2007 AUGUST Vol 40 Issue 8 www.sanmiguel.com.

ph

A MASTER OF
REINVENTION
At 20 years old, Ginebra San Miguel, Inc. has finally come of age.
As a business, GSMI is at once both old and
young—just a decade or so younger than its parent
San Miguel. Although the brand Ginebra San Miguel
dates back to 1834, the original company, La Tondeña
Incorporada was founded in 1902 by Carlos Palanca,
Sr. in the Tondo district of Manila—hence the name La
Tondeña. In 1987, San Miguel Corporation entered into
a joint venture with the Palanca family, buying 70% of
the country’s leading liquor company. Two decades and
yet another name change later, Ginebra San Miguel, Inc.
is today a diversified hard liquor company, producing far
more than its flagship, gin.
But even the most storied companies have their
share of growing pains.
Change for Ginebra San Miguel has come fast
and furious, particularly in the last 10 years. Toward
the turn of the 21st century, GSMI was positioned as a
total beverage company, making itself felt in all manner
of business besides gin. In the late 90s, following a
joint venture agreement with United Distillers, Inc.
to form La Tondeña United Distillers, Inc. (LTUD),
the business also briefly marketed premium brands
like Johnnie Walker Scotch Whiskies, Tanqueray, and
Gordon’s London Dry Gin.
The company’s product portfolio stretched from
alcoholic drinks to water, then juice drinks and powdered
juice as well as jelly snacks. But by 2001, the water, juice
and snacks segment had one by one been moved to other
San Miguel subsidiaries. To signal its brand new start,
La Tondeña Distillers became Ginebra San Miguel and
once again, the company was repositioned as a liquor
company, focusing efforts on expanding its traditional
market and pursuing selected growth opportunities—
both in terms of demography and geography. Change
had caught up with GSMI.
By the early 21st century, demographics had
shifted. Ginebra’s core market had either moved up
the income ladder and traded up to beer or brandy or
whiskey. Those still left in the barangays and barrios
turned to cheaper alternatives like lambanog. Rural
migration into the cities and depressed incomes in the
provinces was slowly and silently changing Ginebra’s
core base.
Ironically, Ginebra’s very success—the popularity
enjoyed by its core product was also a reminder that
change was needed. With the hard liquor industry
growing at a very moderate 2-3% a year, the challenge
was to reinvigorate the market in order for Ginebra to
grow.
“In a sense,” says GSMI President Gerardo
Payumo, “we had to start transforming too. Management
woke up to the fact that to grow and remain relevant, we
had to reconfigure our portfolio of products to reflect
2 K-AUGUST 07
a wider universe of consumers and the change in taste
preferences.”
Once solely the drink of choice of the Filipino
everyman—the magsasaka (farmer), the mangingisda
(fisherman), the jeepney driver and the cargador
(stevedore), GSMI was now wanting to reach out to
an entirely new demographic—the upwardly mobile,
younger urbanites who were populating the night clubs
and looking for alternative drinks to the “mules” and the
wine coolers that were quickly emerging on the scene.
“It was a conscious effort to reach out to these
younger drinkers,” says GSMI Marketing Manager
Nelson Elises. “Our market was very mature, whatever
growth we were seeing was incremental. And while we
could continue making inroads in terms of geography,
meaning pushing back in the Visayas and Mindanao, we
realized that there was an entire set of people we weren’t
reaching—women, entrant drinkers, people who were
choosing other beverages over our products or over
alcohol.”
To gain share in the Visayas and Mindanao—
traditionally rum country—Ginebra developed its own
brand of rum. Bravo, introduced in 2000 proved short
Armed with a clear strategy of where it wanted to go and how
the company was going to position itself, Ginebra finally hit full
stride. In early 2005, new products came in rapid fire—Antonov
Vodka, Don Enrique Mixkila Tequila, St. George Premium Whisky
and Ginebra San Miguel Premium Gin. In a space of a
few months, GSMI has managed to almost double
the number of its product offerings.
(from left to right) GSMI President GerardoPayumo, Marketing
Manager Nelson Elises and National Sales Manager Val Vega
lead Barangay Ginebra into the next decade of growth.
lived, and instead the company rapidly focused its
energies in distribution, going for availability and market
penetration.
But not content to simply fight it out in terms
of distribution, Ginebra complemented this sales push
with product innovations, launching different SKUs
and packaging formats, most importantly, developing an
entire slew of new products such as Erg Alcopop—that
quickly resonated with consumers and generated
excitement in their respective categories.
Ginebra’s breakthrough product came in 2002.
GSM Blue 65 proof is Ginebra’s most successful
new product to date. GSM Blue, which remains
unchallenged in the light gin category, has been so
successful that Ginebra San Miguel now had to take a
retronym of its own, Ginebra Red.
Through its Tropang Blue campaign, which featured
four very different twenty-somethings with distinct
tastes and needs and the Masarap Makihalo campaign
promoting the brand as a perfect partner for mixed
drinks, GSM Blue hit a home run among an entirely
new generation of drinkers. In many ways, the product’s
current endorser, actress Anne Curtis, is representative of
the consumer GSMI now wants to attract.
“We were looking for a more aspirational image,”
says Elises. “Ten, twenty years ago, would anyone have
thought that a young modern woman would emerge as
the face of Ginebra San Miguel?” A brand that was once
decidedly downmarket became suddenly hip.
Having widened GSMI’s core base, the new
challenge in Payumo’s mind was clear, “How do you
drive people to purchase our products more often? How
do you encourage repeat drinking? Unlike beer where
you can drink up to four or five bottles a night, Ginebra
drinkers can nurse an entire bottle well into the morning.
We had to develop new uses for our product. We had to

