San Miguel Corporation

San Miguel Corporation, abbreviated as SMC, is a

Philippine multinational conglomerate headquartered in Mandaluyong, Metro Manila.
The company is one of the largest and most diversified conglomerates in the
Philippines. Originally founded in 1890 as brewery in the Philippines, 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 largest selling beers in the world.
San Miguel's manufacturing operations have extended beyond its home market to
Hong Kong, China, Indonesia, Vietnam, Thailand, Malaysia and Australia, and its
products are exported to 60 markets around the world.

History[edit]

San Miguel's old Manila brewery.

In 1889, a well-known Manila businessman, Enrique María Barretto de Ycaza y

Esteban, applied for a royal grant from Spain to establish a brewery in the Philippines.
He was awarded the grant for a period of twenty years. On September 29, 1890
(Michaelmas, or the feast day of Saint Michael the Archangel), La Fábrica de
Cerveza San Miguel was declared open for business. Located at 6 Calzada
de Malacañan (later renamed Calle conde de Avilés and presently Jose Laurel Street),
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 with a daily capacity of 5 tons, and the other to beer production. The
brewery was the first in Southeast Asia using the most modern equipment and
facilities of the day. 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, 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 soon appointed manager, playing a prominent role in the
development of the firm. He was the active member of the firm until 1896, when he
left for Europe. Prior to his departure, he acquired Barretto's shares in the company
worth P42,000. After Barretto retired in May 1896, Róxas acquired the rest of
Barretto's stake in the business. In 1895, San Miguel Beer won the first of its many
awards as a product of the highest quality at the Exposición Regional de Filipinas. By
1896, San Miguel Beer was outselling by more than five-to-one all imported beers in
the country.
The 1900s ushered in a period of prosperity after the Philippine Revolution and the
beginning of the American Occupation. Demand for beer increased, and for San
Miguel, still under Róxas' leadership, modernization of their operations included
installation of electric conveyors and automatic machines, with the brewery's
equipment modernised by 1910.
San Miguel Brewery, Inc. (1913–1963)[edit]
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, France 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 Don 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 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 was repealed in
the United States that San Miguel was able to resume exports to Guam and later
to Honolulu, Territory of Hawaii. 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[edit]

An ad that appeared in the January 17, 1924 edition of the Manila-based Spanish-
language satirical magazine Aray.

Andrés Soriano (a grandson of Don Pedro Pablo Róxas and a nephew of Don 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 Roxas with constantly increasing
success.
Diversification into new lines of business began in the 1920s. The company opened in
1922 the Royal Soft Drinks Plant in Manila producing Royal Tru-Orange, 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 in the Philippines. In 1925, San Miguel went into the ice
cream business with the purchase of the Magnolia 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. The new site used to house the Fábrica de Hielo de Manila
which 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 from the government the site for Insular Ice
Plant 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 holdings in the Lone Star
Brewing Company located in San Antonio, Texas).
In 1939, the management of the company was reorganized along the lines of
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 Brias 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, meant diluting family control. San Miguel
became the first Filipino company to be owned by thousands of shareholders. To
retain control, Soriano relied on alliances with his Róxas relatives and associates.
Before World War II broke out, San Miguel built a glass factory in Paco and
the Cebu Royal plant, its first installation outside Luzon. When the war reached the
Philippines, Soriano was commissioned as a colonel and served as an aide to
General Douglas MacArthur. One of the first Filipino brewmasters was Dominador
San Diego Santos, a chemist from Obando, Bulacan.[2]
After the war, San Miguel rebuilt and mounted a large scale expansion program. The
company 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
Manila glass plant in Farola, a carbon dioxide plant in Otis, a carton plant,
the Iloílo Coca-Cola plant and the Farola power plant. Exports of San Miguel Pale
Pilsen resumed. 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. This company, renamed
"San Miguel, Fábricas de Cerveza y Malta" (now Mahou-San Miguel Group) in 1957,
was a separate, independent company that had exclusive rights to use the San Miguel
brand in Europe.[3]
San Miguel Corporation (1964–present)[edit]
Andrés Soriano Jr.: 1964–1984[edit]
In 1964, the company's name was changed to San Miguel Corporation (SMC) and
moved to a new head office along Ayala Avenue in Makati.
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, dairies, factories,
a newspaper and a radio station. He had investments in Philippine Airlines, held the
largest Coca-Cola franchise, and owned five insurance agency distributorships,
a Kansas City brewery that made Lone Star and Colt 45, gold mines in British East
Africa and a development company in Spain.
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, Cebu 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 plant in 1970 and expanding into poultry production
in 1973 (it later added shrimp 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 San Miguel Beer, its original grantee.
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.
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
brewmaster.
At that time, the original San Miguel Brewery buildings in San Miguel, Manila were
demolished upon transfer of ownership to the Philippine Government as part of
the Malacañang Palace 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. Also, it was the number one Spanish
beer exported throughout Europe. Consequently, well-travelled consumers easily
confuse the two San Miguel beers, even though they are brewed by two different
companies.[3]
Eduardo Cojuangco Jr.: 1983–1986[edit]
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. The historical corporate battle that resulted in the loss of effective
control by the Sorianos and Zóbels.

