Yakult Philippines Inc

YAKULT PHILIPPINES INC. 1461 F. Agoncillo cor. J. Escoda Streets, Ermita, Manila 1000 Telephone No.: +63 (2) 892-5858 (8-YAKULT)

CONTACT US Manila Liaison Office 1461 F. Agoncillo cor. J. Escoda Streets, Ermita, Manila 1000 Telephone No.: +63 (2) 892-5858 (8-YAKULT)

Plant & Main Office Maharlika Highway, Bo. Makiling Calamba City, Laguna Telephone No.: +63 (049) 545 – 6372 / +63 (049) 545 – 1755

HISTORY OF YAKULT Yakult was introduced in Japan in 1935 by Yakult Honsha Co. Ltd of Japan, based on discoveries made by Dr. Minoru Shirota, the company’s founder Dr. Shirota blazed a trail in the field of preventive medicine with his studies on a type of lactic acid bacteria now know as Lactobacillus casei strain Shirota. The Yakult brand became synonymous with good health and it made a tremendous impact throughout Japan. Its entry in the market gained immediate acceptance, which led to the establishment of the world Yakult Group. The company was founded on the principles of preventive medicine and has used its extensive research in Probiotics to enhance the health of its customer since the 1930s. In the 21st century, Yakult Honsha, the subsidiaries and overseas companies like Yakult Philippines Incorporated aim to use their role as Probiotics pioneer and raise the quality of life for people throughout the world. Yakult was introduced to the Philippines in 1978. Its popularity among Filipinos has significantly grown in the past 33 years. The Yakult Plant at Barrio Makiling, Calamba Laguna is one of Asia’s best production facilities in terms of technology, sanitation and quality control. Here, the Yakult product is produced in a totally sanitized environment following strict quality control standards. It is produced with minimal human intervention using modern and technologically advanced, state-otthe-art facilities to ensure non-contamination of the product. Rigid quality control procedures assure the conformity of the product with the world-renowned Yakult formulation. Through the years, Yakult Philippines, Inc. has upheld its commitment of providing good health through the use of beneficial microorganisms. All the endeavors the company has undertaken and continues to undertake are guided by its principle to promote to the health of the Filipino people. Consistent with this principle, the company continues to educate the Filipino consumers on the health benefits of the Lactobacillus casei strain shirota. It seeks to supplement its expanding market coverage with great missionary zeal that good digestion leads to good health. HISTORY OF LACTIC ACID BACTERIA 1857 - Louis Pasteur, discovered lactic acid bacteria. He was the first man to discover that intestinal bacteria are related to health. 1907 - Elie Metchnikof, a Russian Biologist, conducted research on biology and developed the idea of the famous theory on phagocytes. He was awarded the Nobel Prize in 1908. 1930 - Dr. Minoru Shirota, a Japanese scientist, successfully discovered and developed a potent and beneficial type of lactic acid bacteria capable of surviving the journey to the digestive tract – Lactobacillus casei strain Shirota commonly known as the Yakult strain.

MISSION To contribute to the health and happiness of every person around the world through the pursuit of excellence in life sciences and the study of microorganisms. We continue to spread the message of preventive medicine and benefits of probiotics, such as lactobacillus casci shirota. One by one, city by city, country by country, we deliver this message In the shape of small bottle a bottle contains around 8 billion live and active good bacteria. Consuming 1 or 2 bottle’s a day of this exclusive probiotic drink may help improve digestive balance and over all wellness.

VISION Yakult pushes forward with the quest for new possibilities for probiotics in the academic and medical fields. We work with doctors, scientist and dieticians worldwide to help people with medical condition and find ways our probiotics can be to use help people. Yakult research has led to many significant medical advances, even beyond probiotics field, such as the development of the Campto Injection, the first-line drag for colon cancer and the United States. The human digestive has over 500 types of bacteria, most of which are good and keep you healthy. A healthy person has more good than bad bacteria, but in any change in tha body’s bacteria balance can cause digestive issue’s. With probiotics, the good bacteria help reduce the possibility of good bacteria taking over. By doing so, probiotics may help balance the digestive system and improve over all wellness.

COMPANY PHILOSOPHY

We contribute to the health and happiness of people around the world through pursue of our excellence in life science and general and our research and experience in microorganisms in particular.

