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San Miguel Corporation (), abbreviated as SMC, is a Philippine multinational conglomerate with headquarters in
Mandaluyong Mandaluyong ( ; ), officially the City of Mandaluyong (, ), is a Cities of the Philippines#Legal classification, highly-urbanized city in the Metro Manila, National Capital Region of the Philippines. According to the 2020 census, it has a popula ...
,
Metro Manila Metropolitan Manila ( ), commonly shortened to Metro Manila and formally the National Capital Region (NCR; ), is the capital region and largest List of metropolitan areas in the Philippines, metropolitan area of the Philippines. Located ...
. The company is one of the largest and most diversified conglomerates in the Philippines. Originally founded in 1890 as a brewery, San Miguel has ventured beyond its core business, with investments in various sectors such as food and drink, finance, infrastructure, oil and energy, transportation, and real estate. Its flagship product, San Miguel Beer, is one of the best selling beers in the world. San Miguel's manufacturing operations have extended beyond its home market to areas such as Hong Kong, China, Indonesia, Vietnam, Thailand, Malaysia, and Australia. In total, its products are exported to 60 markets around the world.


History

In 1889, a Manila businessman, Enrique María Barretto de Ycaza y Esteban, applied for a royal grant from
Spain Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...
to establish a
brewery A brewery or brewing company is a business that makes and sells beer. The place at which beer is commercially made is either called a brewery or a beerhouse, where distinct sets of brewing equipment are called plant. The commercial brewing of b ...
in the Philippines. He was awarded the grant for a period of twenty years. On September 29, 1890 (
Michaelmas Michaelmas ( ; also known as the Feast of Saints Michael, Gabriel, and Raphael, the Feast of the Archangels, or the Feast of Saint Michael and All Angels) is a Christian festival observed in many Western Christian liturgical calendars on 29 Se ...
, or the feast day of Saint Michael the Archangel), ''La Fábrica de Cerveza San Miguel'' was opened. Located at 6 Calzada de Malacañan (later renamed Calle conde de Avilés and presently
Jose Laurel Street Jose Laurel Street is a tree-lined street in the district of San Miguel, Manila, San Miguel in north-central Manila, Philippines. It runs parallel to the Pasig River from the Nagtahan Interchange south-westwards to Ayala Bridge. It is where Ma ...
), the brewery took its name from the ''arrabal'' (suburb or district) where it was located, San Miguel, Manila. The facility had two sections: one devoted to the production of
ice Ice is water that is frozen into a solid state, typically forming at or below temperatures of 0 ° C, 32 ° F, or 273.15 K. It occurs naturally on Earth, on other planets, in Oort cloud objects, and as interstellar ice. As a naturally oc ...
with a daily capacity of 5 tons, and the other to
beer Beer is an alcoholic beverage produced by the brewing and fermentation of starches from cereal grain—most commonly malted barley, although wheat, maize (corn), rice, and oats are also used. The grain is mashed to convert starch in the ...
production. The brewery was the first in Southeast Asia to use modern equipment and facilities. 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 June 6, 1893, the company was incorporated and registered with a capital of P180,000. Those forming the corporation were Barretto, Pedro Pablo Róxas y Castro (an ancestor of the Zobel de Ayala family), Gonzalo Tuasón y Patiño, Vicente D. Fernández y Castro, Albino Goyenechea, Benito Legarda y Tuáson and the heirs of Don Mariano Buenaventura y Chuidan. Pedro Pablo Róxas was appointed manager, playing a prominent role in the development of the firm. He was the most active member of the firm until 1896, when he left for Europe. Prior to his departure, he acquired some of Barretto's shares in the company worth ₱42,000. After Barretto retired in May 1896, Róxas acquired the rest of Barretto's stake in the business. In 1895, San Miguel Beer won its first award as a product of the highest quality at the Exposición Regional de Filipinas. By 1896, San Miguel Beer was outselling all imported beers in the country at a rate greater than five-to-one. The 1900s ushered in a period of prosperity after the
Philippine Revolution The Philippine Revolution ( or ; or ) was a war of independence waged by the revolutionary organization Katipunan against the Spanish Empire from 1896 to 1898. It was the culmination of the 333-year History of the Philippines (1565–1898), ...
and the beginning of the American Occupation. Demand for beer increased, so San Miguel, still under Róxas' leadership, commenced modernization of their operations including installation of electric conveyors and automatic machines. The brewery's equipment was fully modernised by 1910.


