James Lang, Jon Castillo and Paul Diaz ruled the Urban Extreme Sports Challenge held during the Red Horse Beer Pambansang Muziklaban grand finals recently in Pasay City.

Plant officials of beer market leader San Miguel Brewery Inc. (SMB) proudly show the awards they won in the recently held Don Emilio Abello Energy Efficiency Awards (DEAEEA) 2012.

SMB grows domestic, overseas markets
June 2012


Beer market leader San Miguel Brewery, Inc. said sustained efforts to increase patronage of its products and enhancements in productivity and cost management, have boosted its domestic and overseas volumes in 2011 and in the first quarter of the year.

At the company's annual stockholders meeting, SMB, Inc. president Roberto N. Huang said SMB retained its domestic beer market leadership at 96% in 2011. Its contribution to the total alcoholic beverage category also exceeded targets, reaching 67% in 2011.

"We fulfilled our promise to grow our business and protect our market leadership in the Philippines. We implemented programs to boost awareness and patronage for our products as we pursued enhancements in productivity and cost management," he said.

He added that full utilization of its Santa Rosa, Laguna plant in 2011 also enabled it to meet growing demand in the domestic market.

In 2011, the company posted sales volumes of 223.8 million cases, a 1.4% increase from the previous year. Sales revenue grew 6.4% to P72 billion. Operating income rose to P20 billion, up 10.4% from the previous year, resulting in a 28.5% operating margin.


Red Horse, the country's leading extra strong beer, grew its volume by 1.6% in 2011 while San Mig Light retained its number 1 status in the low-calorie beer segment. Gold Eagle Beer continued to conquer Visayas and Mindanao with a volume growth of 6% while Cerveza Negra volumes increased by 16%. San Miguel Super Dry grew 8% and San Miguel Premium All-Malt improved 3%.

San Miguel Pale Pilsen enjoyed steady growth and widened its appeal with the release of a premium, long neck 330 mL paper label format in select upscale outlets in GMA and Luzon. San Mig Strong Ice meanwhile grew its market share in GMA in the premium beer segment.

New brand San Miguel Flavored Beer in lemon and apple variants surpassed volume targets by 61% in its first year.


"Alongside our success in the country, our international operations, through the San Miguel Brewing International, capped the year with exceptional results mainly by better operational efficiencies and cost management programs," said Huang.

He said that Anker and San Miguel Beer premium brands contributed to double-digit volume growth and expanded profit in Indonesia, while San Miguel and premium brands enjoyed higher sales in Hong Kong.

For exports, volume and profit expansion were also evident, especially in proven markets like Sudan, Singapore, Malaysia, Taiwan and South Korea and in emerging markets in Africa and the Middle East.

Huang added that North China showed volume growth with Blue Star asserting its market dominance in the region, while a low-calorie, low-alcohol campaign for San Mig Light has enhanced growth prospects in South China.

San Miguel Pale Pilsen's enjoyed growth across the region, driven by exciting below-the-line and advertising campaigns, Huang said.

SMB's consolidated revenues reached P18.3 billion in the first three months of 2012, a 5% increase vis-a-vis last year. Operating income grew by 5% over the previous year to P5.3 billion. International volumes also grew 9%.


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