SMC breaks ground for beverage facility in China

Food and beverage giant San Miguel Corp. (SMC) has started the construction of a non-alcoholic beverage facility in southern China – its seventh plant in the mainland – expected to start operations by the third quarter of 2005, the company said yesterday.

The new venture, named San Miguel (Guangdong) Foods and Beverages Co. Ltd., will produce high-quality beverages such as bottled water and fruit-based drinks using locally-sourced raw materials.

SMC chairman and chief executive officer Eduardo Cojuangco Jr. said the conglomerate has initially set aside $45 million for the establishment of the plant located in Foshan City in Guangdong province.

Cojuangco said the investment "underscores San Miguel’s ever-growing confidence in China’s economy and upholds our commitment to our business partners and the Chinese consumer."

SMC’s presence in China dates back to 1991 with its first brewery on the mainland, Guangzhou San Miguel Brewery Co., Ltd.

It operates two other breweries, San Miguel Shunde Brewery Co. Ltd., and San Miguel Bada Baoding Brewery Co. Ltd.

Apart from brewing operations, SMC also runs two packaging ventures, Zhaoqing San Miguel Glass Co. Ltd. and Foshan San Miguel Packaging Co. Ltd. The company’s operations, with the exception of its brewery in Baoding, are all concentrated in China’s Pearl River Delta.

"We are pleased with the progress we are making in our regional expansion program. San Miguel today is an international business with a significant presence in many regional markets. We are excited to open up our businesses to new horizons in terms of both products and reach," Cojuangco said.

SMC’s brewery in Hong Kong, the company’s first overseas venture, was established in 1948.

Earlier this year, SMC broke ground for non-alcoholic beverage facilities in Thailand, Indonesia and Vietnam and purchased brewery assets in Thailand.

SMC, Southeast Asia’s largest food and beverage conglomerate, also recently acquired a 50-percent stake in Australia’s largest fruit juice company, Berri Ltd.