Gardenia investing B to build new bread plant in Pampanga
Gardenia Bakeries announced yesterday a R2-billion investment for another fully automated world-class bread manufacturing plant in Pampanga that will serve the growing market in central and northern Luzon.
Gardenia Bakeries President Simplicio Umali Jr. said the Pampanga factory will have a production capacity of 200,000 loaves and buns per day, making it Gardenia’s second largest facility in the country next to its Laguna plant.
The R2-billion Pampanga factory, which will start construction this year, is on top of the ongoing construction of a R1-billion plant in Cagayan de Order.
Located in a 4-hectare land in TECO Industrial Park, Mabalacat City, Pampanga, the new bread
plant will ensure sufficient supply for Metro Manila.
It will also serve as a backup for the Metro Manila market.At present, the entire Luzon is being supplied by its bread factory in Laguna.
Strategically situated near two major expressways, the North Luzon Expressway (NLEX) and the Subic-Clark-Tarlac Expressway (SCTEX), Gardenia’s plant in TECO industrial estate offers an efficient trade and distribution gateway to the North Luzon region all the way to Ilocos and Cagayan Valley as well as Central Luzon provinces.
The R2-billion plant in Pampanga is also located adjacent to major transportation hubs of Subic Sea Port, Clark International Airport and the newest business district, Clark Global City.
“This new [bread] plant is accessible for direct logistics connections. With its strategic location, it can easily supply freshly-baked breads to North Luzon consumers and provide support to Metro Manila requirements,” Umali said.
The Luzon plant will feature robotics and fully automated bread manufacturing facility, untouched by hand. All equipment, machines and baking technologies are sourced from the best baking equipment suppliers from all over the world including Europe, the USA and Japan.
“The expertise in making advanced equipment from Germany, the Netherlands, Japan and the USA operate as one integrated and a fully automated system is a proprietary technical capability developed by Gardenia in its factories in Asia. With the kind of technology and automation Gardenia utilizes, our valued consumers are assured of consistent high quality products produced in a clean and sanitary environment,” Umali said.
Umali also shared that the plant is designed to allow consumers to witness and experience the modern baking process through a catwalk plant tour especially for consumers from North Luzon.
With the new bread plant, Umai said Metro Manila and the northern part of the country are now assured of increased and sufficient supply of freshly baked Gardenia products especially during peak demand seasons like Christmas and holidays.
“Now that we have quicker access in Manila and the north, we can contribute in ensuring food security and continuous supply of breads, not only during long weekends or when there are special occasions, but also even when there are typhoons, flooding or earthquakes,” Umali asserted.
Umali cited the importance of its logistics and distribution capabilities to ensure wider reach and market coverage. “As we bring our fresh, great-tasting quality products to more and more Filipinos, we will definitely expand our fleet of trucks all over Luzon and Metro Manila to distribute across various distribution channels,” Umali said. Increasing bread consumption According to Umali, despite its expanded Laguna operations in 2016, Gardenia’s rapid sales growth makes it necessary to add more plant facilities to cater to the increasing bread demand in the Philippines.
“We are a rice-eating country but due to lifestyle changes and increased health consciousness of Filipinos, bread consumption is growing,” he explained. Umali added that the Philippines’ consumption of bread per person is still lower compared to its neighbouring countries like Singapore and Malaysia, which is about three times more per capita. With increased supply and availability of quality and great-tasting bread, consumption is expected to grow faster.
Bread leader’s vision
The 4-hectare land will give Gardenia room for further expansion. In a statement, Umali revealed that the site in Pampanga can also be the location for more bread plants or other food manufacturing facilities in the future.
“Gardenia is committed to bring a delightful experience to Filipinos by providing an assortment of best quality, great-tasting, and nutritious food products made with superior quality ingredients,” Umali said.
Gardenia has been the dominant leader in the packaged bread industry in the Philippines with more than 50 percent market share.