Incorporated as San Miguel Brewery, Inc. (1913–1963)

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 Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, largest city of France. With an estimated population of 2,048,472 residents in January 2025 in an area of more than , Paris is the List of ci ...
in 1913. Soon after, Benito Legarda and 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, Antonio Róxas de Ayala, was appointed president, with Enrique Brías de Coya and Ramón J. Fernández as managers. By 1914, San Miguel began to export, with its products finding ready markets in Hong Kong, Shanghai and Guam. When the
First World War World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...
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 Prohibition is the act or practice of forbidding something by law; more particularly the term refers to the banning of the manufacture, storage (whether in barrels or in bottles), transportation, sale, possession, and consumption of alcoholic b ...
was repealed in the United States that San Miguel was able to resume exports to
Guam Guam ( ; ) is an island that is an Territories of the United States, organized, unincorporated territory of the United States in the Micronesia subregion of the western Pacific Ocean. Guam's capital is Hagåtña, Guam, Hagåtña, and the most ...
and later to
Honolulu Honolulu ( ; ) is the List of capitals in the United States, capital and most populous city of the U.S. state of Hawaii, located in the Pacific Ocean. It is the county seat of the Consolidated city-county, consolidated City and County of Honol ...
. By the end of 1914, Enrique Brías, 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, Antonio Brías y Róxas. In 1918, Antonio Róxas resigned from his position as president.


Andrés Soriano Sr.: 1918–1964

Andrés Soriano (a grandson of Pedro Pablo Róxas and a nephew of Antonio Róxas) joined San Miguel as a clerk in the accounting department. In 1918, after the resignation of Antonio Róxas, Ramón J. Fernández assumed the presidency and Soriano was made acting manager. In 1923, Soriano was appointed manager and managed San Miguel together with Antonio Brías y Róxas with increasing success. Diversification into new lines of business began in the 1920s. In 1922, the company opened the Royal Soft Drinks Plant in Manila producing
Royal Tru Royal Tru (often referred to simply as Royal) is a carbonation, carbonated fruit-flavored soft drink brand owned by The Coca-Cola Company that is exclusive to the Philippines. The brand was introduced in 1922 by the original San Miguel Corpora ...
, other Royal products and aerated water. (In 1919, the company acquired the Oriental Brewery and Ice Company and transformed the building into an ice plant and cold storage; later the Royal Soft Drinks Plant.). Five years later, the company secured the rights to bottle and distribute
Coca-Cola Coca-Cola, or Coke, is a cola soft drink manufactured by the Coca-Cola Company. In 2013, Coke products were sold in over 200 countries and territories worldwide, with consumers drinking more than 1.8 billion company beverage servings ...
in the Philippines. In 1925, San Miguel went into the ice cream business with the purchase of the
Magnolia ''Magnolia'' is a large genus of about 210 to 340The number of species in the genus ''Magnolia'' depends on the taxonomic view that one takes up. Recent molecular and morphological research shows that former genera ''Talauma'', ''Dugandiodendr ...
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 Manila, officially the City of Manila, is the Capital of the Philippines, capital and second-most populous city of the Philippines after Quezon City, with a population of 1,846,513 people in 2020. Located on the eastern shore of Manila Bay on ...
. This new site used to house the Fábrica de Hielo de Manila 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 the Insular Ice Plant from the government 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 holding in the Lone Star Brewing Company located in San Antonio, Texas). In 1939, the management structure of the company was reorganized to be more like other 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). Ramón J. Fernández was elected president of the board of directors and Antonio Róxas y Gargollo (a son of Antonio Róxas) was elected vice-president. Soriano was elected president of the corporation, with Antonio Brías y Róxas as vice president. Eduardo Róxas y Gargollo (another son of Don Antonio Róxas) and Jacobo Zóbel y Róxas were appointed directors. Expanding and modernizing the company, however, required the dilution of family control. San Miguel became the first Filipino company to be jointly owned by many shareholders. To retain control, Soriano relied on alliances with his Róxas relatives and associates. Before
World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
broke out, San Miguel built a glass factory in Paco and the
Cebu Cebu ( ; ), officially the Province of Cebu (; ), is a province of the Philippines located in the Central Visayas region, and consists of a main island and 167 surrounding islands and islets. The coastal zone of Cebu is identified as a ...
Royal plant, its first installation outside
Luzon Luzon ( , ) is the largest and most populous List of islands in the Philippines, island in the Philippines. Located in the northern portion of the List of islands of the Philippines, Philippine archipelago, it is the economic and political ce ...
. When the war reached the Philippines, Soriano was commissioned as a
colonel Colonel ( ; abbreviated as Col., Col, or COL) is a senior military Officer (armed forces), officer rank used in many countries. It is also used in some police forces and paramilitary organizations. In the 17th, 18th, and 19th centuries, a colon ...
and served as an aide to General
Douglas MacArthur Douglas MacArthur (26 January 18805 April 1964) was an American general who served as a top commander during World War II and the Korean War, achieving the rank of General of the Army (United States), General of the Army. He served with dis ...
. One of the first Filipino brewmasters was Dominador San Diego Santos, a chemist from Obando, Bulacan.Dominador Santos
, His History, KiwanisCebu.org
After the war, San Miguel rebuilt and mounted a large scale expansion program. It 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 Farola glass plant and power plant ( San Nicolas, Manila), a carbon dioxide plant in Otis Street (
Paco, Manila Paco, formerly known as Dilao, is a district of Manila, Philippines, located south of the Pasig River and San Miguel, west of Santa Ana, southwest of Pandacan, north of Malate, northwest of San Andres Bukid, and east of Ermita. It had a pop ...
), a carton plant and the Iloílo Coca-Cola plant. Exports of San Miguel Pale Pilsen resumed, and new soft drink plants followed in Davao and Naga. In 1953, Soriano signed the Manila Agreement which allowed the Spanish company La Segarra S.A. to brew and sell San Miguel Beer in Spain. La Segarra S.A., renamed San Miguel, Fábricas de Cerveza y Malta (now
Mahou-San Miguel Group Mahou San Miguel is a Spanish brewery, founded in Madrid in 1890 under the name of ''Hijos de Casimiro Mahou, fábrica de hielo y cerveza'' (). Mahou San Miguel is the leading brand in the Spanish beer market. History In 1890, Enrique, Luis, and ...
) in 1957, was a separate, independent company that had exclusive rights to use the San Miguel brand in Europe.p4, Reinventing the San Miguel Corporation, Ivey Management Services, Version: (A)2009-09-22


