Key Competitive Advantages

San Miguel Corporation’s ESG Brand Image and Strong Social and Community Relations

SMFB being part of one of the biggest conglomerates in the Philippines, has already been part, applied
and benefited from its parent’s San Miguel Corporation’s strong social and community relations
investments especially during the pandemic being one of the biggest corporate Covid-19 response if not
the biggest amounting to Php13B as of October 2020. This is one of the key competitive advantage of
SMFB as the latter actively participated in the initiatives such as repurposing of manufacturing facilities
to aid the supply shortage in alcohols in addition to food donation drives project. This impacts overall
brand image making SMC and SMFB able to attract loyal customers, talents and even potential investors.

Sustainable Energy Investment

The San Miguel Food and Beverage has started to invest into a more sustainable energy aligning with
the goal of SMC to a more sustainable production. Key investments such as biogas and solar energy
production has significantly lowered their consumption costs. In line with this, SMFB reported in their
sustainability report that they express interest in investing in more renewable energy sources such as
solar and wind to decrease reliance on non-renewable energy and in the end minimize cost.

Strong Supply Chain Sustainability Management

SMFB had a wide range of suppliers coming from SMEs and corporations to avoid disruption in
productions and supply risks. SMFB also integrated strict supplier accreditation program to ensure that
their business partners are compliant to the principles of good governance. SMFB also ensures through
the program that all their suppliers are compliant to relevant laws and regulations.