Financial Adviser: 5 Business Lessons Everyone Can Learn from the Founders of Arce Dairy

Few Filipino food brands carry the kind of heritage and nostalgia that Arce Dairy has built over the decades. Known for its rich ice cream made with fresh carabao’s milk, the company has become one of the country’s most recognizable premium dairy brands, with products that generations of Filipinos have grown up with.

The Arce family had been part of the Philippine dairy industry for many years and became known for producing rich, high-quality ice cream and dairy products. Their focus on quality and traditional methods helped establish the family as one of the pioneers of the local ice cream business.

After the sale of the Selecta brand in the early 1990s, members of the Arce family returned to the industry by establishing Arce Dairy in 1995. The company continued many of the same values from the family’s earlier dairy business, particularly its focus on fresh ingredients and traditional recipes.

Over time, Arce Dairy built a loyal customer base through its local flavors. The company gradually expanded its presence through supermarkets, restaurants, hotels, cafés, and specialty stores nationwide.

Despite increasing competition from multinational food companies and large-scale manufacturers, Arce Dairy continued to position itself as a heritage Filipino brand focused on quality rather than mass production.

The business traces its roots to Don Ramon Arce and Doña Carmen Arce, who started the family’s dairy venture in the 1930s. The business was later expanded by their son, Mauro Arce, and his siblings, with Mauro playing a major role in developing the family’s ice cream operations. 

Today, succeeding generations of the Arce family continue to manage the business, including siblings Maurita Arce and Edwin Arce, children of Mauro Arce, as well as Ariel Arce, current president of Arce Dairy and son of the late Faustito Arce, Mauro Arce’s eldest son.

More than 90 years since the Arce family first entered the dairy business, Arce Dairy remains one of the most respected names in the local dairy industry.

Managed by succeeding generations of the Arce family, the company continues to preserve its identity while adapting to changing consumer preferences and modern retail channels.

How did the Arce family manage to preserve its heritage and remain relevant in an increasingly competitive food industry? And what lessons can entrepreneurs learn from building a brand around authenticity, quality, and tradition in a rapidly changing market?

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Here are the business lessons entrepreneurs can learn from the story of Arce Dairy:

Many family businesses struggle or fail after the founder’s generation because knowledge and operational experience are not properly passed down.

One of the biggest reasons succession matters is the preservation of institutional knowledge. In many businesses, especially those built over decades, important lessons are learned through experience rather than written manuals. These include understanding customer preferences, maintaining product quality, handling suppliers, managing employees, and making decisions during difficult periods.

Preparing the next generation also helps preserve the culture and identity of the business. Family businesses often develop unique values and ways of operating that distinguish them from competitors. Without proper training and exposure, succeeding generations may lose the discipline or long-term mindset that originally helped build the company.

One of the most striking lessons from the story of Arce Dairy is how the business was passed down through hands-on learning across generations rather than through formal succession plans. 

The foundation started with Don Ramon Arce and Doña Carmen Arce in the 1930s. What began as a simple effort to help a child suffering from asthma eventually evolved into a dairy and ice cream business. But more importantly, the business became an environment where the next generation learned by direct exposure.

Mauro Arce did not inherit the business through a title alone. As a young boy, he spent time watching his parents produce milk and make ice cream. According to the family, Mauro was only around 13 years old when he regularly observed his mother making ice cream and helped his father with the operations. Over time, this constant exposure developed into genuine passion and deep product knowledge.

This is an important insight for many family businesses. Successful succession often starts long before the leadership transition happens. The next generation develops commitment not simply because they are heirs, but because they become emotionally connected to the business through participation and experience.

In Mauro’s case, he became self-taught through years of immersion in production and day-to-day operations. This eventually allowed him to expand the ice cream side of the business and help transform it from a restaurant dessert into a standalone commercial product.

The same pattern continued in the next generation. Mauro later trained his eldest son, Faustito Arce, by involving him directly in the business. Ariel Arce recalled that his grandfather, Mauro, regularly brought Faustito into the operations and included him in building the ice cream factory and expanding production. This showed a culture of apprenticeship inside the family.