San Miguel Pale Pilsner

In 1983, Enrique J. Zóbel (a third cousin of Soriano), president of Ayala

Corporation 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. 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.
After Soriano died of cancer on March 19, 1984, Cojuangco became the chairman of
SMC in 1984. That same year, SMC moved to its new head office in Mandaluyong.
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[edit]
After the People Power Revolution 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 ambitious 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 and Miller 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 decentralisation 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 percent, from a 1989 high of 39,138 to 32,832 by 1993.
With its domestic "ducks in a row," SMC turned to the next stage in its
internationalization, 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 percent 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 quarrel 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 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 Asian economic crisis.[citation
needed]
The Cojuangco-Ang era: 1998–2020[edit]
Andrés Soriano III resigned in July 1998 and Eduardo M. Cojuangco Jr. was elected
chairman of San Miguel Corporation. Francisco C. Eizmendi Jr. stayed as president
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 was to ease the burden of the spiraling
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. Where in the past, it had primarily concentrated
on the premium market it then aggressively pushed its medium and low-end brands.
 San Mig Light. Low Carb (Low Calorie) full strength beer. Alc 5%

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.
[citation needed]
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, manufacturers 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’ fast growing
food industry, owning two-thirds of the refrigerated and processed meat market, and
over a third of the poultry and feeds industries.[citation needed]
Cojuangco and Ang have also been on an international shopping spree. For the next
three years, SMC bought six companies in four neighboring countries. Its first major
acquisition was Australian boutique brewer J. Boag and Son for A$96 million in
2000. To shore up its war chest, 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 juicemaker, 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.[citation needed]
In 2006, SMC has sold its 65% stake at Coca-Cola Bottlers Philippines,
Inc. (including its subsidiaries Cosmos Bottling and Philippine Beverage Partners)
to The Coca-Cola Company (TCCC) for $590 million. In November 2007, SMC
sold Boag's to Lion Nathan for A$325 million. The same month, SMC also
sold National Foods to Kirin for ¥294 billion.[4]
In 2010, SMC acquired majority control of Petron Corporation.[5]
In April 2012, SMC bought a 49% minority stake in Philippine Airlines (PAL)
Holdings, worth US$500 million, to revitalize PAL and Air Philippines.[6] 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.[7][8][9]
SMC has also expanded its oil and energy business with the purchase
of Esso Malaysia Berhad (65%), ExxonMobil Borneo Sdn Bhd (100%)
and ExxonMobil Malaysia Sdn Bhd (100%) for US$577.3 million.[10]
In October 2012, SMC bought out the 24% of its shares from the government through
Coconut Industry Investment Fund (CIIF) companies by paying CIIF P57.6 billion.
[11]
By 2017, Iñigo Zóbel, son of Enrique Zóbel, became the largest common stock
shareholder of SMC owning 66.1% through his holding company, Top Frontier
Investment Holdings, Inc.[12]
In separate statements on May 30, 2016, Globe Telecom and PLDT will each acquire
half of Vega Telecom from SMC for P69.1 billion. The acquisition entails P52.08
billion for 100% equity interest in Vega Telecom and the assumption of around
P17.02 billion of liabilities.[13][14][15]
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.[16][17]
After the ambitious airport project in Bulacan, SMC president Ang bared plans to
protect and revive some 12,000 hectares of Bulacan coastline–as part of the
development of the airport. It aims to protect and revive some hectares of coastal
fishing areas around the planned airport and ensure environmental sustainability
within and beyond the facility—and to revive the aquaculture industry.[18]
Ramon S. Ang: 2020-present[edit]
On June 16, 2020, Cojuangco passed away at the age of 85 due to heart failure and
pneumonia.[19][20]
In 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.[21][22] 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.[1]

