San Miguel Corporation

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San Miguel Corporation
Type Holding company
(Public)
Traded as (PSE: SMC SMCB)
Industry Conglomerate
Founded Manila, Philippines (1890)
Founders Enrique María Barretto de Ycaza
Headquarters 40 San Miguel Avenue, Mandaluyong City, Philippines, {{{location_city}}}, {{{location_country}}}
Key people Eduardo M. Cojuangco, Jr. (Chairman and CEO)
Ramon S. Ang (Vice-Chairman, President and COO)
Revenue USD 12.371 billion (Increase117.6%) (2011)[1]
Net income USD 658 million (Increase18.49%) (2011) [1]
Total assets USD 20.506 billion (Increase7.32%) (2011) [1]
Employees 17,151
Website www.sanmiguel.com.ph
San Miguel Pale Pilsen, SMC's Trademark Product

Established in 1890 as a brewery, San Miguel Corporation (PSESMC) 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.

Its flagship product, San Miguel Beer, is one of the largest selling beers and among the top ten selling beer brands in the world. San Miguel's 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.

Since 2008, SMC has ventured beyond its core businesses, becoming involved in fuel & oil (Petron Corporation), aviation (Philippine Airlines and PAL Express), power generation and infrastructure.

History[edit]

San Miguel's old Manila brewery.

In 1889, a well-known Manila businessman, Don Enrique María Barretto de Ycaza y Esteban, applied for a royal grant from Spain to establish a brewery in the Philippines. He was awarded the grant for a period of twenty years. On September 29, 1890 (Michaelmas, or the feast day of Saint Michael the Archangel), La Fábrica de Cerveza de San Miguel was declared open for business. Located at 6 Calzada de Malacañang (later called Calle 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 Pablo Róxas y Castro, Don Gonzalo Tuasón y Patiño, Don Vicente D. Fernández y Castro, Don Albino Goyenechea, Benito Legarda y Tuáson, the heirs of Don Mariano Buenaventura y Chuidan and Barretto.

Róxas was soon appointed manager, playing a prominent role in the development of the firm. He 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, Róxas, 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 Róxas' leadership, modernization 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. Róxas died in Paris, France in 1913. He had died soon after Don Benito Legarda and Don Gonzalo Tuasón made it advisable to change the form of the company from a firm of co-participants to a corporation (San Miguel Brewery, Inc.). Róxas's son, Don Antonio Róxas y de Ayala, was appointed president, with Don Enrique Brías y 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 y 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 y Róxas. In 1918, Don Antonio Róxas y de Ayala resigned from his position as president.

Andrés Soriano, Sr.: 1918 to 1964[edit]

An ad that appeared in the Jan. 17, 1924 edition of the Manila-based Spanish-language satirical magazine Aray.

Andrés Soriano y Róxas (nephew of Don Antonio Róxas y de Ayala and grandson of Don Pedro Pablo Róxas) first joined San Miguel as a clerk in the accounting department. In 1918, after the resignation of Don Antonio Roxas y de Ayala, Don Ramón J. Fernández assumed the presidency and Soriano was made acting manager. In 1923, Soriano was appointed manager and together with Don Antonio Brías y Roxas 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 Tru-Orange, 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 the Philippines. In 1925, San Miguel went into the ice cream business with the purchase of the Magnolia Plant on Calle Avilés which was transferred a year later to a new site on Calle Echague (now, C. Palanca Sr. Street) in 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 site for 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 the George Muehlebach Brewing Company 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 American corporations. 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 Roxas y de Ayala, was elected vice-president. Don Andres Soriano y Róxas was elected president of the corporation, with Don Antonio Brias y Roxas as vice president. Don Eduardo Roxas, another son of Don Antonio R. Róxas, and Don Jacobo Zóbel de Ayala y Róxas were appointed directors. 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, Soriano relied on alliances with his relatives (the Roxases and the Zobel de Ayalas), and associates.

Before World War II broke out, San Miguel 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, Bulacan.[2]

After the war, San Miguel rebuilt and mounted a large scale expansion program. The company acquired and modernized a second brewery in Polo, Bulacán (now part of Valenzuela City) 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 "Manila Agreement" which allowed the Spanish beer brewing subsidiary La Segarra to brew and sell beer under the San Miguel brand. This company, renamed as San Miguel, Fábricas de Cerveza y Malta (now Mahou-San Miguel Group) in 1957, was a separate, independent company that had exclusive rights to use the San Miguel brand in Europe.[3]

Andrés Soriano, Jr.: 1964-1984[edit]

In 1964, the company's name was changed to San Miguel Corporation and it moved to a new head office along Ayala Avenue in Makati.

Andrés Soriano, Sr. died on December 30, 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 Róxas was elected chairman of San Miguel and Andrés Soriano, Jr. became president. Soriano, Jr. was credited with instituting modern management, including decentralisation along product lines.

