Mighty Corp dares its rival to reveal about the merger

 

Bulacan-based tobacco manufacturer, Mighty Corp dares its rival company, PMFTC to reveal its merger to the public.  Mighty has been in the tobacco industry for almost seven decades already. With the misleading allegations against them doesn’t affected the company’s operations in the country.

According to Mighty’s judge and executive vice president, Oscar P. Barrientos, “This way we will definitely know who’s really cheating the government and the Filipino people”. He added: “In particular, we challenge PMFTC to tell public the business nature of their closely-guarded monopolistic partnership whether it was a corporate merger or Philip Morris bought Fortune Tobacco’s majority stocks in 2010”.

Even before the merger, Lucio Tan-owned company controlled at least 64 percent of the cigarette market, while the other company had 30 percent of market shares.

“The merger is of high public interest issue requiring full transparency because it involves taxation,” Barrientos explained.

Last December 2013, PMFTC has requested BIR to allow their precious brand, Marlboro to sell low-priced cigarettes. ‘Strangely, PMFTC engaged us in a bitter price war, accusing us of technical smuggling, tax evasion and unfair competition based on a questionable research be AC Nielsen while they probably had the ulterior motive to completely take us out of the picture when they introduce their new low-priced Marlboro Brands while demonizing us in the media at the same time,” Barrientos said.

 

Bulacan folks receives ecobags from Mighty Corp

Filipino cigarette manufacturer, Mighty Corp has turned over 45,000 ecobags or reusable shopping bags to the First District of Bulacan.

The said campaign which will help reduce the incidence of flooding in the province. In case you didn’t know, ecobags are made of durable fabric like canvas or woven synthetic fibers, provide its residents with an environment-friendly substitute to single-use plastic bags, which are known to clog waterways, resulting to floodings. Unlike plastic bags, the ecobags can be used numerous times and do not clog waterways the way plastics do.

Flash floods have become a serious problem in the province. And it serves as home to Angat, Bustos and Ipo dams and is usually in the pathway of typhoons during the rainy season.

The donation by Mighty was in connection of the launching of Lingkod Kalikasan Ecobag, a joint project of Bulacan’s First District, Lingkod Movement and Wongchuking Foundation. The project aims to reduce flooding by cutting down on the use of plastic bags.

Jonathan Sy-Alvarado, representing Rep Ma. Victoria Sy-Alvarado of Bulacan’s 1st District, said each household in the district would each receive one ecobag for use in the distribution and storage of relief goods like rice, bottled water and canned food during calamities. In return, recipients should donate their plastic bags for recycling into useful products such as hollow blocks.

“Every time relief operations for calamities are ongoing, people should use their own ecobags ,” said Alvarado. The project is in line with the Corporate Social Responsibility program of Wong Chu King Foundation.

Alvarado praised Mighty Corp for its continuous providing good livelihood to the province, which has helped a lot of people as well as their respective families.

 

Mighty Corp’s CSR arm donates to Typhoon Yolanda victims

 

Mighty Corp‘s charitable arm, Wong Chu King Foundation has donated more than P4 million to hundreds of victims of typhoon Yolanda which was distributed in Leyte, Cebu, Iloilo and Capiz.

According to Camille Arsenal, the foundation’s coordinator said that the foundation’s board of directors led by its chairman, Nelia Wong Chu King approved the release of the funds to the victims.

The said donation was given to other typhoon victims which includes 78 employees of Mighty and their dependents whose homes were either totally or partially destroyed by the typhoon.

“WCKF did not think twice after learning of the extent of the disaster. The victims were given enough funds to enable them to pick up the pieces and recover from the disaster,” she added.

The foundation also rebuilt churches around the country. With the initiative to help Filipinos to have their own livelihood projects and better education to children, Mighty aimed for positive outlook in life, despite the fact that they were dragged in several controversies.

Meanwhile, Mrs. Wong Chu King said that they treat their employees like family. The foundation started in 1990. They provided assistance to the poor and underprivileged in his lifetime.  And they also promote education through scholarship programs and raise funds for charitable, cultural and eduscational purposes.

Mighty Corp on monopoly in tobacco industry

Filipino owned Mighty Corp. has been in the midst of controversies several months ago. They warned that a foreign-dominated monopoly might kill all remaining low-priced local cigarette brands in the market.

“Recent moves by our competitors, particularly a multinational company, against MC indicate a calibrated campaign to bring us to our knees and push us out of the picture,” Mighty executive vice president Oscar Barrientos said.

According to Finance Secretary Cesar Purisima said: “It is natural for Philip Morris to fight change because you want to keep your monopolistic position. But in this environment, why should we, as a country, allow a monopoly?” 

