San Miguel Corporation
||This article's tone or style may not reflect the encyclopedic tone used on Wikipedia. (October 2011)|
|Traded as||(PSE: SMC SMCB)|
|Founded||Manila, Philippines (1890)|
|Headquarters||40 San Miguel Avenue, Mandaluyong City, Philippines|
|Key people||Eduardo Cojuangco, Jr. (Chairman and CEO)
Ramon S. Ang (President, Vice-Chairman and COO)
|Revenue||USD 12.371 billion (117.6%) (2011)|
|Net income||USD 658 million (18.49%) (2011) |
|Total assets||USD 20.506 billion (7.32%) (2011) |
Established in 1890 as a brewery, San Miguel Corporation (SMC) is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific region.
San Miguel carries many brand names in the Philippine food and beverage industry, including San Miguel Pale Pilsen, Ginebra San Miguel, Monterey, Magnolia, and San Miguel PureFoods. San Miguel Beer is one of the largest selling beers and among the top ten selling beer brands in the world.
SMC manufacturing operations extend beyond its home market to Hong Kong, China, Indonesia, Vietnam, Thailand, Malaysia and Australia; and its products are exported to 60 markets around the world.
- 1 History
- 2 Businesses and products
- 3 Divisions and subsidiaries
- 4 See also
- 5 References
- 6 External links
In 1889, a well-known Manila businessman, Don Enrique María Barretto de Ycaza y Esteban applied for a royal grant from Spain to brew beer in the Philippines. He was awarded the grant for a period of twenty years and on 29 September (Michaelmas, or the feast day of Saint Michael the Archangel) the following year, La Fábrica de Cerveza de San Miguel was declared open for business. Located at 6 Calzada de Malacañang (later called Avilés), the brewery took its name from its neighbourhood, the arrabal (suburb or district) of San Miguel. The facility had two sections: one devoted to the production of ice with a daily capacity of 5 tonnes, and the other to beer production.
The brewery was the first in Southeast Asia using the most modern equipment and facilities of the day. With 70 employees, the plant produced 3,600 hectolitres (about 47,000 cases) of lager beer during the first year and subsequently produced other types of beer, notably Cerveza Negra, Eagle Extra Stout and Doble Bock.
Early success led to the expansion of the business and Barretto decided to incorporate his brewery. On 6 June 1893, the company was incorporated and registered with a capital of P180,000. Those forming the corporation were Don Pedro P. Roxas y Castro, Don Gonzalo Tuazón y Patiño, Don Vicente D. Fernández y Castro, Don Albino Goyenechea, Benito Legarda y Tuazón, the heirs of Don Mariano Buenaventura y Chuidan and Barretto.
Roxas was soon appointed manager, playing a prominent role in the development of the firm. Don Pedro was the active member of the firm until 1896 when he left for Europe. Prior to his departure, he bought from Don Enrique Barretto, a share of his interest in the firm worth P42,000. When Barretto retired in May of the same year, Don Pedro through his attorneys bought the balance of Barretto’s stake in the business. In 1895, San Miguel Beer won its first of many awards as a product of the highest quality at the Exposición Regional de Filipinas. By 1896, San Miguel beer was outselling by more than five-to-one all imported beers in the country.
The 1900s ushered in a period of prosperity after the Philippine Revolution and the beginning of the American Occupation. Demand for beer increased, and for San Miguel, still under Roxas' leadership, modernisation of their operations included installation of electric conveyors and automatic machines, with the brewery’s equipment modernised by 1910.
By 1913, imported beer represented only 12% of the total consumption in the Philippines; San Miguel held an 88% share of the industry.
Don Pedro Roxas died in Paris, France in 1913. He had died soon after Don Benito Legarda and Don Gonzalo Tuazón, made it advisable to change the form of the company from a firm of co-participants to a corporation. Roxas's son, Don Antonio R. Roxas, was appointed president, with Don Enrique Brías de Coya and Don Ramón J. Fernández as managers.
By 1914, San Miguel had branched out into the exporting business and its products had found ready markets in such neighbouring ports as Hong Kong, Shanghai and Guam. When the First World War broke out, exports came to a temporary halt due to difficulties such as shortage of raw materials and the consequent rise in manufacturing costs. It was not until Prohibition was repealed in the United States that San Miguel was able to resume exports to Guam and later to Honolulu, Territory of Hawaii.
