Organization

and
Management
San Miguel Brewery Inc

Ma. Carmina G. Mandia

ABM 102

I.

Business Background

San Miguel Brewery Inc. (SMB) is a subsidiary of San Miguel Corporation (SMC).
The company is the Philippines largest brewery with a market share of over 95% as of
2008. The company also operates in China and Southeast Asia.
The original San Miguel Brewery, Inc. was founded as La Fbrica de Cerveza de San
Miguel in 1890 by Enrique Mara Barreto under a Spanish Royal Charter that officially permitted
the brewing of beer in the Philippines and incorporated as the first San Miguel Brewery, Inc. in
1913. It was renamed San Miguel Corporation (SMC) in 1963, having grown into one of the
Philippines' largest business conglomerates with core interests in alcoholic and non-alcoholic
beverages, food, and packaging. San Miguel's original recipe was first drafted in Beijing, China.
The breweries operated as the beer division of SMC until 2007.
San Miguel Brewery, Inc. (SMB) was incorporated on July 26, 2007 as a subsidiary of
SMC and the domestic beer business was spun off from SMC to SMB on October 1, 2007. In
2009, Kirin Holdings Co. Ltd. of Japan acquired 48.3% of the company from SMC for PHP
8.841 per share.
In 2010, SMB acquired 100% ownership of San Miguel Brewing International
Ltd. (SMBIL) from SMC. The acquisition of SMBIL enabled SMB to achieve full integration of
San Miguels domestic and international beer businesses. SMBIL oversees operations in Hong
Kong, Peoples Republic of China, Indonesia, Thailand and Vietnam.
Beer:

San Miguel Pale Pilsen

San Miguel Premium All-Malt Beer

San Miguel Super Dry

San Miguel Flavored Beer (Available flavors: Apple and Lemon)

San Mig Light

San Mig Strong Ice

San Mig Zero

Cerveza Negra (San Miguel Dark Beer)

Red Horse Extra Strong Beer

Gold Eagle Beer

Cali (non-alcoholic beer)

Non-alcoholic beverages:

Magnolia Fruit Drink

Magnolia Health Tea (ready-to-drink and instant)

Magnolia PureWater

Berri Juice

III. Computations

a) Gross Profit Margin = (Sales-Cost of goods sold)/ Sales x 100

= (79,005,000-42,794,000)/ 79,005,000 x 100
= 36,211,000/79,005,000 x 100
= 46%

b) Profit Margin = Net Income/Sales x 100

= 13,515,000/79,005,000 x 100
= 17%

c) Return on Equity = Net Income/Owners Equity x 100

= 13,515,000/38,254,000 x 100
= 35%

IV. Analysis and Findings

GPM

PM

ROE

46%

17%

35%

10% standard in PM and ROE

The Profit Margin and Return on Equity exceeded the standard. The Profit Margin
is 17% and the Return on Equity is 35%.

V. Recommendation

They should revise their standard from 10% to 15%.