Ginebra San Miguel Inc., the hard liquor unit of diversified conglomerate San Miguel Corporation, is looking to acquire a foreign hard liquor company.
SMC President Ramon Ang, in an interview on Thursday said it is in talks with three foreign hard liquor producers for possible overseas acquisitions.
“There are lots of opportunities to acquire. Most target acquisitions are international operations. We are talking to three who are into the hard liquor business,” Ang said.
“There are brokers handling the acquisition deals for hard liquor,” said Ang pointing out that San Miguel is interested in pursuing every opportunity to expand its businesses given its strong balance sheet.
The top executive noted that the success of acquisition “really depends on luck.” He added,
“If you notice we have a lot of acquisitions in the last eight years, we have a success rate of 80 percent. I hope we will be lucky again with these planned acquisitions.”
On another note, Ang said GSMI is poised to regain leadership in the local hard liquor industry. Based on the Nielsen Retail Audit, the company already reclaimed leadership in North Luzon and South Luzon as of March 2016.
Nielsen’s annual Retail Audit also showed that GSMI recorded the fastest growth in market share among the country’s major liquor players in 2015.
The strong performance of both GSMI’s flagship brand Ginebra San Miguel and its other heritage brand Vino Kulafu, which registered 5 percent and 12 percent volume growth, respectively, boosted the company’s share to almost 30 percent in 2015.
“The company is as resilient as its flagship brand,” said Ang.
GSMI sustained its growth momentum into the first quarter with sales volume hitting 5.3 million cases, 7 percent better than last year. Revenues likewise grew 7 percent to P3.9 billion, while operating income doubled to P188 million.