With the malicious accusation against Mighty on technical smuggling, tax evasion and all other possible crimes. “These baseless and malicious accusations merely mask the real agenda of our competitor which is to kill off all other local brands, especially the low-priced ones,” he said.

Barrientos said a foreign-dominated monopoly of the market was geared towards promoting mid-market brands since profit margins in the low-cost brand category were low.

“They want to kill off all remaining low-cost local brands in the market by hook or by crook so that the playing field will be cleared for their expensive foreign brands,” the MC executive said.

“This is a critical moment in the local tobacco industry’s history, and in fact for Philippine industry in general as well,” he said.

Barrientos added that the company would address all the accusations hurled against it and exhaust all legal means to stave off the monopoly’s alleged efforts to kill off other local brands that it has not yet acquired.

“We’ll fight them for sure. It’s an uphill battle, but we cannot and will not allow a foreign bully to just trample on us and any other Filipino company that it views as a threat to its campaign for market domination. As big as our competitor is, it’s a shame that it has to resort to lies and deceit,” he said.

Mighty had contributed in the tobacco industry by increasing its market share in the low-cost brand category.

 

Get to know Mighty Corp’s Oscar Barrientos

Retired Regional Trial Court Judge OSCAR P. BARRIENTOS has found himself on the other side of the defence as defender of the cigarette manufacturer Mighty Corp.

As the executive vice president of Mighty Corp., Barrientos also doubles as company spokesman. He has become the face for the low-profile owners of the wholly-owned Filipino cigarette company, who have been doing their business for 68 years quietly and away from the prying eyes of the media and even from competitors.

But the former judge, who also leaches marketing and finance, sees his role in Mighty more of a battle in actual grassroot marketing rather than a courtroom drama.

Chinese migrant Emmanuel Wong Chu King founded La CampanaFabrica de Tobacos Inc. in 1945 as his way of helping Filipino war victims.

At first, Wong Chu King, married to Nelia, a Filipina, did everything from blending the tobacco to working as salesman, delivery man, collector, cashier and promoter of his products. The Company specialized in producing native cigarettes. The iconic La Campana and Magkaibigan were the company’s original brands.

In 1985, Mighty Corporation was established and became the American blended Virginia Cigarette Manufacturing Co. In 2001, Mighty entered into a cigarette manufacturing agreement with Sterling Tobacco to produce the latter’s trademarks. In 2004, the company entered into a cigarette manufacturing agreement with the Philip Morris Philippines as the latter brought the trademarks of Sterling Tobacco.

The rest is history. What used to be just a simple native cigarette manufacturer has expanded to become not just an industry pioneer but a force to reckon with under one name Mighty Corporation.

Barrientos, who joined Mighty Corporation a year ago upon the encouragement of the owners who happened to be good friends of his, can only at least in the best position that this company has to offer and will continue to offer.

While Mighty focuses on the non-premium cigarette brand, it does not lose focus on what makes it stick all these years. It has remained faithful to what it does best, producing cigarettes for the Filipinos market content with a 3 percent market share.

“Mighty has good taste, good price and good packaging,” stresses Barrientos.

While both prices for premium and the non-premium brands were adjusted to account for the increase in excise tax, the non-premium has a lower tax increase and therefore it has lower price hike while the premium brands have to endure with the huge price hike making them more expensive to the ordinary smoker.

As prices of cigarettes become more expensive, most smokers can no longer afford the premium cigarette brands so they shift to the non-premium brands benefitting Mighty, which has a total of 23 brands.

But Mighty has another big edge: Its clear understanding of the domestic market, which it has been serving well and faithfully for the past 68 years.

“We have a very good distribution system focusing in the rural areas. Our distribution system touches system right down to the grassroots,” says Barrientos.

In fact, Mighty is very strong in the Zamboanga area. Its premium competitors though have been concentrating in the big cities and their distribution are mostly in big supermarkets.

“We understand the market better,” says Barrientos, who finishes his MBA at the Asian Institute of Management.

Another unique strategy is the company’s credit line offer to the rural sari-sari stores. This strategy does not only ensure that small stores carry Mighty products, but also augment the poor Filipinos capital to enable them to continue their small business.

This has endeared them to the sari-sari store owners, who now prefer Mighty grateful for the lifeline provided to them.

According to Barrientos, 70 percent of Filipino smokers buy by the stick, not packs.

The company has also tapped the direct selling network to further beef up its market.

Barrientos explained that at the end of the day, the price of a merchandise will redound to the cost of production plus margin.

In the case of Mighty, it has never gone overboard in its expenses. Its operation has remained low cost with not much overhead cost.

“In the first place, we don’t have expats personnel to pay for. An expat can easily command $10,000 salary a month,” says Barrientos. Maintaining expats is expensive because the employer must also consider they have a lifestyle to keep.

