With consumption driven by the country’s sustained economic growth, expanding urbanization, favorable demographic patterns and rapidly changing consumer tastes and preferences, demand for food and beverage will continue to rise.
And that places diversifying conglomerate San Miguel Corp. in a good position to capture a huge part of that demand, the company said.
In a prospectus submitted to the Securities and Exchange Commission (SEC), SMC said its food and beverage businesses enjoy market-leading positions across their categories “with large addressable markets and attractive growth prospects.”
Unit San Miguel Food and Beverage Inc. (SMFB) offers an extensive complementary product portfolio across beer and non-alcoholic beverages (NAB), spirits and food with 32 brands in six categories, serving the full spectrum of a growing domestic population.
In 2019, market research firm GlobalData said SMC’s beer business had a market share by volume of 95.1 percent.
A study by The Nielsen Company showed SMC’s spirits business had leading market share in the gin category by volume of 97.7 percent,
Citing the same GlobalData study, SMC said SMFB produces the top beer brands in the country.
“Despite the entry of local beer competition in 1981 and the introduction of locally-brewed versions of foreign brands, craft beers and imported beers, SMFB believes that its brands are top-of-mind and continue to maintain their leading positions across market segments,” it said.
The Nielsen Company research puts SMFB core spirits brands Ginebra San Miguel and Vino Kulafu as market leaders in the gin and Chinese wine categories at 92.5 percent and 63.9 percent volume share, respectively, as of end-2019.
SMC’s food business enjoys a 62.3-percent market share in hotdogs, 25.2 percent for corned meats, 12.7 percent for luncheon meats, 23 percent for cheese, 41.7 percent for refrigerated butter, 95.2 percent for refrigerated margarine, and 97.7 percent for non-refrigerated margarine, The Nielsen Company study said.
“Likewise, based on figures at the end of 2019, the food division had market share of 22.8 percent for feeds,” SMC said.
“SMFB is an integral part of the Filipino lifestyle for more than a century and is present in its consumers’ lives at every meal and occasion, guided by the company slogan of ‘Celebrating Life’. SMFB believes that its products are part of the daily lives of its consumers, providing sustenance and enjoyment to families through trusted food brands and celebrating friendships and camaraderie with a world-class portfolio of beer and NAB and spirit products. The product portfolio of SMFB is suitable for any occasion throughout the year, whether it be for everyday consumption or for the most significant life events, and continuously evolves to cater to consumer tastes and preferences,” the company said.