What makes this succession approach notable is that knowledge transfer happened gradually over decades. Instead of separating younger family members from the business, the older generation immersed them early in operations, production, and decision-making. The business became both a livelihood and a training ground.

Eventually, the process continued into the next generation through Ariel Arce, son of Faustito Arce, who now serves as president of Arce Dairy.

“Noong 1935, ang lolo ko si Don Ramon at yung asawa niya, si Donya Carmen, merong kasi silang anak na may sakit na asthma. So the doctor advised them that the cure is yung fresh air. So doon sila tumira sa Novaliches, noon kasi, you know, parang province pa doon. 

Kasi yung lugar dun, maraming carabao’s milk, so ang lola ko noon, siya yung nag-ano ng gatas, siya ang gumawa para sa anak niya, siya nag-pasteurize, so nagkaron sila ng maraming carabao’s milk. Kasi open naman dun eh. 

Then my lolo, he was working sa Malacañang and also sa Congress. Stenographer siya ni President Quezon, so marami siyang friends na Americans. It was during that time, nagdala siya ng gatas, nagustuhan ng mga Amerikano, so dun nag-start. Nagkaron ng idea na gumawa ng gatas. Gatas pa lang yun. And then, later on, gumawa ang lola ng ice cream para sa bisita lang na mga Amerikano. Ang nagawa niya lang na flavor noon ay macapuno. Yung gumawa sila ng  ice cream, yung mga Amerikano natuwa, so nagdala sila ng machines na galing sa States para gumawa ng ice cream para sa kanila. 

So diyan nag-umpisa yung ice cream pero pa hindi namin binebenta ice cream nun. Yung ice cream nun ginagawa lang dessert ng mga bisita ng lola, hanggang sa maitayo yung restaurant nila. Nung natayo yung restaurant ginawa ngayon dessert nung restaurant yung ice cream. 

Nung time na yun, hindi pa rin kami nagbebenta ng ice cream noon. Ang tinayong restaurant noon, Selecta ang pangalan sa Roxas Boulevard, Dewey Boulevard pa noon, dalawa lang sila ni Aristocrat noon, then another one in Ascaraga, which is Recto now. Yung restaurant nila, medyo harap nila yung US Embassy, so paglabas ng mga Amerikano sa US Embassy, pupunta sila sa Selecta restaurant. Naging puntahan sila ng mga Amerikano. That was before the war pa.

So after the war, ang lolo ko very ma-PR yan, maganon. Daming kaibigan. Nung mga time na yun, sya nagpa-pasteurize, siya gumagawa kasama niya yung anak niya si Mauro, Daddy ko, ang nakakatulong niya. I think my daddy was just a little boy that time, about 13 years old. Parati siya nagbabantay doon sa lola ko. Parati siya nanonood gumawa ng ice cream. 

He had this passion na gumawa ng ice cream. Gustong-gusto nya makita, self-taught ang daddy ko eh. Yun ang passion nya. Ang reason diyan ang daming may gusto nung ice cream. Pag kumakain sa restaurant, gusto nila yung ice cream, so bakit hindi ibenta? Magaling nga sya magnegosyo eh. Tapos nagkaron din kami ng farm. He raised carabaos. Dun namin kinukuha yung gatas. Ang pangalan niya Selecta Arce Farm,” Edwin says.

“So after the war, naisip na ng lolo ko na si Mauro, magbenta ng ice cream. Doon na sila nagdagdag ng flavor. Naisip na nila magbenta kasama niya yung anak niya si Faustito na Daddy ko. Sila nagtayo ng factory ng ice cream. Ang lolo ko, sinasama naman niya palagi ang daddy ko,” Ariel says.

In many long-established businesses, the real strength lies in the trust, reputation, and customer loyalty built over decades.

When a heritage brand is sold, many entrepreneurs assume the story ends there. But in reality, the deeper legacy of a business may still remain with the people who built it and carry the original philosophy behind it. This is why some founders or succeeding generations eventually attempt to revive a business under a new identity.

