Pork rind maker eyes more export market to grow business
Home-grown chicharon (pork rind) maker R. Lapid's Chicharon and Barbecue had set aside its franchising business to put more focus on its plan to grow its export business, which involves scouting for potential partnerships in other foreign countries within and outside Southeast Asia.
Rey Lapid, owner of R. Lapid's, said that in the meantime, the company stopped franchising its branch locally to pave the way for its growing export business.
"Maybe in the future, we will continue our franchising business but not this year," Lapid said in a chance interview with reporters.
"I stopped in 100 local outlets (15 of which are franchised) because my priority right now is to export especially in Asia," he stressed.
Lapid said the company is now in talks with potential partners and distributors in other Asian countries, including Korea, Thailand, and Vietnam.
It was two years ago when R. Lapid's started shipping its famous chicharon brand to Middle East, especially in Dubai and Abu Dhabi.
Lapid said the company exports around three to five tons of chicharon a month in these areas, mostly catering to Filipinos.
As much as he wants to grow its export business — which comprises only around 5 percent to 7 percent of its entire operation — Lapid said the problem will always be the volume of its production.
"My challenge right now is to increase that," Lapid said.
"Most of us, members of PAMPI (Philippine Association of Meat Processors, Inc.), we have to import. So my challenge now is how to export. The reason why peso keeps on depreciating is because we always import. That's not good. So the best option is if you import, you must also export," he further said.
R. Lapid's currently imports 100 percent of its raw materials from Europe, mainly Germany, Belgium, and Spain.
As of now, R. Lapid's is on the process of expanding its processing operations, which involves investment in automation.
"I have to invest another R15 million just for expansion," Lapid shared. "Our expansion is ongoing and it will finish before the end of the year or first quarter next year."
Founded in 1974, R. Lapid's started in a small stall along R. Hidalgo in Quiapo, Manila.
Lapid's goal was to supply and deliver pork and chicken barbecue, longganisa, tocino and chicharon as its main line of products to retail stores, movie houses, supermarkets, offices and bars.
In 2004, the company inaugurated its plant site located in Valenzuela City, which was eventually accredited by the National Meat Inspection Service (NMIS) with “AA” accreditation and GMP certified as an Importer and Meat Processor.