San Miguel Brewery Inc. (SMB) is the largest producer of beer in the Philippines, with nine out of ten beer drinkers preferring its brands. San Miguel Beer was first produced by La Fabrica de Cerveza de San Miguel, an upstart brewery in the heart of Manila that began its operations in 1890. It received the Royal Grant from the Spanish king to brew beer in the Philippines, then a colony of Spain. In 1963, the brewery was renamed San Miguel Corp. (SMC) to reflect its growing ventures into food and packaging. As the beer business grew at a steady pace, it provided the foundation from which SMC expanded its interests from food, beverage and packaging, to power, oil, airline and infrastructure. Today, SMC is the country’s biggest diversified conglomerate.
All SMB’s beer operations were then under the San Miguel Beer Division, a business unit of SMC. SMB was incorporated on July 26, 2007, and the domestic beer business was spun off from SMC to SMB on October 1, 2007. The spin-off of SMC’s domestic beer business into SMB was intended to realize the value of SMC’s flagship business. In 2010, the acquisition of San Miguel Brewing International Limited (SMBIL) enabled SMB to achieve full integration of its domestic and international beer business. SMB is now at a greater advantage to champion the iconic San Miguel brand across the Asia-Pacific region.
From a single product produced in a single brewery in 1890, SMB has developed an array of popular beer products over the past century, catering to the distinct tastes and preferences of beer drinkers across all segments and markets in the Philippines. Today, it carries a portfolio of ten strong and popular beer brands: San Mig Light, Red Horse Beer, Cerveza Negra, Gold Eagle Beer, San Miguel Strong Ice, San Miguel Super Dry, San Miguel Premium All-Malt Beer, San Miguel Flavored Beer, San Mig Zero, and its flagship brand, San Miguel Pale Pilsen. These products carry distinct attributes that cater to all segments of the Philippine beer market and have earned international recognition for quality, winning in the prestigious Monde International Selection almost on an annual basis, among other awards and citations. The Company has six production facilities strategically located across the Philippines to ensure product availability and freshness, and a highly developed distribution system serving approximately 471, 000 retail outlets.
San Miguel Beer products have consistently dominated the market for beer in the Philippines, the country’s largest alcoholic beverage segment. Despite its dominant market position, SMB continues to find new ways to grow further its volumes and its market share in the Philippine beverage industry. COMPANY NAME
In 1889, a well-known Manila businessman, Don Enrique María Barretto de Ycaza y Esteban, applied for a royal grant from Spain to establish a brewery in the Philippines. He was awarded the grant for a period of twenty years. On September 29, 1890 (Michaelmas, or the feast day of Saint Michael the Archangel), La Fábrica de Cerveza de San Miguel was declared open for business. Located at 6 Calzada de Malacañang (later called Calle Avilés), the brewery took its name from its neighbourhood, the arrabal(suburb or district) of San Miguel. The facility had two sections: one devoted to the production of ice with a daily capacity of 5 tonnes, and the other to beer production. The brewery was the first in Southeast Asia using the most modern equipment and facilities of the day. With 70 employees, the plant produced 3, 600 hectolitres (about 47, 000 cases) of lager beer during the first year and subsequently produced other types of beer, notably Cerveza Negra, Eagle Extra Stout and Doble Bock.
San Miguel Pale Pilsen – The Standard Of Beers
The bold and authentic taste of San Miguel Pale Pilsen found a place in the hearts of the Filipino beer aficionado. It is truly a satisfying beer that has a distinct aroma and full flavor. Its smooth and rich taste will remind you why this classic brew is the standard of beers. The San Miguel Pale
San Miguel Pale Pilsen 320 ml
San Miguel Pale Pilsen 330 ml Paper Label
San Miguel Pale Pilsen 330 ml Can
San Miguel Pale Pilsen 1000 ml Grande
San Miguel Pale Pilsen Draft 30L Keg
San Miguel Pale Pilsen Draft 50L Keg
San Miguel Premium All-Malt Beer
Brewed the Bavarian way, Premium All Malt attained its level of perfection by using 100% malt. It has the characteristic malty aroma accented with pleasant citrusy hop notes. San Miguel Super Dry
Hallertau Region bring out its crisp, dry flavor characterized by strong impression of aromatic hop notes.
Let your palate become the playground of dark-roasted malt’s bold flavor and caramel undertones.
San Mig Light
Hottest light beer in the country with only 100 calories; less filling to let you party all night while staying sexy all the
time. It’s always the perfect time to party when you pop a bottle of San Mig Light.
