A Stark Contrast Between Ginebra's And SMB's Results

In the recent nine-month financial results of the Philippine alcoholic drinks companies, we observed a stark contrast between the performance of Philippine brewer San Miguel Brewery (SMB) and its sister firm Ginebra San Miguel, which produces spirits. While SMB enjoyed growth in its overall beer volumes, Ginebra witnessed a decline of 34% in its spirits volumes for the nine months to September 2011. This disparity can be attributed to a combination of factors such as inflationary pressures, adverse weather conditions, and SMB's stronger international reach. While inflation will become less of a concern to domestic alcoholic drinks producers in the near term, the growing influx of imported spirits from the US and the EU represents a real threat to Ginebra's sales opportunities.

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