invite consumers to see our products in a new light—as a
mixer, the base for a variety of mixed drinks.”
Armed with a clear strategy of where it wanted to
go and how the company was going to position itself,
Ginebra finally hit full stride. In early 2005,
new products came in rapid fire—Antonov
Vodka, Don Enrique Mixkila Tequila, St.
George Premium Whisky and Ginebra San
Miguel Premium Gin. In a space of a few
months, GSMI has managed to almost double the
number of its product offerings.
GSMI’s resurgence took the form of
innovation, although with its entry into the brandy
segment, GSMI was at the outset in danger of being
an also-ran. Payumo himself admits that Ginebra was
late in jumping on the brandy bandwagon. By the time
GSMI launched Gran Matador Brandy in 2002, local
competitors were well entrenched in a category that was
already showing signs of being “the next big thing.”
Undeterred, GSMI’s “never
say die” spirit shone
through.
Benefiting
from GSMI’s
strong brand equity
and a sales and marketing
strategy leveraging on
product quality, taste and
availability, in the brandy
sweepstakes, Gran Matador
soon became a
force to reckon.
Within
months, sales were
showing phenomenal
growth with little sign of abating. Growth of Gran
Matador continues to be strong, since its launch, GSMI
has since introduced a premium variant, Gran Matador
Solera Gran Reserva, to compete with imported brands.
Today at 20, the company that was formerly LTDI
and virtually a one-product company can now claim to
be, if not a master of reinvention, no longer a hostage
to it. The days of it being a producer of juice drinks
and jelly snacks are long since over; the task at present
involves recalibration and retinkering.
The company’s push into new consumer segments
and its determination to open new sources of revenue is
evident in GSMI’s latest product offering.
Infinit is GSMI’s recently launched line of
ready-to-drink non-carbonated cocktails with GSMI’s
gin, brandy, rum, vodka, tequila and whisky products
as alcohol base and blended with various fruit and tea
flavors. It is a low-alcohol product that is being marketed
to niche consumers.
This early, Infinit seems to already have a following
among the young female and entry point drinkers. Says
By Kin G. Lichauco
National Sales Manager Val Vega, “Although the Infinit
market is still limited to these types of drinkers, we will
be accelerating the penetration of this product for all
targeted outlets. We are challenged to grow volumes by
five digits by the end of the year.”
“This is a sign that we’ve grown up. In the last
few years we’ve brought in a wider demographic than we
thought possible. Younger people and people of different
economic backgrounds. But we have not forgotten our
most loyal consumers. We continue to create excitement
in this segment by introducing below the line activities
especially for our flagship brand,” adds Vega.
Indeed, GSMI’s sales convention battle cry,
“Tapangan mo!” (Be aggressive!) taken a notch higher—
Tapangan mo pa! (Be even more aggressive!)—pays a
nod to the Filipino everyman that made Ginebra an icon
in the liquor industry.
Payumo says, “It’s not a return to our roots—we
could never go back, but it’s an acknowledgement of
who we are as a company.”
At 20, Ginebra San Miguel Inc., is only getting
started.
K-AUGUST 07 3

