SEC okays capital hike of Sugarland

The Securities and Exchange Commission (SEC) has approved the capital increase of Sugarland Beverage Corp., a subsidiary of food and beverage giant San Miguel Corp., from P100 million to P565.53 million.

Sugarland manufactures powdered juice drinks and jelly snacks.

Based on documents filed with the SEC, the capital increase is intended to facilitate the issuance of shares to La Tondeña Distillers Inc. in exchange for the transfer of the assets of Jellyace operation by LTDI to Sugarland.

The assets include Jellyace inventories, property, plant and equipment and trademark. These are being used by LTDI as its investment into Sugarland.

These assets were previously owned by Sugarland Beverage Inc. (SBI). These, however, were transferred to LTDI under a merger with SBI, which was approved by the SEC last Oct. 15, 2001.

Sugarland was acquired by LTDI and San Miguel in May 2000 from its founder Dante Y. Go who successfully built Eight O’clock into the leading powdered juice drink in the country despite formidable competition from Tang juice products.

In the early 80s, the company pioneered the water gel business with its Jellyace brand. In a short time, the Jellyace brand became synonymous with ready-to-serve jelly snacks.

Jellyace today remains the market leader, with 70 percent share in the lucrative water gel industry. This, despite competition from foreign brands, not to mention the local competitors who have since mushroomed many of them positioning their products to closely resemble Jellyace.

It was then that the company decided to venture into the powdered drink mixes and in 1978, Sugarland launched its first brand, Ice Cold Mix.

San Miguel and the Coca-Cola Co. are planning to spin off a new company that will house all of their non-carbonated drinks. This will include Coke’s Minute Maid and Hi-C brands, Sugarland’s Eight O’clock and Ponkan, and La Tondeña’s Viva and Wilkins brands. – Zinnia Dela Peña