All these years, Mighty has remained a low maintenance firm. It holds its headquarters in Makati, along the Pasig River which also serves as the residence of the company owners. Most traditional Chinese businessmen also reside in a building where they do their business. This lean organization is simple and bereft of the trappings of the high-end offices in Makati. It operates in an old but well-maintained

“Our strategy at the plant is to produce low cost but quality cigarettes, but we go for volume because there is a strong demand for our products,” says Barrientos.

Its CSR program is mostly providing education to poor but deserving students. Now, it’s scholars are mostly children of tobacco farmers numbering 100 and is expected to reach 500 this year.

This scholarship program, which is geared for the tobacco farmers or through the Federation of Tobacco Farmers, has been going on for the past ten years already.

Part of its CSR program is to help improve the quality of local tobacco produce so they will not import anymore in the long run.

“Why is the imported tobacco has better quality than the locally grown when they come from the same seeds,” says Barrientos.

The company also extends assistance to affected families during calamities without any fanfare. Barrientos relates that his father was a chain smoker who could consume three packs a day, but he does not smoke nor his seven other siblings.

“But I don’t feel guilty being in this industry,” says Barrientos of his work in the cigarette industry, which is known to cause lung cancer.

“The health warning that cigarette is addicting is right although it has no effect to some,” notes Barrientos.

His being in the industry does not give him also the license to encourage others to smoke.

“I will not encourage anyone to smoke, but let them find their own stick. Parents are only there to guide, although children may not follow them 100 percent,” says Barrientos, who used to play golf until he joined Mighty.

“I was supposed to be enjoying my retirement, but I was called to this job, something that I cannot refuse because it is very challenging. Aside from that, one of the owners is a good friend of mine and they treated me well and that’s what they’ve been doing with the rest of the employees,” says Barrientos, who finished law and management from the Pamantasan ng Lungsod ng Maynila and the Philippine Christian University.

“This is a family-owned corporation, but the owners are very fair and professional. I enjoy this job, otherwise I should have left already. It’s good to meet new people and become part of this company,” says Barrientos.

“I am happy here. Definitely, I am in the right company,” says Barrientos.

Mighty Corp boosts tobacco production in the country

Wholly Filipino-owned tobacco company, Mighty Corp. has been dedicated their time in helping tobacco farmers. Last February, they committed to double its purchase of tobacco from five million to 10 million kilos this year, which would boost the income of farmers in the area.

According to National Federation of Tobacco Farmers Association and Cooperatives president Mario Cabasal said the good news about Mighty Corporation’s initiative was expected to break the farmers’ dependence on giant tobacco companies.

“The farmers now have a buyer for low-grade tobacco,” Cabasal said.

Aside from this, Mighty Corp. provides farmers 83 units of water pumps and 16 hand tractors.Meanwhile, they sponsored at least 100 college scholarship for children of tobacco farmers in La Union.

The said partnership agreements with farmers was held last February 8 at the Hotel Ariana in Bauang, La Union.

The company’s Executive Vice President Oscar Barrientos said the company will compete with the giant tobacco companies in the purchase of tobacco, which they needed as cigarette filler.

Then, Edgardo Zaragosa, Administrator of the National Tobacco Administration elated over Mighty Corp’s entry in the industry which is good because competition in tobacco trading will help farmers, especially if the price is right.

“If Mighty is absent, we will be having problems selling tobacco,” Zaragosa said.

Mighty Corp pushed through purchase of tobacco leaves

Wholly Filipino-owned tobacco manufacturer, Mighty Corp vowed to buy 10 million kilograms of tobacco products worth millions of pesos to the farmers in Northern Luzon and other parts of the country.

According to the official letter of intent that was sent out to National Tobacco Administrator Edgardo D. Zaragoza, Mighty’s Executive Vice President Oscar P. Barrientos said they’re buying tobacco from farmers 100 percent more than the five million kilograms that the firm bought in 2013.

“This is to assure our tobacco farmers of our willingness to help in response to the published report of the market leader in the tobacco industry to lessen production this year,” Barrientos said.

The said letter which debunked critics’ allegations that the company has been importing raw materials from foreign countries at low prices and no longer buying tobacco from local farmers.

The Wongchuking-owned company’s market shares surged to almost 20 percent of the low-priced cigarette brands last year from three percent the previous year, resulting to the payment P8.2 billion in excise taxes.

According to Barrientos,Mighty Corp’s shares shot up after the government effectively implemented Republic Act 10352,also known as Sin Tax Law that leveled the playing field in the multibillion-peso tobacco industry which was controlled by Philip Morris and Fortune Tobacco. 

