SAN MIGUEL Brewery, Inc. (SMB) plans to spend about $70 million (about P3.5 billion) for the construction of a new brewery in Vietnam to address the demand for the company’s products in the Southeast Asian country.
SMB Chairman Ramon S. Ang said the company is currently conducting a market study for the facility.
“Kung magtatayo kami, at least two million hectoliters na planta. Pag-aaralan pa namin ’yun (If we’re going to build, it will have to produce at least two million hectoliters. We’re still going to study that project,” Mr. Ang told reporters after the company’s annual shareholders’ meeting in Mandaluyong on Tuesday.
SMB President Roberto N. Huang noted that the company’s capacity in Vietnam is only at 200,000 hectoliters, while it experiences an oversupply in other international markets.
“The per capita kasi in Vietnam is higher than the Philippines. Dito nasa 19 (liters). Sa Vietnam, umaabot na ng 44 liters per capita. Mataas. Kaya there is a good market there (Per capital here is around 19 liters. In Vietnam, they reach about 44 liters. That’s high. So the market is good there),” Mr. Huang said.
In its 2018 annual report, SMB said volume and profit weakened last year due to a significant decline in its W1n Bia brand and flat San Miguel volumes. It looks to “aggressively grow” San Miguel volumes this year by targeting to increase distribution in bars, hostels, karaoke, wedding sites, and modern trade outlets.
Meanwhile, Mr. Huang said the company is also waiting for confirmation on whether it can push through with the construction of a beer brewery in the United States. The company earlier said it had plans to set up a facility in Los Angeles, California to meet the demand for its products in North America.
“We have to wait for their confirmation. It’s not just a matter of capacity. We also have to talk to some people there if a brewery can really be put up kung walang reklamo ’yung (if there are no complaints from the) community and everything,” Mr. Huang said, adding that SMB has already acquired the site.
The top executive said that planning for the US brewery will take about six months, but may take longer since it is an overseas project.
“But we will see if we can already set groundbreaking. Pag ka nag-groundbreak na kami, e tuloy tuloy na (Once we break ground, it will push through), just like what we were doing in the Philippines,” Mr. Huang said.
RICE IMPORTS
Meanwhile, Mr. Ang, who is also president and chief operating officer of San Miguel Corp. (SMC), said the company is already preparing to import rice, following the approval of the Rice Tariffication Law.
“Merong ilang site na may port na hinahanda, para in case meron na talagang implementing guideline para makatulong kami to stabilize the price of rice (There are a number of sites that we’re preparing, in case there are already implementing guidelines so we can help stabilize rice prices),” Mr. Ang said.
Rice trading will be handled by SMB’s parent, SMC.
Mr. Ang said the company could potentially import rice from Cambodia, Vietnam, and Thailand. He also noted that the company will age the rice, the by-product of which can then be used for its feed mills and breweries.
“Broken rice dun, na walang halaga, nagagamit ng brewery ’yun to produce alcohol. Kaya napakabagay sa amin ’yun. At the same time, makakatulong kami na maging stable ’yung pricing (That’s broken rice that has no value, and can be used by the brewery to produce alcohol. It is a match with our business. At the same time, we can help stabilize prices). So farmers can also have a very stable income,” he explained. — Arra B. Francia
