San Miguel to merge alcohol and food units

San Miguel is to merge its Filipino beer and spirits business units into its Pure Foods division in a bid to attract investors in the company.

San Miguel Brewery and Ginebra San Miguel will merge into San Miguel Pure Foods and will be listed as San Miguel Food and Beverage on the Philippines stock exchange through a share-swap transaction worth PHP336.35 billion ($6.55bn).

In August, San Miguel Brewery’s net profit grew by 14 per cent in the first half of the year, to P9.4 billion ($183.8m), whilst consolidated sales for the period also rose by 12 per cent to P53.1bn ($1bn). The company attributed this to ‘creative marketing and sales executions’, which enabled it to expand into new geographical regions.