Ginebra completes sale of non-alcoholic beverage assets to SMB

HARD liquor-maker Ginebra San Miguel Inc. has completed the transfer of non-alcoholic beverage assets worth P397.89 million to sister beverage firm San Miguel Brewery.

The consolidation of non-alcoholic beverage assets into SMB is meant to optimize the bottling system of the beverage group. SMB has a returnable bottling system while Ginebra has a one-way system.

In a disclosure to the Philippine Stock Exchange on Monday, Ginebra said it had executed a deed of sale in favor of SMB for the sale of finished goods inventories and other inventories comprising of containers such as bottles, shells/crates and pallets alongside packaging materials, goods in process and raw materials used by the company in its non-alcoholic beverage business for the purchase price of P214.97 million, exclusive of value added tax (VAT).

Adding these to worth of the property, plant and equipment that SMB had purchased from Ginebra last month, the disclosure said the former had paid a total of P397.89 million for the non-alcoholic beverage assets of the company. The tag price is exclusive of VAT and net of adjustments to the price of the purchased property, plant and equipment.

Ginebra entered the non-alcoholic beverage business in 2008 when it purchased GSM from San Miguel Beverages Inc. (SMBI), which manufactures and distributes non-alcoholic beverage. The assets consisted of receivables, equipment, containers and inventories.