Ginebra warns vs product imitations

Amid reports of fake products in the market, Ginebra San Miguel Inc. (GSM) has advised the public to buy the company’s products only from authorized outlets and distributors and check whether the "seal-o-brand" is intact to assure their authenticity.

In a disclosure to the Philippine Stock Exchange, GSM, the hard liquor subsidiary of food and beverage giant San Miguel Corp., stressed that the welfare and safety of the consumers remains to its number one priority.

GSM also assured the public that the gin originating from its plants pass through rigid quality control systems and processes along with the rest of the company’s liquor products.

"These products, which are being manufactured based on a tradition of quality and innovation that dates back hundreds of years have already won several international quality awards — proof that the care and quality that the company first put in the product in 1834 continues to live in the Ginebra brand today," GSM said.

GSM also assured its consumers that its sales personnel and distributors continue to implement very tight trade safeguards against any threat to its products’ quality and authenticity.

"Apart from our stringent manufacturing processes, we have extensive post-sales sampling in various areas of the country to weed out possible counterfeit products," GSM said.

GSM has grown, from its modest beginnings, to become the largest selling gin in the world and the undisputed leader in the country’s hard liquor market.

To further strengthen its foothold, GSM has earmarked P2 billion for the construction of a new plant in Batangas in preparation for its aggressive overseas expansion this year. The plant, which will be completed in two years, is expected to increase capacity by 20 million cases of liquor per year.

The move is in line with the company’s efforts to bring its products to other Asian markets and in countries with high growth potentials. GSM is also looking at exporting to Europe this year to improve volume.

Following its initial success in exporting liquor products to Thailand, GSM has been able to penetrate the Korean market through a tolling arrangement for a new fruit-based liquor, Celavi. This product capitalizes on developing private labels for foreign partners as a means of gaining access to new markets, with minimal operating and financial risks.

Company officials said GSM’s long-term growth continues to be promising with volume and revenue growth expected to come from the sustained solid performance of Southern Philippines, along with the development of new products and expansion in key Asian countries.

For this year, the company plans to launch a range of products and packaging innovations to capture emerging consumer segments and fortify its hold on traditional markets. It expects to introduce a new brandy product, Gran Matador.

In the meantime, GSM’s cassava starch milk plant in Bago, Negros Occidental is expected to be fully operational by the scond half of this year. The plant is expected to ensure a steady raw material supply and help manage more effectively the price volatility of molasses and alcohol, the basic raw material for liquor processing.