San Miguel Corporation (1963–present)


Andrés Soriano Jr.: 1963–1984

In 1963, the company's name was changed to San Miguel Corporation (SMC) and moved to a new head office along Ayala Avenue in
Makati Makati ( ; ), officially the City of Makati (), is a highly urbanized city in the National Capital Region of the Philippines, known for being one of the leading financial centers in the country. As of 2013, the city has the highest concent ...
. Andrés Soriano died on December 30, 1964. At the time of his death, Soriano had parlayed his family's vast San Miguel fortune into
mining Mining is the Resource extraction, extraction of valuable geological materials and minerals from the surface of the Earth. Mining is required to obtain most materials that cannot be grown through agriculture, agricultural processes, or feasib ...
, dairies, factories, a
newspaper A newspaper is a Periodical literature, periodical publication containing written News, information about current events and is often typed in black ink with a white or gray background. Newspapers can cover a wide variety of fields such as poli ...
and a
radio station Radio broadcasting is the broadcasting of audio (sound), sometimes with related metadata, by radio waves to radio receivers belonging to a public audience. In terrestrial radio broadcasting the radio waves are broadcast by a land-based rad ...
. He had investments in
Philippine Airlines Philippine Airlines (PAL) is the flag carrier of the Philippines. Headquartered at the Philippine National Bank, PNB Financial Center in Pasay, the airline was founded in 1941 and is the oldest operating commercial airline in Asia. Philippine ...
, held the largest Coca-Cola franchise, and owned five
insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...
agency distributorships, a
Kansas City The Kansas City metropolitan area is a bi-state metropolitan area anchored by Kansas City, Missouri. Its 14 counties straddle the border between the U.S. states of Missouri (9 counties) and Kansas (5 counties). With and a population of more t ...
brewery that made Lone Star and Colt 45, gold mines in
British East Africa East Africa Protectorate (also known as British East Africa) was a British protectorate in the African Great Lakes, occupying roughly the same area as present-day Kenya, from the Indian Ocean inland to the border with Uganda in the west. Cont ...
and a development company in
Spain Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...
. Following Soriano's death, Antonio Róxas y Gargollo was elected chairman and Andrés Soriano Jr. became president. Soriano Jr. would become chairman in 1967 and was credited with instituting modern management, including decentralization along product lines. The
Mandaue Mandaue (), officially the City of Mandaue (; ), is a Cities of the Philippines#Legal classification, highly urbanized city in the Central Visayas region of the Philippines. According to the 2020 census, it has a population of 364,116 people. ...
,
Cebu Cebu ( ; ), officially the Province of Cebu (; ), is a province of the Philippines located in the Central Visayas region, and consists of a main island and 167 surrounding islands and islets. The coastal zone of Cebu is identified as a ...
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 Ice cream is a frozen dessert typically made from milk or cream that has been flavoured with a sweetener, either sugar or an alternative, and a spice, such as Chocolate, cocoa or vanilla, or with fruit, such as strawberries or peaches. Food ...
plant in 1970 and expanding into
poultry Poultry () are domesticated birds kept by humans for the purpose of harvesting animal products such as meat, Eggs as food, eggs or feathers. The practice of animal husbandry, raising poultry is known as poultry farming. These birds are most typ ...
production in 1973 (it later added
shrimp A shrimp (: shrimp (American English, US) or shrimps (British English, UK)) is a crustacean with an elongated body and a primarily Aquatic locomotion, swimming mode of locomotion – typically Decapods belonging to the Caridea or Dendrobranchi ...
processing and freezing in 1984). By 1973, SMC 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 San Miguel ''escudo'' ( seal), symbol of the royal grant, was retained as the logo of San Miguel Beer, its original grantee. SMC encountered its first major competitor in the Philippine beer market in 1982 with the entry of Asia Brewery, Inc. The rivalry between Asia Brewery and SMC 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 SMC'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 brew master. At that time, the original San Miguel Brewery buildings in San Miguel, Manila were demolished upon transfer of ownership to the Philippine Government, and became part of the
Malacañang Palace Malacañang Palace (, ), officially known as Malacañán Palace, is the official residence and principal workplace of the president of the Philippines. It is located in the Manila district of San Miguel, Manila, San Miguel, along Jose Laurel S ...
grounds. The site became a park while some became part of the government complex (as the new executive building). In 1983, SMC sold its remaining minority interest in the Spanish company ( San Miguel, Fábricas de Cerveza y Malta, S.A.). The Philippine and Spanish companies have been operated independently of one another. The Spanish company enjoyed success with San Miguel in its home market and throughout Europe.


