Sais’s largest publicly listed food, beverage and packaging company with over 1 7,000 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 Pipelines, Ginsberg San Miguel, Monterey, Magnolia, and Purebloods. San Miguel Beer is one of the largest selling beers and among the top ten selling beer brands in the world.
SCM manufacturing operations extend beyond its home market o Hong Kong, China, Indonesia, Vietnam, Thailand, Malaysia and Australia; and Its products are exported to 60 markets around the world. History – Early Years In 1889, a well-known Manila businessman, Don Unripe Maria Barrette De Yucca y Estates 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 (Michaels, or the feast day of Chanticleer the Archangel) the following year, La F;brawl De Carve De San Miguel was declared open for business.
Located at 6 Called De Malignant (later called Avails), the brewery took its name from its spinsterhood, the arable (suburb or district) of San Miguel. The facility had two sections: one devoted to the production of ice with a daily capacity of 5 tones, and the other to beer production. The brewery was the first in Southeast Asia using the most modern equipment and facilities of many awards as a product of the highest quality at the ExposableГ?n Regional De Filipinos. By 1896, San Miguel beer was outselling by more than five-to-one all imported beers in the country.
The asses 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 Rosa’ leadership, modernization of their operations included installation of electric conveyors and automatic machines, with the brewery equipment modernized 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 Rosa died in Paris, France in 1913.
He had died soon after Don Bonito Laggard and Don Gonzalez Tucson, made it advisable to change the form of the company from a firm of co-participants to a corporation. Rojas’s son, Don Antonio R. Rosa, was appointed president, with Don Unripe Briars De Coca and Don Ramona J. Fernando as managers. By 1 914, San Miguel had branched out Into the exporting business and its products had found ready markets in such neighboring 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 thinned States that San Miguel was able to resume exports to Guam and later to Honolulu, Territory of Hawaii. By the end of 1914, Don Unripe arias De Coca, after engine that his efforts and industry had resulted in a progressive and prosperous Rosa. In 1918, Don Antonio R. Rosa resigned from his position as president. The day. With 70 employees, the plant produced 3,600 hostilities (about 47,000 cases) of lager beer during the first year and subsequently produced other types of beer, notably Carve Negro, Eagle Extra Stout and Double Bock.
Early success led to the expansion of the business and Barrette decided to incorporate his brewery. On 6 June 1893, the company was incorporated and registered with a capital of Pl 80,000. Those forming the corporation were Don Pedro P. Rosa y Castro, Don Gonzalez Tucson y Patina, Don Vaccine D. Fernando y Castro, Don Albino Congruence, Bonito Laggard y Tucson, the heirs of Don Marino Buenaventura y Chuddar and Barrette. Rosa 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 Unripe Barrette, a share of his interest in the firm worth POP,OHO. When Barrette retired in May of the same year, Don Pedro through his attorneys bought the balance of Barrette’s stake in the business. In 1895, San Miguel Beer won its first of Enter the Garrisons: 1918 to 1963 Richard Tomato Burros 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. Rosa, Don Ramona J.
Fernando assumed the presidency and Don Ands Syrians, nephew of Don Antonio R. Rosa, was made acting manager. In 1923, Don Ands was appointed manager and together with Don Antonio Briars managed the house of San Miguel with constantly increasing success. Diversification into new lines of business began in the sass. The company opened in 1922 the Royal Soft Drinks Plant in Manila producing Royal Outrage, 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 Avails which, one year later, was transferred to a new site on Gauche, Quip District, and Manila. The new site used to house the FГbaric De While 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 asses, San Miguel began investing in businesses overseas. The company set up a worth lived dairy business in Calcutta, India and Singapore (Cold Storage Creameries, Singapore), and invested in breweries in the United States (a stake in George Mulched 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 Misuse’s treasurer and nine directors and the executive officers of the corporation). Don Ramona J. Fernando was elected president of the board of directors and Don Antonio Rosa y Gargoyle, son of Don Antonio R. Rosa, was elected vice-president. Don Andrea Syrians was elected president of the corporation, with Don Antonio Briars Rosa as vice president. Don Eduardo Rosa, another son of Don Antonio R. Rosa, and Don Jacob ZГ¶bell were appointed directors. Don Jacob ZГ¶bell was first cousin to Don Ands Syrians and the Arrases). Expanding and modernizing 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 Garrisons relied on their alliances with relatives, like their cousins the Allays and associates. Before World War II broke out, San Miguel had built a glass factory in Pace and the Cube Royal plant, its first installation dissolution. When the war reached the Philippines, Syrians was commissioned as a colonel and served as an aide to General Douglas MacArthur.
One of the first Filipino breakwaters was Dominator San Diego Santos, a chemist from Abandon, BullaГn. After the war, San Miguel rebuilt and mounted a large scale expansion program. The company acquired and modernized a second brewery in Polo, BullaГn in 1947. Two years later, five other plants were opened: the Manila glass plant in Faro, a carbon dioxide plant in Otis, a orator plant, the Lillo Coca-Cola plant and the Faro power plant. Exports of San Miguel Pale Pipelines resumed. New soft drink plants followed in Dave and Nag.