One important reason for protecting a legacy is continuity of identity. Customers often associate heritage businesses with certain values and experiences. If these qualities disappear after ownership changes, loyal customers may feel disconnected from the brand. By building a new business around the original principles, founders can preserve what customers valued in the first place.

Another reason is the preservation of institutional knowledge. In many family and founder-led businesses, knowledge is deeply personal and experience-based. It includes understanding product quality, customer behavior, and even subtle production techniques developed over many years. These are not always easily transferable during acquisitions or ownership changes.

The Arce family could have completely exited the ice cream business after the sale of Selecta. In fact, the family lost the right to use the Selecta name and even agreed not to operate an ice cream business for several years because of contractual restrictions. For many entrepreneurs, that kind of transition would have marked the end of the story.

But what makes the Arce family’s experience notable was their decision to preserve the core of the business even after losing the original brand.

One of the clearest signs of this was Mauro Arce’s insistence on retaining the corporation, factory, and land where the operations were located. This showed that he understood the long-term value of the business infrastructure and operational capability. While brands can be sold, the deeper foundation of a business often lies in the production knowledge, supply chain, facilities, and people who know how to create the product.

Another important insight was the family’s patience during the transition period. While waiting for the non-compete agreement to expire, Mauro continued operating Selarce Farms and focused on dairy production. Instead of abandoning the industry completely, the family preserved its connection to the supply chain and core business activity. This helped maintain continuity and kept the business ecosystem alive even during a difficult transition.

The decision to create the Arce Dairy brand was a powerful strategic decision. Rather than building an entirely unrelated brand, they leveraged decades of accumulated goodwill tied to the Arce family name. In effect, they transformed family reputation into brand equity.

“When my grandparents came up with the name for their restaurant, it was supposed to be Delecta for delectable. Nagpa-print ng sign board for Delecta, pero nung pina-print na, ang dumating Selecta. Eh ang ganda nung pagkalagay, maganda naman pakinggan, so ginawa na lang nilang Selecta yung name ng restaurant.

Yung ginawa yung ice cream, it was part of the family corporation pero yung mga nagtatrabaho noon sa factory ay si Mauro, my father, and mga anak niya, kasi his siblings were supposed to run the restaurant business.” Maurita says.

“Yung nawala na yung restaurant, lahat nag-concentrate sa isang negosyo, yung Selecta ice cream, until one day, nag-decide ung mga kapatid ng father ko to sell the business. So ang daddy ko, lahat kami, kasi we were involved in the ice cream factory, nalungkot kami.

Because ang dad ko, gusto niyang i-perpetuate yung ginawa ng lolo ko eh. Gusto niya ipagpatuloy, pero ang daddy ko sinasabi niya dati, ‘bayaan mo na, bayaan mo na pero hindi ako papayag na hindi natin makuha ang korporasyon, at ang lupa at ang factory’, in short, nung nabenta ang share niya, ang ibinayad lupa where the factory was located,”Edwin says.

“Yung nawala yung Selecta, sabi ng daddy ko, si Faustito na anak ni Mauro, kaya natin yan. Tayong nakakaalam’ Eh kasi siya mismo yung gumagawa eh, at saka yung tumutulong sa kanya, yung assistant niya, e yung asawa nya. Yan yung Mommy ko.," Ariel says.

“Pero may contract kasi hindi kami puweede mag-business ng ice cream for a number of years, so ang daddy ko, si Mauro, pinatuloy niya ung pagtakbo ng Selarce Farms, meron kasi kami mga carabaos. Binebenta namin yung gatas sa labas sa mga [Indian nationals]. Mga [Indian nationals], ang daming may gusto niyan. Ok naman yung naging negosyo, it was sufficient enough para makapag-sweldo ng tao and makabili ng pagkain.

Siguro mga after four years yata, in the 1990s, yung nag-expire na contract at puwede na kami ulit gumawa ng ice cream, itinuloy na namin. Yung daddy ko, si Mauro at yung daddy ni Ariel, si Faustito, ang magka-team na nung huli kasi gusto nilang ituloy.

