WHEN you’re down and out, a scoop of ice cream may be all that’s needed to bring much-needed cheer.
The frozen, flavorful concoction is actually scientifically proven to help ease the blues, and even get you through boredom or stress. That’s because eating ice cream releases serotonin, a body chemical referred to as one of the “feel-good hormones.”
Moreover, a half-cup serving of ice cream alone can deliver 5 grams to 9 grams of protein, which can help prolong the feeling of being full, while boosting energy levels. Loaded with goodness, ice cream also contains calcium, potassium and magnesium, which help maintain healthy blood-pressure levels. Other nutrients found in our favorite frozen delight include Vitamin A, Vitamin B6, thiamine, riboflavin and phosphorus.
Whether it’s summer or beyond, ice cream is a perfect treat for any season. On a sunny day, especially during the hot and humid months, cool off with a delicious scoop of your favorite flavor; while during the colder seasons, float your fancy with a favorite crepe topped by your favorite flavor of ice cream.
In the Philippines, ice cream is enjoyed the whole-year-round, any time of the day. Other than those available in groceries and supermarkets, Filipinos make do with the neighborhood treat called sorbetes being peddled by ambulant vendors, just to savor the refrigerated delight.
‘Homemade experiment’
IN terms of the more “premium” or “branded” ice cream, several come to mind. One of them would be Arce Dairy, which traces its roots back in the 1930s, when Ramon Arce started pasteurizing carabao (water buffalo) milk in Novaliches. Back then, he was selling and distributing fresh milk in bottles under another recognizable brand name: Selecta.
The story goes that while Ramon marketed the branded milk to residences, restaurants and offices, his wife Carmen concocted their own ice cream recipe made from carabao’s milk. The couple subsequently decided to turn their “homemade experiment” into a business and sell them to retail customers by 1948.
These products became the foundation of the family’s Selecta business, which later included the Selecta restaurants (the biggest branch of which stood alongside Aristocrat Restaurant in Roxas Boulevard back in the day).
By the 1970s Selecta ice cream and fresh milk were still sold in supermarkets despite Arce’s retirement in 1950.
In January 1990 RFM Corp. acquired the Selecta trademark and established Selecta Dairy Products, Inc. to take over the mass production of Selecta ice cream. Under RFM, the ice cream recipe eventually shifted to cow’s milk using plastic tubs as containers. With aggressive marketing and advertisement, it surpassed the popularity and sales of the market leader at that time.
As Selecta penetrated the ice cream markets of classes C and D by offering the product at a much lower price, its position as a high-end brand started to wane.
With this development, the Arce family decided to revive the well-loved ice cream brand to the market, which had only the best, natural ingredients: fresh carabao’s milk mixed with local fruits and nuts, among others.
It was in January 1995 when Mauro Arce, the youngest of Ramon and Carmen, revived the family’s ice cream business under a new brand name: Arce Dairy. Now under the company name Arce Foods Corporation operating at the original family-owned plant at Selecta Drive in Quezon City, the brand is being managed by third- and fourth-generation Arces.
At the helm of the family biz are the uncle-buddy-sports tandem of Ariel Ramon A. Arce as vice president for operations, and Edwin S. Arce as marketing head. Ariel is the son of the company’s current president Faustito Arce, who in turn is a sibling to Edwin.
“We added many variants courtesy of my sister Rossanna, a food technologist by profession. She has been in charge of research and development since then. We now have [more than] 40 flavors,” Ariel beamed with pride.
A renaissance of sorts
ACCORDING to Edwin, he and Ariel are almost of the same age and grew up together as classmates and teammates in basketball and track-and-field.
“All the sports competitions that we joined together, we emerged as champions. We have a good combination, which we are bringing here at Arce Dairy. During our childhood days, we played right here at the plant, and we learned the business at a young age, Edwin related. “We would be getting ice cream straight from the machine right into to our cups, and our parents would ask us: ‘How does ice cream become frozen? What makes it melt?’ Without actually knowing it, we were being taught about the business,” Ariel did not join the company until 2011 when his dad asked him to oversee the operations to find out the reason the company barely made break-even.
When he took over the operations, it only had two trucks for deliveries, and its monthly electricity bill averaged P1 million, which is too costly for a 4,000-square-meter ice cream facility.
To bring down the costs, the VP for Operations implemented several remedies, one of which was to produce ice cream on a day-to-day basis. Majority of the output for the day was loaded into the trucks for deliveries early the next day.
Another tactic was to manufacture whatever has been ordered for the day and deliver them within 24 hours. They barely stock ice cream to this day.