In 1953 Syrians signed the so-called “Manila Agreement” which allowed the Spanish beer brewing subsidiary La Gears to brew and sell beer under the San Miguel brand. This company, which was later renamed as San Miguel FГbricks De Carve 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 asses, signaled by a new corporate name (the company’s name was shortened to San Miguel Corporation), a new head office along Loyal Avenue in Magmata and Garrison’s death in 1964.
At the time of his death, Syrians had parlayed his family’s vast San Miguel fortune into mining, dairies, factories, a newspaper and 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 Rosa was elected chairman of San Miguel and Ands Syrians, Jar. Became president in 1964. Syrians, Jar. As been credited with instituting modern management theory, including decentralization along product lines.
The Mandate complex was inaugurated in 1967, and the Mandate 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. Syrians Jar. Continued to diversify the food business during the early asses, expanding into poultry production in 1982, building an ice cream plant in 1983 and ajar competitor in the beer market in the late asses. 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 an 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 Misuse’s notoriously aggressive and sometimes cutthroat competitive strategy, which had reportedly included “attempts o sabotage Asia Brewery’s sales network and smash its empty bottles. Asia Brewery even hired away San Misuse’s Brewster. At that time, The Brewery buildings in San Miguel District were demolished upon transfer to the Philippine Government as property of Malignant Palace. The site became a park while some became part of the government complex (as the new executive building, known as the Bordello 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, FГbricks De Carve y Malta, AS, 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-traveled consumers could easily confuse the two San Miguel beers, even though they are brewed by two different companies. Turbulence: 1984 to 1986 Syrians Jar. ‘s administration also witnessed battles for corporate control. A thorny issue of management transparency broke the Garrisons’ longstanding alliance with the ZГ¶bell-Loyal clan. The result was a historical corporate battle that resulted in the loss of effective control by both the Garrisons and ZГ¶bells of San Miguel.
Both families were related to each other through the line of Pedro Pablo Rosa. In 1983, Unripe ZГ¶bell, a wealthy cousin of the Garrisons who owned the Sober-Loyal 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 Syrians-led management to share corporate information with ZГ¶bell, especially regarding contracts that SCM management was entering into with companies under the A. Syrians group.
The Garrisons viewed Sober as a competitor, while Sober (holding nearly 20% of SCM stake) viewed the Garrisons (with about 7%) as mismanaging the company and engaging in sweetheart deals. Unable to oust Syrians Jar. , ZГ¶bell sold his group’s 19. 5-percent stake to Eduardo Conjuring, Jar. , a resourceful businessman and an astute political adviser of then President Ferdinand Marco’s. Cognac’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 Syrians family with a mere 3 percent.
Funds used by Conjuring to acquire Cobble’s stake came from levies imposed by the Marco’s 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. In the asses, Marco’s 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 Coconut Planters Bank, and that Conjuring then used much of the funds to help him purchase his controlling stake in San Miguel. The controlling interest carried nine of
San Misuse’s 15 directors’ seats with it. When Syrians Jar. Died of cancer in 1984, Conjuring scooped up the chairmanship of San Miguel in 1984. That same year, San Miguel moved to a new head office in Manhandling. Conjuring brought coconut oil milling and refining operations into San Misuse’s portfolio. His reign, however, was cut short when Marco’s was toppled in 1986. After the People Power Revolution in 1986, Carbon Aquinas, Cognac’s estranged cousin, became president of the Philippines. Aquinas rode on the crest of widespread public outrage over the assassination of her husband, Benign Aquinas, Jar. N 1983. One of the people she blamed for her husband’s death was Conjuring, who fled on the same private Jet as Marco’s to Hawaii in 1986. The Aquinas administration sequestered Cognac’s stake in San Miguel and agreed to let Syrians Jar. ‘s son, Ands Syrians Ill, run the company although the Syrians family’s holdings had by then dwindled too mere 1 percent. Syrians Ill launched a campaign to reclaim the family legacy, but when he tried to buy back the abandoned shares, he was blocked by the Aquinas administration’s Presidential Commission on Good Government (PEG).
The PEG 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 PEG continued to tend its San Miguel stake into the early asses, but it acceded De facto control of the conglomerate to Syrians Ill via a management contract with his A. Syrians Corp.. Syrians Ill continued the company’s program of expansion, acquiring majority control of La Donated 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 Syrians Ill 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 Enhances-Busch and Miller of the United States, Shrink of Japan, and BBS of France. Syrians Ill allocated $1 billion too 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 reduces.
