San Miguel Corporation Case Study

Topics: Brewing, Beer, San Miguel Brewery Pages: 12 (3126 words) Published: August 3, 2013
Introduction (ERP, company name)
SMITS Company (ERP of San Miguel Brewery)
SMITS Inc. is one of the leading Information Technology companies in the Philippines today and is responsible for the managing the IT operations of Southeast Asia’s largest food, beverage, and packaging company. The organization employs over 500 IT professionals and business process experts, offering IT consulting, implementation and support services to the San Miguel Group of Companies and select non-San Miguel clients. With the company’s extensive experience in managing the IT infrastructure and systems of one of the Philippines' leading business conglomerates, SMITS combines industry best practices and business-specific customizations to enable clients to improve business performance. SMITS has one of the largest and most experienced pools of SAP consultants in the Philippines and has had experience in providing Enterprise Resource Planning (ERP) solutions to its clients. With exceptional functional and technical expertise, extensive industry knowledge and a strong vision for growth, SMITS is the ideal choice for IT consulting to drive business growth and transformation.

* Company Profile
A. Location

B. Type of Industry

C. Product Line and Products
The Company’s and SMBIL Group’s (collectively, the “SMB Beer Group”) product portfolio has grown over the past 122 years from a single product produced in a single brewery in 1890.

The Company markets its beer under the following brands: San Miguel Pale Pilsen, which is the Company’s flagship brand, San Miguel Super Dry, San Mig Light, San Miguel Premium All-Malt, San Mig Strong Ice, Cerveza Negra, Red Horse, Oktoberfest Brew, and Gold Eagle. The Company also sells Cali, the country’s only malt-based non-alcoholic drink. Cali is available in three variants: Cali Pineapple, Cali Ice and Cali Light (low-calorie). The Company recently launched San Miguel Alcoholic Malt Beverage which comes in apple and lemon flavors.

The international beer operations also offer the Pale Pilsen and San Mig Light brands in the Hong Kong, China, Thailand, Vietnam and Indonesia markets andRed Horse in the Thailand market, in addition to local brands: Valor (Hong Kong, China), Blue Ice (Hong Kong), Dragon and Guang’s Pineapple (South China),Super Cool and Blue Star (North China), W1N Bia and Dzo (Vietnam) and Anker, Kudah Putih, Sodaku, and Soda Ice (Indonesia).

The Company derives much of its revenue from the sale of its most popular brands Red Horse and Pale Pilsen. Together, revenues of these two brands contribute 79% of the total revenues of the Company. Export sales from the Philippines were only 0.68% of total revenues of the Company in 2011.

The Company’s top three export markets in 2011 were Korea, Taiwan and Singapore. Exports to these markets accounted for approximately 18%, 16% and 12%, respectively, of its total export volumes. Other Revenues include sales of CO2 and traded products.

In addition to serving their local markets, the breweries of the SMBIL Group also sell their products in various export markets

D. Brief History
Established in 1890, La Fabrica de Cerveza de San Miguel, Southeast Asia’s first brewery produced and bottled what would eventually become one of the bestselling beers in the region. Within the span of a generation, San Miguel Beer would become an icon among beer drinkers. By 1914, San Miguel Beer was being exported from its headquarters in Manila to Shanghai, Hong Kong and Guam. A pioneer in Asia, San Miguel established a brewery in Hong Kong in 1948, the first local brewer in the crown colony. Today, San Miguel Beer–the Company’s flagship product–is one of the largest selling beers and among the top 10 beer brands in the world. While brewing beer is the company’s heritage, San Miguel subsequently branched out into the food and packaging businesses. From the original cerveza that first rolled off the bottling line, San Miguel...

References: * Appendices
A Screen dump of the company’s website (home page)
B Financial Report
Balance Sheet
Income Statement
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