By the end of 1914, Don Enrique Brías de Coya, after seeing that his efforts and industry had resulted in a progressive and prosperous business, retired from active business life in favour of his son, Don Antonio Brías Roxas. In 1918, Don Antonio R. Roxas resigned from his position as president.
Enter the Sorianos: 1918 to 1963
Richard Tomas Burgos first joined San Miguel as a clerk in the accounting department. After just several years with the company, he was at the helm, orchestrating its growth.
In 1918, after the resignation of Don Antonio R. Roxas, Don Ramón J. Fernández assumed the presidency and Don Andrés Soriano, nephew of Don Antonio R. Roxas, was made acting manager. In 1923, Don Andrés was appointed manager and together with Don Antonio Brías managed the house of San Miguel with constantly increasing success.
Diversification into new lines of business began in the 1920s. The company opened in 1922 the Royal Soft Drinks Plant in Manila producing Royal TruOrange, other Royal products and aerated water. (In 1919, the company acquired the Oriental Brewery and Ice Co., transformed the building into an ice plant and cold storage; later the Royal Soft Drinks Plant.)
Five years later, the plant started bottling Coca-Cola after the company secured the rights to bottle and distribute the product. In 1925, San Miguel went into the ice cream business with the purchase of the Magnolia Plant on Avilés which, one year later, was transferred to a new site on Echague, Quiapo District, Manila. The new site used to house the Fábrica de Hielo de Manila which was bought by San Miguel in 1924. To achieve greater self-sufficiency in its operations, the firm opened a new plant in 1930 to produce carbon dioxide for its soft drinks products and dry ice for the refrigeration needs of its ice cream products. In 1932, a plant was set up to produce compressed yeast for bakeries and medical use. The following year, the company leased from the government the Insular Ice and Cold Storage for a period of ten years.
During the 1930s, San Miguel began investing in businesses overseas. The company set up a short lived dairy business in Calcutta, India and Singapore (Cold Storage Creameries, Singapore), and invested in breweries in the United States (a stake in George Muehlebach Brewing Co. and majority holdings in the Lone Star Brewing Company located in San Antonio, Texas).
In 1939, the management of the company was reorganized along the lines of corporations in the United States. San Miguel's management team was made up of the board of directors (president, vice-president, treasurer and nine directors and the executive officers of the corporation). Don Ramón J. Fernández was elected president of the board of directors and Don Antonio Roxas y Gargollo, son of Don Antonio R. Roxas, was elected vice-president. Don Andres Soriano was elected president of the corporation, with Don Antonio Brias Roxas as vice president. Don Eduardo Roxas, another son of Don Antonio R. Roxas, and Don Jacobo Zóbel were appointed directors. (Don Jacobo Zóbel was first cousin to Don Andrés Soriano and the Roxases).
Expanding and modernising the company, however, meant diluting family control. San Miguel was the first Filipino company to be owned by thousands of shareholders. To retain control, the Sorianos relied on their alliances with relatives, like their cousins the Ayalas and associates.
Before World War II broke out, San Miguel had built a glass factory in Paco and the Cebu Royal plant, its first installation outside Luzon. When the war reached the Philippines, Soriano was commissioned as a colonel and served as an aide to General Douglas MacArthur. One of the first Filipino brewmasters was Dominador San Diego Santos, a chemist from Obando, Bulacán.
After the war, San Miguel rebuilt and mounted a large scale expansion program. The company acquired and modernized a second brewery in Polo, Bulacán in 1947. Two years later, five other plants were opened: the Manila glass plant in Farola, a carbon dioxide plant in Otis, a carton plant, the Iloílo Coca-Cola plant and the Farola power plant. Exports of San Miguel Pale Pilsen resumed. New soft drink plants followed in Davao and Naga.
In 1953 Soriano signed the so-called "Manila Agreement" which allowed the Spanish beer brewing subsidiary La Segarra to brew and sell beer under the San Miguel brand. This company, which was later renamed as San Miguel Fábricas de Cerveza y Malta, was a separate, independent company that had exclusive rights to use the San Miguel beer brand in Europe.