Pero nasa contract kasi we can not use any name similar to Selecta or even sounds like Selecta, so what name can we use? Sabi ng kuya ko, si Rudy, Rodolfo Arce, ‘Ito yung may-ari, ito yung orig eh di ba?' Sabi niya. 'Alam mo Arce is synonymous to Selecta, kaya gamitin natin Arce.' Because the people know naman na ang Selecta is Arce, so sabi nila let's put our name on it, and that’s why it became Arce Dairy.

Ang ganda ng reception sa pagbalik ng ice cream namin. Ang reception talaga todo. Actually, the reception was so good. Kaya kami nakabalik. Na-miss siya ng tao. Eh kasi kilala na kami kasi alam ng tao na sa amin yung Selecta dati. Para makabalik kami, we risked our name dun sa brand," Edwin says.

In industries with low barriers to entry, products can easily become commoditized. When that happens, businesses that rely mainly on low pricing often face shrinking margins and intense competition.

A strong premium brand allows a company to compete on trust and consistency rather than simply on affordability. Customers who associate a brand with superior quality are often willing to pay higher prices because they believe the product delivers greater value and reliability.

Maintaining quality also helps build long-term customer loyalty. Consumers may try newer or cheaper alternatives, but many eventually return to brands they consistently trust. In food businesses, especially, taste, ingredients, and product consistency can create emotional attachment over time. This loyalty becomes difficult for competitors to replicate through advertising alone.

Using quality as a long-term advantage is especially important when competing against larger companies with bigger advertising budgets. Smaller or family-owned businesses may not always match the scale or marketing power of bigger brands, but they can still compete successfully if customers believe the product itself is better.

While many food companies eventually reduce quality to lower costs and reach a wider market, Arce Dairy deliberately stayed in the premium segment even if it meant remaining smaller than larger competitors.

The family understood early on that their advantage was not scale, but authenticity and product integrity. When the Arce family rebuilt the business through Arce Dairy, they intentionally returned to the premium positioning because they believed that preserving quality was more important than becoming the largest manufacturer.

This shows an important strategic insight. In highly competitive industries, smaller businesses often struggle when they try to compete directly with large corporations on price, advertising, or distribution. Large companies usually have greater economies of scale and bigger marketing budgets. Instead of entering a price war, Arce Dairy differentiated itself by focusing on a product experience that competitors would find difficult to replicate consistently.

What makes the strategy more interesting is that the company modernized operations without sacrificing product standards. Even when suppliers suggested adding more emulsifiers and stabilizers to increase air content and lower costs, the family rejected the idea because they believed it would compromise the integrity of the ice cream.

This shows that premium positioning is not simply about charging higher prices. It requires discipline. Many businesses claim to be premium brands, but eventually compromise quality when faced with rising costs or stronger competition. Arce Dairy instead treated product quality as the center of its long-term strategy.

The family also understood that premium positioning attracts a different type of customer relationship. Consumers who buy premium products are often not looking for the cheapest option. They are looking for consistency and authenticity.

Interestingly, Arce Dairy’s strategy also shows that maintaining quality can preserve pricing power. Because the brand focused on differentiation rather than price competition, it avoided becoming trapped in the constant pressure to lower prices.

“Yung ginagamit kasi namin dati was carabao’s milk e. Sa amin kasi yun. Pero ung nabenta yung business at yung brand, binago nila ung formula e. Kasi our formula was too expensive. Naging mas mura ung ginawa nila, naging pang-masa.

Kasi bago binenta 'yung Selecta dati, premium ice cream na kami, kaya bumalik kami sa premium. We were not trying to become the biggest ice cream manufacturer. Best ice cream ang gusto namin talaga, but ang aming product is the only one that you can call ice cream. Ang Selecta noon, nakasulat quality always sa ilalim," Edwin says.

