You see crisis, I see opportunity

FRED Reyes and Carleen Gutierrez had no prior exposure in starting a business. None of their parents, relatives or close friends managed a business. They come from a family of educators and doctors, respectively.

Carleen is a Nursing graduate of the University of the Philippines. Like the rest of her family, success for her meant “migrating and working abroad.”

Like Carleen, Fred graduated from the University of the Philippines. He is a chemist by profession. After college, Fred worked for two chemical multinational companies: Dupont for two years and Union Carbide, for seven years.

Career blues

Working for big companies gave Fred enough exposure on the workings of big business. But while he moved up the ranks and held an expatriate’s position during his later years with Union Carbide, his remuneration was pegged at local rates. His frustrations as a mere employee led to a firm decision to venture on his own.

In April 1985, Fred went to the U.S. to seriously look at the possibility of settling there. Carleen was already employed as a nurse at St Claire’s Hospital in Manhattan, New York City. For her, it was a dream fulfilled.

But not for Fred. He explored business opportunities and studied employment options. He did not like what he saw. “I will always be a second-class citizen here,” Fred thought. He even had reservations about raising their children in the U.S., especially in New York City.

Fred eventually decided he would be better off starting a business in the Philippines. The time was the mid-‘80s and political unrest was sweeping his home country but Fred was unfazed by the prospect of starting anew in an uncertain time.

The early years of business

Neither Fred nor Carleen had enough savings to start a big business. Luckily, Fred’s chemical trading start-up did not require much capital. Using his own network developed while at Union Carbide, Fred called on and attracted his foreign contacts to become his principals in his first business venture, Chemworld, a specialty chemical trading company.

Fred’s business grew rapidly almost as soon as things settled down after EDSA People Power I. A few months thereafter, Fred asked Carleen to return to the Philippines to help out in the business. Her position? Fred’s secretary. The office? Their garage!

An auspicious breakthrough

In 1994, Chemworld was promoting licorice extract as the best whitening ingredient from nature. Through studies and clinical tests, Chemworld validated the effectiveness of the whitening properties of licorice. Fred presented the results to the industry giants, expecting enthusiastic response from such an amazing discovery.

His efforts proved fruitless as each company he approached rejected licorice on the basis of cost. Licorice was then priced at half a million pesos per kilo compared to the competing hydroquinone at only P300/kg.

Fortunately, the professional market, composed of dermatologists, was more receptive to the revolutionary and highly effective licorice extract. With the doctors practically knocking on their doors for supply, Fred sensed bright prospects for commercializing licorice extract.

Thus, in 1996, Godiva Inc., the couple’s new business venture, was born.

Godiva skin care products have since grown to include facial and body soaps and lotions, astringents and creams and suncare products, sold singly or as packaged regimen under the following categories: whitening, suncare, anti-aging, anti-acne, anti-stress, and pregnancy care. Never a copycat, Godiva is known for coming out with new product concepts, using natural active ingredients.

‘His-and-hers’ in business

The husband-and-wife team manage Godiva, Inc., bringing into the company their individual strengths. They work well together. The result is something not unlike synergy – 1 plus 1 equals 3!

According to Carleen, Fred’s knowledge and exposure to business and the chemical industry, backed by sharpened business management skills, are critical to the growth and success of the business.

Research and development is also Fred’s forte: he is responsible for new products and formulations. It’s work that he loves best. He claims: “Lab ko ang lab(–oratory).”

On the other hand, Carleen excels in product testing, design and packaging. She also handles human resource management and development, including personnel selection and hiring. For a time, she conducted the training program for skincare counselors herself.

Fred adds that Carleen’s gut feel has proven useful many times in the past. If Carleen had any misgivings about a deal or the person involved, the deal was off. So far, Carleen’s intuitive skills and inputs have always been right, he thinks.