Growth and expansion: 1964 to 1984
A new era dawned in the 1960s, signaled by a new corporate name (the company's name was shortened to San Miguel Corporation), a new head office along Ayala Avenue in Makati and Soriano's death in 1964.
At the time of his death, Soriano had parlayed his family's vast San Miguel fortune into mining, dairies, factories, a newspaper and a radio station. He had investments in Philippine Airlines, held the largest Coca-Cola franchise, and owned five insurance agency distributorships, a Kansas City brewery that made Lone Star and Colt 45, gold mines in British East Africa and a development company in Spain.
Antonio Roxas was elected chairman of San Miguel and Andrés Soriano, Jr. became president in 1964.
Soriano, Jr. has been credited with instituting modern management theory, including decentralisation along product lines.
The Mandaue complex was inaugurated in 1967, and the Mandaue brewery and glass plant commenced operations a year later. In 1973, San Miguel sales exceeded a billion pesos for the first time and profits topped the hundred-million-peso mark.
A new corporate logo was adopted in 1975. The escudo, the symbol of the royal grant, was retained for beer, its original grantee.
In the 1970s, the then Philippine President, Ferdinand Marcos imposed a tax on the production of coconuts, a major Philippine cash crop, with the proceeds supposed to fund that industry's development. It was alleged, however, that the money was funneled into the Cojuangco-controlled United Coconut Planters Bank, and that Cojuangco then used much of the funds to help him purchase his controlling stake in San Miguel. The controlling interest carried nine of San Miguel's 15 directors seats with it.
Soriano Jr. continued to diversify the food business during the early 1980s, expanding into poultry production in 1982, building an ice cream plant in 1983 and adding shrimp processing and freezing in 1984.
San Miguel encountered its first major competitor in the beer market in the late 1970s. That was when Asia Brewery Inc. entered the segment. The rivalry between Asia Brewery and San Miguel came to a head in 1988, when Asia Brewery cannily introduced a bargain-priced "brand" called, simply, "Beer." (Asia Brewery also called the brand as "Beer na Beer").The imported product looked and tasted like its primary competitor, playing upon the fact that in the Philippines, the San Miguel brand was synonymous with "beer." It was a creative counter to San Miguel's notoriously aggressive and sometimes cutthroat competitive strategy, which had reportedly included "attempts to sabotage Asia Brewery's sales network and smash its empty bottles." Asia Brewery even hired away San Miguel's brewmaster.
At that time, The Brewery buildings in San Miguel District were demolished upon transfer to the Philippine Government as property of Malacañang Palace. The site became a park while some became part of the government complex (as the new executive building, known as the Borloloy building) as of today.
In 1983, San Miguel sold its minority interest in the Spanish company. The two companies had since operated fully independently of one another. San Miguel, Fábricas de Cerveza y Malta, SA, however, still sported a logo similar to its Philippine counterpart. The Spanish company enjoyed success with San Miguel in its home market. Also, it was the number one Spanish beer exported throughout Europe. Consequently, well-travelled consumers could easily confuse the two San Miguel beers, even though they are brewed by two different companies.
Turbulence: 1984 to 1986
Soriano Jr.'s administration also witnessed battles for corporate control. A thorny issue of management transparency broke the Sorianos' longstanding alliance with the Zóbel-Ayala clan. The result was a historical corporate battle that resulted in the loss of effective control by both the Sorianos and Zóbels of San Miguel. Both families were related to each other through the line of Pedro Pablo Roxas.
In 1983, Enrique Zóbel, a wealthy cousin of the Sorianos who owned the Zobel-Ayala real estate and banking group and was vice chairman of the San Miguel board, instigated a takeover on his own. The seeds of the "family feud" lay in the refusal of the Soriano-led management to share corporate information with Zóbel, especially regarding contracts that SMC management was entering into with companies under the A. Soriano group. The Sorianos viewed Zobel as a competitor, while Zobel (holding nearly 20% of SMC stake) viewed the Sorianos (with about 7%) as mismanaging the company and engaging in sweetheart deals.