San Miguel Flavored Beer
The first and best fruit-flavored beer San has ever brewed. Quirky and Miguel imaginatively unique, it comes in two exciting fruit flavors – apple and lemon. San Mig Zero
San Mig Zero is the beer with only 60 calories and 2. 6% alcohol content by volume. It is designed for health and calorie conscious individuals who want to enjoy their beer guilt-free.
Gold Eagle Beer
The ultimate reward to a hard day’s work is Gold Eagle Beer . It is moderately light bodied, yet flavorful, hopped just enough to give a little bite on the finish bringing out an over-all “ easy drinking” character.
Red Horse Beer
Red Horse Beer is an extra strong beer
that brings pure alcoholic experience.
It is not an ordinary beer – rebellious
and flavorful yet bold and intense.
VISION, MISSION, GOALS, AND OBJECTIVES
San Miguel Foundation, Inc. is committed to the empowerment of San Miguel host communities and various stakeholders by harnessing corporate social responsibility among the various San Miguel businesses in pursuing mutually beneficial programs that lead to self-reliance and sustainability.
SMC’s fundamental and historical philosophy – Profit with Honor. The Following are SMC’s objectives:
To be constantly aware of the aspirations of the people and of the nation, and to ensure that San Miguel continues to make a major contribution towards the achievement of these aspirations. To manufacture, distribute and sell throughout the Philippines food products, beverages, packaging products and animal feeds, being ready at all times to add, modify or discontinue products in accordance with changes in the market.
To diversify into fields which will ensure optimum utilization of management resources and a substantial contribution to corporate profits. To seek and develop export markets for new products as well as for those already being produced by the corporation. To generate a return on funds employed sufficient to ensure an adequate rate of growth for the Corporation, and to provide satisfactory returns to stockholders. To provide an environment which is conducive to the development of the individual and which encourages employees to realize their full capabilities. To adopt a flexible and objective attitude towards change and to pursue an active policy of innovation.
ADHERENCE TO UNIQUE QUALITY
San Miguel Brewery Inc. is dedicated to delight its customers with products and services of superior quality. True to our commitment to Quality, SMB shall adhere to the following action principles: Consistently manufacture products in the tradition of San Miguel’s brewing excellence and ensure its availability to our customers. Optimize our capabilities based on performance and benchmarks while strengthening alignment and deployment of strategies for effective execution. Enhance the customer management system to meet and anticipate customer needs as well as secure customer relationships. Continuously improve our quality management system through timely and effective implementation of measures and introduction of appropriate innovation.
Observe strict compliance to statutory, regulatory, and other applicable requirements. Nurture a work environment that drives employees toward stronger commitment to quality and high performance. Promote stronger collaboration with business partners to improve our collective performance. Quality is a way of life in SMB. It is everybody’s concern. Together, we shall continue to uphold San Miguel’s reputation as the “ Home of Quality Products and People”. Organizational Structure
LOCATION AND LAYOUT
Philippine Plants and Facilities
San Miguel Brewery Inc. operates six breweries in the Philippines. Polo Brewery
McArthur Highway, Valenzuela City,
Sta. Rosa Brewery
Lucky Nine Industrial Complex
Brgy. Pulong, Sta. Rosa, Laguna
San Fernando Brewery
Brgy. Quebiawan, City of Pampanga
Darong, Sta. Cruz, Davao del Sur
San Miguel Corporation Complex Highway, Mandaue City
Sta. Fe, Brgy. Granada, Bacolod City
International Plants and Facilities
San Miguel Brewing International Ltd. (SMBIL) is a wholly owned subsidiary of San Miguel Brewery Inc. which operates subsidiaries in the following countries: Hong Kong and China
San Miguel Brewery Hong Kong Ltd (SMBHK)
San Miguel (Guangdong) Brewery Company Ltd. – subsidiary of SMBHK Guangzhou San Miguel Brewery Company Ltd. – subsidiary of SMBHK San Miguel Baoding Brewery Company Ltd.
PT Delta Djakarta Tbk
San Miguel Brewery Vietnam Ltd.
San Miguel Beer (Thailand) Ltd.
SIGNIFICANCE OF THE STUDY
The idea of this project is to look into the functions of the San Miguel Brewery Corporation’s operational management by means of applying suitable techniques, concepts and other methodology all through the research. The following are the significance of the study: 1 The proposed study will serves the student as their guidelines on how do San Miguel Brewery operate the business despite of having a huge facility. 2 To hasten anyone’s interest to propagate more ideas and facts or basis essential to the practice of their profession. 3 To verify the strengths and weaknesses of the current inventory system of the SMB. 4 For us, students, being the main participant, to gain more knowledge about the principles of manufacturing firm and to improve our skills regarding the flow of their operation. 5 To obstruct the continuous curiosity of the researchers, students, and those `with concerns.