Mga
Kuwentong
Ginebra
Buhay Ginebra through
the eyes of its employees
Ginebra San Miguel’s history represents a combination of strengths:
powerful brands; products and services of the highest quality; innovation;
but above all, an employee force that is unbeatable. Three generations
populate today’s Barangay Ginebra*.
First there are the “pioneers,” employees working
at La Tondeña Incorporada** prior to San Miguel’s
acquisition to the leading spirits company in 1987. While
their I.D.’s indicate August 1, 1987, as their date of
employment, many of them were residents of Barangay
Ginebra way back when the competition was less intense
and consumers less demanding. Though their numbers
may be dwindling, they are still “alive and kicking.”
Then there are the “new blood” who signed up
with the newly named La Tondeña Distillers, Inc. after
the acquisition. They began the infusion of new ideas
and helped in the company turnaround. Known as the
“1521” generation, their vision then was to transform
GSMI “among the Top 15 Philippine Companies by the
21st Century.”
Finally, there is an entire generation of employees
who joined the company around the time of its move
from its old corporate headquarters in Quiapo to San
Miguel Properties Centre in Ortigas. This generation
has seen the most number of internal and external
changes—from a decentralized to a centralized mode
of management, to a change in portfolio from a single
product company to, at one point, a total beverage
company including juice drinks and water, to a more
diversified liquor portfolio. To this generation also belong
SMC employees who crossed over the aisle to become
part of the Ginebra family.
Yet whether from one generation or the other, the
three generations have shown their ability to rally under
one flag, helping GSMI achieve its growth goals. As a
result of this diversity, GSMI is a stronger, more focused
and dynamic company.
4 K-AUGUST 07
GSMI President Gerry Payumo said it best:
“Ang kuwento ng Ginebra ay kuwento ng karaniwang
tao na nagpursige at nagwagi sa bandang huli.” For this
anniversary special, we’ve captured some of the thoughts
of the various generations. While the vantage point
varies, it is still the sense of family that binds the people of
GSMI together.
From the yellowed typewritten pages of interviews
with employees conducted in the 1970s:
“LTI was a small company in the 1920s with only
120 employees, only three of whom stayed in the office:
Superintendent Thomas Hoey, Dispatcher Carlos Barios
and a time-keeper. Production was only several thousands
of liters of gin and competition was non-existent. The
popular LTI brands were: Ginebra Rizal, Tres Campana,
Honrada, Lintik Cocktail and St. George Dry Gin. The
demijohn or dama juana bottles wrapped in yantok or
rattan were discontinued in 1940 and replaced soon
after by the familiar frasco (first as a green cuatro cantos
bottle) and bilog.”­—Roman Tibay, former Plant Supervisor,
employed 1921-1976
“There were only about four or five LTI salesmen
back then. When war broke out, no salary was given and
salesmen were paid purely from commissions.”—Chan
Kee, salesman, 1935
“The LTI delivery trucks were also loaned to the
USAFFE (United States Armed Forces in the Far
East); some of which may have been used during the
retreat of Allied forces to Bataan and Corregidor. In
place of gasoline, the company also sold “gasanol”, a
Pride in
Spirit
Shared
Experiences
The Ginebra
(from left-right) Seated:
Orlando Gonzalez,
Flor Dalluay, Vic besana,
and Susan Martinez
Standing: Anthony dela
flor, romulo jacinto,
Rey relucio, and nestor
dela peña,
cheaper and readily-available alcohol compound. There
was no delivery during the war, production was limited
and people had to go to the factory to buy gin under the
watchful eyes of the Japanese Imperial Army.”—Pedro
Manzano, 1937-1940s, former aide of Don Angel Palanca
We took shelter in the vaults where they kept the
company’s books during the numerous air raids in
1941.—Mrs. Arandia, former secretary of Don Carlos, Sr.
From anniversary interviews with “youngbloods” and
“pioneers” throughout the GSMI family:
“I miss the bonding in Quiapo. I remember Mrs.
Quirino bringing her “lutong bahay” (home-cooked
meals) to the office maybe three times a week. She would
serve it during lunch and everyone in Marketing would
be frantically trying to get their share.” —Annie Lim,
Marketing Services Head
“After work, hindi nawawala ‘yung patak-patak para
sa inuman. Tapos na ang trabaho kaya happy happy naman.
(After work, it became a tradition to pitch in for drinks.
With our work done, it was time to be happy).”—Nestor
Dela Peña, Dealer Sales Supervisor and one-time motorpool
mechanic at Velasquez Plant
“Ang kainan kasi [sa Cabuyao], may baon ka, may baon
siya, may baon ako. Pag-iisahin namin ‘yun. May kanin sa
gitna at lahat nang nasa gilid ulam (Mealtime at Cabuyao
saw us sharing our lunches, with rice in the middle and
viands around it.)”—Romulo Jacinto, Technical Services,
GSMI Cabuyao Plant
Logistics Coordinator Flor Dalluay remembers the
Christmas Caroling contests which her group won for
three straight years. “The VIPs, dealers, distributors and
suppliers would be so impressed with the presentations
that they would add to the prize money. That became a
motivation for the different floors to compete every year.”
By Joel Guevara and Cyril Rodriguez

“I was able to build two houses. I was able to send

THEN (1987-1999) NOW (2000-2007)