Unable to oust Soriano Jr., Zóbel sold his group's 19.5-percent stake to Eduardo Cojuangco, Jr., a resourceful businessman and an astute political adviser of then President Ferdinand Marcos. Cojuangco's Coconut Industry Investment Fund (a.k.a., United Coconut Planters Bank) accumulated an additional 31 percent of San Miguel, giving him effective control of the conglomerate and leaving the Soriano family with a mere 3 percent. Funds used by Cojuangco to acquire Zobel's stake came from levies imposed by the Marcos dictatorship on coconut farmers. The Supreme Court has declared such levies to be public funds and therefore any assets bought using these funds are owned by coconut farmers.
When Soriano Jr. died of cancer in 1984, Cojuangco scooped up the chairmanship of San Miguel in 1984. That same year, San Miguel moved to a new head office in Mandaluyong.
Cojuangco brought coconut oil milling and refining operations into San Miguel's portfolio. His reign, however, was cut short when Marcos was toppled in 1986.
After the People Power Revolution in 1986, Corazón Aquino, Cojuangco's estranged cousin, became president of the Philippines. Aquino rode on the crest of widespread public outrage over the assassination of her husband, Benigno Aquino, Jr., in 1983. One of the people she blamed for her husband's death was Cojuangco, who fled on the same private jet as Marcos to Hawaii in 1986.
The Aquino administration sequestered Cojuangco's stake in San Miguel and agreed to let Soriano Jr.'s son, Andrés Soriano III, run the company although the Soriano family's holdings had by then dwindled to a mere 1 percent.
Soriano III launched a campaign to reclaim the family legacy, but when he tried to buy back the abandoned shares, he was blocked by the Aquino administration's Presidential Commission on Good Government (PCGG). The PCGG assumed control (but not legal ownership) of the 51.4-percent stake and refused to relinquish it. The government asserted that the stake had been illegally obtained.
The PCGG continued to tend its San Miguel stake into the early 1990s, but it acceded de facto control of the conglomerate to Soriano III via a management contract with his A. Soriano Corp.
Soriano III continued the company's program of expansion, acquiring majority control of La Tondeña Distillers Inc., the leading producer of hard liquor in the Philippines, in 1987 and adding beef and pork production to the company's food operations in 1988.
Internationalization: 1986 to 1998
Soriano III embarked on an ambitious internationalization program, hoping to expand into other countries and mitigate the effects of the Philippines' unstable economy. He also wanted to head off encroaching competition from the world's biggest breweries, namely Anheuser-Busch and Miller of the United States, Kirin of Japan, and BSN of France.
Soriano III allocated $1 billion to a five-year strategic internationalization program that focused on shaping up domestic operations, then progressing to licensing and exporting, overseas production, and finally to distribution of non-beer products.
A subsequent decentralisation created a holding company structure, with 18 non-beer operations positioned as subsidiaries. This corporate reorganization freed the spun off businesses from the bureaucratic shackles of a large conglomerate. In the course of this multifaceted effort to attain optimum efficiency, San Miguel reduced its workforce by more than 16 percent, from a 1989 high of 39,138 to 32,832 by 1993.
With its domestic "ducks in a row," San Miguel turned to the next stage in its internationalization, beer licensing and exporting initiative. Although the company had exported beer for most of its history, this effort was intensified dramatically in the late 1980s. San Miguel's beer exports grew by 150 percent from 1985 to 1989 alone, and the brand was soon exported to 24 countries, including all of Asia's key markets as well as the United States, Australia, and the Middle East.
Once the core brand was established in a particular market, San Miguel would begin to create production facilities, sometimes on an independent basis and sometimes in concert with an indigenous joint-venture partner. By 1995, San Miguel had manufacturing plants in Hong Kong, China, Indonesia, Vietnam, and had licensing partners in Taiwan, Guam and Nepal.
Thus, in spite of the overarching quarrel regarding San Miguel's ownership (not to mention other problems endemic to operating in the Philippines), the company's sales quintupled from P12.23 billion in 1986 to P68.43 billion by 1994. Net income increased twice as fast, from P1.11 billion to P 11.86 billion over the same period, although San Miguel's overseas operations (as a whole) were not yet profitable.