“Noong panahon ng daddy ko, si Mauro, nagdagdag siya ng flavors. From 25 flavors, naging 40 flavors kami. Kasi ginawa naman n'ya, pinaturuan ng lolo ko saka ng daddy ko yung kapatid ko naman na isa na mag-food tech para makapagdagdag ng iba't ibang klaseng flavor. Pina-train niya.

Bumili kami ng mga bagong makina. Bumili kami sa Italy. Unang-una, mas matipid. Pangalawa, mas mabilis. Kasi yung makina namin dati, siguro gumagawa kami ng 200 units per hour? Yung pagsamahin mo na yung apat na makina ha? E ito gumagawa ng 800 an hour, isang makina pa lang. Bumili kami ng dalawa no'n. Tapos bumili kami ng cupping machine kasi dati ang cups namin ginaganon lang natin eh. Minodernize namin.

And then, nag-introduce kami ng mga drumstick, tapos yung light, sugar-free. Yung no sugar added. Nung araw kasi hindi puede tawaging sugar-free kasi may konting asukal yan. Bakit nagkaron ng asukal wala naman kaming nilagay? E yung ube may asukal yun eh. So, pero that is very minimal.

Totoong fruits kasi tayo, totoong fruits kasi ginagamit natin. Hindi kagaya yung iba, puro flavoring. Yon pa pala isa, hindi namin nakwento, meron kaming prutasan. May nagsu-supply sa amin. Ang ginagawa lang niya balatan yung mangga.

Itabi yung mangga, pag gagamitin sa ice cream, ganon. Yung avocado ganun din. Hindi namin gusto yung flavor-flavor. Tapos babagsakan mo ng konting totoo, hindi kami ganon. Ano kami, the old-fashioned way. Yung totoong ice cream ang ginagawa namin.

Kaya kami na-classify sa hindi toxic ice cream. And tawag sa mga ice cream ngayon toxic ice cream, why? Puro emulsifier, puro stabilizer, kami hindi more on cream and milk. Kaya kung makikita mo yan, sample meron kang isang – may ginawang isang half gallon? Tunawin natin ang half gallon namin saka ang half gallon ng ibang brand. Tunawin natin pareho, tapos i-refreeze natin. Yung ibang brand, ganon na lang kaliit. Yung sa'min, mga marami pa rin.

So ibig sabihin, pag binuhat mo, sa kanila puro hangin, actually yung taga-Italy sinabihan kaming dalawa. Do you want to earn more? How will we do that? You just adjust the machine and put something like emulsifier, stabilizer para daw magkahangin, so it will be cheap. Sabi ko, no. We have to maintain our quality, that's why we're still here. It's because of the quality. Hindi namin s'ya sinunod.

Hindi ba yung mga ibang brands dati, puro ano yan, mga malalaking kumpanya, yung mga ganon-ganon, e nasaan na sila ngayon? Wala na sila, di ba? E yung kalaban namin, yan ang ginagawa, tapos kung mag-advertise nasa TV araw-araw e. Ang panlaban namin, pag kinain mo kami. Hindi ka na kakain ulit nun.

Kaya kami, nasa premium ice cream kami. Hindi kami umaalis sa premium. We stay premium up to now. Kaya minsan napapalaban kami. Kasi bigla sasabihin sa'yo, parang nakakainsulto pag sinabi bakit ang mura yung sa kanila? E hindi naman ice cream yun eh. Ganon talaga, malamig lang 'yun eh. Hindi naman ice cream yun eh," Edwin adds.

“Alam mo, the only thing that is saving us is the quality. Kasi wala naman kaming advertisement. Kasi yung mga pumapasok, they come and they go. Magiging fad, mawawala. Kami, we're here all the time because of the quality.

So ngayon ang ginagawa namin is to introduce it to the younger people sa Facebook via website, via ganon. Kasi pag sinabi mong may edad, kilala Arce Dairy, pero minsan yung bata, especially now, na maraming class C, class E, class D, hindi kami masyadong kilala don. A, B kami eh pero pag ang parents yung talagang gumagamit ng ganon, nasa premium. Yun lang ang buying power naman nung A,B meron. Marami rin.

