BAYANI BREW:

An Analysis on Social Entrepreneurship

In partial fulfillment of the requirements for

BUS560M - Lasallian Business Leadership, Ethics, PREPARED BY:
and Corporate Social Responsibility
Arcega, Win
26 February 2019 Reyes, Rene
Joseph
Roque, Jeremias
Jr
Tan, Kevyn
Aldrich

SUBMITTED TO:

Dr. Mary Margaret

Que
Bayani Brew: A case study on the social enterprise

SYNTHESIS

With the beverage industry in the Philippines already saturated, Antonio “Tony”
Melato, founder of Gawad Kalinga (GK), saw the potential for a locally produced Filipino
Native Tea Beverage which would later on be called “Bayani Brew”.
Bayani Brew’s roots can be traced back to Linda Maningas, one of the mothers of
Gawad Kalinga. Linda would serve Native Tea (Tsaang Bukid) to GK Volunteers who would
do volunteer work. Her recipe and the tradition of serving Native Tea to volunteers would be
passed on to the next generations. This Native tea was further improved and transformed
into a new and exciting ready to drink bottled beverage.
Led by the so-called “Brew Crew”, Bayani Brew was founded on October 2012 by 3
co-founders. These 3 co-founders are: Ron Dizon, an IT Executive who quit his job, Shanon
Khadka, a lawyer who was on a career break, and Xilca Alvarez, a Gawad Kalinga Worker
who manages farm-based businesses. The 3 worked tirelessly to turn their mission of
helping improve the lives of the farmers into a reality.
Bayani Brew is a social enterprise brewing specialty teasan beverages that
advocates sustainable sourcing from small local farms. Their products are made from
organically-grown ingredients. Instead of using regular tea leaf (Camellia sinensis) which
does not grow much in the Philippines, they use organically-grown local ingredients such as
lemongrass (tanglad), sweet potato tops (talbos ng kamote), pandan, and moringa
(malunggay). These crops are climate-resilient which is advantageous for farmers, making it
less risky for them to grow. The company also purchase these low-maintenance crops at
higher-than-market price to transform them into higher-value goods as key ingredients in
their specialty drinks. (Bayani Brew, 2018)
The drink was quickly accepted by the market and became a hit. As soon as it was
launched, it was introduced to a lot of different shops (Human Nature)and was sold on
different platforms such as the social media.
The product got its break when it was featured in ABS-CBN’s Kris TV, a TV Segment
hosted by the popular Ms. Kris Aquino. Public awareness rose and inquiries about the
product started to soar.

POINT OF VIEW
Bayani Brew: A case study on the social enterprise

This case study will take the point of view of the co-founders of Bayani Brew: Ron
Dizon, Shanon Khadka, and Xilca Alvarez.

STATEMENT OF THE PROBLEM

How can Bayani Brew sustain its momentum and penetrate the market further to create
a more sustainable social enterprise?

STATEMENT OF OBJECTIVES

AREAS OF CONSIDERATION (ANALYSIS AND ASSUMPTIONS)

Theoretical Framework

A social entrepreneur is defined as a person who pursues innovative efforts that have the
potential to solve community-based problems. These individuals are willing to take on the
risk and effort to create positive changes in society through their initiatives. (Investopedia,
2017)

Their business approach is called social entrepreneurship. It aims to effectively respond to

social problem by developing, funding and implementing solutions – which can also extends
from social to cultural and/or environmental issues. (PBS.org, n.d.)

Social enterprises demonstrates good business practices such as:

● Clear social or environmental commitment
● Reinvestment of profits in their mission
● Accountability and transparency
● Participative or democratic governance or ownership

This is a model where social mission sits at the heart of a business – pursuing purposes
which combine prosperity, people, and planet. Social enterprises work to address inequality,
Bayani Brew: A case study on the social enterprise

sharing the gains from trade more equally while generating growth, jobs, and wealth.
(Gregory, Holbrook, Woodman, & Angel-Urdinola, 2015)

The British Council and Social Enterprise UK with support from the World Bank makes a
clear case for the important role that social enterprises can play in driving sustainable and
inclusive development, tackling inequality, and helping to address some of the biggest
social and environmental challenges. (British Council, n.d.)

A report entitled A Review of Social Enterprise Activity in the Philippines finds that social
enterprise is vibrant and growing in the country, awareness is rising, and the country is on
the cusp of important policy changes that could see social enterprise have a much wider
presence and impact in coming years. (British Council, 2015)

In recent years, despites achievements in GDP growth, the social economic

situation in the Philippines has still faced a number of dif culties including
natural disasters, high unemployment and poverty. In order to assist the
government in solving social problems, dedicated businesses have established
new social enterprises operating under the business model. These are in addition
to the traditional model of social enterprises as non-governmental organisations
and charities, with each aiming to use pro ts from activities to invest and
support people in sustainable poverty reduction. According to statistics, it is
estimated that there are more than 80,000 social enterprises in the Philippines,
divided into three groups (cooperatives, NGOs, and businesses), operating in
various sectors such as production of consumer goods, education, healthcare
and fashion
Bayani Brew: A case study on the social enterprise

Job creation is not the only economic benefit of entrepreneurial activity.