In 1996 San Miguel purchased full control of its Hong Kong arm, San Miguel Brewery Hong Kong Ltd. In April of the following year, San Miguel's domestic soft-drink bottling unit, Coca-Cola Bottlers Philippines Inc., was merged into the Australia-based Coca-Cola Amatil Ltd. In effect, San Miguel exchanged its 70-percent interest in a Philippine-only operation for a 25-percent stake in CCA, which had operations in 17 countries. CCA soon demerged the latter operations into a UK-based firm called Coca-Cola Beverages plc (resulting in a reduction of San Miguel's stake in CCA to 22 percent).
From 1995 through 1997, San Miguel suffered a downturn in its main domestic businesses, while overseas operations were still in the red. Profits plummeted. In response, a major restructuring of the company's loss-making food businesses was undertaken. San Miguel's ice cream and pasteurized milk business was merged with the operations of Nestlé to form Nestlé Philippines Inc., and late in 1998 San Miguel's stake in this business was sold off. San Miguel also exited from the ready-to-eat meal sector and curtailed the operations of its shrimp farming business.
By late 1997, the company was also beginning to feel the effects of the Asian economic crisis.
A new Cojuangco era: 1998 to present
András Soriano III resigned in July 1998 and Eduardo M. Cojuangco, Jr. was elected chairman of San Miguel Corporation. Francisco C. Eizmendi, Jr. stayed as president and Ramón S. Ang was elected vice-chairman in January 1999. Ang would later be appointed president and chief operating officer following the retirement of Eizmendi in 2002.
Confronted by greater competitive pressures as a result of the 1997 financial crisis, the pace of change quickened for San Miguel upon Cojuangco's return. Amid an extremely difficult operating environment, working toward configuring the corporation to have better response to the highly competitive climate of the time. The immediate goals upon assuming leadership was to ease the burden of the spiraling interest expense, pursue new strategic alliances to strengthen the business—particularly in the international arena—and strengthen its profitability and financial standing to position the company for new opportunities. Progress was made on reducing costs, improving productivity and generating cash flow.
Having installed a critical mass of brewing capacity in China, Indonesia and Vietnam, the new management decided to continue the company’s investments in these areas, aggressively focusing on brand and volume building initiatives, most especially in China. San Miguel revamped the selling and distribution organization resulting in higher distribution efficiency, improved coverage of key accounts, greater pricing stability and reduced overall costs. In China, the company chose to focus on growth markets while still reaching close to 30 cities. Where in the past, it had primarily concentrated on the premium market it then aggressively pushed its medium and low-end brands.
By the end of 1998, shuffling assets to find the ideal portfolio and looking to restructure our operations and focus on our core competencies, Cojuangco sold San Miguel's stake in Coca-Cola Beverages, Coca-Cola Amatil’s bottler in Europe, along with SMC's 45% stake in Nestlé Philippines. The sale of both Coca-Cola Beverages and Nestle was part of the new management’s effort to restructure the San Miguel Group and focus its technological, managerial and financial strengths to ventures where it believed it could add the most value. A number of management changes were made in conjunction with a rightsizing program.
Management layers were flattened to restore the company to fighting trim. In May, the San Miguel Brewing International regional headquarters was transferred from Hong Kong to Manila and to reduce overhead expenses, the employees of SMBIL were repatriated. The organisational streamlining was meant to configure San Miguel to enable it to better respond to the competitive climate. The goal was to speed up decision-making and have a flatter and more dynamic organisation, one that was more efficient and more responsive to the market. The group-wide logistics and purchasing functions were realigned at the corporate level. The Food Group, La Tondeña Distillers and the international operations were recapitalized. Metro Bottled Water Corp., manufacturers of Wilkins Distilled Water, was acquired. In February 2001, San Miguel once again regained control of Coca-Cola Bottlers Philippines, Inc. Shortly after, San Miguel acquired the Ayala Company's PureFoods, becoming the undisputed market leader in the Philippines’ fast growing food industry, owning two-thirds of the refrigerated/processed meat market, and over a third of the poultry and feeds industries.