“By doing so, the company limits the use of freezers in the factory, thereby reducing our electricity consumption,” Ariel explained.
And it worked. In two-months’ time, the company’s electricity consumption was reduced to 60 percent. The huge savings on electric bills opened up many opportunities for the company to generate more profits, which allowed them to purchase modern ice cream machinery.
With the new pieces of machinery, Arce Dairy’s production tripled in 2015 and is now making an average of 3,000 gallons of ice cream a day. Moreover, the company now has 10 freezer trucks that deliver ice cream products in Metro Manila and in some parts of Luzon. Ariel proudly stated he purchased the vehicles solely through the company’s income, and without incurring debts.
Currently, Arce Dairy supplies to hotels, schools and cafés, but its biggest distributors are the supermarkets. The company also exports to the United Arab Emirates, Qatar, Japan and Hong Kong. It is also currently finalizing details for penetrating the US and China markets.
“More important, we now give bonuses to our people. They enjoy midyear and Christmas bonuses, aside from the 13th-month pay and other dividends. From 90, we now have more than 170 employees. Most of them and their families live within the Arce compound,” the vice president shared.
Special ice cream
FROM its early years and up to now, Arce Dairy puts a premium on its ingredients. For generations, Ariel and Edwin said, it is the family’s pride to produce the best-tasting ice cream in the country, as the main ingredients are sourced from the local dairy industry, while fruits and nuts come from Filipino vendors.
“Arce Dairy is the only local ice cream company which uses fresh carabao’s milk and fresh, real fruits—not puree or flavoring. By having natural ingredients, we are on the healthy side,” Ariel and Edwin emphasized.
“Right now, we are also developing the ‘no-sugar added’ line. Calling it sugar- free or low sugar would be [misleading,] because the fruit itself has sugar,” he added.
Moreover, the VP said they are also starting to work their way into the middle class and lower-income consumers, while ensuring they will still enjoy the superb quality of their products.
Their newest offering is a drumstick line called “Drummies,”. This is also marketed for the millennials as well, which Ariel described casually as “isang dampot, isang kain: ubos,” that would be ideal for convenience stores.
Ariel said the first three flavors—the all-time favorites vanilla, mantecado and avocado- remain to be the best sellers (the first one being the top). The mouthwatering strawberry banana variant is picking fast as well, while the dark-chocolate ice cream exudes a dreamy feeling, along with a moist chocolate cake enjoyment.
“We also have the famous matcha ice cream, as well as the durian flavor,” then he beamed with pride: “Do you know that President Duterte only eats our durian ice cream nowadays? He has stuck with our brand since he tasted Arce Dairy.”
The brand, therefore, has earned the preference of the presidential palate.
Invigorated company’s plans
Edwin shared that their company has already acquired two machines from Italy that can produce 800 liters of ice cream an hour.
“With those machines, the amount of ice cream that we churn out for a day can be done in two hours. That’s why we really can produce more.”
He added: “With that, our next plan is to increase our storage area. Our compound is [all of] seven hectares. We need [to have] our storage right here to save on rent as well to make handling [of the products] efficient. Once everything is in place, with bigger production and storage, maybe in two years’ time, we can ‘go public.’ Going into the IPO (initial public offering) or stock market launch is in the pipeline, actually,” the VP revealed.
“Our scooping stations in Glorietta, Shangri La and Greenhills are doing very well, those are all managed by Eloisa Arce Romero and Armida Arce Jiminez.” Ariel added.
We are also considering franchising for our business.We might as well base the franchising model there,” he further stated.
Ariel’s time and energy are dedicated to make Arce Dairy “the country’s greatest company and best ice cream brand” in the years to come.
“The real secret of a successful business is being hands-on and being present in the business at all times. Owners or business operators need to be there to oversee their business. They need to work alongside the people, the employees and learn more with them. That way, big mistakes are avoided, while minor errors are readily corrected,” he explained.
“That’s what I have been telling my staff: I expect your concern for the business the same way that I am concerned with you and your family.”
He went on to say: “You see, they have been living here within the compound all these years. Their children automatically become our employees when they reach the legal age. Our employees can come directly to us bosses for their concerns. There’s no need to go through the manager or supervisor.”
Asked what made Arce Dairy the formidable company that it is for so many years, Ariel opined: “For me, the key for a successful business is genuine concern within the entire organization. Malasakit.”
2 comments
I would like to sell your products in my resto, how can i avail?
Franchising issue.
Pls. Can i have it as a small business.
Thank you.