Indonesia: The Philippines, San Miguel, announced on July 8, 2004 it breaks ground for new facility in Indonesia. With the establishment of its newest manufacturing facility, San Miguel expects to be able to offer Indonesian consumers a wide range of choices in beverage products. San Miguel Corporation broke ground today (July 8) for a new beverage manufacturing facility in Indonesia, stepping up its strategic expansion in the Asia-Pacific region.

The groundbreaking ceremony came less than three months after a similar groundbreaking event in Thailand. More activities are scheduled within the year in Australia, Vietnam, China, and Malaysia.

San Miguel is Southeast Asia’s food, beverage, and packaging company with over 100 major manufacturing facilities in the Philippines, China, Hong Kong, Indonesia, Vietnam, and Australia. The company’s products are exported to over 40 countries throughout the world.

San Miguel Chairman Eduardo Cojuangco, Jr. and President Ramon S. Ang led the ceremony at the MM2100 Industrial City in Bekasi Province, West Java, the site of the company’s new multi-product beverage plant. Bekasi Regent Saleh Manaf and Investment Coordinating Board Chairman Theo F. Toemion participated as guests of honor.

The site of the new facility is about 25 kilometers from Jakarta. The new company, to be known as PT San Miguel Indonesia Foods and Beverages is 85% owned by San Miguel and 15% owned by PT Delta Djakarta Tbk, San Miguel’s brewery in Indonesia.

San Miguel’s new Indonesian venture involves manufacturing and distribution of ready-to-drink soft beverages.

The investment presents a growth opportunity for San Miguel and its domestic business partners in Indonesia’s huge beverage market, which has been growing at an average of 20% over the past five years. As of 2003, the per capita consumption of non-alcoholic beverages in Indonesia is 46 liters, which is comparable to Thailand’s 44.2 liters and the Philippines’ 70.2 liters.

“This new business reflects San Miguel’s full confidence in Indonesia as a fast-growing economy and manifests our continuing commitment to promote the best interests of consumers in this country,” Cojuangco said during the groundbreaking ceremonies.

The company’s presence in Indonesia dates back to 1976 with a licensing arrangement to brew San Miguel Beer. San Miguel began its brewery operations in 1993 when it bought into PT Delta Djakarta, one of Indonesia’s largest breweries. Its Anker Bir and Anker Stout brands currently enjoy a significant market share in the Indonesian market.

San Miguel also manufactures and markets processed meats in the country through PT Purefoods Subah Indah – a joint venture with the Hero Group of Indonesia. Its Farmhouse and Vida hotdogs and sausages, cold cuts, burgers and other processed meats are rapidly gaining consumer acceptance and are major players in the country’s fast-growing processed meats industry.

The company also has a plastics plant in Indonesia through PT San Miguel Sampoerna Packaging Industries, which produces and markets plastic crates and pallets.

With the establishment of its newest manufacturing facility, San Miguel expects to be able to offer Indonesian consumers a wide range of choice in beverage products.

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