Eduardo Cojuangco Jr.: 1983–1986

Soriano's administration also witnessed the battle for corporate control. A thorny issue of management transparency broke Soriano's longstanding alliance with his Zóbel de Ayala relatives. This historical corporate battle resulted in the loss of effective control by the Sorianos, the Róxas de Ayalas and the Zóbel de Ayalas. In 1983, Enrique J. Zóbel, president of
Ayala Corporation Ayala Corporation (, formerly ''Ayala y Compañía''; ) is the publicly listed holding company for the diversified interests of the Ayala Group. Founded in the Philippines by Domingo Róxas and Antonio de Ayala during Spanish colonial rule, ...
and vice chairman of the SMC board, instigated a takeover of SMC. The seeds of the family feud lay in the refusal of the Soriano management to share corporate information with Zóbel, particularly regarding contracts that SMC management was entering into with ANSCOR, a Soriano company. Soriano viewed his third cousin Zóbel as a rival, while Zóbel (holding nearly 20% of SMC stake) viewed Soriano (with about 7%) as mismanaging the company and engaging in sweetheart deals. Unable to oust Soriano, Zóbel sold his group's 19.5% stake to businessman Eduardo Cojuangco Jr., an associate of then President
Ferdinand Marcos Ferdinand Emmanuel Edralin Marcos Sr. (September 11, 1917 – September 28, 1989) was a Filipino lawyer, politician, dictator, and Kleptocracy, kleptocrat who served as the tenth president of the Philippines from 1965 to 1986. He ruled the c ...
. Cojuangco's Coconut Industry Investment Fund (a.k.a., United Coconut Planters Bank) accumulated an additional 31% of SMC, giving him effective control of SMC and leaving the Soriano family with a mere 3%. Funds used by Cojuangco to acquire Zóbel'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. 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 in 1983. The controlling interest carried nine of SMC's 15 directors seats with it. After Soriano's death from cancer on March 19, 1984, Cojuangco became the chairman of SMC. That same year, SMC moved to its new head office in
Mandaluyong Mandaluyong ( ; ), officially the City of Mandaluyong (, ), is a Cities of the Philippines#Legal classification, highly-urbanized city in the Metro Manila, National Capital Region of the Philippines. According to the 2020 census, it has a popula ...
. Cojuangco brought coconut oil milling and refining operations into SMC's portfolio. His reign, however, was cut short when Marcos was toppled in 1986.


