Ginebra to transfer some assets to SMB
MANILA, Philippines–Hard liquor maker Ginebra San Miguel Inc. is set to sell some of its non-alcoholic beverage assets to sister company San Miguel Brewery Inc. to optimize the group’s bottling system.
In a disclosure to the Philippine Stock Exchange on Friday, Ginebra said its board had approved the sale and transfer of certain assets and properties of the company to SMB.
The board has already delegated to management the negotiation and conclusion of the terms and conditions of the transaction.
Asked about the rationale behind the transfer, Ginebra vice chair and president of parent conglomerate San Miguel Corp. Ramon S. Ang said SMB has a returnable bottle system, while Ginebra’s system is one-way.
Ginebra entered the non-alcoholic beverage business in 2008 when it purchased GSM from San Miguel Beverages Inc., which manufactures and distributes non-alcoholic beverage. The assets consisted of receivables, equipment, containers and inventories.
SMBI is engaged in the manufacture and distribution of non-alcoholic beverages. It entered into toll manufacturing agreements with third parties to produce its products in Valenzuela, Bulacan, Pampanga, Laguna, Rizal, Las Piñas, Cebu and Davao.
Non-liquor business contributed 5 percent to Ginebra’s total revenue for the year ending on Dec. 31, 2013. Ginebra San Miguel, the flagship product of the company, contributed 77 percent of the total revenues for the year, while the other products that complete the local liquor business of the company constituted 15 percent of total revenues.
Incorporated in 1987, Ginebra operates three liquor bottling facilities in Cebu, Pangasinan and Laguna.
Aside from flagship Ginebra San Miguel, the company’s portfolio includes G.S.M. Blue, Gran Matador Brandy Solera and Magnolia Fruit Drink and Big M.
Ginebra had P4.6 billion in market capitalization as of Friday’s close.—Doris C. Dumlao