SWOT ANALYSIS (STRENGTH, WEAKNESS, OPPORTUNITIES, THREATS) STRENGTH  

High brand Awareness Strong brand reputation with health benefits

WEAKNESS   

Limited Flavor Storage difficulty (Temperature) Limited Distribution channel

OPPORTUNITIES  

Trend in health concerns Increase in number of convenience stores and hypermarkets.

THREATS  

Competitors provide many flavors packaging and promotions Expiration of lactobacillus patent gives rise to new competitors

BCG Matrix ( Company Portfolio)

35 Years of Probiotics and promoting good health to Filipinos. A company history Three decades and a half, after its inception in the country, Yakult Philippines moves forward, building legacy of better health. 1977 – Yakult Philippines Inc. (YPI) and Yakult Marketing Corp. (YMC) are established on May 25 and June 22 respectively. The Yakult Plant in Bo. Maikling, Calamba City, Laguna begins construction. 1978 – The manufacturing plant launches operations, and the sale of locally produced Yakult begins with an output of 11,500 bottles a day. Six YMC Centers commence operations in Malate, Sta. Mesa, Roosevelt (Quezon), Downtown Manila (Chinatown), San Juan and Pasig. 1979 – Dr.Minoru Shirota visits Yakult Philippines. Provincial dealership begins with Merchandise Distributors Inc. in Cebu City. 1980 - Jomar Enterprises, the second provincial distributor, opens in Iloilo City. 1981 – YPI expands and is re-capitalized The New Yakult Lady (YL) System at YMC is initiated. Three new YMC Centers open under the new YL System in Malate, Sampaloc and Cubao.

1982 – Three more YMC Centers open in Caloocan, Pasay and Quezon. 1984 – The New Hover Restaurant (Zamboanga) and Long Life Trading (Bacolod) are the 3rd and 4th provincial distributors to commence operations. YMC Chinatown starts operate Five YMC staff are sent to Yakult Korea, Seoul, South Korea on an educational trip. 1985 – Malabon and Alabang Centers open. Galaxy Marketing (Cagayan De Oro City) starts operations. Selected Yakult Ladies and staff are sent to Tokyo, Japan for the Yakult Organization World Convention. 1986 – Las Pinas and Novaliches Centers launch operations. Lacto-B Inc., the 6th provincial distributor, begins operations. The Medical Relations Unit is created to further emphasize the company’s thrust in propagating good health in schools, health centers and hospitals. 1987 – Taytay And Meycauyan Centers begin operations. The YMC Special Projects Unit for villages, prime office, subdivision and establishments is initiated. 1988 – YPI doubles its production capacity to 215,000 bottles a day. New YMC center open in Makati,Binan and Paranaque Micro-B, inc. is launched The provincial Dealer department is create to supervise,monitor and assist the growing number of provincial distributors Ten Yakult ladies and four factory workers are sell to Tokyo,japan to attend the international convention and to take an educational tour at the Yakult Honsha Plant. The Yakult 10-miler health run is initiated and becomes a muchawaited annual event.

1990 – YPI and YMC transfer to Agoncillo Liaison office from the heritage condominium Twelve Yakult ladies and three staff members go to Thailand on pleasure trip. 1991 - Strain Marketing Corporation is established in Batangas City “Micromate” the “Heroes of good health” advertising materials are launched 1992 – Yakult scientific fact and information’s are disseminated through film showings among barangays,school and public institution. Ultra health marketing (Palawan) begins operation Yakult mascots, Mr. Lactobacillus and Mr. Yakult are unveiled to the public Bio-tech Inc, open its sales center in Dagupan City in Pangasinan 1993 - The Plant Production Project materializes and the manufacturing Plant increases production capacity to 310,000 bottle per day Strain Marketing Corp. (Batangas City Sales Center) and Biomate Corp begin operations The San Andres Center commences operation 39 Yakult Ladies and Staff are sent to Taiwan on an educational tour 1994 – YPI support the Phil. Basketball League by inspiring the Chinese Qianwei Mens Basketball team 1995 – YMC opens its 27th Sales Center in Sangandaan, Caloocan City Casei Marketing Corporation (Lucena City, Quezon) and NEYO Marketing Corporation (Cabanatuan Nueva Ecija) become operational YPI supports to Department of Health “Contra Cholera Campaign” 1996 – YMC launches its 28th Sales Center in Fairview, Quezon City YPI supports the Department of Health “Knock-out Polio Campaign”