Research has repeatedly shown that it fosters creativity and innovation. New
products and services are created and commercialized (van Praag & Versloot,
2007). While entrepreneurs may not always be the inventors, they are the ones
who assemble the resources and manage the risks required to get these products
and services to the markets that need them.

SWOT ANALYSIS

STRENGTHS WEAKNESSES
● Social Enterprise business model ● Spoilage of products
● Organic and Healthy products ● Market penetration and distribution
● 100% Filipino made challenges

OPPORTUNITIES THREATS

● Encourage more farmers to see ● Stiff competition across RTD industry

potential in agribusiness ● Forecasted slow retail volume due to
● Market reach on regional areas maturity in market category of RTD
● New product innovation

ALTERNATIVE COURSES OF ACTIONS

THE GROUP ARRIVED AT THE FOLLOWING COURSES OF ACTION TO ADDRESS THE

SITUATION. FROM THE ANALYSIS OF THE CASE, PROS AND CONS WERE IDENTIFIED AS LISTED

BELOW:

ACTIONS PROS CONS

Bayani Brew: A case study on the social enterprise

ACA 1: ● TARGETED ● MARKET REACH WILL

DISTRIBUTION OF BE LIMITED.
IDENTIFY AREAS WHERE SALES
PRODUCTS ● SPOILAGE OF
ARE HIGHER AND CONCENTRATE
● PROFIT MAXIMIZATION PRODUCT
ON DISTRIBUTION

ACA 2: ● INCREASE MARKET ● QUALITY OF PRODUCT

SHARE MAY BE SACRIFICED
SETUP REGIONAL PLANTS TO
● LESSEN SPOILAGE OF ● CHALLENGE IN
INCREASE MARKET REACH AND
PRODUCTS OPERATIONS
LESSEN SPOILAGE OF
● REGIONAL MANAGEMENT
BEVERAGES
DISTRIBUTION AND

LOGISTICS WILL BE

FASTER/CHEAPER

ACA 3: ● INCREASE MARKET ● SPOILAGE OF

SHARE ON RURAL PRODUCT
PRODUCE SMALLER
AREAS ● LOGISTICS AND
CONTAINERS TO REDUCE UNIT
● ENCOURAGE SARI-SARI DISTRIBUTION COST
PRICE AND ATTRACT MASSES IN
STORES TO CARRY WILL INCREASE
RURAL AREAS
THEIR BRAND

THE PROS AND CONS GAVE US A BETTER PICTURE ON WHAT WILL BE THE BENEFITS AND

CONSEQUENCES ON EACH POSSIBLE COURSE OF ACTION THAT THE MANAGEMENT MAY

CONSIDER.

*GUYS, NEED YOUR INPUT ON THE DECISION CRITERIA WE WILL USE AND THE IMPLEMENTATION
PART
Bayani Brew: A case study on the social enterprise

ACA CRITERIA % ACA 1 ACA 2 ACA 3

TOTAL 100%

RECOMMENDATION
Bayani Brew: A case study on the social enterprise

IMPLEMENTATION PLAN
Bayani Brew: A case study on the social enterprise

LEARNING POINTS

REFERENCES
Bayani Brew: A case study on the social enterprise

Bibliography
(2018, March 27). Retrieved from Bayani Brew: https://bayanibrew.com/why-we-brew-what-we-brew/

British Council. (2015). A Review of Social Enterprise Activity in the Philippines. Pasig City: British Council
Philippines. Retrieved from
https://www.britishcouncil.ph/sites/default/files/social_enterprise_activity_philippines_0.pdf

Mclean, B. (2017, May). How Wells Fargo’s cutthroat corporate culture allegedly drove bankers to fraud.
Retrieved from Vanity Fair: http://www.vanityfair.com/news/2017/05/wells-fargo-corporate-
culture-fraud.

Nelson, K. A., & Treviño, L. K. (2011). Managing Business Ethics: Straight Talk About How To Do It Right.
John Wiley & Sons, Inc. . Retrieved from https://learning.oreilly.com/library/view/managing-
business-ethics/

PBS.org. (n.d.). What is a Social Entrepreneur? Retrieved from PBS:

http://www.pbs.org/now/enterprisingideas/what-is.html

Porath, C., & Pearson, C. (2013, January 18). You’re Rude Because Your Boss Is Rude. Retrieved from
Harvard Business Review: https://hbr.org/2013/01/youre-rude-because-your-boss-is

Wells Fargo. (2009). Wells Fargo & Company Annual Report 2009. Retrieved from Wells Fargo History:
https://www.wellsfargohistory.com/download/annualreports/2009annualreport_wf.pdf