Chapter 33
Jaz Cola Distributorship, First in 4 Municipalities, then Another 5 Municipalities
Our entry with Jaz Cola soft drink distributorship was partly motivated with our little success in the Salted Peanuts & Banana Cakes making and selling. It taught us ideas and skills and how to sell and distribute products. It’s interesting to learn the arts of selling & marketing.
I planned to go into business as part of my ministry, as most Pastors working in small village churches have found it hard to met needs of the family. And my experience, when I have to resigned from work, because of differences with management showed importance of a little business. I think, it was done by St. Paul in his ministery –tent making.
I saw the need for pastors to have some kind of additional works, if the church offers salary that could not provide their basic needs. Another, was to have an additional income by making use of my available time, to earn something a bit more.
With my wife, Hesther, we learned a little of Intrepreneurship. We were able to start a little business and made it grow. But producing products and selling it, was a hard job. We need time to rest. Few years ago, I’ve thought of selling Coca Cola or Pepsi Cola, while in the ministry. But the playing field was hard to penetrate. Big capital was needed.
Our entry with Jaz Cola softdrink business was made possible thru Atty. Alex Espino. He was former President of West Negros College. Later, he became Vice President of RC Cola and Jaz Cola Corporation. Jaz Cola was owned and operated by Mr. Augusto (Boboy) Sijuco, an entrepreneur and businessman in Visayas and Manila.
He owns RC Cola and Jaz Cola plants in Cebu, Bacolod City and in Zarraga, Iloilo. Atty. Alex Espino was Vice President of the two enterprises. We became friends.
In 1991, Atty. Alex Espino was elected President of the Convention of Philippine Baptist Churches. I have a little share in making possible his winning the presidency of the Convention. For in most elections, whether in government, church, national associations, the ability to mobilized peoples vote were skills that were important. It can win elections, and put a person in position of power. In the elections, we secretly campaign for our candidates.
Atty. Alex Espino helped me became Jaz Cola distributor in 4 municipalties in North eastern Iloilo.
One time, I told him. “ Attorney, I would like to be a distributor of Jaz Cola. Please help me.”
He looked at me and said. “Oh, you want to be an entrepreneur? How about your ministry? Are you leaving your ministry?”
I told Atty. Espino. “Attorney, I want to follow the steps of Paul. He was a preacher. An evangelist. A missionary. And an Entrepreneur. He makes and sold tents houses wherever he was led by the Lord to work.”.
Atty. Espino said: “I’ll try. I will see what I can do.”
We continued making and distributing our Salted Peanuts and other products.
Boboy Sijuco and Atty. Espino were very good friends. During their studies in the College of Law, they became very close friends. A friendship that went on for many, many years. Boboy Sijuco was President of RC Cola & Jaz Cola Corporations. He closed RC Cola and started Jaz Cola
In March 1991. Atty. Alex Espino visited me. He was following up the operations in Iloilo. He told me, he will gave me the distributorship of Jaz Cola in four municipalities - Anilao, Banate, Barotac Viejo and San Rafael. I will be sole distributor for the area. He told me to get a Business Permit. And to get a delivery truck. Then, I can start.
I talked to Hesther. “We will venture into soft drink business. We will be distributor in the 4 municipalities for Jaz Cola. We will have no competitor. We will sell Jaz Cola to the 4 municipalities. These may be bigger opportunity.”
Hesther applied for a Business Permit. We called our business, “Bernal Designs Enterprises”. By this time, I have learned a little of Welding works. And have taught of making steel window grows for some homes. In case, Jaz Cola fails, we can go to a new business which a ready name. It was registered in Leganes but operates in Anilao, Banate, Barotac Viejo and San Rafael.
We asked a friend to join and be our partner in the salted peanut business and provide the jeep, which will be used two days a week for deliveries and collections. He will drive. And my niece, will serve as salesgirl and collector. He accepted our offer. And all were arranged.
Our Business Permit was approved in a week’s time. We have a jeepney, pulled out from Salted Peanuts works. We started Jaz Cola distributorship. We have about P 6,000 as roling capital –gasoline, oil, food of workers, etc.
Jaz Cola gave me a loan for 1,000 cases of Jaz Cola empties to start. That cost P92.00 per case. Total of P92,000 for 1,000 empty. It was our first loan. We will pay it in 24 months. We can add more Jaz Cola empties, under similar arrangements. We will asked deposits from the stores for every case that they will buy, also on instalment.
Jaz Cola Fulls, (with contents), we will pay with 7 days, post dated checks. The arrangement was workable. I thought it will work well.
