Coming home: A San Miguel story

MANILA, Philippines – For almost 125 years, San Miguel Corporation has been a part of Filipinos’ lives.

First established in 1890 as a brewery, San Miguel has evolved into one of the largest conglomerates in Southeast Asia with diverse interests, serving Filipinos’ basic needs and catering to their growing demand.

In 2007, San Miguel chairman and CEO Eduardo Cojuangco Jr. unveiled the company’s strategic growth plan: move away from the food and beverage business into heavy and high-growth industries.

San Miguel started investing in power distribution and generation, oil refining, infrastructure, telecommunications, aviation and mining. San Miguel president and COO Ramon Ang said the company’s new businesses were expected to make up for bulk of the company’s revenues in the coming years.

It was a risk worth taking and in 2010, their much-criticized diversification plan started to bear fruit.

From P148 billion in 2007, San Miguel’s revenues soared 66.28% to P246.1 billion in 2010. In 2007, 43.3% of revenues came from beer, 42.3% from food and 12.4% from packaging. The mix was different in 2010, with new businesses fuel and oil and power accounting for 47% and 14%, respectively. Food contributed 18%, beverage 18%, and packaging 5%.

By 2013, the conglomerate’s revenues reached P747.72 billion, of which 72% came from new businesses.

Years down the road, and with more ambitious plans ahead, San Miguel hopes to continue playing a role in the country’s growth story and the lives of every Filipino. – Rappler.com