Asia Brewery Inc. (ABI), a unit of the Tan-led conglomerate LT Group Inc. (LTG), is set to invest up to ₱1 billion to build a factory in Laguna province to produce shelf-stable yogurt, expected to be the first of its kind in Southeast Asia.

The investment will be made under ABI Pascual Foods Inc., the joint venture (JV) between ABI and Spanish dairy manufacturer Calidad Pascual.

Pascual Foods, the company behind the popular line of spoonable yogurts and yogurt drinks, currently imports its products directly from Spain.

The main objective of investing in a local facility, according to ABI President Michael Tan, is to end importation altogether and instead manufacture the dairy products locally.

“We plan to put up a new factory here so that we don’t have to import. So it will be locally produced, and also this factory can export to ASEAN [the Association of Southeast Asian Nations] and beyond,” Tan told reporters.

Tan said the factory would ramp up Pascual Foods’ production, generating more jobs and boosting the income of local dairy farmers in the process.

He also said it represents a major breakthrough for the Philippines and the broader ASEAN region, as the facility will produce aseptic yogurt.

Aseptic yogurt refers to a type of yogurt that has undergone a sterilization process, allowing it to have a longer shelf life.

Tan said consumers would no longer need to worry about potential spoilage with this type of yogurt, unlike fresh yogurt, which typically lasts only 30 days.

Construction of the facility is scheduled to begin within two years and will rise in Cabuyao City, Laguna. This will be a greenfield project, meaning the company will build from the ground up.

Building another facility is not yet on the horizon, as any expansion will primarily hinge on demand for the yogurt products.

Since the start of Pascual Foods’ operations over a decade ago, Tan noted that it has seen strong demand among local consumers, even though yogurt is not traditionally part of their daily diet.

“People are becoming more aware,” said Tan. “Filipinos are learning how to eat yogurt because people usually drink it.”

Tan said the facility also aims to help address child malnutrition in the country through its production of nutrient-rich products that support physical growth, strengthen immunity, and enhance mental development.

ABI is also known for its alcoholic beverages such as beer, alcopops, and hard seltzer, as well as non-alcoholic beverages, including water, energy drinks, soft drinks, and soymilk.