Gardenia Bakeries

Gardenia Bakeries, the country’s biggest breadmaker, is expanding in Cebu with P100-million bread plant to cater to Cebu markets and Northern Mindanao areas even as plans for the establishment of a similar plant in Davao is underway as the country’s biggest breadmaker aims to attain a nationwide coverage soon.

Simplicio Umali Jr., Gardenia Philippines president, said in a press conference that the Cebu plant is already starting construction and is expected to start full commercial operation in January next year.

Umali announced this expansion amid a robust sales growth this year. Gardenia’s sales volume has been up 21 percent this year and expects to end the year with 25 percent growth in sales volume.

“Growth in sales is due to consumer confidence because everyone is positive now unlike before when consumers were trying to save their money,” Nestor Constancia, Gardenia making and sales manager.

This increased in sales is expected to translate to P2.5 billion to P2.6 billion in gross sales this year from P2.2 billion last year. Next year, the company expects P3 billion gross sales.

For its Cebu plant, it will have a capacity of 2,000 loaves per hour daily capacity or daily capacity of nearly 50,000 loaves such as Classic White Bread, High Fiber Wheat Bread and some flavored loaves. It will employ 100 people.

The 4.500 square meter Cebu plant, which is located in Lapu-Lapu City near the Mactan bridge, will serve the entire Cebu markets, Bohol and supply Northern Mindanao areas from a drop off point in Cagayan de Oro City for distribution to nearby provinces such as Iligan, Butuan and Malaybalay, Bukidnon.

“We received lots of inquiries from Cebu consumers and supermarkets to deliver to Cebu, but unfortunately it will take 24 hours for a Roll-on Roll-off (RORO) vessel to bring our products to Cebu and we do not want to serve Gardenia breads that are no longer fresh,” Umali said.