 

Mighty Corp pursues joint projects for tobacco farmers

Last February, group of tobacco farmers and Bulacan-based tobacco manufacturer Mighty Corp signedan agreement to pursue joint projects which will boost the lives of farming families in Northern Luzon.

During the signing of agreement that was attended by executives from Mighty led by retired general Edilberto P. Adan and retired judge Oscar P. Barrientos, president and executive vice president, and Mario Cabasal, head of the National Federation of Tobacco Farmers and Cooperatives, Inc. The theme for the project called “Sama-sama Tayong Pilipino sa Pagyabong ng Industriya ng Tabako,” which focus on the tobacco growth in Northern Luzon.

Also, they held a consultative meeting between 200 tobacco farmer leaders in Pangasinan, La Union, Abra and the Ilocos provinces and Mighty Corporation.

Mighty Corp’s CSR arm, Wong Chu King Foundation Inc. gave out at least 16 units of hand tractors worth P2.5 million and 90 units of water pumps worth P1.1 million to chapter delegations from seven provinces in Northern Luzon.

“We are happy that Mighty has stood firm on its commitments to help the 65,000 strong tobacco farmers in the Philippines with their pronouncements this year to purchase 10-million kilograms of tobacco leaves and the P10-million outreach projects for tobacco farmers,” said Cabasal after the agreement was signed by the new partners. “This is definitely a big help to us, tobacco farmers,” added Cabasal.

Cabasal expressed elation over the Mighty Corp’s commitments to initially buy at least 10 million kilograms of tobacco leaves.

He also said that the company’s  P10-million three-pronged programs which will directly help tobacco farmers produce better quality tobacco that included the donation of support farm implements like irrigation pumps and tractors, sponsoring new 100 college scholar grants for the sons and daughters of tobacco farmers and the institutional support for the annual search for outstanding tobacco farmers and cooperatives.

 

Mighty Corp’s continuing efforts helping tobacco farmers

Last February 8, Filipino-owned tobacco manufacturer, Mighty Corp met at least 200 tobacco farmer leaders in Pangasinan, La Union and Ilocos provinces regarding the firm’s partnership and the twin P10-million commitments of the new major player in the cigarette industry.

According to Mighty Corporation Executive Vice President Oscar P. Barrientos says that they sought the help of the National Tobacco Administration about their planned purchase of P10-million kilograms tobacco leaves and the multi-pronged P10-million Corporate Social Responsibility for tobacco farmers and their families.

“We are grateful and we are looking forward to the firm commitments of Mighty Corporation to help the 65,000 strong tobacco farmers in the Philippines with their pronouncements this year to purchase 10-million kilograms of tobacco leaves and the P10-million outreach projects for tobacco farmers,” said Mario Cabasal, president of the National Federation of Tobacco Growers and Cooperatives.

He was surprised on Mighty Corp’s commitment to purchase 10 million kilograms of tobacco leaves.

“Now that we are assured of an alternative market, besides other tobacco companies, our members will again be inspired to devote larger areas to the cultivation of Ilocandia’s most important cash crop,” he said.

Planting of the golden leaf started on January and selling the dry leaf often peaks before the Holy Week. Then, the price cut downs on harvests after the Holy Week. Some people says that it was an old practice of middlemen from Ilocos Norte to Pangasinan.

“With Mighty’s assurance that the company will buy all the unsold tobacco harvested by farmers, we can also be sure that unlike in the past, prices will stay high even after the holiday season, Cabasal said.

 

Mighty Corp urges farmers to use organic agri pesticides

Bulacan-based tobacco manufacturer Mighty Corp are promoting the alternative use for tobacco. It will help reduce Filipino farmers’ reliance on chemical-based pesticides and also to increase their income and saving Mother Earth.

According to the executive vice president of Mighty, former judge Oscar Barrientos said that the project is a part of the company’s corporate social responsibility thrust.

He explained that there’s hundreds of Filipino farmers were switching from chemical-based to organic pesticides, or a combination of the two. “This trend should be encouraged,” he added.

They are collaborating with National Tobacco Administration, Fertilizer and Pesticide Authority of the Department of Agriculture and University of the Philippines in Los Baños, Laguna in this plan to hype up the production of organic pesticide in the country.

In case you didn’t know that farmers make up 11.55 million of the country’s 38.6-million-member labor force and contribute 20 percent of its gross domestic product.

Insects and other pests have adversely affected farmers’ production of main agricultural crops, including rice, corn, coconuts, sugarcane, bananas, pineapples, coffee, mangoes and abaca.

Meanwhile, secondary crops such as peanuts, cassava, sweet potatoes, garlic, onions, cabbages, eggplants, calamansi, rubber, and cotton also affected of it.