Andrés Soriano III: 1986–1998

After the
People Power Revolution The People Power Revolution, also known as the EDSA Revolution or the February Revolution, were a series of popular Demonstration (people), demonstrations in the Philippines, mostly in Metro Manila, from February 22 to 25, 1986. There was a ...
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 blamed for her husband's death was Cojuangco, who fled on the same aircraft as Marcos to Hawaii in 1986. The Aquino administration sequestered Cojuangco's stake in SMC and agreed to let Andrés Soriano III, son of the late Soriano, run the company in spite of the Soriano family's holdings in San Miguel being a mere 1%. Soriano 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 SMC stake into the early 1990s, but it acceded ''de facto'' control of the conglomerate to Soriano via a management contract with ANSCOR. Soriano continued the company's program of expansion, acquiring majority control of La Tondeña, Inc., the leading producer of hard liquor in the Philippines, in 1987 and adding beef and pork production (Monterey Meats) to the company's food operations in 1988. Soriano embarked on an 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 Anheuser-Busch Companies, LLC ( ) is an American brewing company headquartered in St. Louis, Missouri. Since 2008, it has been wholly owned by Anheuser-Busch InBev SA/NV (AB InBev), now the world's largest brewing company, which owns multiple ...
and
Miller A miller is a person who operates a mill, a machine to grind a grain (for example corn or wheat) to make flour. Milling is among the oldest of human occupations. "Miller", "Milne" and other variants are common surnames, as are their equivalents ...
of the United States, Kirin of Japan, and BSN of France. Soriano 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 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, SMC reduced its workforce by more than 16%, from a 1989 high of 39,138 to 32,832 by 1993. SMC then turned to the next stage in its internationalization: a 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. SMC's beer exports grew by 150% 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, SMC would begin to create production facilities, sometimes on an independent basis and sometimes in concert with an indigenous joint-venture partner. By 1995, SMC had manufacturing plants in Hong Kong, China, Indonesia, Vietnam, and had licensing partners in Taiwan, Guam and Nepal. Thus, in spite of the overarching legal dispute over SMC'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 its overseas operations (as a whole) were not yet profitable. In 1996, SMC purchased full control of its Hong Kong arm, San Miguel Brewery Hong Kong Ltd. In April of the following year, SMC's domestic soft-drink bottling unit, Coca-Cola Bottlers Philippines, Inc., was merged into the Australia-based Coca-Cola Amatil Ltd. (CCA). In effect, SMC 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 SMC's stake in CCA to 22 percent). From 1995 through 1997, SMC 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. SMC's Magnolia ice cream and milk business was merged with the
Nestlé Nestlé S.A. ( ) is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Switzerland. It has been the largest publicly held food company in the world, measured by revenue and other metrics, since 20 ...
Philippines group to form Magnolia-Nestlé Corporation. By late 1998, SMC's stake in this business was acquired by Nestlé. SMC 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
1997 Asian financial crisis The 1997 Asian financial crisis gripped much of East Asia, East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide eco ...
.


The Cojuangco-Ang era: 1998–2020

Following the assumption of
Joseph Estrada Joseph Ejercito Estrada (; born Jose Marcelo Ejercito; April 19, 1937), also known by the nickname Erap, is a Filipino politician and former actor, who served as the 13th president of the Philippines from 1998 until his resignation in 2001. ...
as President of the Philippines on June 30, 1998, Andrés Soriano III resigned in July 1998 and Eduardo M. Cojuangco Jr. was elected chairman of SMC. Francisco C. Eizmendi Jr. stayed as president and chief operating officer and Ramón S. Ang was elected vice-chairman in January 1999. Ang was 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 were to ease the burden of the spiralling 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. SMC 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. Whereas in the past, it had primarily concentrated on the premium market it now pushed its medium and low-end brands. By the end of 1998, Cojuangco sold SMC's stake in Coca-Cola Beverages plc (Coca-Cola Amatil's bottler in Europe), along with SMC's 45% stake in Nestlé Philippines. In May, the San Miguel Brewing International (SMBIL) regional headquarters was transferred from Hong Kong to Manila and to reduce overhead expenses, the employees of SMBIL were repatriated. The group-wide logistics and purchasing functions were realigned at the corporate level. The food, liquor and international operations were recapitalized. Metro Bottled Water Corporation, manufacturer of Wilkins Distilled Water, was acquired. In February 2001, SMC re-acquired control of Coca-Cola Bottlers Philippines, Inc. Shortly after, SMC acquired Pure Foods Corporation, becoming the undisputed market leader in the Philippines' food industry, owning two-thirds of the refrigerated and processed meat market, and over a third of the poultry and feeds industries. For the next three years, SMC bought six companies in four neighbouring countries. Its first major acquisition was Australian boutique brewer J. Boag and Son for A$96 million in 2000. To further its aims as a business, SMC took in Japanese brewer Kirin Brewery Co. Ltd., which acquired a 15-percent stake in SMC, for $540 million in 2002. SMC continued its international acquisitions, paying $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 juice maker, for $97.9 million. By 2004, international sales comprised 13 percent of total revenues from 10 percent the previous year. 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 merged National Foods' operation with Berri. In 2006, SMC sold its 65% stake in Coca-Cola Bottlers Philippines, Inc. (including its subsidiaries Cosmos Bottling and Philippine Beverage Partners) to
The Coca-Cola Company The Coca-Cola Company is an American multinational corporation founded in 1892. It manufactures, sells and markets soft drinks including Coca-Cola, other non-alcoholic beverage concentrates and syrups, and alcoholic beverages. Its stock is lis ...
(TCCC) for $590 million. In November 2007, SMC sold Boag's to
Lion Nathan Lion is an alcoholic beverage company that operates in Australia and New Zealand, and a subsidiary of Japanese beverage conglomerate Kirin Company, Kirin. It produces and markets a range of beer and cider in Australia, and wine in New Zealan ...
for A$325 million. The same month, SMC also sold National Foods to Kirin for ¥294 billion. In 2010, SMC acquired majority control of Petron Corporation. In April 2012, SMC bought a 49% minority stake in
Philippine Airlines Philippine Airlines (PAL) is the flag carrier of the Philippines. Headquartered at the Philippine National Bank, PNB Financial Center in Pasay, the airline was founded in 1941 and is the oldest operating commercial airline in Asia. Philippine ...
(PAL) Holdings, worth US$500 million, to revitalize PAL and Air Philippines. On September 15, 2014, SMC sold its stake in PAL holdings for approximately $1.3 billion and relinquished management control back to the group of Lucio Tan. SMC has also expanded its oil and energy business with the purchase of
Esso Esso () is a trading name for ExxonMobil. Originally, the name was primarily used by its predecessor Standard Oil of New Jersey after the breakup of the original Standard Oil company in 1911. The company adopted the name "Esso" (from the phon ...
Malaysia Berhad (65%),
ExxonMobil Exxon Mobil Corporation ( ) is an American multinational List of oil exploration and production companies, oil and gas corporation headquartered in Spring, Texas, a suburb of Houston. Founded as the Successors of Standard Oil, largest direct s ...
Borneo Sdn Bhd (100%) and
ExxonMobil Exxon Mobil Corporation ( ) is an American multinational List of oil exploration and production companies, oil and gas corporation headquartered in Spring, Texas, a suburb of Houston. Founded as the Successors of Standard Oil, largest direct s ...
Malaysia Sdn Bhd (100%) for US$577.3 million. In October 2012, SMC bought back the 24% of SMC shares held by the government through Coconut Industry Investment Fund (CIIF) companies by paying CIIF P57.6 billion. By 2017, Iñigo Zóbel, son of Enrique J. Zóbel, became the largest common stock shareholder of SMC owning 66.1% through his holding company, Top Frontier Investment Holdings, Inc. On November 6, 2017, SMC announced the consolidation of its beverage businesses into San Miguel Pure Foods Company, Inc. through a $6.6-billion share swap deal. San Miguel Pure Foods Company will acquire 7.86 billion shares in San Miguel Brewery Inc. and 216.97 million shares in Ginebra San Miguel Inc. from SMC. After the consolidation, San Miguel Pure Foods Company will be renamed San Miguel Food and Beverage, Inc.


