Filipino Brands are Going Global

A number of Filipino brands are going global, thanks to franchising scheme that enables them to penetrate foreign markets, according to an industry group.

The Association of Filipino Franchisers Inc. (AFFI) said 12 local brands have gone global, led by Potato Corner which now has the most number of franchises abroad with 54 stores. AFFI has 112 members comprised of micro, small and medium enterprises.

Local brands were also able to expand in the Middle East, Australia, Japan and South Africa.  Members of the group are looking at expanding in more markets overseas in the next few years to Singapore, China, Germany, the UK, Chile and Colombia.

AFFI said with a dozen members already in the global scene, at least 15 more companies are looking at prospects overseas.  Julie’s Bakeshop, Mr. Softee and Aqua Swiss are among the companies that reportedly consider global foray.

Julie’s Bakeshop plans to expands to Abu Dhabi as well as Jakarta, Indonesia while other companies are eyeing the ASEAN and the US markets.

AFFI, which had seven global franchisors in 2012, now has 12 global franchisors with about 74 international branches.

AFFI expects combined sales of members to increase 15 percent to PhP62.1 billion in 2013 from PhP54 billion in 2012.  Next year, sales are projected to grow by another 15 percent to PhP71.4 billion, as more member-companies explore opportunities overseas. AFFI Chairman Teresa Laurel said the expansion is keeping members on their toes for trends and updates.  Ms. Laurel is also the CEO of Cater King Food Corp., the company behind Mama Rosa, Pinoy Deli Meals and Goto King brands.

“The appetite to expand has never been this voracious. The influx of more brands coming into the Philippines might have stirred the consciousness of our members to go out and make a name for themselves,” Ms. Laurel said.

AFFI is preparing to stage the 12th Filipino Franchise Show dubbed as “Galing ng Pinoy” on 4th to 6th October 2013 at the World Trade Center in Pasay City.  The franchise show expects to attract over 30,000 visitors from 300 exhibitors.

AFFI Vice President Ricardo Cuna, owner of the Fiorgelato ice Cream brand, Fior Café Philippines, Art’s Cream Gallery and master franchisor of US brand Cocoa Bonanza, said franchisors from the non-food category are catching up with 45 percent of the total franchises, up from 30 percent three years ago.  Food brands account for 55 percent.