San Miguel Corporation
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Established in 1890 as a single-product brewery,c (San Miguel) is the Philippines͛ largest beverage, food and packaging company. Today, the company has over 100 facilities in the Philippines, Southeast Asia, and China. One of the country͛s premier business conglomerates, San Miguel͛s extensive product portfolio includes over 400 products ranging from beer, hard liquor, juices, basic and processed meats, poultry, dairy products, condiments, coffee, flour, animal feeds and various packaging products. For generations, the Company has generated strong consumer loyalty through brands that are among the most formidable in the Philippine food and beverage industry ʹ San Miguel Pale Pilsen, Ginebra, Monterey, Magnolia, and Purefoods. Flagship product, San Miguel Beer, holds an over 95% share of the Philippine beer market. In addition to its leadership in the Philippine food and beverage industry, San Miguel has established a significant presence overseas. The Company͛s operations extend beyond its home base of the Philippines to China (including Hong Kong), Vietnam, Indonesia, Malaysia, Thailand and Australia. Through strategic partnerships it has forged with major international companies, San Miguel has gained access to managerial expertise, international practices and advanced technology, thereby enhancing its performance and establishing itself as a world-class company. San Miguel͛s partners are world leaders in their respective businesses. Kirin Brewery Co., Ltd. is a major shareholder of San Miguel Brewery. The Company also has successful joint venture relationships with US-based Hormel Foods Corporation, Nihon Yamamura Glass and QTel, a telecommunications company in Qatar. In the Philippines, San Miguel͛s corporate strategy is at aimed capitalizing on new growth markets through acquisitions and further enhancing its competitive position by improving synergies across existing operational lines. The company has significantly expanded its participation in both its core businesses of food, beverage and packaging, as well as heavy industries including power and other utilities, mining, energy, tollways and airports.
Making everyday life a celebration We will carry into new markets our over a century-old tradition of quality and integrity. Consumers will take pleasure in reaching for our products and services because they are the best value for money. Our food and beverage brands will be in every household and every retail outlet. We will meet our consumers͛ everyday needs, delighting their every taste. Through our products and services, every occasion to drink and eat will bring enjoyment͙a celebration.
Passion for Success We will constantly strive for excellence. We will be the best we can be and create value in everything we do. We will be proactive and entrepreneurial, propelled by a sense of urgency, competitiveness and total dedication to results. Teamwork With trust and respect for each other and with unity in purpose, we will work toward our shared aspirations, transcending boundaries along functional and organizational lines. Respect for Our People We recognize our employees as individuals and are committed to nurturing their individual capabilities. We will uplift the dignity of labor by encouraging our people to be the best in their fields. We believe their growth and the growth of the organization go hand in hand. We are committed to creating a work environment that encourages open communication, camaraderie and professional growth. Customer Focus We will be our customers͛ preferred choice. They will choose our products and services above others because we provide them withÊ Ê Ê that exceed their expectations. Innovativeness We will encourage creativity and ingenuity in our processes and systems, products and services. We will be forever looking for ways to outdo ourselves, always striving to be the first to anticipate consumer needs and deliver something better. Integrity
In the conduct of our business, we will be guided by what is ethical, fair and right. We believe in profit with honor and are committed toÊ Ê Êand the highest moral standards. Social Responsibility We believeÊ Ê Êand corporate citizenship are integral parts of our business. We are committed to improving lives of people in the communities in which we live and work. Strategy San Miguel͛s goal is to help people enjoy and make progress in their lives through the many products and services that our company offers. We want to give every customer and consumer we touch access to the best we can offerͶwhether in terms of quality, or affordability or choice. Our strategy for achieving these goals has five major elements which are common to both our traditional and new businesses: Enhance value of our established businesses. We aim to enhance the value of our established businesses, ever striving to achieve even greater efficiencies and operational excellence. We will strengthen our brands by improving product visibility and targeting areas where there is room for growth in market share. Continue to diversify into industries that underpin the development and growth of the Philippine economy. In addition to organic growth, we continue to seek strategic acquisition and greenfield opportunities, positioning our businesses in a way to best contribute to our country͛s economic growth and industrial development. Identify and pursue synergies across businesses through vertical integration, platform matching and channel management. We will create an even broader distribution network for our products and expand our customer base by identifying synergies across our various businesses. In addition, we are pursuing plans to integrate our production and distribution facilities for its both our established and newly acquired businesses to generate additional cost savings and efficiencies. Invest in and develop businesses with market leading positions. San Miguel intends to further enhance our market position in the Philippines by leveraging the company͛s financial resources and experience to allow it to continue to introduce new products and services. Potential investments to develop existing businesses include building additional service and micro-filling stations, constructing new power plants, expanding our power generation portfolio and expanding food distribution networks. We believe our strong domestic market position provides an effective platform to develop markets for an expanding product portfolio. And we will continue to invest in and develop businesses that have the potential to gain leading positions in their respective markets and industries. Adopt world-leading practices and joint development of businesses. We will develop strategic partnerships with global industry leaders, including Kirin in the beverages business and Nihon Yamamura Glass in our packaging business. These partnerships provide marketing and expansion opportunities, and potentially provide liquidity and opportunities for SMC to divest minority stakes in its businesses as other opportunities arise.
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