San Miguel’s HK brewery does well despite weak market

San Miguel Brewery Hong Kong (SMBHK), a unit of Philippine food and beverage giant San Miguel Corp., continued to report positive results in the first half of the year despite a weaker beer market.

In a statement, SMBHK said its exports grew 29.1 percent while gross turnover increased 2.6 percent for Hong Kong operations and 1.9 percent for South China operations.

Volume of SMBHK’s Hong Kong operations went up 0.7 percent even as total industry volume in the first six months of 2005 was three-percent lower than in the same period in 2004.

San Miguel’s prompt response to the shift toward economy brands drove volumes and following proactive efforts over the past several years, the company is now the largest player in Hong Kong’s expanding low-price brand segment.

With most of its rival brands investing heavily on brand-building efforts, SMBHK is pursuing efforts to maintain overall market leadership through increased availability of San Miguel Pale Pilsen in relevant channels, leveraging on the flagship brand’s status as the preferred local brand.

SMBHK intends to further step up its marketing activities by sponsoring bar parties to build connections with young consumers and further boost the San Miguel brand.

Initial indicators showed that SMBHK’S new marketing campaign "Our City, Our Beer" launched in July 2005 reinforces as well San Miguel’s brand position as Hong Kong’s favorite beer. These brand-building moves resulted in strong growth and increased market share, SMBHK said.

With the proliferation of lower-priced, imported brands, San Miguel reinvigorates – through product activity and improved sales execution – brands that include Knight, Bruck, Valor, Polar Ice, and Blue Ice.