44 Yakult Ladies and Staff are sent to Hong Kong on an Educational tour 1997 – The Sta.Cruz Laguna Center opens. YPI supports the department of Helath’s “Lusog Isip-Mental Health and Stress in the Workplace Campaign” In response to the government’s drive on environmental protection, a Waste Water Treatment Facility in the YPI Calamba Plant is erected, in Development Authority and other pertinent environment laws. 1998 – To implement the Expansion Program and to help usher in the new Yakult bottle re-shrink packaging, the manufacturing plant increases production capacity to 400,000 bottles per day. Mighty Mite Marketing Corporation and Family Health Marketing Corporation commence operations in Isabela Province and Camarines del Sur respectively YPI supports the department of Health’s “Iligtas Kami sa Tigdas Campaign,” aimed at preventing the proliferation of measles among children The green Yakult lady uniform is launched As part of their incentive, as well as to boost their morale, the first local tour for qualified and performing Yakult Ladies is Launched. 1999 – The new full-color design for shrink packaging is launched Convention YPI is awarded the “Buhay Kalikasan Award” as the most Outstanding Industrial Plant by the Department of Environment and Natural Resources and Laguna Lake Development Authority YPI supports amateur athletics as it launches its first family oriented 3K and 5K Fun Run. 2000 – Implement the expansion program ,the manufacturing plant doubles its production capacity to 1 million bottles aday YPI partners with the Department of Health in its drive against ‘’poliomyelitis’’ The ‘’Mighty Micro Frighters’’ animation is launched

The New Plastic Design is introduced in the market, featuring the laser-swinging Lactociballus Casei Shirota Strain. Printed in the back of the park are the health benefits and composition of the Yakult Cultured Milk. As part of the local your campaign ‘’ C U in cebu sa Bagong Siglo’’ 62 delegates composed of YL, YPI and YMC personnel are sent to Cebu and Bohol for a 5-day Educational Trip Micromate Marketing Corporation (Vigan) Dealership opens to cover ilocos Norte,Ilocos Sur and Abra Supreme Health Marketing Corporation commences operations in Malolos, Bulacan 2001- Probiotics Inc. opens in Davao , with major operations centering in Davao City Yakult Central Institute for Microbiology sends chiefs scientist Dr. Koji Nomoto and Dr. Toshio Osawa for a series of product knowledge seminar 65 delegates from YMC,PDD and office staff are treated to a 4-day YL local trip in Boracay, Aklan 2002 - Another series of the manufacturing plants Expansion program is launched, increasing production capacity to 1.6 million bottles per day The “O.K Ka Ba Tiyan?” series of advertising materials including “MRT” “masculado,” and “BUHOK,” are launched The 1st official newsletter of Yakult Phil. Is introduced The Marco Health Corp. opens in South Cotabato, with the center of operations located in General Santos City Yakult supports the phil. Medical Association Convention held at the Manila Midtown Hotel. 2003 – The “Ok Ka Ba Tiyan?” vignette ad series, including “Antibiotic,” “Overeating ,” “Drinking,” “Diarrhea,” and “Constipation,” are launched YPI supports the Phil. Medical Association’s 5K Centennial Fun Run at the CCP grounds Prohealth Sales Distributor Corp. opens in Bauang La Union

