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San Miguel: A diversified conglomerate

Published: January 2013 · Publisher: MarketLine
San Miguel started out as South East Asia’s first brewery in 1890. The company diversified into food and packaging and began operating internationally. In 2007, San Miguel announced they would diversify into high-growth, high-yield industrie
Report Type Case Studies
Language English
Format Electronic (PDF)
Pages18
Frequency Updated Annually
Availability Will be emailed within 1 business day
Reference No. 0109-2765
Price € 369,00
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Introduction

San Miguel started out as South East Asia’s first brewery in 1890. The company diversified into food and packaging and began operating internationally. In 2007, San Miguel announced they would diversify into high-growth, high-yield industries, such as power and energy. Since 2007, the company has made a number of significant acquisitions which have successfully diversified their portfolio.

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* The publisher's Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
* Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.

Highlights

In 2007, San Miguel announced plans to expand into "new engines of growth": fuel and oil, infrastructure, power and energy, mining, telecoms, and banking.
San Miguel, through acquisitions and investments, now operates in six new areas of growth. The fuel and oil segment, in particular, has significantly driven revenues.
San Miguel's core businesses have continued to experience moderate growth. Additionally, San Miguel will "continue to pursue growth opportunities in its traditional food and beverage businesses for the long term".

Your key questions answered

* How has San Miguel diversified since its inception as a brewery in 1890?
* How are San Miguel's core businesses (food, beverages, and packaging) performing?
* How and why has San Miguel diversified into fuel and oil, infrastructure, power and energy, mining, telecoms, and banking?
* How have the new businesses affected San Miguel's revenues?
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OVERVIEW
Catalyst
Summary
SAN MIGUEL OPERATES IN THREE CORE MARKETS: FOOD, BEVERAGES, AND PACKAGING
San Miguel began as a brewery before diversifying
San Miguel operates through three core markets
San Miguel is a domestic leader in the beer market
San Miguel’s food segments include agro-industrial and flour milling
San Miguel’s packaging business has experienced strong international sales
SAN MIGUEL HAS DIVERSIFIED INTO HIGH-GROWTH, HIGH-YIELD INDUSTRIES
San Miguel has acquired two fuel and oil companies – Petron and Exxon.
Petron supplies around 40% of the Philippines’ oil requirements and is a major source of revenues for San Miguel
The acquisition of Exxon Mobil Malaysia opens up international markets in the fuel and oil segment
San Miguel's ongoing projects include tollways, airports, and a railway line.
San Miguel has invested in a number of tollways
San Miguel’s airport operations include Caticlan and PAL Holdings
San Miguel’s railway acquisition has not yet begun construction
San Miguel has invested in coal, gold, and copper mining projects
San Miguel’s telecoms segment operates through three companies
Wi-Tribe Telecoms provides WiMAX broadband
San Miguel has strengthened the segment with two further companies; Eastern Telecommunications and Bell Telecommunication
SMC Group Retirement Funds owns the Bank of Commerce
THE NEW BUSINESSES HAVE SIGNIFICANTLY CHANGED SAN MIGUEL’S REVENUES
2011 revenues doubled
Core businesses have experienced moderate growth
New businesses, particularly Petron, have experienced strong growth
San Miguel remains optimistic with strong growth predicted in the coming years
San Miguel wishes to continue to expand core businesses
CONCLUSIONS
San Miguel has become a diversified conglomerate
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