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San Miguel Food and Beverage, Inc.

1) San Miguel Food and Beverage (SMFB) is a subsidiary of San Miguel Corporation that was formed through the consolidation of San Miguel Brewery, Ginebra San Miguel, and San Miguel Pure Foods. 2) SMFB has expanded globally through joint ventures and acquisitions in countries like Vietnam, Australia, and Singapore in order to access new markets, raw materials, and improve its supply chain. 3) While global expansion led to some losses and debt for SMFB's parent company San Miguel Corporation, their strategic planning, partnerships, innovation, and risk management have enabled SMFB to successfully compete globally and continue leading the Philippine economy.

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Kaithleen Coreen Ebalo
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89 views2 pages

San Miguel Food and Beverage, Inc.

1) San Miguel Food and Beverage (SMFB) is a subsidiary of San Miguel Corporation that was formed through the consolidation of San Miguel Brewery, Ginebra San Miguel, and San Miguel Pure Foods. 2) SMFB has expanded globally through joint ventures and acquisitions in countries like Vietnam, Australia, and Singapore in order to access new markets, raw materials, and improve its supply chain. 3) While global expansion led to some losses and debt for SMFB's parent company San Miguel Corporation, their strategic planning, partnerships, innovation, and risk management have enabled SMFB to successfully compete globally and continue leading the Philippine economy.

Uploaded by

Kaithleen Coreen Ebalo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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 1st slide

San Miguel Food and Beverage, Inc. (SMFB) is a subsidiary company of San Miguel Corporation
listed on the Philippine Stock Exchange, Inc. SMFB was previously known as San Miguel Pure
Foods Company, Inc. back in 2018.
- Ramon Ang is the current CEO of San Miguel Food and Beverage
 2nd slide
SMFB is actually a three-way consolidation between San Miguel Brewery (coffee), Ginebra San
Miguel (gin), and San Miguel Pure Foods (processed foods). They owned a professional
basketball team in Philippine Basketball Association (PBA) as well called Magnolia Chicken
Timplados Hotshots a.k.a. Magnolia Hotshots.
 3rd slide
- San Miguel corporation contributing an estimated 5.2 percent to the Philippines’ GDP
- San Miguel food and beverage beer business delivered Php142.27 billion in 2019 and a total
of Php310.79 billion to its overall product line
- San Miguel Food and Beverage entered the global market many years ago. It all started back
in 2003 when San Miguel Corporation, SMFB’s parent company, formed a joint venture with
Hormel and accelerated the expansion of San Miguel’s presence in Vietnam by acquiring a
hog farming and feeds business in the said country. Back in 2000 when the expansion was
still in process, San Miguel’s debts inflated and financing costs were raised.
- Moreover, in 2005, San Miguel purchased National Foods Ltd., an Australian company of
dairy products and Del Monte Pacific Ltd., a Singapore listed food processing firm, through
NutriAsia Pacific.
- San Miguel was not satisfied with the expansion but then again purchased 65% stake in
Atlanta-based Coca-cola Co. that later on sold in Coca-cola Bottlers Phils. Inc. (CCBPI).
Which  had become a major suffering from declining sales volume because of newly entered
competitors and health conscious people. San Miguel’s profit in 2005 was dragged down by
CCBPI’s losses.
- In 2005, San Miguel entered in brewery through joint venture with Super Coffee Corporation
from Singapore.
- We can see from the company’s history that it is definitely willing to take risks in order to go
global and enter in the global market. Though there were losses and debts behind the
acquisition and merger and purchasing stakes, San Miguel Corporation trusted the effect of
globalizing their product and continued to pursue the global market.
 Factors influenced San Miguel Food and Beverage, Inc. to go global
1. Global Opportunities
1. Experiencing growth through broader/global competition
2. Opportunity to spread business risk across global market base
3. Access to exclusive raw materials
4. Opportunity to improve Supply Chain Management
2. Improving Profitability
1. To achieve lower cost of the raw materials
3. Enhancing Reputation
1. Gain access to new and broad customer base
 How did SMFB become successful in global competition? (essential steps)
1. Strategic Planning
1. Enhancing value of the established business
2. Diversifying into industries that underpin the development and growth of
the Philippine economy
3. Choosing the right investment
4. Pursuing synergies across businesses
5. Adopting world-leading practices and joint development of businesses
2. Partnership and Networking
1. Formed a joint venture with Hormel to acquire hog farming and feed
business in Vietnam.
2. Partnered with NutriAsia Pacific to purchase Del Monte Pacific Ltd., a
Singapore listed food processing firm.
3. Formed a joint venture with Super Coffee Corporation from Singapore to
enter brewery.
3. Innovation and Adaptability
1. Welcomed new and different line of products (i.e. coffee, processed
foods, dairy products, etc.)
4. Risk Management
1. Since 2003, San Miguel Corporation has experienced losses and debts
because of expansion. Losses are expected to  this era of business;
expanding or exploring. However, with proper risk management, losses
could be prevented and lessened. Entering to a global market might be
risky to any company but because of experience and effective strategies,
San Miguel were able to manage through those risks and continued on
leading the Philippine economy.

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