The Philippine firms San Miguel Corp. (SMC) and Asia Brewery Inc. (ABI) appear set for a fierce round of competition in the local beer market where demand for high-end beer products continues to incre…
The Philippine firms San Miguel Corp. (SMC) and Asia Brewery Inc. (ABI) appear set for a fierce round of competition in the local beer market where demand for high-end beer products continues to increase. ABI, owned by Taipan Lucio Tan, yesterday signed a long-term contract with Germany“s Anheuser-Busch International Inc., maker of the popular Budweiser beer. ABI is pushing Budweiser against the Miller bottled draught beer which rival SMC launched in September 1996. Industry sources said the total volume of beer sales in the local market has actually gone down by 15% since 1990 although the market for imported beer is growing as a result of liberalisation. At present, imported and locally-produced foreign beer brands have less than 1% share of the local market. As part of its expansion plans, SMC through its subsidiary the San Miguel Brewing Group (SMBG), recently moved into a new beer manufacturing plant in Yuen Long, Hong Kong worth P 3.39 billion. The firm maintains three breweries in China and five breweries in Davao. Budweiser is ABI“s fourth foreign beer product. The Tan-owned firm also sells the Labatt Ice Beer, Colt 45 and Carlsberg. Initially marketed in 330 ml cans, SMC formally launched Miller in 330 ml bottles in early December. The licensing agreement between Miller Brewing International (MBI) and SMBG is the second one between the two companies.