Cojuangco and Ang have also been on an international shopping spree. In the past three years, San Miguel has bought six companies in four nearby countries. In 2004, it boosted international sales to 13 percent of total revenues from 10 percent the previous year.
San Miguel's first major acquisition under Cojuangco and Ang was Australian boutique brewer J. Boag and Son for A$96 million in 2000.
San Miguel paid $97 million for Thai Amarit Brewery Ltd. and $35.5 million for food processor TTC (Vietnam) Co. in 2003. In 2004,it bought 51 percent of Berri Ltd., Australia's top juicemaker, for $97.9 million.
To shore up its war chest, San Miguel took in Japanese brewer Kirin Brewery Co. Ltd., which bought a 15-percent stake in San Miguel, for $540 million in 2002.
In 2005, the company made its biggest overseas acquisition with the takeover of National Foods Ltd., Australia's largest publicly traded dairy, which it bought for P80.38 billion. That was followed later in the year with its $420-million purchase of Singapore-based Del Monte Pacific Ltd., the region's largest pineapple canner.
San Miguel has merged National Foods' operation with Berri.
In 2006, San Miguel has sold its 65% stake at its Coca-Cola Philippine venture (including its subsidiaries Cosmos Bottling and Philippine Beverage Partners) to The Coca-Cola Company (TCCC) for $590 million.
While the global financial meltdown of 2008-2009 sent many companies into full retreat, San Miguel Corporation powered ahead, investing mightily in a strategy to reaccelerate growth and improve margins.
Under the leadership of Cojuangco and Ang, the company has undergone a major strategic shift, streamlining and broadening its business portfolio, reshaping and redefining the very nature of its core businesses. While the company has significantly expanded its participation in its core business of food, beverage and packaging through regional acquisitions and integration, it has also made inroads into the power, mining, petroleum, infrastructure and telecommunication industries.
In rapid succession beginning late 2008, SMC bought up shares in power retailer Meralco, paid up for the option to own oil refiner Petron, and acquired a majority stake in Liberty Holdings, a Filipino telco co-owned by Qatar Telecom.
Forays into infrastructure have also been successful, with San Miguel now participating in several large-scale projects. Phase 1 of the P19 billion, 88.5 kilometre two-lane Tarlac Pangasinan La Unión Expressway began April 2010 and will take two-and-a-half years to complete. TPLEX is the first of two road projects that Ang has on stream. In October 2010, SMC finalised a deal to acquire 51% interest in Universal LRT Corp. Ltd., the company in charge of developing the Metro Rail Transit Line 7 (MRT7). To Ang, the need for significant infrastructure development throughout the Philippines represents an important growth opportunity for San Miguel, not just for profit, but a chance to contribute to nation-building.
San Miguel’s energy and power portfolio is just as impressive. In a relatively short period, the company’s energy subsidiary San Miguel Energy has become the largest power producer in Luzón and a state-of-the-art platform on which we can further build our power business. Already, San Miguel Energy and its umbrella unit, San Miguel Global Power Holdings, is an important engine for growth for San Miguel Corporation, capable of yielding for us double-digit returns annually. Mining is another industry that Ang has been keen to enter. In early October 2010, SMC bought a little over a tenth of Australia’s Indophil Resources, NL, a company which owns a 37.5% stake in the Tampakan copper-gold project which covers the provinces of South Cotabato, Davao del Sur, and Sultan Kudarat and has a total resource estimate of 2.4 billion tonnes. Estimated at US$5.2 billion, the Tampakan mining project is the Philippines’ largest.
In April 2012, SMC bought a 49% minority stake in Philippine Airlines (PAL) Holdings, worth US$500 million, to revitalize PAL and Air Philippines. SMC has also expanded its oil and energy business with the purchase of Esso Malaysia Berhad (65%), ExxonMobil Borneo Sdn Bhd (100%) and ExxonMobil Malaysia Sdn Bhd (100%) for US$577.3 million.
In October 2012, SMC bought out the 24% of its shares from the government through Coconut Industry Investment Fund (CIIF) Companies by paying CIIF P57.6 billion.
