San Miguel profits up

- Last updated on GMT

Related tags: San miguel, Alcoholic beverage

Philippine-based food and beverage giant San Miguel has reported
that consolidated net profits in the five months to May of this
year rose 32 per cent to PHP3.29 billion (€47.98m), due mainly to
higher operating income from increased beer sales and reduced costs
for its soft drinks unit.

The company said that domestic sales had also increased by 15 per cent to PHP68 billion, while international beer sales were up 19 per cent to PHP99.5 billion.

Encouraged by strong overseas, San Miguel has said that it is now set to focus on concentrating production outside its core domestic market. It recently announced plans to invest in a soft drinks venture in southern China and is purchasing a Thai brewer, as well as new food production ventures in both Vietnam and Thailand.

Wine tops for profit in China

According to a market report from Sinomonitor International, wine is proving to be more profitable as a business venture than other alcoholic drinks such as beer and spirits due to customer loyalty and increasing consumption.

The report followed the consumer patterns of 70,000 Chinese consumers aged 15 to 64 in 30 major Chinese cities and found that, whereas beer is consumed by 33.39 million people on a regular basis, wine is only consumed by 7.98 million. However, the report also outlines that, influenced by government policy to control alcohol consumption, more and more consumers are switching from beer and spirits to wine.

At present domestic brands continue to dominate the market, accounting for 90 per cent of all wine sold and the domestic industry is experiencing a year-on-year growth in production of 10 per cent. Currently the top four brands include Great Wall, Changyu, Tonghua, and Dynasty.

Organic takes off in China Province

The Northeastern China province of Heilongjiang says it is set to invest RMB55 million (€5.4m) into the production of eco-friendly organic foods this year, in a move that aims to make the are a centre for organic food production.

According to news provider Cbnet, the province will increase its production of organic food to 1.3 million hectares, 126,600 hectares more than last year. In turn this will mean that production of fruit and vegetables will increase to 8.2 million tons, up by 1.1 million tons this year.

This will put a value of RMB 21 billion on the total organic food market in the province.

Related topics: Business, Beverages

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