San Miguel Brewery Inc. is the largest producer of beer in the Philippines, with a total market share of approximately 93% in 2006.

SMB Inc. has five breweries strategically located across the Philippines and a highly developed distribution system serving approximately 471,000 retail outlets.

Beer brands include all of the top four brands in the country, namely San Miguel Pale Pilsen, Red Horse, San Mig Light and Gold Eagle. San Miguel Pale Pilsen, the Company’s flagship brand, has a history of over 117 years.

Formerly a division of San Miguel Corporation, the shareholders of SMC approved the transfer of it’s domestic Philippine beer business assets to SMB Inc. in exchange for additional shares in the Company, a wholly-owned subsidiary of SMC.

The Company was incorporated on July 26, 2007, and the domestic beer business was spun off from SMC effective October 1, 2007.

The spin-off of SMC’s domestic beer business into the Company was intended to realize the value of SMC’s flagship business. Following approval by the shareholders of SMC of the spin-off of the domestic beer business and the creation of the Company, all plant and equipment used by SMBD in the domestic beer business were transferred to the Company, while SMC retains ownership of the brands and land assets used in the domestic beer business.

Winning Brands
San Miguel Pale Pilsen, the Company’s flagship brand, has been an iconic Philippine brand for most of the 20th century and up to today. After considering the Filipino beer drinker’s evolving preferences, other brands and products have been introduced, and these have been very successful.

Today, the Company offers a portfolio of eight strong and popular brands: Pale Pilsen, Red Horse, San Mig Light, Super Dry, Cerveza Negra, San Mig Strong Ice, Gold Eagle and Cali, the country’s only malt-based non-alcoholic drink. The various products carry distinct attributes that cater to all segments of the Philippine beer market.

Despite its dominant market position, the Company is well positioned to capture further volume growth and market share in the Philippine beer industry.

San Miguel Beer products have consistently dominated the market for beer in the Philippines, the country’s largest alcoholic beverage segment. The country’s top four beer brands are all produced by the Company.

Proximity of Production Facilities to Consumer Markets. To ensure product availability and freshness, as well as to minimize distribution costs, the Company maintains a network of five local breweries that are strategically located in the three main islands of the Philippines: Luzon, Visayas and Mindanao.

The Company has breweries in each of Valenzuela City, Metro Manila; San Fernando City, Pampanga; Mandaue City, Cebu; Bacolod City, Negros Occidental; and Darong, Sta. Cruz, Davao del Sur, with a total annual production capacity of 15.1 million hectoliters. Each of these breweries is equipped with automated facilities capable of packaging the Company’s products in a variety of sizes and formats, including bottles, cans, and kegs.

Extensive and Efficient Distribution System Coverage. The Company has a far-reaching and efficient distribution system, which is based on five strategically located breweries and effective management of third party service providers and provides the Company with a competitive advantage. The Company’s 49 sales offices and a logistics network that reaches 471,000 on-premise and off-premise outlets nationwide.