MANILA, Philippines — San Miguel Corp. on Thursday confirmed reports it is planning to shell out about $1 billion to build 10 additional breweries.
Reuters reported on July 18 that the company behind San Miguel Pale Pilsen and Red Horse is eyeing to establish more breweries, eight of which will be in the Philippines while the others will be opened in the US and Vietnam.
In a disclosure to the stock exchange, SMC said the report was “accurate,” adding that each new plant will have an expected annual capacity of one or two million hectoliters.
“This is not for the volume growth. This is more to be able to produce locally, regionally for fresh beer, for better quality of beer because it is locally available and also lower logistics costs,” San Miguel President Ramon Ang told Reuters.
SMC was founded in 1890 as a single brewery in the Philippines. The company has since then transformed itself from a beverage, food and packaging business into a diversified conglomerate with interests in fuel and oil, energy, infrastructure and banking industries.
As of 1:30 p.m., shares in SMC were flat at P136.90 apiece on Thursday. — Ian Nicolas Cigaral