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San Miguel Corp.

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Chris Diaz

on 4 March 2013

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Transcript of San Miguel Corp.

Vision Company Profile By 1914, San Miguel Beer was being exported from its headquarters in Manila to Shanghai, Hong Kong and Guam. A pioneer in Asia, San Miguel established a brewery in Hong Kong in 1948, the first local brewer in the crown colony.
Today, San Miguel Beer–the Company’s flagship product–is one of the largest selling beers and among the top 10 beer brands in the world. While brewing beer is the company’s heritage, San Miguel subsequently branched out into the food and packaging businesses. From the original cerveza that first rolled off the bottling line, San Miguel Corporation has since expanded its portfolio to produce a wide range of popular beverage, food and packaging products which have–for over a century–catered to generations of consumers’ ever changing tastes. It has also diversified into heavy industries including power and other utilities, mining, energy, tollways and airports.

The Company’s manufacturing operations extend beyond the Philippines to Hong Kong, China, Indonesia, Vietnam, Thailand and Malaysia. Its products are exported to major markets around the world. Continuing a tradition of product quality, San Miguel is capitalizing on its unique strengths in brands and distribution to weave its products more deeply into the fabric of everyday life. Not just in the Philippines but in the Asia-Pacific region. Business Nature Total Quality Management San Miguel Corporation Established in 1890, La Fabrica de Cerveza de San Miguel, Southeast Asia’s first brewery produced and bottled what would eventually become one of the bestselling beers in the region. Within the span of a generation, San Miguel Beer would become an icon among beer drinkers. Whether you look at our business models, processes or culture, San Miguel Corporation is a very different enterprise today than a decade ago.
Our goals stay the same but our priorities as an organization change to reflect the new opportunities and challenges we see in front of us.
For over a century, the Company has been a strong player in the domestic beverage, food and packaging market. In 2007 San Miguel announced its intention to diversify into high-growth, high-yield sectors like energy, power, mining, and other utilities. Since then, the company has made several important strategic acquisitions, most significantly in Manila Electric Co., oil refiner, Petron Corporation, and the acquisition of Limay power plant and three separate power generation contracts. Making Everyday Life A Celebration

San Miguel will be among the largest food, beverage and packaging companies in the Asia-Pacific. We will carry into new markets our over a century-old tradition of quality and integrity. Consumers will take pleasure in reaching for our products and services because they are the best value for money. Our food and beverage brands will be in every household and every retail outlet. We will meet our consumers’ everyday needs, delighting their every taste. Through our products and services, every occasion to drink and eat will bring enjoyment …a celebration. Location 40 San Miguel Avenue, Mandaluyong City
1550 Metro Manila, Philippines


(+632) 632-2000

Domestic Toll Free Number:
(available only to residents of the Philippines) Methods & Measurement World Class Partners
San Miguel’s partnerships with major international companies have given the Company access to the latest technologies and skills. Our marketplace experience, technical expertise, and innovation capabilities, while largely homegrown, also reflect our long term partnerships with world class players.
San Miguel’s joint venture partners include Hormel Foods Corporation, Yamamura Glass and Fuso Machine and Mold Manufacturing of Japan. A strategic equity investment in San Miguel by Japan’s leading brewer and global player, Kirin Brewery Company, Ltd. has further enhanced San Miguel’s competitive position in Asia, a region in which it is already well placed. Management Strategies San Miguel’s strategy today is basically two-pronged. First, to strengthen and unlock the value of its historical core businesses, maintaining and building upon the dominant market positions held in most of its product segments. To further enhance its competitive position, the Company has worked toward improving synergies across existing operational lines; strengthening its domestic businesses by shifting its focus from commodity goods to value-added and branded products; and, improving sales and distribution. In this regard, San Miguel has chosen to sharpen operating execution and partner with world-class industry leaders. As stand-alone entities, these core businesses are now positioned to be able to move faster and more aggressively—pursuing their own growth strategies and better-positioned to create more value for shareholders. The second part of San Miguel’s strategy has been to turn to new engines of growth and boost aggregate margins by participating in faster-growth industries which stand to deliver, on average, a 15% return on equity annually. This diversification should allow the Company to grow faster and perform more consistently in the future, likewise supporting the basic needs of the country. While profitability is key, equally important is San Miguel’s avowed objective of entering businesses that support the basic needs of its home country. These industries—energy, power, infrastructure, mining, telecom and other utilities have strong demand fundamentals and the potential to make a deep and lasting impact on the Philippine economy. Impact of Quality Practices to the Organization Beverages Beer
From the original cerveza brewed in 1890, San Miguel has since produced a wide range of popular beverage products which are runaway market leaders in their respective product categories. Available in over 60 international export markets, flagship product San Miguel Beer is among the world’s largest selling beers, and a leading brand in the Philippines, Hong Kong and South China. Affiliated brands Anker Beer and Blue Star also hold dominant positions in their home markets.

