SMC reports 36% increase in sales

With the consolidation of three major acquisitions last year, the San Miguel Group is slowly reaping the fruits of its efforts with the reported increases in volume and operational efficiencies across all its major product lines.

Boosted by a 36-percent surge in consolidated sales in the first four months of 2002, reaching P41.4 billion as of April, SMC’s core businesses are continuing on their aggressive volume growth strategies to maintain their positive output this year, despite a recovering business environment.

The flagship beer division, for instance, is building up its product lineup by positioning the San Miguel Beer Pale Pilsen as a "megabrand" whose strength will be extended to other products.

"We will likewise revitalize other brands through packaging makeover of certain product variants similar to the successful relaunch of Cerveza Negra last year," San Miguel Beer Division president Faustino Galang said.

As of April, SMBD’s sales revenue have bubbled by 30 percent to P2.25 billion. In its international operations, sales volume in April have risen to five percent, a reversal from the three-percent decline in the first quarter.

Liquor unit La Tondena Distillers Inc., whose operating income had shot up by 93 percent in four months to P543 million, also reported significant volume gains as it pursued its aggressive sales and marketing efforts and introduced innovative new alcohol-based products such as the recently-launched alcotonic drink ERG.

Coca-Cola Bottlers Philippines also expects better growth prospects this year as the integration of Cosmos Bottling Corp. – the market leader in low-priced soft drinks and root beer categories – and the absorption of the bottled water and juice business of sister firm LTDI takes full swing.

In the food business, San Miguel Pure Foods Co. Inc., plans to expand its product line not just from a complete range of breakfast-to-dinner food items but even in the highly lucrative animal nutrition segment.

"We have been laying the groundwork for an integrated approach in our market and brand positioning, facilities and operations, and selling and distribution networks," SMPF president Enrique Gomez Jr. said.

For the SMC Food Group, sales in the first four months reached P11.5 billion, up by a huge 59 percent from last year.