A Philippine tobacco company has reaffirmed its statement that there’s no irregularity or any sort of fraud on how they are able to sell cigarettes at a lower price compared to their competitors. “We keep our costs low, while the competition has very high costs,” Oscar Barrientos, Executive Vice President and Spokesman of Mighty Corporation explained why his company is able to offer their products for as low a P1 per stick.
“We’re not selling at a loss; we’re gaining. Why should we continue our business at a loss? Assuming we’re losing, why should the competition be worried? Actually, we’re making reasonable profit. Our concept of gain is not only measured in peso signs; having been patronized by our loyal customers in the low-priced market, we feel duty-bound to keep our price low owing to our company’s nationalistic anchor,” Barrientos also pointed out.
He also added that the Bulacan-based cigarette manufacturer owned by the Wongchuking family is satisfied with low profits while the other brands are gearing towards gaining a very high profit. Mighty Corp also has no foreign equity and no foreign brands that’s why they do not remit any royalty to any foreign headquarters and do not maintain any high-salaried consultants.
Mighty Corp is a small company established in the 1940s. It was the producer of La Campanilla, Magkaibigan, Campana Ringing Bell and other local brands which are totally and truly Filipino. The company feels that providing the Filipino consumers an option of lower priced but quality products is sort of giving back to their customers through the years.
Barrientos mentioned that their company is not a stranger in the low-priced cigarettes business that is why it was not hard for Mighty Corp to solidify its base, enhance its core competencies and work out on its forecasts the migration of a big chunk of smokers who were faced with three choices: quit smoking, smoke less frequently or look for low-priced alternatives.
The toba@cco company executive shared their business strategy to prove that the allegations that Mighty Corp may have committed fraud is unfair, baseless and malicious. As a retired judge, Barriestos also said that fraud is a serious offense and as such, it should be proven by complete evidence, adduced in an impartial investigation, conducted by a competent authority, with due regard to the due process requirement.
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