MILLENNIAL SOCIAL ENTREPRENEUR MODERNIZING COFFEE FARMING

To put food on the table, Ariestelo Asilo’s father worked as a jueteng kubrador (small town lottery agent). His mother sold sweepstakes tickets to make ends meet. So, it’s no surprise that he has turned into a gambler; he bet on himself.

And it has paid off. Asilo, fondly called as “anak ng jueteng” for obvious reasons, is now a social entrepreneur whose business leverages on innovative technology to boost coffee production.

His journey to get here was an arduous one—and he was dealt a bad hand many times. He played these cards anyway and hit the jackpot. It is all about the player, after all.

“I want to get it (goal) no matter what the risks are,” he tells Inquirer. The 36-year-old go-getter inherited this perspective in life from his parents who, despite not finishing their education, were determined to earn a living for him and his two younger siblings in Bauan, Batangas.

A TOYM (The Outstanding Young Men) 2021 honoree for social entrepreneurship, Asilo has come a long way but he is not stopping yet. His business, Varacco Inc., is now getting ready to go public to expand the venture that champions sustainability.

Dip coffee

The entrepreneur, who has a background in nutrition, developed and patented a dip coffee product with the aim of promoting history and heriThe tage a few years ago. traditional process for making a coffee drink uses either an electric coffee maker or a manual coffee press. A single-serve dip coffee package—like how tea is put in a tea bag—is pitched as an alternative for those who are frequently on the go but prefer having a freshly made coffee. Porous environmentally-safe and biodegradable packaging materials are used.

The coffee beans are sourced from two farms in Cavite and Davao, which are backed by internet of things (IoT) to improve productivity and post-harvest quality of the agricultural input.

IoT refers to devices equipped with sensors that are linked via the internet.

He says a solar-powered pole that can detect temperature and humidity, rainfall and moisture within a 52-kilometer radius is installed in each farm.

“These parameters measure the condition of a coffee farm to determine the optimum level or the nonoptimum level for the coffee farms to grow,” he explains.

A virtual dashboard, which is accessible via an online platform, collects the data. This gives his team visibility even if they are not physically in the farms, Asilo says, adding it helps them assess the climate trends to act accordingly.

Raising funds through initial public offering (IPO) will allow this sustainable coffee farming method to scale up, Asilo says. In the future, he wants to export these products as well.

“This [IPO] is very important because it ensures that there is a continuous market for the farmers,” he points out, noting that this initiative has helped 600 coffee farmers in the country. And he wants to extend assistance to more farmers.

“I’m just a vessel. I know some tools that could help them, the same way they helped me. So it’s like empowering them,” he adds.

Cultivating a community is something that Asilo learned at a very young age.

When he was in high school, the entrepreneur recalls having his adviser, teachers, registrar and even the principal of his school assisting him in completing the requirements for a college scholarship, which he eventually secured.

As a person with disability, Asilo also understands the plight of the marginalized sector. He doesn’t want anyone to feel what he had felt upon initially learning about his hearing problems: helplessness.

“I want that somehow, in some ways, I could share with them, help them as well, teach them some ways that I know,” he says.

The next play

Varacco is now bulking up. With the stakes getting higher, Asilo says they are increasing the value of the company to make it attractive for IPO. To sweeten the pot, the company has set three goals for the next three years. First, it wants to expand its physical presence by opening up 100 coffee stalls named “Timplado”—through franchising and organic expansion—to complement its existing ecommerce venture. It currently only has one in Batangas as the pandemic has delayed franchising ventures. Second, Asilo aims to bring the Varacco brand to more consumers by making them available in major supermarkets.

Lastly, the entrepreneur seeks to deploy additional IoT-enabled poles in more coffee farms to ramp up production.

Asilo is not just rolling the dice on this one; this aspiration is bigger than himself.

Definitely, he has a lot of things to do but he is no stranger to hard work.

While studying in University of the Philippines-Los Baños, he had to start making money to support himself as his father turned ill after suffering from a stroke. He worked as a chemistry tutor, theater arts instructor and a houseboy. There were days when he was only eating crackers and oatmeal.

Looking back, he says it was baffling how he survived it all. But the thing is, he has been hustling since the age of six. The public market in his town was his playground, selling sweepstakes tickets in every corner to buy hotdogs, fish and rice at the end of the day.

Asilo still sees himself as that kid decades later. Only this time, he is selling coffee.

“When you sell an idea that could change the world, you are using the same energy,” he quips.

Sustainability above else

At the very core, the entrepreneur values sustainability, believing this is the way to bring his business to the next level.

Asilo stresses that economic growth means nothing if it puts the environment at risk and depletes natural resources in the long run. It is simply not worth it, he says.

“They (customers) are now looking for products and companies that value sustainability. That’s why Varacco subscribes to three S[s]: sustainable positioning, sustainable packaging and sustainable design thinking.”

Asilo says the company is crafting an “impact” statement that will complement the balance sheet and income reports.

“We have key performance indicators. We have social impact, environmental impact, cultural impact,” he enumerates.

Asilo says, for now, they will keep on connecting with several investors and organizations to ramp up the business. Varacco has also been promoting the brand by participating in exhibitions.

Even though he has a lot on his plate, Asilo says he still finds time for volunteer work, being part of numerous organizations, including the Rotary Club and Junior Chamber International Philippines.

If he can squeeze time to relax, he goes to the beach or travels to Baguio.

“I cook. I drink wine. I travel. I am a simple person. I just want to eat and drink coffee while looking at mountains or the sea,” he says.

When you sell an idea that could change the world, you are using the same energy

Ariestelo Asilo Varacco Inc. founder