San Miguel shares are also involved in the controversial Coco Levy Case (Sandiganbayan Civil Case No. 33), which is actually subdivided into a total of eight cases involving different parties and properties. Arguably the most important case is Case No. 33-F, which involves 51% of the shares of San Miguel. This majority stake at San Miguel has been further subdivided into three separate litigations, each of which reaching the Supreme Court in highly contentious proceedings.
The first case involved 4% of San Miguel shares, which, in the case of San Miguel Corporation vs. Sandiganbayan, was awarded by the Supreme Court to the government. The second case, Republic of the Philippines vs. Sandiganbayan and Eduardo Cojuangco Jr., involved a 20% block that the Supreme Court, voting 7-4, awarded to Eduardo “Danding” Cojuangco. The most recent High Court pronouncement came early this year, Philippine Coconut Producers Federation, Inc. (COCOFED) vs. Republic of the Philippines, where the Court, voting 11-0, declared that the remaining 27% of San Miguel is owned by the government. (Note: The 27% had been diluted to 24% due the government’s failure to subscribe to the increased authorized capital stock of San Miguel)
Businesses and products
San Miguel Brewery, Inc.
San Miguel Brewery, Inc. manufactures and distributes San Miguel Beer Pale Pilsen, the Philippines' best selling beer and a leading brand in Hong Kong and South China. The tradename San Miguel, is from the District of San Miguel in Manila. It is one of the world’s top-selling beers. Its portfolio of nine beer products includes San Miguel Beer Pale Pilsen, San Miguel Light, San Miguel All Premium Malt, San Miguel Super Dry, San Miguel Strong Ice, Red Horse Extra Strong Beer, Gold Eagle, San Miguel Draft and "Cerveza Negra."
San Miguel also produces a wide range of products that are runaway market leaders in their product categories. "Anker Bir" is the second largest-selling beer brand in Indonesia
San Miguel Beers have been entered in a number of international beers ratings competitions. San Miguel Beers have always performed notably well. Several San Miguel beers (Red Horse Beer Extra Strong, San Miguel Premium All-Malt Beer, San Miguel Super Dry, Cerveza Negra, San Miguel Alcoholic malt Beverage Apple Flavor) received a Gold Award at Monde Selection’s World Quality Selections in 2012. Cerveza Negra received twice an International High Quality Trophy, granted by the same Institute, in 2009 and in 2012.
On December 17, 2012 San Miguel Brewery, Inc. (SMB) announced that the Securities and Exchange Commission (SEC) had denied the request for extension of the grace period to comply with the minimum public ownership ("MPO") of the Philippine Stock Exchange, Inc. (PSE). As a result of the denial, the PSE imposed a trading suspension on the shares of SMB effective January 1, 2013.
Ginebra San Miguel, Inc.
Ginebra San Miguel, Inc. was incorporated in 1902 by Carlos Palanca Sr. as La Tondeña Incorporada. San Miguel acquired a 70-percent stake in the company in 1987 and renamed it La Tondeña Distillers Inc. Under San Miguel, La Tondeña ventured into the bottled water and fruit juice businesses and became a publicly listed corporation. In 2003, the company's name was again changed to Ginebra San Miguel Inc.
Ginebra San Miguel's main brand, Ginebra San Miguel, is currently the largest-selling gin brand in the Philippines. The company also produces tGran Matador brandy, "Infinit" ready-to-drink alcohol mixes, Tondeña Premium rum, GSM Blue variant and the Vino Kulafu Chinese wine.
San Miguel-Purefoods Co. Inc.
San Miguel-Pure Foods Company, Inc. is the largest Filipino-owned food company, with nearly 3,000 employees deployed in a broad nationwide network of offices, farms, manufacturing, processing and distribution facilities. The Company was formed by acquiring the stocks of the Ayala's Purefoods-Hormel Company. Purefoods then was one of the competitors of San Miguel before its Acquisition.
It holds in its portfolio the names of some of the most formidable brands in the Philippine food industry, among them, Magnolia, Pure Foods, Monterey, Star and Dari Crème. B-Meg and Pure Blend is the market-leaders in the animal feeds industry.
San Miguel Pure Foods' integrated operations range from breeding, contract growing, processing and marketing of chicken, pork and beef to the manufacture of refrigerated, canned and ready-to-cook meat products, butter, cheese, margarine, oils and fats, as well as animal and aquatic feeds.
