Alfredo Yao: Wealth, Business Empire, and Life Outside Work

Alfredo Yao is known primarily as the founder of Zest-O Corporation, a food and beverage company that produces the fruit juice drink Zest-O in doypack packaging. Sticking a plastic straw, whether on the bottom of the foil pack or on the top, after parting the packaging with a slice-like gesture of the hand, is almost every Filipino kid's mundane memory.

Yao's rags-to-riches journey as a self-made businessman is a testament to the power of vision and determination. Born into poverty, his early life was marked by hardship, yet he rose to prominence through sheer grit. Today, he stands as the founder and pivotal figure behind one of the influential F&B companies in the Philippines, impacting both the economy and society at large.

Net Worth: $295M

Age: 80

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In His Youth

Born on November 26, 1943, Yao faced numerous challenges in his youth that could have deterred a less determined individual. The eldest of six children, he was forced to become the breadwinner of the family after he lost his father at the age of 12. He would accompany his mother, a sidewalk vendor, into Chinese gambling dens to sell goods.

Through the help of a relative, he was able to finish elementary and high school, but his college education at Mapua Institute of Technology was cut short due to financial constraints. He entered the workforce at a young age, working in a packaging company warehouse and printing cellophane wrappers for candies and biscuits. This early setback laid the foundation for a career that would see him become a leading name in multiple industries.

At the age of 17, Yao sought start-up capital from the Rizal Financing Corp. (now the Development Bank of the Philippines). He established his own printing press business named after his mother, Solemar Commercial Press. The business thrived for 20 years.

Alfredo Yao's Business Empire

Yao's business empire began with Zest-O Corporation, which he founded in 1980. It was the first company to introduce ready-to-drink juice in flexible foil pouches in the Philippines, a move that revolutionized the beverage industry and ingrained the brand in Filipino culture.

Zest-O's signature foil pouches, actually called daypacks, were inspired by Yao's visit to Europe in 1979. In one of the trade exhibits, he saw this new technology of packaging that is able to stand erect on its bottom while still able to contain liquid. He marketed this idea to local juice manufacturers, but there was little interest.

Undeterred, Yao made juices in his own kitchen and packaged them using the new equipment. He put up a company called SEMEXCO Marketing Corporation (now Zest-O Corporation), which launched the Zest-O orange juice drink. Now, we have 12 flavors of Zest-O, including Zest-O Cola, Zest-O Dalandan, and Zest-O Calamansi introduced in 2000; and Zest-O Root Beer introduced in 2005. They also produce Sunglo Juice Drink, Big 250 Juice Drink, and Plus! Juice Drink. Zest-O's drinks are also distributed in China, Australia, New Zealand, Korea, Singapore, the United States, and Europe.

The success of Zest-O was just the beginning. Yao expanded his ventures into various sectors including banking, real estate, and manufacturing, among others.

In 2008, Yao launched Zest Airways as a low-cost carrier competing with Cebu Pacific. It was the first local carrier to fly tourists from China and Korea straight to destinations outside Manila. In 2013, Zest Airways partnered with AirAsia and then was fully rebranded as AirAsia Zest. In 2015, it was fully integrated with Philippines AirAsia Inc., the local affiliate of the Malaysian brand.

Yao also owns investment management firm Mazy's Capital, Inc., which entered into a share purchase agreement with Maybank ATR Kim Eng Financial Corporation (MAKE) (later Macay Holdings, Inc.) in 2013. Mazy's purchased 89.75% of the outstanding shares of MAKE, making it a majority shareholder of Macay.

Macay also acquired ARC Holdings, Inc. in 2014. It functions as an investment holding company and has a concentrate supply agreement and trademark licensing agreement with Royal Crown Cola International. Then, in 2020, it acquired Artemisplus Express, Inc., which operates cafeterias, canteens, institutional dietary kitchens, refreshment parlors, and catering enterprises under the trade name Kitchen City.

Macay also owns ARC Refreshments Corporation, incorporated as a subsidiary, which focuses on the bottling, distribution, marketing, and sales of RC Cola, Fruit Soda Orange, Juicy Lemon, and Arcy's Rootbeer.

In 2022, Macay Holdings Inc. officially acquired RC Global Beverages Inc. (RCGBI), which holds global licensing rights to RC Cola and other beverage brands in over 100 countries. RC Cola was previously known as Royal Crown, a beverage developed by pharmacist Claud Hatcher in Columbus, Georgia, U.S.A.

Other companies under the Yao Group of Companies are Solmac Marketing, Inc., Harman Foods (Phils.), Inc., Amchem Marketing, Inc., Uni-Ipel Industries, Inc., SMI Development, Inc., and Summit Hotel and Resort Specialist, Inc. Yao is also the founder and chairman emeritus of Philippine Business Bank, a bank that focuses on small and medium enterprises (SMEs).

Zest-O Corporation's Impact on the Philippine Economy and Society

Yao's companies generate thousands of jobs, stimulate economic activity, and contribute to the GDP. The Caloocan-based Zest-O Corporation has been around for more than four decades with employee count at 1,000 as of 2022 and revenue of P2 million as of 2021.

In a 2007 interview with GMA Network, Yao took pride in making a marketable beverage from dalandan. "We introduced the dalandan juice in cans and bottles, and now in five-star hotels, you can order dalandan juice," he said. This helped revive the dalandan-growing industry in Southern Luzon.

Zest-O packs also found their way into the fashion industry, with local makers recycling the daypacks and making bags and other wearable materials out of them.

Outside the Boardroom

He got married in 1966 at the age of 23. They have three children.