Fountainhead sets nationwide expansion

CEBU, Philippines - Owing to the growing demand from its distribution network, homegrown bread and pastry maker Fountainhead will pursue an aggressive nationwide expansion this year.

Operated by Cares Fountainhead Inc., this 32-year-old bakery and pastry brand is positioned to penetrate strategic areas in the Philippines, through partnerships or distribution mechanism.

Unthreatened by the entry of multinational bread and pastry brands in the Philippines, Fountainhead founder Erlinda P. Francisco said that the brand has already gained wide patronage not only from Cebu, but all over the country as well.

In fact, Fountainhead breads and pastries are already available in 30 distribution networks all over the country, including Rustan’s Supermarket, Metro Gaisano Supermarkets, all SM Supermarkets, among others.

Aside from penetrating the supermarkets and grocery stores all over the country, through its distribution system, Francisco said the company is also seriously considering to open outlets outside of Cebu, such as in areas with strong tourism attraction.

To date, there is a total of five Fountainhead outlets all over Metro Cebu, these are located in Ayala Center Cebu, SM City Cebu, near MCWD, in Lapu-Lapu City, and in Talisay area.

According to Francisco, despite the volatile prices of flour coupled with the stiff competition in the pastry, bread, and baked products in the market, Fountainhead has already taken a step further ahead of the competition and has now, in fact competed against international brands.

Although, she said the entry of famous and expensive bread/baked/pastry brands in the Philippines has slowly ate up on its market share, Francisco, however, is confident of the Fountainhead brand that has already been established in the local market with a patronage for its products that has grown over the years in a nationwide scope.

Initially, the company attempted to offer franchise deal for its out-of-Cebu branches, however, due to sustained quality issues, Francisco said “they had to reconsider the Franchise offer” and instead focus on company-run system in partnership with a local investor in a particular area.

“It’s hard to run an out-of-town franchise business especially for food products. We have to constantly monitor on the quality, otherwise our brand will be affected,” Francisco said in an interview during the re-opening of newly renovated Ayala Center outlet.

In order to trail blaze with the trends, Fountainhead has also embarked on offering “all-healthy” pastry, baked and bread products to take advantage of the growing number of consumers demanding for healthy goods.

Aside from investments on expanding out-of-Cebu outlets, and widening its distribution network, Fountainhead has also invested on renovating its five stores in Cebu to keep up with the competition, Francisco said.

Fountainhead has its edge because of its established name in the pastry and baked goods market. It is one of the few pioneering bakeshop brands in Cebu that stayed in the business despite the entry of bakeshop chain giants here.