SMC’s Aussie brewer unit boosts operating income by 19%

Australia’s J. Boag and Son Ltd., a wholly-owned subsidiary of food and beverage giant San Miguel Corp. (SMC), reported a 19 percent jump in operating income last year on higher sales volume.

In a statement released yesterday, SMC said J. Boag’s volume rose 12 percent last year as it continued to score significant market share gains among its flagship brands.

James Boag’s Premium Lager, the company’s bearer in the country’s mainstream premium beer segment, emerged as the second largest domestic premium beer brand with its market share increasing by 2.5 percentage points from 2003.

"The brand continues to be the only growing brand in its class since it was launched 10 years ago. Its phenomenal growth was largely responsible for doubling the brewery’s sales over the last six years," SMC said.

For two consecutive years, the brand earned the title "Premium Beer of the Year" at the annual Australian Liquor Industry Awards.

To further strengthen its foothold in the industry, J.Boag has launched a second high-speed packaging line and additional brewing capacity, the most significant upgrade made in the brewery to date to support targeted volume growth coming from an expanded coverage of mainland Australia.

With the expansion, J.Boag aims to leverage on the premium qualities of Tasmania and seize a bigger market outside its home base.

James Boag’s Draught, one of Tasmania’s oldest and most popular beer brands and a recipient of various international citations, was made available across Australia’s regular beer segment starting October last year.

J.Boag likewise introduced J. Boag’s Premium Light and St. George to further widen its consumer base. Other products include Boag’s Original Bitter, Classic Bitter, and Boag’s XXX Ale.

"These achievements reflect how partnerships can successfully leverage on each other’s strengths for J. Boag’s, these bolster the company’s position as ‘Australia’s Premium Brewer’ and for San Miguel, it reinforces the firm’s stature as a regional player," SMC said.

Apart from the Philippines and Australia, SMC also operates breweries in North and South China, Indonesia, Vietnam, Hong Kong, and Thailand.