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5 Things To Know About the Companies Behind the Beermen and Gin Kings

Even true fans probably don't know these facts about San Miguel Brewery and Ginebra San Miguel
By Pauline Macaraeg |

 

As the clashes between San Miguel Beermen and Barangay Ginebra San Miguel Kings move towards the decisive rounds for the 2017 PBA Philippine Cup, sports fans may care to know more about the companies that the two contending basketball teams represent. 

 

Behind San Miguel Beermen is of course San Miguel Brewery, the country's biggest beverage company and beer bottler. On the other hand, Barangay Ginebra San Miguel Kings represents Ginebra San Miguel, the country's largest gin manufacturer.

 

Here are some interesting facts and figures about them:

 

1. Both are majority owned by San Miguel Corp., one of the Philippines' biggest and most diversified conglomerates. SMC used to be primarily a food and drinks company but now also owns the country's biggest oil refiner, Petron Corp., and runs power plants and toll roads. SMC owns 51.2 percent of San Miguel Brewery and 78.3 percent of Ginebra San Miguel

 

2. Almost half  (48.5 percent) of San Miguel Brewery is owned by a Japanese beer maker, Kirin Holdings Co. Ltd.. On the other hand, Ginebra San Miguel's next biggest owner, apart from the company's retirement fund and a nominee corporation, is a tobacco company called La Suerte Cigar & Cigarette Co.

 

3. The Gin Kings may arguably have more fans than the Beermen but San Miguel Brewery has more shareholders than Ginebra San Miguel. The brewer has 1,083 shareholders, of which 27 are foreigners, according to the two companies' latest filings with the Securities and Exchange Commission. On the other hand, the gin maker has only 729 shareholders, of which nine are foreigners.

 

4. On the basketball court, the two teams may equal each other in talent and determination to win. But in terms of revenue, San Miguel Brewery dwarfs Ginebra San Miguel by almost five times. In 2015, SMB posted revenues of Php82.4 billion compared to Ginebra's Php16.6 billion. As well, while SMB reported profits of Php22.6 billion, Ginebra suffered a loss of Php385.6 million, which is narrower compared to the losses in the past two years.

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5. Both San Miguel Brewery and Ginebra San Miguel dominate their respective markets. SMC makes nine of every 10 beer bottles and cans in the Philippines, according to international market research firm Euromonitor. Similarly, Ginebra has cornered 90 percent of the gin category in the Philippines, according to a May 2015 report in BusinessWorld newspaper.

 

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Pauline Macaraeg is Entrepreneur PH's data journalist. Follow her on Twitter @paulinemacaraeg

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