The Mandaue, Cebu complex was inaugurated in 1967 - its brewery and glass plant commenced operations a year later. Soriano Jr. continued to diversify the food business, building an ice cream plant in 1970 and expanding into poultry production in 1973 (it later added shrimp processing and freezing in 1984). By 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, 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 United Coconut Planters Bank, controlled by Eduardo Cojuangco, Jr., which 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.

San Miguel encountered its first major competitor in the beer market in 1982, 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" (also known as Beer Pale Pilsen and "Beer na Beer"). The product looked and tasted like San Miguel beer, 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 original brewery's buildings in San Miguel, Manila were demolished upon transfer of ownership to the Philippine Government as part of the Malacañang Palace grounds. The site became a park while some became part of the government complex (as the new executive building).

In 1983, San Miguel sold its remaining minority interest in the Spanish company (San Miguel, Fábricas de Cerveza y Malta, S.A.). The two companies had since operated 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.[3]

Turbulence: 1983 to 1986[edit]

Soriano Jr.'s administration also witnessed the battle for corporate control. A thorny issue of management transparency broke Soriano's longstanding alliance with his relatives in the Zóbel de Ayala family. The result was a historical corporate battle that resulted in the loss of effective control by both the Sorianos and Zóbels.

In 1983, Enrique Zóbel (a third cousin of Soriano Jr.), president of Ayala Corporation and was vice chairman of the San Miguel board, had instigated a takeover on his own. The seeds of the "family feud" lay in the refusal of the Soriano management to share corporate information with Zóbel, especially regarding contracts that SMC management was entering into with ANSCOR, a Soriano-owned company. Soriano Jr. viewed Zóbel as a competitor, while Zóbel (holding nearly 20% of SMC stake) viewed Soriano Jr. (with about 7%) as mismanaging the company and engaging in sweetheart deals. Unable to oust Soriano Jr., Zóbel sold his group's 19.5% stake to businessman Eduardo Cojuangco, Jr., 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% of San Miguel, giving him effective control of San Miguel and leaving the Soriano family with a mere 3%. 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.

After Soriano Jr. died of cancer in March 19, 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%.

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, Inc. (now, Ginebra San Miguel, Inc.), the leading producer of hard liquor in the Philippines, in 1987 and adding beef and pork production to the company's food operations (Monterey) in 1988.

Andrés Soriano III: 1986 to 1998[edit]

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 Magnolia ice cream and milk business was merged with the Nestlé Philippines group, to form Magnolia-Nestlé Corporation. By late-1998, San Miguel's stake in this business was acquired by Nestlé. 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.

The Cojuangco-Ang era: 1998 to present[edit]

San Miguel Corporation Head Office Complex at Mandaluyong

Andrés 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.

In November 2007, SMC sold Boag's to Lion Nathan for A$325 million. The same month, SMC also sold National Foods to Kirin for ¥294 billion.[4]

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.

The new SMC[edit]

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.[5] 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.[6]

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.[7]

Legal issues[edit]

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,[8] was awarded by the Supreme Court to the government. The second case, Republic of the Philippines vs. Sandiganbayan and Eduardo Cojuangco Jr.,[9] 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,[10] where the Court, voting 11-0, declared that the remaining 27% of San Miguel is owned by the government.[11] (Note: The 27% had been diluted to 24% due the government’s failure to subscribe to the increased authorized capital stock of San Miguel)

Core businesses[edit]

Investments (2008-present)[edit]

Basketball teams[edit]

In the Manila Industrial and Commercial Athletic Association[edit]

  • San Miguel Braves (1938-1981)

SMC has long been involved in commercial basketball in the Philippines beginning with the Manila Industrial and Commercial Athletic Association (MICAA) founded in 1938, where SMC organized its first basketball team, playing under the name San Miguel Brewery. After the company changed its name to San Miguel Corporation, the team’s name was changed to San Miguel Corporation Braves (or the San Miguel Braves). SMC remained with the MICAA until the league’s dissolution in 1982.

In the Philippine Basketball Association[edit]

In 1975, SMC organized its second basketball team, when the company became a founding member of the Philippine Basketball Association, the first professional basketball league in Asia. The team is currently playing as the San Miguel Beermen and is currently the PBA franchise with the most number of championships (19).

SMC currently owns two more PBA teams, Barangay Ginebra San Miguel and San Mig Super Coffee Mixers, as a result of corporate acquisitions.

In the Philippine Basketball League[edit]

After the dissolution of the MICAA in 1983, the Philippine Amateur Basketball League (PABL) - later renamed Philippine Basketball League (PBL) - was formed in 1983 to take its place as the major amateur basketball league in the Philippines. SMC was one of the league's founding members and remained until the league became dormant in 2010. Its PABL/PBL franchise won a total of nine championships.

In the ASEAN Basketball League[edit]

SMC also participated in the ASEAN Basketball League, playing as the San Miguel Beermen (ABL) from 2011 to 2013, winning one ABL championship.

See also[edit]

References[edit]

External links[edit]