces, instant tea, purees, noodles and drinks in cans, developing such brand names as Sun Glo, Quick Chow and Jumping Juicers," said Cada.

As liberalization brings in greater competition from the country’s trading partners, Zest-O is gearing to stay on the cutting edge of the business through its R&D. "We must maintain product quality at the least possible cost," Cada said. – CPSison