A subsequent decentralization 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 he company had exported beer for most of its history, this effort was intensified dramatically in the late asses. San Misuse’s beer exports grew by 150 percent from 1985 to 1989 alone, and the brand was soon exported to 24 countries, including all of Sais’s key markets as well as the United States, Australia, and the Middle East. Once 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 Misuse’s ownership (not to mention other problems endemic to operating in the Philippines), the company’s sales quintupled from Pl 2. 23 billion in 1986 to POP. 43 billion by 1994. Net income increased twice as fast, from Pl . 11 billion to P 1 1. 86 billion over the same period, although San Misuse’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 Misuse’s domestic soft-drink bottling unit, Coca-Cola Bottlers Philippines Inc. As merged into the Australia-based Coca-Cola Mantilla. In effect, San Miguel exchanged its 70-percent interest in a Philippine-only operation for a 25-percent stake in CA, which had operations in 17 countries. CA soon demurred the latter operations into a UK-based firm called Coca-Cola Beverages Pl (resulting in a reduction of San Misuse’s stake in CA 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 Misuse’s ice cream and pastured milk business was merged with the operations of Nestle to form Nestle Philippines Inc. , and late in 1998 San Misuse’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. Businesses and products San Miguel Brewery, Inc.
San Miguel Brewery, Inc. Manufactures and distributes San Miguel Beer Pale Pipelines, the Philippines’ best selling beer and a leading brand in Hong Kong and South China. The trade name 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 Pipelines, 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 “Carve Negro. San Miguel also produces a wide range of products that are runaway market leaders in their product categories. “Inker Birr” 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, Carve Negro, San Miguel Alcoholic malt Beverage Apple Flavor) received a Gold Award at Monde Selection’s World Quality Selections in 2012.
Carve Negro 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 with the minimum public ownership (“MOO”) of the Philippine Stock Exchange, Inc. (SSE). As a result of the denial, the SSE imposed a trading suspension on the shares of SMB effective January 1, 2013. Ginsberg San Miguel, Inc. Ginsberg San Miguel, Inc. Was incorporated in 1902 by Carols Planck Sir. s La Donated Incorporate. San Miguel acquired a 70-percent stake in the company in 1987 and renamed it La Donated Distillers Inc. Under San Miguel, La Donated 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 Ginsberg San Miguel Inc. Ginsberg San Misuse’s main brand, Ginsberg San Miguel, is currently the arrest-selling gin brand in the world, with 22 bottles consumed every second in the Philippines.
The company also makes the Grand Matador brandy, “Infinite” ready-to- drink alcohol mixes, Donated Premium rum, GSM Blue variant and the Vine Kulaks Chinese wine. San Miguel-Purebloods 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, and manufacturing, processing and distribution facilities. The Company was formed by acquiring the stocks of the Lass’s Purebloods-Hormone Company. Purebloods hen 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 Dare Cryme. 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 Philippines” leading poultry producer. San Miguel Packaging Products San Miguel Yammer 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. SAMMY 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. SAMMY also manages a plastic crate plant in Indonesia and a glass and metal crown facility in Vietnam.
In Malaysia, SAMMY operates four facilities that produce flexible packaging, plastic films, woven products and radiant barriers for higher-value and high-tech industries such Initially established in 1990 as San Misuse’s corporate real estate arm. Its current oratorio of projects includes mixed-use developments, with economy to middle- income housing as its core products. Among its real estate development projects: Bell Alden, Marital, and Mural in Cavities and Hedgerow’s in Sat. Rosa Laguna. In the works is San Francisco Lake town, a development right in Cavities.
San Miguel Properties’ has also launched the Monte Maria project as a Catholic pilgrimage site. Situated in Alfonse, Cavities. San Miguel Corporation’s Strategy San Misuse’s goal is to help people enjoy and make progress in their lives through the many products and services that our company offers. We want to give every customer ND consumer we touch access to the best we can offer whether in terms of quality, or affordability or choice. Our strategy for achieving these goals has five major elements which are common to both our traditional and new businesses: Enhance value of our established businesses.
We aim to enhance the value of our established businesses, ever striving to achieve even greater efficiencies and operational excellence. We will strengthen our brands by improving product visibility and targeting areas where there is room for growth in market share. Continue to diversify into industries that underpin the development and growth of he Philippine economy. In addition to organic growth, we continue to seek strategic acquisition and Greenfield opportunities, positioning our businesses in a way to best contribute to our country’s economic growth and industrial development.
Identify and pursue synergies across businesses through vertical integration, platform matching and channel management. We will create an even broader distribution network for our products and expand our customer base by identifying synergies across our various businesses. In addition, we are pursuing plans to integrate our production and distribution facilities for its both our established and eely acquired businesses to generate additional cost savings and efficiencies. Invest in and develop businesses with market leading positions.
San Miguel intends to further enhance our market position in the Philippines by leveraging the company’s financial resources and experience to allow it to continue to introduce new products and services. Potential investments to develop existing businesses include building additional service and micro-filling stations, constructing new power plants, expanding our power generation portfolio and expanding food distribution networks. We believe our strong domestic market position provides an effective platform to develop markets for an expanding product portfolio.
And we will continue to invest in and develop businesses that have the potential to gain leading positions in their respective markets and industries. Strategic partnerships with global industry leaders, including Shrink in the beverages business and Onion Yammer Glass in our packaging business. These partnerships provide marketing and expansion opportunities, and potentially provide liquidity and opportunities for SCM to divest minority stakes in its businesses as other opportunities arise.
