Firm opens ‘beer below zero’ technology to franchising overseas
Global Beer Zero Inc., which invented the “beer below zero” technology and is packaging it as a service to restaurants, is now targeting the franchising of its business in 10 countries until next year even as they face a strong local demand.
Company president Luigi C. Nunez told reporters they have to start their international forays otherwise other groups are going to do it. The company has invested a total of P10 million for freezers, refrigeration technology and working capital for this new venture.
These countries include Guam, Singapore, Japan, US, Hong Kong, Palau, Saipan, Tinian, Malaysia, Vietnam, Indonesia and India although inquiries also come from other countries including Israel, Hawaii.
“If we will not do it then somebody will do it,” Nunez said noting they have a lot of inquiries from other countries to tap their technology and services for them to be able to serve beer at below zero temperature.
The first country that Global Beer will go to is Guam, which is expected to be opened late this month or early November this year, under a joint venture agreement. Singapore is their next destination.
Nunez said the expansion abroad would be done mostly via straight franchising arrangement per territory.
Beer zero has gained popularity among beer drinkers after it was introduced in the market for a year and a half already. It has reached as far as Bacolod and the company is now gearing to introduce it in Cagayan de Oro.
So far, the company has already covered 70 establishments but is not expanding aggressively so as not to overcrowd the market and to assist their clients as well. The company is limiting their expansion locally to 20 outlets a month only.
An establishment is required a minimum sales volume of 200 cases a month for it to qualify for the beer zero service. Each freezer has the capacity to store a maximum of 17 cases at one time.
The company has also deployed 125 freezers to their clients although San Miguel Corp., the biggest beer producer in the country, has over 3,000 key accounts in Metro Manila alone.
The freezers, which are modified to be able to produce minus 5 to 8 degree celcius beer, is provided free of charge to the qualified establishment together with the company personnel to man the service.
But Global Beer derives its income from the additional P5 to P10 charge per bottle of below zero beer irregardless of brand. The return on investment for each freezer is expected in six months.
Establishments that also offer beer zero are experiencing 35 percent increase in their volume sales. San Miguel beer also accounts for as much as 85 percent of the total beer zero sales although the Asia Brewery Inc. has a strong presence in the Cebu area.
Nunez also said the company has already applied for copyrights protection in the country as well as in Singapore and in other parts of the world to protect its business concept.
“We cannot prevent copycats but our consistency will set us apart. The equity would still come back to beer below zero,” Nunez said.