Subsidiaries[edit]
San Miguel Corporation owns several companies in the food and drink, finance,
infrastructure, oil and energy, transportation, and real estate sectors. The company
also briefly held a stake in Philippine Airlines from April 2012 to September 2014,
owning 49% of the airlines' parent, PAL Holdings.[7][8][9]
Bank of Commerce[edit]
Main article: Bank of Commerce
Bank of Commerce is a universal bank in the Philippines. Founded in 1963, San
Miguel bought the company in 2008. The bank is the 16th largest bank in the country
in terms of total assets.
Petron Corporation[edit]
This paragraph is an excerpt from Petron Corporation.[edit]
Petron Corporation (PSE: PCOR) is the largest oil refining and marketing company in
the Philippines,[23] supplying more than a third of the country's oil requirements. It
operates a refinery in Limay, Bataan with a rated capacity of 180,000 barrels per day
(29,000 m3/d). From the refinery, Petron moves its products mainly by sea to 32
depots and terminals throughout the country.
San Miguel Food and Beverage[edit]
Main article: 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 owns San
Miguel Brewery, Ginebra San Miguel, and Magnolia.
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 and renamed as San Miguel Pure
Foods Company, Inc. The entire food division of SMC was consolidated under San
Miguel Pure Foods Company, Inc. corporate umbrella. 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 formidable brands in the Philippine food
industry, among them, Magnolia, 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.[24]
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 would be renamed San Miguel Food and Beverage, Inc.[16][17]
San Miguel Properties[edit]
San Miguel Properties Inc.
Industry Real estate
Area Philippines
 served
Website www.sanmiguelproperties.com.ph
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[edit]
San Miguel Yamamura Packaging Corporation (SMYPC) produce packaging formats,
servicing food, pharmaceutical, chemical and personal care manufacturers. The
company serves clients in the United States, Europe, Japan, and Australia among
other foreign markets. SMYPC also manufactures corrugated cartons, flexible
packaging, plastic crates and pallets, metal closures and two-piece aluminum 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,
SMYPC 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.
SMC Global Power Holdings[edit]
SMC Global Power Holdings Corporation
Industry Electric utility
Area served Philippines
Website smcglobalpower.com.ph
SMC Global Power Holdings is the power and energy arm of San Miguel.

 Albay Power Energy Corporation

 Sual Power Station (coal)
 Ilijan Combined Cycle Power Plant (natural gas)
 San Roque Dam (hydroelectric)
 Masinloc Power Station (coal)
 San Miguel Energy Corporation
SMC Infrastructure[edit]
San Miguel Holdings Corporation
Trade SMC Infrastructure
name
Industry Infrastructure and transportation
Area Philippines
served
San Miguel Holdings Corporation, doing business as SMC Infrastructure, is the
infrastructure arm of San Miguel, managing several infrastructure projects in the
Philippines.
Expressways[edit]

 Alloy Manila Toll Expressways, Inc.

 Atlantic Aurum Investments B.V.[25]

o Citra Metro Manila Tollways Corporation (Metro Manila Skyway I & II)
 Skyway O&M Corporation
o 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)
 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)
Airports[edit]

 San Miguel Aerocity Inc., the operator of the New Manila International Airport
 Trans Aire Development Holdings Corporation (Godofredo P. Ramos Airport)
Other[edit]

 ULCOM Company, Inc.

 Luzon Clean Water Development Corporation (Bulacan bulk water supply project)
[26]
 Manila North Harbor Port, Inc. (Manila North Harbor)[27]
Other subsidiaries[edit]

 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)[28]
 San Miguel Equity Securities, Inc.
 San Miguel Equity Investments, Inc.
 SMC Asia Car Distributors Corporation (BMW Philippines)[29]
 SMC Shipping & Lighterage Corporation
 SMC Stock Transfer Service Corporation
 SMITS, Inc.

Legal issues[edit]
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,[30] was awarded by the Supreme Court to the
government. The second case, Republic of the Philippines vs. Sandiganbayan and
Eduardo Cojuangco Jr.,[31] 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,[32] where the Court, voting 11–0, declared that the remaining 27% of
SMC is owned by the government.[33] (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[edit]
Basketball[edit]
Manila Industrial and Commercial Athletic Association[edit]

 San Miguel Braves (1938–1981)

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.
Philippine Basketball Association[edit]

 San Miguel Beermen (1975–present)

 Barangay Ginebra San Miguel (1979–present)
 Magnolia Hotshots (1988–present)
In 1975, SMC organized its second basketball team, when the company became a
founding member of the Philippine Basketball Association, 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 (27).
SMC also owns two more PBA teams, Barangay Ginebra San Miguel and
the Magnolia Hotshots, as a result of corporate acquisitions.
Philippine Basketball League[edit]

 Magnolia Purewater Wizards (1983–2010)

After the dissolution of the MICAA in 1983, the Philippine Amateur Basketball
League (PABL) – later renamed Philippine Basketball League (PBL) – was formed in
1983 to take its place as the major amateur basketball league in the Philippines. SMC
was one of the league's founding members and remained until the league became
dormant in 2010. Its PABL/PBL franchise won a total of nine championships.
ASEAN Basketball League[edit]

 San Miguel Beermen (ABL) (2011–2013)

SMC also participated in the ASEAN Basketball League, playing as the San Miguel
Beermen (ABL) from 2011 to 2013, winning one ABL championship.