Ramon S. Ang: 2020–present

On June 16, 2020, Cojuangco passed away at the age of 85 due to heart failure and pneumonia. On April 15, 2021, ten months following the death of Cojuangco, SMC amended its by-laws to unify the role, functions and duties of chief executive officer (CEO) to that of the president. Based on the PSE disclosure following the 2021 annual stockholders' meeting of SMC, Ang remains as vice-chairman, president (CEO) and COO of the company. As of the June 8, 2021, organizational meeting, the position of chairman of the board of directors remains vacant. From August to September 2022, Iñigo U. Zobel sold a total of 86.432 million shares, this reduced his ownership to 1.487 billion shares or 62.36 percent. On June 10, 2024, Ang became the chairman and CEO, and his eldest son, John Paul L. Ang, assumed the positions of vice-chairman, president and COO. SMC shall amend its by-laws to redefine the roles, functions and duties of the chairman and chief executive officer, and the president and chief operating officer, subject to stockholders and SEC approvals.


Subsidiaries


San Miguel Food and Beverage

San Miguel Food and Beverage (formerly San Miguel Pure Foods Company) is the largest food and beverage company in the Philippines. The company was incorporated in 1956 as Pure Foods Corporation, a manufacturer of processed meats marketed under the Purefoods brand name. In 2001, SMC acquired Pure Foods Corporation from
Ayala Corporation Ayala Corporation (, formerly ''Ayala y Compañía''; ) is the publicly listed holding company for the diversified interests of the Ayala Group. Founded in the Philippines by Domingo Róxas and Antonio de Ayala during Spanish colonial rule, ...
and Pure Foods was renamed to San Miguel Pure Foods Company, Inc. The entire food division of SMC was consolidated under San Miguel Pure Foods Company, Inc. Its 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, ice cream, butter, cheese, margarine, oils and fats, as well as animal and aquatic feeds. It holds in its portfolio some of the most well-known brands in the Philippine food industry, among them,
Magnolia ''Magnolia'' is a large genus of about 210 to 340The number of species in the genus ''Magnolia'' depends on the taxonomic view that one takes up. Recent molecular and morphological research shows that former genera ''Talauma'', ''Dugandiodendr ...
, Purefoods, Monterey, Star and Dari Creme. Its B-Meg and Pure Blend brands are market-leaders in the animal feeds industry. 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 July 16, 2013, San Miguel Pure Foods has a market share of over 40 per cent, and is the Philippines' leading poultry producer. On November 6, 2017, SMC announced the consolidation of its beverage businesses into San Miguel Pure Foods through a $6.6-billion share swap deal. San Miguel Pure Foods would acquire 7.86 billion shares in San Miguel Brewery Inc. and 216.97 million shares in Ginebra San Miguel Inc. from SMC. After the consolidation, San Miguel Pure Foods was renamed San Miguel Food and Beverage, Inc.


