Our history
Proud Beginnings
Established in 1890, La Fabrica de
Cerveza de San Miguel, Southeast Asias
first brewery produced and bottled what
would eventually become one of the
bestselling beers in the region. Within the
span of a generation, San Miguel Beer
would become an icon among beer
drinkers.
By 1914, San Miguel Beer was being
exported from its headquarters in Manila
to Shanghai, Hong Kong and Guam. A
pioneer in Asia, San Miguel established a
brewery in Hong Kong in 1948, the first
local brewer in the crown colony.
Today, San Miguel Beerthe Companys flagship productis one of the largest selling beers and
among the top 10 beer brands in the world. While brewing beer is the companys heritage, San
Miguel subsequently branched out into the food and packaging businesses.
From the original cerveza that first rolled off the bottling line, San Miguel Corporation has since
expanded its portfolio to produce a wide range of popular beverage, food and packaging
products which havefor over a centurycatered to generations of consumers ever changing
tastes. It has also diversified into heavy industries including power and other utilities, mining,
energy,
tollways
and
airports.
The Companys manufacturing operations extend beyond the Philippines to Hong Kong, China,
Indonesia, Vietnam, Thailand and Malaysia. Its products are exported to major markets around
the world. Continuing a tradition of product quality, San Miguel is capitalizing on its unique
strengths in brands and distribution to weave its products more deeply into the fabric of
everyday life. Not just in the Philippines but in the Asia-Pacific region.
World Class Partners
San Miguels partnerships with major international companies have given the Company access
to the latest technologies and skills. Our marketplace experience, technical expertise, and
innovation capabilities, while largely homegrown, also reflect our long term partnerships with
world
class
players.
San Miguels joint venture partners include Hormel Foods Corporation, Yamamura Glass and
Fuso Machine and Mold Manufacturing of Japan. A strategic equity investment in San Miguel
by Japans leading brewer and global player, Kirin Brewery Company, Ltd. has further enhanced
San Miguels competitive position in Asia, a region in which it is already well placed.
In 1889, a well-known Manila businessman, Don Enrique Mara Barretto de Ycaza y Esteban,
applied for a royal grant from Spain to establish a breweryin 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 Fbrica de Cerveza de San Miguel was declared open for
business. Located at 6 Calzada de Malacaang (later called Calle Avils), 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 beerproduction. 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.
Early success led to the expansion of the business and Barretto decided to incorporate his brewery.
On 6 June 1893, the company was incorporated and registered with a capital of P180,000. Those
forming the corporation were Don Pedro Pablo Rxas y Castro, Don Gonzalo Tuasn y Patio, Don
Vicente D. Fernndez y Castro, Don Albino Goyenechea, Benito Legarda y Tuson, the heirs of Don
Mariano Buenaventura y Chuidan and Barretto.
Rxas was soon appointed manager, playing a prominent role in the development of the firm. He
was the active member of the firm until 1896, when he left for Europe. Prior to his departure, he
bought from Don Enrique Barretto, a share of his interest in the firm worth P42,000. When Barretto
retired in May of the same year, Rxas, through his attorneys, bought the balance of Barrettos stake
in the business. In 1895, San Miguel Beer won its first of many awards as a product of the highest
quality at the Exposicin Regional de Filipinas. By 1896, San Miguel beer was outselling by more
than five-to-one all imported beers in the country.
The 1900s ushered in a period of prosperity after the Philippine Revolution and the beginning of
the American Occupation. Demand for beer increased, and for San Miguel, still under Rxas'
leadership, modernization of their operations included installation of electric conveyors and
automatic machines, with the brewerys equipment modernised by 1910.
By 1913, imported beer represented only 12% of the total consumption in the Philippines; San
Miguel held an 88% share of the industry. Rxas died in Paris, France in 1913. He had died soon
after Don Benito Legarda and Don Gonzalo Tuasn made it advisable to change the form of the
company from a firm of co-participants to a corporation (San Miguel Brewery, Inc.). Rxas's son,
Don Antonio Rxas y de Ayala, was appointed president, with Don Enrique Bras y de Coya and Don
Ramn J. Fernndez as managers.
By 1914, San Miguel had branched out into the exporting business and its products had found ready
markets in such neighbouring ports as Hong Kong, Sfgursekwnmzawe,kjttttttttttttttttttttttt4hanghai
and Guam. When the First World War broke out, exports came to a temporary halt due to difficulties
such as shortage of raw materials and the consequent rise in manufacturing costs. It was not
until Prohibition was repealed in the United States that San Miguel was able to resume exports
to Guam and later to Honolulu, Territory of Hawaii. By the end of 1914, Don Enrique Bras y de
Coya, after seeing that his efforts and industry had resulted in a progressive and prosperous
business, retired from active business life in favour of his son, Don Antonio Bras y Rxas. In 1918,
Don Antonio Rxas y de Ayala resigned from his position as president.
