San Miguel Brewery Inc.
Philippines

San Miguel Brewery Inc. (SMB) is the largest producer of beer in the Philippines, with a total market share of approximately more than 95% in 2008. The Company has five breweries strategically located across the Philippines and a highly developed distribution system serving approximately 471,000 retail outlets.

SMB carries a portfolio of eight 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 and its flagship brand San Miguel Pale Pilsen.

San Miguel Beer was first produced by La Fabrica de Cerveza de San Miguel, a small brewery in the Philippines that began its operations in 1890. In 1963, the brewery was renamed San Miguel Corporation. The beer business provided the foundation from which San Miguel Corporation (SMC) has grown to become the largest food, beverage and packaging company in the Philippines today.

Prior to the creation of San Miguel Brewery Inc., all of SMC's beer operations were under the San Miguel Beer Division ("SMBD"), a business unit of SMC. San Miguel Brewery Inc. was incorporated on July 26, 2007, and the domestic beer business was spun off from SMC effective 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.

From a single product produced in a single brewery in 1890, San Miguel beer has, over 117 years later, grown into an array of popular beer products catering to the distinct tastes and preferences of beer drinkers across all segments and markets in the Philippines.

San Miguel Pale Pilsen has been an iconic Philippine brand for most of the 20th century and up to today. After considering the Filipino beer drinker's evolving preferences, other brands and products have been introduced, and these have been very successful. The various products carry distinct attributes that cater to all segments of the Philippine beer market. The Company's products have been internationally recognized for quality, including five Monde Selection International gold medal awards in 2007.

To ensure product availability and freshness, as well as to minimize distribution costs, SMB maintains a network of five local breweries that are strategically located in the three main islands of the Philippines: Luzon, Visayas and Mindanao.

SMB has breweries in each of Valenzuela City, Metro Manila; San Fernando City, Pampanga; Mandaue City, Cebu; Bacolod City, Negros Occidental; and Darong, Sta. Cruz, Davao del Sur, with a total annual production capacity of 15.1 million hectoliters. Each of these breweries is equipped with automated facilities capable of packaging the Company's products in a variety of sizes and formats, including bottles, cans, and kegs.

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 is well positioned to capture further volume growth and market share in the Philippine beverage industry.