I asked my brother, Norberto Bernal be our Salesman and driver. And a young man, as helper. We planned our areas and days for deliveries. Every day, we were on the road, except Sundays. Time for our saleman and helper to rest and worship.
Our jeepney can carry only 70 cases. The first week, we sold the 70 cases every day. The potentials for Jaz Cola was good. On the 2nd week to the 4th week, we picked up, the stock from the plant in Zarraga and delivered to our outlets. After our stocks were delivered, we went back to the plant for another load. Our daily sales increase. We can sell 100 to 140 cases daily. If we have a bigger delivery truck, we can sell 200 cases or more.
After six months, we decided to get a bigger delivery truck. We bought it on instalment from Jaz Cola Corporation. It was an ELF, with Diesel Engine. It has capacity to carry 200 cases per trip.
The ELF truck was now used for our deliveries. We have three personnels. A salesman –driver and 2 helpers. The jeepney was reserved for use in case of emergencies.
One reasons for good sales was the price. Jaz Cola. We sold it at retail price of P4.00 per bottle. Cola and Pepsi Cola were sold at P6.00 per bottle. .
The commission was also good. We got a commission of P10.00 for every case of Jaz Cola sold. For Family Size, we got a commission of P12.00.
For 200 cases sold daily, our sales daily was P14,000. We earn a gross income of P2,200 for that day. If we sold 200 cases a month for 26 days, our gross monthly income was P57,200. And P57.200 x 12 months = P686,400. These was our gross average income yearly.
From this amount, we pay expenses for truck payment, 2000 cases of Jaz emties, salaries and wages for saleman and 2 helpers, oil, diesel fuel and gasoline, food and snack for personnel, maintenance, promotions and advertising, incidental and unforeseen expenses. Daily we got about P1,000 income, after all our debts for the week were paid.
Our area of operations? The first 6 years, our area of distributorship were the 4 municipalities of Anilo, Banate, Barotac Viejo and San Rafael. We developed the market for Jaz Cola, up to the hinterland villages of these four municipalities
On our 4th year of distributorship, we saw potential to sell 600 to 700 cases daily. We bought another truck, a 2nd hand Hino Truck with Diesel Engine. We bought it for P400,000. Again we bought it on instalment. We pay P2.00 per Jaz Cola we buy from the company. The truck can carry 400 cases of Jaz per trip. With our 2 delivery trucks, we can sell now 600 cases daily. Sometimes more. Our income doubled. But our expenses also doubled. For we have two trucks and 6 personnel.
Eight years after we started Jaz Cola, the distributor for Ajuy, Concepcion, Sara, San Dionisio and Lemery decided to stop operations. He has a new business. The Jaz Cola manager offered us to take over distributorship for the 5 municipalities.We took the opportunity. And from 2001, our distributorship covered a total of 9 towns all in northern Iloilo. The last towns in the north were Lemery and San Dionisio. We have now 3 big delivery trucks, covering 9 municipalities. Our sales increased 3 times.
We continued our distributorship. Then in year 2002, RC Cola Philippines, which closed 5 years ago, came back. They established partnership with Mr. Boboy Sijuco again. They opened RC Cola at Jaz Cola plants in Cebu, Bacolod and Iloilo.
The company Manager talked to me. They will gave us the franchise to sell RC Cola in all the 9 municipalities covered by Jaz Cola. But it will be exclusive distributorship of RC Cola. We must get an RC Cola delivery truck. I talked with my wife Hesther. We considered the potentials and possibilities of the business.
We accepted the offer. We will distribute RC Cola in 9 municipalities of where Jaz Cola operates – from Anilao, Banate, Barotac Viejo, San Rafael, Ajuy, Concepcion, San Dionisio, Sara and Lemery. We bought the RC Cola truck, a Canter, diesel engine, from the company for P600,000. We bought it again, on installent. We pay daily, P2.00 per RC Cola we bought.
We have now 4 big trucks distributing Jaz Cola in 9 municipalities with an average sales 800 cases daily. Our average gross income daily was P57,600. Our gross monthly income was P1,497,600. And our grossly yearly income was P17,971,200.
We started our Jaz Cola soft drink business with P6,000 cash involved. It was courage and trust in God. And assistance from a friend, who gave us access to resources and finances. His power to make decision. With God’s help and continued guidance we expanded our Jaz Cola and RC Cola distributorship.
My wife, Hesther served as cashier and accountant. She was a commerce graduate. She assisted me and together we worked to build the soft drink business. It was a dream to build a small business that will provide us some income, for the schooling of our children. At the same time, provide employment to our relatives and friends.