Actually, sa totoo lang, mas mahirap lumaban ngayon kasi mas maraming kalaban. Dahil yung mga tao, they try of course yung mga bago diba? Lalo na yung mga yogurt na yan, e nakakataba din yon. Pero once na na-try na nila, babalik uli samin. Yan ang sinasabi ko sa'yo. they come and go.

Ang gelato actually is parang Italian style ice cream e. Mas malagkit lang s'ya, pero madami ding asukal. Matamis din. Yung ang sikreto namin. Ang sikreto namin, sinasabi ko sayo, hindi matamis yung ice cream namin. Kakainin mo talaga e,” Ariel says.

In many family businesses, different members contribute in different ways based on their abilities and experience. Some may be stronger in operations, others in sales, finance, product development, or managing people. When the business is able to use these individual strengths effectively, it often becomes more stable, collaborative, and adaptable over time.

This approach also creates a stronger sense of ownership and involvement within the family. Instead of treating family members as passive heirs, they become active contributors to the growth of the business. Over time, this can strengthen commitment and accountability because succeeding generations feel personally connected to the company’s success.

Using everyone’s strengths can also help reduce internal conflict. Family businesses sometimes struggle when roles are unclear or when members feel excluded from important decisions. 

At the same time, participation helps transfer knowledge naturally across generations. Younger family members learn not only through formal instruction but through daily involvement and shared experiences. 

One of the most interesting aspects of the Arce family’s approach was how they treated the business as a collaborative family effort rather than a strictly hierarchical organization. Instead of forcing every family member into the same role, Mauro Arce appears to have assigned responsibilities based on each person’s natural strengths and personality.

This approach likely helped the business become more balanced internally. In many family companies, problems arise when family members are placed in positions that do not match their skills. The Arce family instead seems to have recognized that different personalities were needed in different parts of the organization. 

Another notable insight was how the family transformed ordinary family interaction into a source of innovation. Their meetings were not rigid corporate sessions detached from daily life. Instead, product ideas emerged naturally from family experiences, travel, food preferences, and casual conversations. 

This created a form of continuous informal research and development inside the family itself. Instead of relying solely on external consultants, the family used its own experiences and curiosity to develop products. In many ways, the family became both the management team and the testing group for the business.

"Ang ginagawa ng daddy ko, kung saan ang strength mo, sinasama ka niya sa business. Kunwari in-charge ako sa administration at that time, me strength ako dito, o kailangan ako dito sa position kasi may papagalitan ako na mga tao dito. E kasi, pag sila, very close sila sa mga tao.

So, yun ang kanyang vision na yung family gumagawa, natupad nya yung vision nya hanggang namatay sya. Ang daddy ko kasi sabi niya maano talaga siya sa business and gusto niya yung mga anak niya ang gumawa. Kumbaga everybody contributed to the business.Nasa abroad ako noon, pero yung bumalik ako sa administration sa family business, nagawa ko yung mga dapat gawin," Maurita says.

“During the meetings, nagsasama-sama kaming pamilya. Kasi alam mo, ano ‘to eh family corporation eh, talagang nag-uusap kami. Kapag nanananghalian kami dito sa bahay ng lola ko, diyan kami lahat kumakain. Pagkatapos naming kumain, kakain kami ng ice cream. Lahat, yon ang dessert namin.

Ang hilig namin gumawa ng banana split. Hiwa ng saging tapos lalagyan ng ice cream. Gumawa kaya tayo ng strawberry na lagyan ng banana. Tinesting namin and it tasted banana split. Kumbaga, pag may naisipan kami, tatawagin namin yung kapatid ko gawin mo ‘to. Gawin mo nga ‘to, hanggang makapasa sa'min di ba? 

Saka ano, diba you travel, you do this, you do that. Pagbalik namin, sabi ko alam mo galing ako sa ano, San Francisco kinain ko yung salted caramel eh. Gawa nga tayo ng salted caramel? Gusto kong matikman. Gumawa kami salted caramel. Mamaya iba na naman, iba naman ang nag-byahe, iba naman ang ganon. Kung meron sya naisip, gusto ko gawin nyo ‘to. Gawin nyo ‘to. Meron kaming salted caramel, meron kaming dark caramel.