 San Miguel Alab Pilipinas (2018) – as name sponsor

On February 1, 2018, SMC became the name sponsor of Alab Pilipinas.[34]
National Collegiate Athletic Association (Philippines)[edit]

 Letran Knights (2018–present)
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 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[edit]

 Petron Blaze Spikers

Football[edit]

 Davao Aguilas F.C. (2017–present; sponsor only)

See also[edit]

 Grupo Mahou-San Miguel

References[edit]
1. ^ Jump up to:a b SMC 2021 Organizational Meeting. SMC disclosure letter to
PSE. June 8, 2021
2. ^ Dominador Santos, His History, KiwanisCebu.org
3. ^ Jump up to:a b p4, Reinventing the San Miguel Corporation, Ivey
Management Services, Version: (A)2009-09-22
4. ^ "Archived copy". www.forbes.com. Archived from the original on November
9, 2007. Retrieved January 13, 2022.
5. ^ "San Miguel acquired majority of Petron". ABS-CBN News. December 17,
2010. Retrieved May 19, 2018.
6. ^ "PAL, Air Philippines under new San Miguel management". GMA News.
7. ^ Jump up to:a b "San Miguel agrees to sell PAL stake back to Tan". Rappler.
8. ^ Jump up to:a b "Tan gets back PAL for $1.3 B". The Philippine Star.
Archived from the original on May 11, 2015.
9. ^ Jump up to:a b "PAL buyback: Lucio Tan's change of heart". Rappler.
10. ^ "Archived copy" (PDF). Archived from the original (PDF) on April 17,
2012. Retrieved April 22, 2012.
11. ^ "END OF AN ERA: Gov't bows out of San Miguel with buyback of 24-
percent stake". InterAksyon.com.
12. ^ "Top 20 Stockholders – San Miguel Corporation". sanmiguel.com.ph.
13. ^ "San Miguel selling telco assets to PLDT, Globe". Rappler.
14. ^ "San Miguel Ends Telco Push With $1.5 Billion 'Master
Stroke'". bloomberg.com.
15. ^ "Archived copy". www.topfrontier.com.ph. Archived from the original on
June 24, 2018. Retrieved January 13, 2022.
16. ^ Jump up to:a b Morales, Neil Jerome (November 7, 2017). "San Miguel to
consolidate food, beverage units in sale swap". Reuters. Retrieved November
7, 2017.
17. ^ Jump up to:a b dela Paz, Chrisee (November 6, 2017). "San Miguel to merge
food, beverage businesses". Rappler. Retrieved November 7, 2017.
18. ^ "SMC envisions developing Bulacan as seafood capital". Philippine Daily
Inquirer.
19. ^ Jazul, Noreen; Velasco, Myrna (June 17, 2020). "Eduardo 'Danding'
Cojuangco Jr. dies, 85". Manila Bulletin. Retrieved June 17, 2020.
20. ^ Sayson, Ian C.; Yap, Cecilia (June 17, 2020). "Eduardo Cojuangco, Who
Built San Miguel Empire, Dies at 85". Bloomberg. Retrieved June 17, 2020.
21. ^ Caña, Paul John (April 17, 2021). "Ramon Ang Officially Named CEO of
San Miguel Corp". Esquire. Retrieved June 13, 2021.
22. ^ "Ramon Ang takes role as San Miguel CEO". CNN Philippines. April 17,
2021. Retrieved June 13, 2021.
23. ^ Gonzales, Iris. "Petron gets world class certification anew". Philstar.com.
Retrieved April 1, 2022.
24. ^ Calderon, Justin (July 16, 2013). "Philippines: Poultry with
prospects". Inside Investor. Retrieved July 18, 2013.
25. ^ Camus, Miguel R. "SMC consolidates hold on key toll roads". Philippine
Daily Inquirer.
26. ^ "Bulacan bulk-water supply system shortlisted for Global Water
Awards". businessmirror.com.ph.
27. ^ "Archived copy". thestandard.com.ph. Archived from the original on March
7, 2016. Retrieved January 13, 2022.
28. ^ "Investment data" (PDF). www.sanmiguel.com.ph. 2013.
Retrieved September 29, 2019.
29. ^ Camus, Miguel R. "San Miguel to take 65% stake in BMW
distributor". Philippine Daily Inquirer.
30. ^ "San Miguel Corp vs Sandiganbayan : 104637-38 : September 14, 2000 : J.
Puno : En Banc". judiciary.gov.ph.
31. ^ "G.R. No. 166859". judiciary.gov.ph.
32. ^ "G.R. Nos. 177857-58". judiciary.gov.ph.
33. ^ The Coco Levy Funds: Is the Shell Game Approaching Its End? The CenSEI
Report, April 16, 2012
34. ^ Riego, Norman Lee Benjamin (February 1, 2018). "Former champion returns
to ABL as Alab Pilipinas backer". ABS-CBN Sports. Retrieved February
1, 2018.