MANILA, Philippines -- Ginebra San Miguel, the hard liquor unit of diversifying conglomerate San Miguel Corp., has acquired Pasig-based beverage firm East Pacific Star Bottlers Philippines Inc. for P200 million.
EPSBP is a company principally engaged in the manufacture and bottling of alcoholic and non-alcoholic beverages.
In a disclosure to the stock exchange, GSMI said “the acquisition will forge synergies with the company’s ongoing operations and provide additional capacity for the contemplated expansion plans of the company.”
GSMI operates three liquor bottling plants that are located in Cebu, Pangasinan and Laguna. It also entered into toll manufacturing agreements with third parties to produce liquor products, whose facilities are located in San Fernando, Pampanga, Calamba, Laguna and Lucena, Quezon.
Aside from its flagship product Ginebra San Miguel, GSMI’s other products include G.S.M. Blue, Gran Matador Brandy Solera and Magnolia Fruit Drink, and Big M, among others.
Under the Magnolia brand, GSMI makes and sells non-carbonated ready-to-drink tea and fruit juices.
In the nine months ending September 2011, GSMI incurred a net loss of P840.7 million, a reversal of the P747.75 million net income reported in the same period a year earlier.
The poor performance was attributed to the highly competitive market situation resulting in weaker demand for its liquor products as well as adverse weather conditions, particularly in the month of September, which hampered selling activities in most sales areas, predominantly in North Luzon.
Gross profit margin decreased by 38 percent due to lower sales coupled by increase in excise tax and bottle cost.
Implementation of advertising and promotional programs increased particularly in the third quarter.