San Miguel Properties

San Miguel Properties was established in 1990 as SMC's corporate real estate arm. Its current projects include mixed-use developments, with economy to middle-income housing as its core products. Among its real estate development projects are Makati Diamond Residences (Makati); Emerald 88 (Pasig), Bel Aldea, Maravilla, and Muralla (General Trias, Cavite); Dover Hill (San Juan); One Dover View and Two Dover View (Mandaluyong); and Wedgewoods (Santa Rosa, Laguna).


San Miguel Yamamura Packaging Corporation

San Miguel Yamamura Packaging Corporation (SMYPC) provides packaging solutions to food, beverage, pharmaceutical, chemical and personal care manufacturers. It serves clients in the United States, Europe, Japan, and Australia among other foreign markets. Furthermore, the corporation also manufactures corrugated cartons, flexible packaging, plastic crates and pallets, metal closures and two-piece aluminium cans. In China, the company produces glass containers and plastic crates, pallets and metal crowns for the domestic and export markets. SMYPC also manages a plastic crate plant in Indonesia and a glass and metal crown facility in Vietnam. In Malaysia, it operates four facilities that produce flexible packaging, plastic films, woven products and radiant barriers for higher-value and high-tech industries such as electronics, health care and logistics firms.


Petron Corporation


San Miguel Global Power Holdings Corporation

San Miguel Global Power serves as the power arm of San Miguel Corporation. * Sual Power Station (
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...
) 1,000 MW * Ilijan Combined Cycle Power Plant (
natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
) 1,200 MW * San Roque Dam (
hydroelectric Hydroelectricity, or hydroelectric power, is Electricity generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...
) 345 MW * Masinloc Power Station (
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...
) 1,019 MW * Limay Power Plant (
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...
) 600 MW * Malita Power Plant (
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...
) 300 MW * Angat Hydroelectric Power (
hydroelectric Hydroelectricity, or hydroelectric power, is Electricity generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...
) Plant 218-MW


SMC Infrastructure

San Miguel Holdings Corporation,
doing business as A trade name, trading name, or business name is a pseudonym used by companies that do not operate under their registered company name. The term for this type of alternative name is fictitious business name. Registering the fictitious name with ...
SMC Infrastructure, is the infrastructure arm of San Miguel, managing several infrastructure projects in the Philippines.


Expressways

* Alloy Manila Toll Expressways, Inc. * Atlantic Aurum Investments B.V. ** Citra Metro Manila Tollways Corporation ( Metro Manila Skyway I & II) *** Skyway O&M Corporation ** Stage 3 Connector Tollways Holdings Corporation *** Citra Central Expressway Corporation ( Metro Manila Skyway III) * Cypress Tree Capital Investments, Inc. * Star Infrastructure Development Corporation ( Southern Tagalog Arterial Road) * Private Infra Development Corporation (
Tarlac–Pangasinan–La Union Expressway The Tarlac–Pangasinan–La Union Expressway (TPLEX), signed as E1 of the Philippine expressway network and R-8 of the List of roads in Metro Manila, Metro Manila arterial road network, is a Controlled-access highway, controlled-access toll expr ...
) * Manila Toll Expressways Systems, Inc. (MATES) * MTD Manila Expressways, Inc * Rapid Thoroughfares, Inc. * SMC SLEX Inc. ( South Luzon Expressway) * Terramino Holdings, Inc. * Vertex Tollways Development, Inc. and Optimal Infrastructure Development, Inc. (
NAIA Expressway The Ninoy Aquino International Airport Expressway (NAIAX), signed as E6 of the Philippine expressway network, is a elevated highway in Metro Manila, Philippines. Opened in September 2016, it is the first airport expressway in the country. Th ...
)


Airports

* San Miguel Aerocity Inc., the operator of New Manila International Airport * New NAIA Infrastructure Corporation, also known as SMC SAP and Co Consortium, composed of SMC, RMN Asian Logistics, RLW Aviation, and Incheon International Airport, private concessionaire of
Ninoy Aquino International Airport Ninoy Aquino International Airport (NAIA ; ; ), also known as Manila International Airport (MIA), is the main international airport serving Metro Manila in the Philippines. Located between the cities of Pasay and Parañaque, about south of ...
from September 2024 to September 2039. * Trans Aire Development Holdings Corporation ( Godofredo P. Ramos Airport)


Other

* SMC Mass Rail Transit 7, Inc. (
MRT Line 7 The Metro Rail Transit Line 7, also known as MRT Line 7 or MRT-7, is a rapid transit line under construction in the Philippines. When completed, the line will be long, with 14 stations, and the first line to have a third rail electrification. ...
) ** Universal LRT Corporation (BVI) Limited ** ULCOM Company, Inc. * Luzon Clean Water Development Corporation (Bulacan bulk water supply project) * Manila North Harbor Port, Inc. ( Manila North Harbor)


Bank of Commerce

Bank of Commerce is a
universal bank A universal bank is a type of bank which participates in many kinds of banking activities and is both a commercial bank and an investment bank as well as providing other financial services such as insurance. These are also called full-service ...
in the Philippines. Founded in 1963, SMC acquired the bank in 2008. The bank is the 16th largest bank in the country in terms of total assets.


