Geographical Indications (GI): Tayabas Lambanog

Marketed as "Philippine Vodka", the VuQo brand lambanog has made it to Hollywood: http://www.abs-cbnnews.com/lifestyle/02/24/12/filipino-vodka-makes-it-oscar-gift-bags

Priced at $24 (about P1,032) a bottle in California, very few Filipinos will get to enjoy this beautifully assembled product in its final form. But in essence, we Filipinos of legal age all know this to be the Tagalog lambanog or more specifically, the Tayabas Lambanog.

Lambanog is a powerful liquor created from the fermented nectar of the coconut flower. This nectar is then distilled and collected as Lambanog. The final product is a clear white liquid containing around 20% to 40% alcohol (40 to 80 proof) and is drank on its own or mixed with tropical fruit juices like mango, calamansi, lime, orange or pineapple.

So how did this P200 per gallon power liquor turn into a luxury? Simple. Proper intellectual property management and marketing. 

First, the VuQo brand was developed and registered as a trademark. This allows the producer to have exclusive intellectual property rights over the brand and market it freely without the fear of counterfeits.

Second, the producer packaged the liquor with elegantly-designed, world-class frosted bottles. This adds class and mystique to an otherwise unromantic ordinary drink. The bottles themselves are protected by industrial design intellectual property rights. 

Third, the producer highlighted the Philippine origin of the liquor, making it exotic, unusual and exciting to the American market. The indication of origin itself may be used as a brand and helps improve the marketability of a product as authentic.

Finally, the story of how lambanog is made and the cultural rituals associated with the drink is spread to promote the authenticity and tradition attached to the drink. These traditional stories become part of the product and part of the experience. Traditional knowledge over the creation of the product, its history and rituals may be protected as intellectual property.

These strategies used helped transform this simple barrio drink into a young celebrity among the drinks of the world.

Back home, the Philippine government and private industries are working hard to set standardized practices for the production of lambanog. This way, we will be able to have the Tayabas Lambanog recognized as a Geographical Indication.

A Geographical Indication or GI is a collective brand like Champagne Wine (France), Praewa Silk (Thailand) or Idaho Potatoes (USA) that is commonly used by producers to certify the authenticity of their product. An internationally accepted GI will help products fetch a higher price in the global market because the producers are subjected to strict product standards that guarantee quality. 

We hope to establish the Lambanog GI, among other Philippine GIs, in the world market and have our brand stand proudly alongside the Scotch Whisky and the Stolichnaya Vodka.

So we work hard to make this dream happen... but since it's a Friday night, allow me to down my first glass of triple-distilled Tayabas Lambanog with a little calamansi juice. Tagay na!

Fruit of our Land: Dreaming a Philippine GI System

Just last week, I was in Bangkok to attend a regional seminar called ASEAN-ECAP III Regional Workshop on the control of Geographical Indications (GIs). 


This seminar was designed to discuss the GIs of the different ASEAN and European countries. 


Before I go further, I am obliged to discuss the concept of GIs to the general public --


The TRIPS Agreement defines Geographical Indications (GIs) as 

...indications which identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin. 

(Trade-Related Aspects of Intellectual Property Rights under the General Agreement on Tariffs and Trades, § 3, art. 22.1.)

Simply put, GIs are marks or labels that tell you where a good or service comes from. In order to qualify as a GI product or service, it must come from that place and that place alone. This might be because of some special physical characteristic of that territory or it can be as simple as the reputation of the product itself or the people producing it.  

Image found at www.thewinedoctor.com

The most popular example would be the wine coming from the Champagne province of France. The grapes, soil, and climate from this particular region have certain unique qualities that allow the production of the high-quality Champagne wine as we know it. Because of its popularity, the term Champagne once became generic as a term to describe any type of white wine, but because of GI protection, no wine can bear the name Champagne except those that are produced from the Champagne Province. Others will have to be called sparkling wine.


The Philippines, along with all the other states that signed the TRIPS Agreement, is bound by international law to protect GIs as intellectual property. Under our system, GIs would be protected under the trademark system, although with substantial modifications.

Nakorchaishri Pomelo protected by the Thai GI System.

Regionally, GIs are starting to be protected and promoted across the ASEAN. Our visit to Thailand gave us a chance to visit the pomelo farms of the Nakorchaishri province, where the producers explained to us how these fruits are to be planted, tended and harvested in order to meet GI standards.

At a glance, it's clear that the Philippines has a wealth of local products that deserve GI recognition because of their quality and reputation. The mangoes of Cebu and Guimaras have been well received in Europe and the US for many years. The Barako coffee of Batangas is legendary among Filipino consumers. From these islands, we have so many food products, beverages crafts, and services that have the reputation and quality that could make potential GI-protected assets.

So what are the advantages of using GIs?

1. Quality Control and Consumer Protection. For products to qualify for GI protection, the producers have to follow standards and specifications. This may include the use of organic fertilizers, avoidance of pesticides and the respect for normal seasonal changes.
2. Price Increase. Because quality control increases, so does price. The consumer does not only buy the product but also the guarantee that the product is of good quality. This is true for both the domestic and the international market. In effect, this improves the reputation of a certain region or town, providing better jobs and opportunities locally. 
3. Market Access. Some countries, especially those of the European Union require very strict quality control measures for products entering their countries. Having GI protection helps in meeting these standards. Although it is not an assurance of market access, GI-protection effectively guides producers into the right direction of producing quality products rather than mediocre ones that would be rejected outright.
4. Promotion. Because the GI system is well-known in the global market, having your product qualify as a GI-protected product instantly includes it in the marketing scheme of GIs globally. 

All in all, it is predicted that this system has the potential to supply tremendous benefits to local producers by bolstering the marketability and quality of their goods. It can also protect these producers by providing them with a niche market that can withstand competition from large companies that attempt to invade the industry. This secures both the identity of their products and the commercial success of their enterprises.

So why haven't we established a GI system yet?

Because we are caught between adapting the sui generis system of EU & ASEAN and the certification/collective mark system used by the United States. It's a battle of IP systems that mirror our own history and foreign policy. Adapting the EU system would give us better market access to the old world, while inviting the ire of our largest trading partner. Using the US system will isolate us from the rest of our ASEAN neighbors and prevent regional harmonization of IP laws and the integration of markets.

Difficult choice. But we need to make it soon. Our neighbors are waiting.

______

More on Collective and Certification Marks on my next post.