As our business grow and our distribution grew, I developed a certain kind of fear. The kind of fear when one holds and carry big money, which was not our own. Some of co-distributors were held-up in their areas of operations. Some were in their homes.
I went to a Security Agencies, whose officer I knew. I applied as a Security Guard. I have to carry a gun, for security. He knew I was in Jaz Cola Business. I need a gun for protection. A licesnsed firearms, I can carry outside my residence. Since “agaw armas” was prevalent, I was given authority to carry firearms outside our office. I can bring it outside our home and in business.
When we rode our jeepney, Hesther just put the money inside a secret space in jeepney. I drove. In my bag was a gun. But, I am not sure, if I have the heart to fire it if needed. It seems my mind was not readied and prepared to fire a gun at a man. I prayed. “Lord, please be with us and protect us. Do not allow a holdupper near us. I am not ready to shot him if he came. Please do not allow him to cross our path and take the money that was not ours. It was the company’s money..”
When we reached the bank, I just leave my bag at the desk of the Security Guard. I whispered to him, please take care. There’s “stock” inside. For some years, I was pastor, an entrepreneur and a licensed Security Guard. Nobody knew, but Hesther, my wife, that I am a licensed Security Guard.
We met some unforeseen situations. One time, our delivery truck, an Elf was hit by a Tricycle driver with 2 passengers. The tricycle driver died on the spot. And 2 of his companions were brought in serious conditions to the hospital. The driver of the Tricycle has no Driver’s License.
During that time, I was in Makati. I was helping in the campaign of Boboy Sijuco in his congressional campaign in Makati. I was informed by telephone of what happened in Iloilo. The father of the diceaseddriver, negotiated only for help and assistance. The Insurance paid, about P50,000 to the family. We also gave the family P10,000a assistance.
In another occasion, one afternoon in a barangay in San Rafael, our delivery truck was going back to Barotac Viejo. Our truck was held up by 4 persons. They stopped the truck. The driver did not stop. His companions, who were on the front of the truck, shot at the drivers side. Three of our workers, including a friend who joined, were wounded. The hold uppers took P70,000 which was our sales that day. We spent P20,000 for medical expenses for our three personnel who, were wounded. They were in the hospital for 4 days. Just minor wounds.
These were some risks, we often met in business. It’s hard. But there were times, too, when all is well and normal.
Despite our big sales, often what is left daily was about P1,000 for our home expenses and childrens expenses in school. We worked hard. We look forward to the day, we will be able to pay all our debts and we will be earning sufficiently for our daily needs.
When the day comes and we have paid all our debts, with the good business we enjoy, we can earn about P100,000 a month distributing Jaz Cola and RC Cola in 9 municipalities with 4 trucks and 1 truck as reserved in case of emergency. I thought life would be, perhaps more easier, with at least P100,000 monthly income.
Unfortunately, Mr. Augusto (Boboy) Sijuco sold Jaz Cola and RC Cola. He first sold it to Cosmos Bottling Corporation. Then Cosmos sold it to San Miguel Corporations. Boboy Syjuco was running for Congressman in the 2nd District of Iloilo. He sold the 3 Jaz Cola and RC Cola plants in Cebu, Bacolod and Iloilo.
I asked him, why he sold Jaz Cola and RC Cola for it was earning. He answered. “Rudy, like a breeding pig, Jaz Cola is getting old. Soon, it will not bear piglets anymore. It’s time to change. I must start New business.”
The policy of San Miguel Corporation was different from the policy we were used. Many were change. And more. I think, the major reason, why Jaz Cola was bought? It was to strengthen the sales of Coca Cola. Jaz Cola, that time the major competitor of Cokes must be eliminated. After, I think, five years, no more Jaz Cola. Only one product of Jaz Cola remained. Sparkle Up. It remained until today. The major competitor of Sparkle Up, also a lime product, was allowed to die.
Our ventures in the soft drink business, which was growing to be a success, turned to a grim failures. Of the 52 Jaz Cola & RC Cola distributors in Panay, only one survived.
Our dream, and my co-distributors dreams of making a business with substantial income, providing income to relatives and friends collapsed.
We returned to the company 3 of our delivery trucks. We returned also our Empties to the company. We have 1 delivery truck that was fully paid. We sold this to start another business.
My co-distributors went to farming -rice and corn, some poultry, fishing, swine raising, banana farming. fruit trees, pine apple, retail marketing, vegetable farming, RTW, constructions and other lines of businesses. Jas Cola and RC Cola were forgotten. It remained in our memories.
Part of the series The Ministry Years (chapter 34 of 48)
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