2004 – YPI partners with the department of Education and Mary Lindbert International to launch “Friendly Bacteria for a Healthy Stomach” 2005 – YPI joins the Panagbenga 2005 Float Parade in Baguio The Luzon Distributors Regional Conference is held at Hyatt Hotel and Casino, Manila The Philippine Pediatric Society Symposium is held at the Philippine International Convention Center YPI sponsors the Philippine Medical Association’s 98th Annual Convention held at Bacolod Convention Plaza Synbiotic Marketing Corp. opens in Legaspi Center. 2006 – The Yakult annex building is inaugurated The Cainta Sales Center Center opens The “Sigurado Ka Tiyan!” ad campaign series, including “Kasal,” “Hula,” and “Santa,” is launched. 2007 – Taguig, Valenzuela and Malolos Sales Centers Begin operations Actigen Makerting Corp. opens in Calapan, Mindoro YPI conducts a gift-giving activity to typhoon and landslide victims of Albay, Naga, Bicol Region The Philippine Society for Latic Acid Bacteria Symposium is held at the Don Vicente Dy Sun Sr. Hall, Yakult Annex Building. 2008 – The “Sigura Ka Tiyan!” tactical material “parents” and “butas” are launched YPI President Mr. Albert Dy Sun and Calamba, Laguna Mayor Joaquin Chipeco sign an agreement for the proposed construction of the Barangay Makiling overpass YPI, with ABS-CBN and the Philippine Basketball Association, sign a contract for the 1st PBA Ateneo-La Salle Showdown, with YPI as official presenter Together with the Rotary Club of Iloilo and the Carmelite Sister, YPI conducts a gift-giving activity for typhoon victims in Iloilo

YPI sponsors the Nutritionist and Dietetics Association of the Philippines. 2009 – 68 Yakult ladies and 14 Staff were sent to Le Soleil de Boracay for the 2009 local tour. Additional 10 Mini Route riders in August 2009 Commonwealth Center additional Yakult Marketing Sales Center Provincial Distributors additional sales Center namely, Magalang, Sto. Tomas, Mangatarem, Rosales, Sta.Crus, Rosario, Bauan, Caps, Masbate, Lapu-lapu and Kalibo Sales Center YPI sponsors the International College of Surgeons Convention. YPI support the Mobile Shower Project of Ted Failon thru Radio Station DZMM. 2010 – 12 Yakult Ladies and 7 Staff attended the 75th Yakult Honsha International Convention in Hokkaido, Japan Del Monte Sales Center began its operations. Additional Sales Center in Cebu-Danao 61 Yakult Ladies and 21 staff joined the pleasure trip in Palawan. YPI sponsors the Philippine Association for Nutrition Convention and Philippine Women’s Medical Association Convention. 2011 – “Malena”, “Dinner” and “Rooster” advertising campaign was launched in july 2011 Galacto Marketing Corporation in Samar Leyte started its operations. Additional Sales Provincial Disributors-Bangar, Toledo, and Calbayog Center. YMC’s Rodriguez Sales Center begins its operations. 65 Yakult ladies and 23 staff joined the local tour at Iloilo. 2012 - YPI joined Eat Bulaga as the major sponsor of Bayanihan segment of Juan for all, All for juan. Lactbacillus Marketing Corporation started its operations. Additional provincial Distributors Center Sto. Tomas, Carcar and Cotabato Sales Center.

11 Yakult ladies and 19 staff joined the international convention in Kobe, Japan. 67 Yakult ladies and 18 staff joined the local tour in Davao. Additional 2 Sales Centers – San Pablo and Pateros Sales Center. 2013 – Lactobacillus casei strain SHirota obstain GRAS Certification from the USA FDA (Food and Drug Administration). Yakult and Danone terminate strategic alliance agreement and sign a memorandum of cooperation. Nyusankin Soy @ Fermented soy milk introduced to the market. New Yakult is introduced to the market. 2014 – Yakult Honsha publishes its first Company history. Yakult Gold is introduced to the market. 2015 – The 80th anniversary of Yakult’s founding.

LIST OF THE PRODUCT

Yakult Original > Yakult is a probiotic drink, that when consumed daily may help balance your digestive system and maintain overall health. ABOUT YAKULT ORIGINAL >Contains 50 calories per bottle and 11 grams of sugar. >NO fat NO cholesterol NO preservatives NO gluten NO highfructosc corn syrup NO aspartame.

>Yakult is sweetened with Sucrose.

Yakult Light >Yakult Light provides the same benefits as Yakult. But is a lower sugar option. ABOUT YAKULT LIGHT >Contains 30 calories per bottle and 4 grams of sugar. >NO fat NO cholesterol NO preservatives NO gluten NO high fructose corn syrup NO aspartame. >Yakult light is sweetened with Reb A. which is extracted from the Stevia leaf.