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August 14, 2018

Philippines group San Miguel to sell 20% stake in food & beverages unit

Philippines-based conglomerate San Miguel Corp. has revealed it is to sell a 20% stake in its recently restructured food and drinks business to meet regulatory requirements.

Philippines-based conglomerate San Miguel Corp. has revealed it is to sell a 20% stake in its recently restructured food and drinks business to meet regulatory requirements.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

In January San Miguel revealed it had received shareholder approval to combine its San Miguel Pure Foods, San Miguel Brewery and Ginebera San Miguel businesses in a new unit called San Miguel Food & Beverages.

But regulatory approval depended on the company broadening ownership of the new business as the country has minimum public ownership rules.

Now San Miguel has revealed it is preparing to sell a 20% stake in its food and beverage business unit in what is likely to be of the largest public offerings the country has seen.

In a notice to the Disclosure Department of the Philippine Stock Exchange (PSE), San Miguel Corporation (SMC) stated: “We advise that, at the regular meeting of the board of directors of San Miguel Corporation held today, August 9, 2018, the board of directors of the corporation approved the sale of up to 1.2bn common shares of San Miguel Food and Beverages Inc. (SMFB) through a public offering.

“The terms and conditions of the public offering, including the final issue price, the issue size, the over-allotment option, the cornerstone and anchor investor process, the engagement of legal and financial advisors, and the appointment of the stabilising agent and underwriters as may be necessary have been delegated to management and will be subject to further disclosures of the company and SMFB.”

Last week, San Miguel Corp. recorded first-half revenues of PHP137.4bn (US$2.57bn) for its San Miguel Food & Beverages unit, up 15% from the same period last year.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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