Yao confident of Zesto’s success in China

The Yao Group has expressed confidence that its beverage drink brand Zesto will finally make it big in China despite being beset by a patent issue and increasing cost of doing business in the world's largest consumer market.

Alfredo Yao, chairman of the Philippine conglomerate with interests also in banking, property, pharmaceutical, packaging, among others, told reporters he was confident the patent case will be resolved in its favor this year.

According to Yao, they are not allowed to use the Zesto brand in China because a local firm has claimed ownership of the brand. He said the Chinese firm copied everything about Zesto, including its address in the Philippines.

"We are confident of winning this case," he said adding the case has dragged for 5 years already and should be due for resolution soon.

"You know, in China, they can make it slow or fast for you."

With the patent issue, their RTD products are using other brands, such as Sunglo and Sunburst.

Aside from the patent issue, Yao said foreign investors in China are also facing competitiveness issues and some are, in fact, leaving.

But neither the patent nor the competitiveness issue can prevent the Yao Group from pursuing their business in the world’s largest consumer market.

He noted that its competitor Capri Sun, a brand of juice concentrate drink owned by the German Company WILD and sold in laminated foil pouches, is doing well in China.

"We can beat them easily," he added.

The German brand has three manufacturing plants enabling the company to also dominate in three provinces. Zesto has only one plant there as the patent problem has limited their expansion program.

Aside from China, Zesto has already expanded in the ASEAN region.