SMC food, beverage arm to boost market dominance

MANILA, Philippines —  San Miguel Food and Beverage Inc. (SMFB) is out to further reinforce its dominance in the beer and spirits markets this year

SMFB director and chief operating officer for spirits Emmanuel Macalalag said the company could further expand the market share of Ginebra San Miguel, which currently stands at about 48 percent, through wider distribution and stronger marketing efforts.

“So if you talk about potential, there’s still really a good room for growth for Ginebra San Miguel,” Macalalag said during SMFB’s annual stockholders’ meeting yesterday.

“Now if you look at geography potential, the company has very good potential in Visayas and Mindanao where we are actually pushing for wider distribution and marketing of our brands there. In fact, last year, both Ginebra San Miguel brand and GSM blue performed quite well. They’re growing about 50 percent in terms of volume,” he said.

Ginebra San Miguel reported a solid first quarter performance, sustaining its momentum of continuous growth in the last 10 years and strengthening the company’s position in the market.

“Now really the main objective of the company this year is to further strengthen our market position as a leader in the local spirits industry,” Macalalag said.

On the beer segment, SMFB director Carlos Antonio Berba said the group aims to further boost demand and sustain volume growth by focusing on consumption programs and capturing untapped and underserved market opportunities.

“These include reinforcing leadership by strengthening the distinctiveness of our SMB brands and leveraging on our portfolio with the introduction of new products and package formats in both premium and mainstream segments,” he said.

Berba said San Miguel Brewery would build a stronger consumer base by implementing exciting consumption generating programs and intensifying availability and visibility in various trade channels through channel specific initiatives.

“Likewise, we will also strengthen our no or low alcohol brands in line with our sustainability thrust and we are confident these programs will provide the growth in returns for the company,” he said.

SMFB is also committed to boost the country’s food security through the construction of additional mega farms nationwide.

In October last year, the company inaugurated the Magnolia Poultry Farm in Hagonoy, Davao del Sur and the country’s largest poultry facility. It is the first of the 12-mega farms that the company plans build across the country.

“The Hagonoy mega farm is part of our capacity expansion plan, which will support the increasing market demand for chicken nationwide. It is only one of several market or mega farms that we are building around the country and it employs the latest technology in poultry farming and as well as in animal nutrition,” SMFB director and chief operating officer for food Francisco Alejo III said.

Alejo said the facility would be able to produce healthy chicken with premium quality that is affordable.

“The mega farms will ensure the availability of chicken at all times. So as we roll out the mega farms around the country, this will create an impact and bolster the food security of the country,” he said.