San Miguel Integrated Logistics Services Inc.

San Miguel Integrated Logistics Services, Inc. (San Miguel Logistics), a subsidiary of San Miguel Corporation, is one of the Philippines’ leading logistics company that offers full range of transportation and logistics services to meet the needs of modern businesses. Operations and Maintenance Group * SMC Repairs and Maintenance Inc. * SMC Integrated Farm Specialists Inc. * San Miguel Integrated Merchandising Services Inc (SMIMSI) * SMC Multi Services Inc. * SMC Neuventures Inc. * SMC Food Processing Inc.


Other subsidiaries

* Anchor Insurance Brokerage Corp. * ArchEn Technologies Inc. * Autosweep Post Corporation * Challenger Aero Air Corporation * Northern Cement Corporation (35% equity held under San Miguel Yamamura Packaging Corporation) * Petrogen Insurance Corporation * San Miguel Equity Securities, Inc. * San Miguel Equity Investments, Inc. * SMC Asia Car Distributors Corporation (
BMW Bayerische Motoren Werke AG, trading as BMW Group (commonly abbreviated to BMW (), sometimes anglicised as Bavarian Motor Works), is a German multinational manufacturer of vehicles and motorcycles headquartered in Munich, Bavaria, Germany. Th ...
Philippines) * SMC Shipping & Lighterage Corporation * SMC Stock Transfer Service Corporation * SMITS, Inc. * Southern Concrete Industries Corporation


Legal issues

SMC 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 SMC. This majority stake at SMC 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 SMC shares, which, in the case of ''San Miguel Corporation vs. Sandiganbayan'', was awarded by the Supreme Court to the government. The second case, ''Republic of the Philippines vs. Sandiganbayan and Eduardo Cojuangco Jr.'', involved a 20% block that the Supreme Court, voting 7–4, awarded to Cojuangco. The most recent High Court pronouncement came early this year, ''Philippine Coconut Producers Federation, Inc. (COCOFED) vs. Republic of the Philippines'', where the Court, voting 11–0, declared that the remaining 27% of SMC is owned by the government. (Note: The 27% had been diluted to 24% due to the government's failure to subscribe to the increased authorized capital stock of SMC)


Sports teams


Basketball

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 1975, SMC organized its second basketball team, when the company became a founding member of the
Philippine Basketball Association The Philippine Basketball Association (PBA) is a men's professional basketball league in the Philippines, composed of twelve company-branded Franchising, franchise teams. Founded in 1975, it is the first professional basketball league in Asia ...
, 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 championships (29). SMC also owns two more PBA teams, Barangay Ginebra San Miguel and the Magnolia Hotshots, as a result of corporate acquisitions. After the dissolution of the MICAA in 1983, the Philippine Amateur Basketball League, later renamed Philippine Basketball League, was formed in 1983 to take its place as the major
amateur An amateur () is generally considered a person who pursues an avocation independent from their source of income. Amateurs and their pursuits are also described as popular, informal, autodidacticism, self-taught, user-generated, do it yourself, DI ...
basketball league in the Philippines. SMC was one of the league's founding members and remained until the league became dormant in 2010. Its franchise, the Magnolia Purewater Wizards won a total of nine championships. SMC also participated in the ASEAN Basketball League, playing as the San Miguel Beermen (ABL) from 2011 to 2013, winning one ABL championship. On February 1, 2018, SMC became the name sponsor of Alab Pilipinas. On February 1, 2018, moments after its partnership with ABL team Alab Pilipinas was formally announced, SMC forged another tie up but this time with
Colegio de San Juan de Letran The Colegio de San Juan de Letran (), also referred to by its acronym CSJL, is a private Catholic coeducational basic and higher education institution owned and run by the friars of the Order of Preachers in Intramuros, Manila, Philippines. I ...
and vowed to support its sports program. In the summer of 2019 the Knights joined the PBA D-League as Petron- Letran to prepare for the upcoming NCAA Season 95 tournament and on November 19, 2019, they took home the school's 18th Men's Basketball championship by beating the defending champions San Beda Red Lions.


Volleyball

* Petron Blaze Spikers


Football

* Davao Aguilas F.C. (2017–2019; sponsor only)


See also

* Grupo Mahou-San Miguel


References


External links

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