San Miguel Brewery Inc.’s operations extend from its domestic base throughout the Asia-Pacific: China, Indonesia, Thailand and Vietnam. San Miguel is also produced in Nepal through a licensing agreement. Hard Liquor & NAB

Ginebra San Miguel, Inc. is the world’s largest gin producer by volume as well as the market leader in the domestic hard liquor market, with core products such as Ginebra San Miguel Gin, GSM Blue Gin and Gran Matador Brandy. It also produces and sells distilled spirits in Thailand under a joint venture agreement with Thai Life Group of Companies. In addition, it has a non-alcoholic beverage business, which produces and sells non-carbonated ready-to-drink tea and fruit juices primarily under the Magnolia brand in the Philippines. Food San Miguel Pure Foods Company, Inc. offers a diverse array of food products spanning across the entire value chain ranging from B-Meg feeds and San Miguel Mills flour to Purefoods hotdogs, Magnolia chicken or Monterey ready-to-eat meat dishes. Pure Foods offers an unrivalled breadth of food products that can be consumed during any time of the day, providing a comprehensive food solution to its customers, thereby building greater brand loyalty and prestige. Packaging The San Miguel Yamamura Packaging Corporation provides a wide range of packaging solutions to various industries including food, pharmaceutical, chemical, beverages, and personal care across Asia-Pacific, Middle East, Africa and the United States. It is a major player in the domestic packaging industry with market leadership in most of its product formats. Properties Although initially established to be San Miguel Corporation’s corporate real estate arm, San Miguel Properties later diversified into commercial property development in market opportunities. Its current portfolio of projects includes mixed-use developments with economy to middle-income housing as its core products. New Businesses Fuel and Oil
Petron Corporation is the largest oil refining and marketing company in the Philippines. Supplying nearly 40% of the country’s oil requirements, the company’s world-class products and quality services fuel the lives of millions of Filipinos. Petron’s vision is to be the leading provider of total customer solutions in the energy sector and its derivative businesses. Infrastructure Toolways and Airports

Phase 1 of the P19 billion, 88.5 kilometer two-lane Tarlac-Pangasinan-La Union Expressway began April 2010. As administrator of the toll project, SMC will provide management services, toll collection, traffic safety and security management, toll road maintenance and other related services. Power & Energy Mining Telecom Banking Other Investments and Businesses Our Values Sual Power Plant

The Sual Power Plant is a 2500 MW coal-fired power plant located in Sual, Pangasinan on the Lingayen Gulf. This power plant is owned by TeaM Energy, which is a joint venture between Marubeni Corporation and Tokyo Electric Power Corporation. In March 2010, San Miguel Energy Corporation acquired ownership of Daguma Agro Minerals Inc. and Bonanza Energy Resources Inc. for US$25 million. Both mines are located in South Cotabato, Mindanao. SMEC’s third mining acquisition is Sultan Energy Phils. Inc., bought for US$14.5 million. Located in Sultan Kudarat, close to the company’s other two mines. Taken together, the three mines have a total of 17,000 hectares of coal resources and will provide guaranteed and a cheaper raw material source for SMEC power plants. San Miguel’s fledgling telecommunications business has seen the addition of Bell Telecommunications Philippines, Inc., our second telecoms platform after Liberty Telecommunications Holdings, Inc. Bell Tel will give San Miguel entry into the wireless voice, data and video connectivity business, expanding the scope of the company’s telecom offerings. Bank of Commerce is one of the Philippines’ progressive commercial banks. It has been in operations since 1991. The Bank offers a wide range of banking and other financial products and services, including traditional deposit products, corporate banking, consumer banking, treasury, asset management, trust services, trade, and credit card services. Anchor Insurance Brokerage Corp.
SMC Retirement Funds Office

SMC Stock Transfer Corp.


ARCHEN Technologies

San Miguel Shipping & Lighterage Corp.

SMC Global Power Holdings Corp.

San Miguel Energy Corp.
Philippine Airlines Passion for Success
Respect for Our People
Customer Focus
Social Responsibility Tulong-tulong sa Tullahan
2002 Anvil Award of Excellence
(Public Relations Society of the Philippines)
Coca-Cola’s Mission P.E.T.
2002 Anvil Award of Excellence
(Public Relations Society of the Philippines)
Coca-Cola’s Mission P.E.T.
2002 Gold Quill Award
(International Assn. of Business Communicators)
Distileria Bago, Inc.
2002 Anvil Award of Merit
(Public Relations Society of the Philippines)
Distileria Bago, Inc.
2002-2003 Certifi cate of Recognition as Healthy Workplace
Regional Winner (Provincial Category)
San Fernando Brewery
2001 Healthy Workplace
(Department of Health-National and Regional Level)
Davao Brewery’s EMS and Adopt-a-River Project
2000 Mother Nature Award
(Pollution Control Assn. of the Philippines, Inc.)
San Fernando Brewery
1999 Employer of the Year Award
(Social Security System)
Polo Brewery/Bacolod Brewery/Davao Brewery/CTS-EMG
1997-2000 Ten Outstanding Pollution Control Officers
(Pollution Control Assn. of the Philippines, Inc.) Awards Ginebra Lucena plant gets ISO Certification GSMI Lucena plant’s ISO 9001:2000 certification attests to its consistently high quality standards.
Ginebra San Miguel Inc.’s manufacturing plant in Lucena City, Quezon Province, was recently certified as ISO 9001:2000 compliant by Bureau Veritas Quality International.
The certification attests to high quality standards at the plant and assures Ginebra customers of world-class hard liquor products.
Plant area operations manager Genaro Catalan Jr. received the certification from BVQI Certification and Marketing Manager Margarita Hockenhull.
San Miguel AVP and manager for corporate quality Cynthia Cabasag, GSMI AVP for Operations Henry Mandac and GSMI President and Chief Operating Officer Danilo C. Navarro, witnessed the event.

Journey Journey
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