Tapos ganito, pag nagawa yon. Magdadala ng dalawang sample sa meeting. Tikman nyo nga ‘to? Habang nagmi-meeting kami kakain kami. Habang nagmi-meeting kami kumakain kaming ice cream. Mamaya may boto. Botohan lahat kami kasama pati mga pamangkin. Marami kami eh, kung sino ang umattend.

Tapos, ganito, titikman namin, bigla sasabihin ano mas masarap? Si A o si B? Oh, kanya-kanyang boto. A ako, o B ako. Hindi namin alam kung anong laman non. Halimbawa sinabi mong salted caramel, o sinabi mong sugar free. Yung flavor na yon gagawan ng dalawa. Tapos A at B lang, mamaya boboto kami. Pag nanalo itong si A sya ang lalabas. Pag nanalo si B sya ang lalabas. Pero lahat nong lumabas na ice cream na yan nanggaling sa panlasa ng pamilya.

Kasama lahat habang nag-uusap. Kumbaga nagmi-meeting kami pero parang kaming nagpa-party na nagtatrabaho. Nagkwe-kwentuhan. Masaya yung meeting, alam mo masaya. Yung parang it’s a family thing, ang ice cream is a family thing sa amin. Normal sa amin mag-usap tungkol sa ice cream," Edwin says.

Many family businesses do not fail because of poor products or lack of customers, but because of unresolved disagreements, personal conflicts, and divisions between family members.

When family unity is preserved, decision-making often becomes more stable and collaborative. Family members are more willing to communicate openly and work toward long-term goals instead of focusing only on personal interests. 

Maintaining unity is also important because family businesses usually involve deep emotional ties. Disagreements in business can easily become personal conflicts if not handled properly. Once resentment spreads across different branches of the family, it can become harder to repair relationships and maintain cooperation in the company.

Another important reason is that conflict can affect the next generation. When younger family members are exposed to constant disputes or bitterness, divisions can continue across generations. This can weaken both the family structure and the future of the business. 

Preserving unity does not mean avoiding disagreements entirely. In many successful family businesses, conflict still happens. The difference is that disagreements are managed in a way that protects relationships and prevents personal issues from permanently damaging the family.

While many family businesses struggle because of internal conflict or succession disputes, the Arce family appears to have consciously built rules and values designed to preserve long-term harmony.

A major reason for this was the strong culture established by Mauro Arce. These values developed not only how they conducted business externally, but also how family members treated one another internally.

One important insight is that the family actively discouraged greed and excessive self-interest. Mauro repeatedly taught his children not to abandon weaker family members and emphasized helping one another during difficult periods. 

In many family enterprises, conflict begins when members feel excluded or unfairly treated. The Arce family instead reinforced the idea that the business should uplift the family collectively.

Many family conflicts become permanent because emotional divisions are passed down to children, cousins, and future generations. The Arce family seems to have understood that while conflict may be unavoidable, it should not be allowed to poison the broader family structure.

In effect, they treated disagreements as temporary operational issues rather than permanent personal divisions. Respect for hierarchy and elders also played an important role in maintaining order. While modern organizations may sometimes view hierarchy negatively, in traditional family businesses this structure can reduce chaos by creating clear authority and decision-making boundaries.

“Ang sinasabi ng daddy ko lagi, ‘If you're going into business, food business ang gawin mo. Because people will eat, no matter what’. Sabi nya hindi mauubos ang costumer mo. Sabi niya yang mga iba, pwedeng at the end of the day pwedeng umayaw sila sa ganyan. Uunahin pa rin nila ang pagkain. Yun ang kanyang idea and it's true, I guess because we're all still here. Kaya kahit sa feeds business namin, pagkain naman ng baboy kasi kakainin ng tao yung baboy naman. Yan palagi nya sinasabi na pag magnenegosyo ka, pagkain ang negosyuhin mo at wag yung madaling kopyahin. 

