MANILA -- Philippines' San Miguel Brewery and Spain's Mahou San Miguel have forged an alliance to expand the beer brand's global footprint.
According to a joint statement released Wednesday, the two companies "have signed a cooperation agreement to promote their international business and jointly position San Miguel as an iconic brand worldwide." It was not clear how both parties will achieve this goal, but they said they have defined "a framework for collaboration that will allow them to reach more consumers and markets with the San Miguel brand."
The partnership is a reunion of sorts for the two San Miguel beer producers, whose relationship reaches back to 1953, when San Miguel Brewery granted San Miguel Spain the "branding rights" for Europe and Mediterranean Africa.
That agreement paved way for a Spanish brewery later named San Miguel Fabricas de Cerveza y Malta, where San Miguel Brewery held a 20% equity share via San Miguel Brewery Hong Kong, the Philippine brewer's first offshore brewery.
Both parties, since then, have independently developed the San Miguel beer brand.
"In 2000, however, San Miguel Spain was bought by Mahou, giving rise to the 100% Spanish Mahou San Miguel group, which today continues to extend the profile of the brand with great success not only in Spain but in key European markets like UK, Italy, Nordic countries and Germany," according to the statement.
Officials from both parties expressed optimism over the newly formed cooperation agreement.
"MSM (Mahou San Miguel) and SMB (San Miguel Brewery) share a long and storied history," San Miguel Brewery Chairman Ramon S. Ang said. "Leveraging on the strength and depth of our category as well as presence in our respective markets can do a lot for ramping up San Miguel as a global flagship brand."
Javier Lopez del Hierro, chairman of Mahou San Miguel, said the "alliance is much more than a business partnership."
"It has been an emotional journey to the origins of San Miguel, and is a unique opportunity to release the brand's enormous potential, promoting a common positioning across the globe," he added.
San Miguel Brewery has production plants in China, Taiwan, Thailand, Indonesia and Vietnam, as well as Hong Kong. It also exports products to Angola, Australia, Bahrain, Canada, Japan, South Korea, Malaysia, Maldives, Qatar and the United States.
San Miguel Brewery's net income attributable to equity holders fell 16.09% to 12.05 billion pesos ($276 million) last year, and sales dropped 0.70% to 75.05 billion pesos.
According to the statement, combined international sales of the San Miguel Brewery and Mahou San Miguel outside of the core and original Philippine market, today make San Miguel one of the top 10 global premium beer brands.