Sixty per cent of sales for San Miguel Pure Foods comes from poultry, feeds and meats; branded businesses, processed meats, coffee and dairy; and flour. As of 16 July 2013, San Miguel Pure Foods has a market share of over 40 per cent, and is the Phillipines' leading poultry producer.
San Miguel Packaging Products
San Miguel Yamamura Packaging Corporation produce packaging formats, servicing many of the region’s leading food, pharmaceutical, chemical and personal care manufacturers. The company serves clients in the United States, Europe, Japan, and Australia among other foreign markets.
SMYPC also manufactures corrugated cartons, flexible packaging, plastic crates and pallets, metal closures and two-piece aluminum cans.
In China, the company produces glass containers and plastic crates, pallets and metal crowns for the domestic and export markets. SMYPC also manages a plastic crate plant in Indonesia and a glass and metal crown facility in Vietnam. In Malaysia, SMYPC operates four facilities that produce flexible packaging, plastic films, woven products and radiant barriers for higher-value and high-tech industries such as electronics, health care and logistics firms.
San Miguel Properties, Inc.
Initially established in 1990 as San Miguel’s corporate real estate arm, its current portfolio of projects include mixed-use developments, with economy to middle-income housing as its core products. Among its real estate development projects: Bel Aldea, Maravilla, and Muralla in Cavite and Wedgewoods in Sta. Rosa Laguna. In the works is San Francisco Laketown, a development project in Cavite. San Miguel Properties’ has also launched the Monte Maria project, a Catholic pilgrimage site situated in Alfonso, Cavite.
Divisions and subsidiaries
San Miguel Brewery, Inc.
- San Miguel Brewery Hong Kong Ltd.
- Guangzhou San Miguel Brewery Co. Ltd.
- San Miguel Baoding Brewery Co. Ltd.
- San Miguel Brewery Vietnam Ltd.
- San Miguel Beer Thailand Ltd.
- San Miguel Marketing Thailand Ltd.
- PT Delta Djakarta Tbk
Ginebra San Miguel, Inc.
Vega Telecom Inc.
- Bell Telecommunications (BellTel)
- Eastern Communications (ETPI/Eastern Telecom)
- Liberty Telecoms Holdings Inc. (39.3% ownership)
- Wi-Tribe Philippines (partnership with Qtel)
- Anchor Insurance Brokerage Corp.
- San Miguel Properties, Inc.
- SMC Stock Transfer Service Corp.
- SMITS Inc.
- San Miguel Holdings Inc.
- San Miguel Shipping & Lighterage Corp.
- ArchEn Technologies Inc.
- Citra Metro Manila Tollways Corporation
- South Luzon Tollway Corporation
- Bank of Commerce (34.3% ownership)
- Manila Electric Company (MERALCO) (27% ownership)
- Philippine Airlines (PAL) (49% ownership)
- Petron Corporation (68.26% ownership)
- Universal LRT Corp. Ltd. (51% ownership)
- In the Philippine Basketball Association:
- In the ASEAN Basketball League:
- "History and about us". San Miguel PureFoods official website. Retrieved 3 September 2013.
- Dominador Santos, His History, KiwanisCebu.org
- p4, Reinventing the San Miguel Corporation, Ivey Management Services, Version: (A)2009-09-22
- San Miguel Corporation vs. Sandiganbayan (G.R. No. 104637, September 2000)
- Republic of the Philippines vs. Sandiganbayan and Eduardo Cojuangco Jr. (G.R. No. 166859, April 2011)
- Philippine Coconut Producers Federation, Inc. (COCOFED) vs. Republic of the Philippines (G.R. No. 177857, January 2012)
- The Coco Levy Funds: Is the Shell Game Approaching Its End? The CenSEI Report, 16 April 2012
- E-Malt.com News article
- SAN MIGUEL BEER HAILED AMONG THE WORLD’S BEST, WINS 9 MONDE AWARDS, June 19, 2012
- Calderon, Justin (16 July 2013). "Philippines: Poultry with prospects". Inside Investor. Retrieved 18 July 2013.