Tapos sinasabi niya mabuti pang masipag kaysa marunong. Sabi niya yung marunong puro yabang yon, yung masipag kaya niyang i-absorb yung alam nung marunong at gagamitin nya dahil masipag siya. Kasi masipag ang daddy ko eh. Sobrang sipag niya na hindi napapagod. Kaya siya ang successful.

Sabi niya yung magaling nasa utak lang yon, pero mabait siya sa kapatid, kaya naman ang turo sa amin, wag mag-aaway ang magkakapatid. Wag iiwanan yung mahina. Lagi dapat magkakasundo. 

At ang bata cannot be disrespectful sa matanda. At laging i-respect ang matanda. Kahit na mali, kahit na mali yung matanda as long as you're bata, hindi ka pwedeng sumagot," Edwin says.

“Sa kanya yung sipag, yung honesty. Sabi nya alam mo, when you, when you do business you have to be honest. Sabi nya wag mong gugulangan yung mga ka-negosyo mo. Wag mo silang dadayain, palagi syang ganon.

Galit sya sa ano, sa magulang. Ayaw nya ng magulang. Wag mong gugulangan ang mga. halimbawa ka-business kita? Gugulangan kita. Ayaw niya non. You have to be fair with your business partners. Kahit na magkakapatid kayo, lalo na magkakapatid pa kayo, so ganon siya, it pertains to everything.

Sabi nya, bago sya mamatay. Sabi nya kaya ako naging successful, dahil mabait ako. Wala akong iniiwan. Mas malakas ka magbigay, mas malaki babalik sayo na pera. Sa kanya ganon ang kanyang reasoning. 

Tapos sabi niya, wag kang swapang, parang ganon. Nagbibigay dim Daddy ko sa charity na hindi namin alam dun sa simbahan. Madami siyang charity. Ang daddy ko pinahiram yung lupa namin sa Tahanan na Walang Hagdan. Sabi niya kaya ako sinuswerte dahil ganyan. Pero siya pag nakaisip ng negosyo, palaging may kakamping swerte eh. Magaling ka na, swerte ka pa,” Maurita says.

“Ganito ginagawa namin usapan, wag mo isasali ang anak mo pag meron tayong pag-uusapang maselan. Kapag ang usapan namin maselan, ibig sabihin magmumurahan kami. Hindi sila kasali. Dahil kami yung away namin na yon, after an hour magkakabati na kami. Or during that time magbabati na kami. 

Pero lahat ng puwede mong isipin na pinag-aawayan ng pamilya, pinag-awayan na namin. Dahil, I'm a liar if I say we're very good. We did not fight forever. Kaya pag mag-aaway tayo, tayo-tayo lang. Kasi pag pinarinig mo sa anak mo yan, pano kung magalit yung anak mo sa anak nila, pero kayo bati na, alam mo yun? Hindi naman nya kasama sa bahay yan eh. Hindi nya ganon kakilala yan. Di kagaya namin, nagsama-sama kami. Magkakakilala kami. Lumaki kami ng sabay-sabay eh. So, so ang general rule is, kayong magkakapatid mag-usap kung may pag-aawayan kayo,” Edwin says.

“If you respect your family, young or old, you will get respect also. So, ang mangyayari hindi mawawasak ang family. Because you respect each other. But if you don't respect each other. Dumadaming pamilyang sabog. Kanya-kanya tayo, magkakaaway tayo. 

We help each other. Gusto mong tulungan pag may kailangan, hindi pwedeng pababayaan. Automatic yon. Importante yon. Binaon na sa utak namin yon ng Daddy ko. Magtulungan kayo. Kung halimbawa meron kayong kapatid na naiiwan, wag mong iiwanan. Tulungan niyo,” Edwin adds.

Henry Ong, RFP, is an entrepreneur, financial planning advocate and business advisor. Email Henry for business advice [email protected] or follow him on Twitter @henryong888.

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