With Reports from camille buenaventura, jeffrey cruz, richel flores, Chito Maningat, rANDY pASCUAL, Cyril Rodriguez and eLLA sANTOS
my four kids to school. Two of them are now working
abroad in Australia and Singapore.” —Orlando Gonzalez, ACCEPTED OFFICEWEAR
former Warehouse and Administrative Services Manager Barong and pants for men, blazers and skirts for women GSMI shirt jack and khaki pants
“Sa Ginebra parang pamilya. Welcome ka agad
(Ginebra is like a family. Everyone welcomes you). HEARD AROUND GSMI FACILITIES
There’s even a ritual for new employees which you have “Bossing…” (from Tondeña 65 ad) “Bilog ang Mundo”
to complete in between shots of Ginebra. You make a “May raid sa bridge!” (duels were a regular occurence at (from GSM 2004 ad)
mistake along the way and you start from the beginning the Echague Bridge in Quiapo) “Blue Ocean”
again. You don’t stop drinking until you complete the Tales of Ginebra cap snatching near Quiapo HQ “Never Say Die!” and “Tapangan Mo Pa!”
whole routine.”—Jeffrey Cruz, Brand Assistant
A LANGUAGE OF THEIR OWN
“Ang Ginebra ay isang mapagmalasakit na kumpanya “Ninong/Ninang”, “Manong/Manang”, “Mang/Ateng” “bossing”, “gwaps”
lalo na sa mga empleyadong nagmamalasakit din para sa Yeah! “snalops” (irritating), “alleluia ayeye” (good news)
kanya. (Ginebra cares for its employees who in turn are “Magkasangga tayo” “Tapangan mo pa!”
loyal to the business.)”—Exequiel Elleazar, Jr., POD
Technician, Cabuyao Plant POPULAR PAST-TIMES
Having lunch together and sharing food Still having lunch together and sharing food
“Ang pagiging matatag ng Ginebra ay bunga ng pagiging
Special trips to Master Bakery for Hopiang Baboy and Eating out on pay days and TGIFs
tapat niya sa mga manggagawa, pagiging tapat niya sa
to Excellente for Chinese ham
mga customer, at lalong-lalo na ang pagiging tapat niya sa
Playing chess/guitar during lunch break Playing Text Twist on PC during lunch break
Gobyerno ng Pilipinas. (The strength of Ginebra lies in
Playing Tetris/Family Feud on PC-XT during lunch break
its being true to its workforce, to its customers, and to
the Philippine government.)” —Armando Ambrocio, ONLY AT GSMI
Packaging Head, Cabuyao Plant The Ginebra Spirit runs through its people The Ginebra Spirit still runs through its people
“Kung ako ang papipiliin between migrating and “Ka Miguel” as image model of The Ginebra Man.
staying on, dito pa rin ako siguro magre-retire. I’ll miss this Nap Masalunga, former Visayas ASM, played Ka Miguel
company. Maraming salamat Ginebra. (If I was made to in TV and print ads Gary Granada, GSMI’s favorite performer
choose between migrating and staying on, I’d probably Chito Loyzaga made the headband and wristband The Barangay Ginebra anthem
choose not to retire. I’ll miss this company. Thank fashionable
you, Ginebra.)”—Anthony dela Flor, Concentrate Blending Employees prepare for Christmas presentation showdowns Gin Kings Die-hard fans
Facility Manager, Technical Services

“Mahirap lang ang buhay ko nung wala pa ako sa
Ginebra. Yung pang araw-araw ko lagi kong iniisip. Kaya
nung nakapasok na ako dito pinagsikapan ko ang pagtra-
trabaho kaya hanggang ngayon narito pa rin ako. (Life was
difficult before Ginebra. I had to think of my everyday
needs. This is why I pour my all into my work and am
still here to this day.)”—Vic Besana, Technical Services
Group
“Ang kuwento ng Ginebra para sa akin ay kuwento
ng kabiguan at tagumpay dahil ang bawat isa sa atin ay
nakararanas ng mga kabiguan ngunit sa kabila noon ay
pinipilit natin magtagumpay sa mga bawat pagkakataong
yun. (The story of Ginebra for me is the story of defeat
and triumph because each one of us has experienced
heartaches yet inspite of this, we strive to overcome
them.)”—Lenie Kalalo, Logistics, Cabuyao Plant
“Ang kuwento ng Ginebra ay kuwento ng isang matatag
na pagsasamahan sa nakalipas na dalawampung taon. Nakita
natin at nasaksihan kung papaanong nagtulungan ang mga
empleyado at ang Management para mapanatiling malakas
at matatag ang kumpanyang ito. (The story of Ginebra
is the story of a solid partnership over 20 years. We
witnessed how Management and its employees worked
together to build the company to a position of strength.)”
—Emmanuel Usi, HR, Cabuyao Plant

* Barangay Ginebra is a collective term first used to refer to the loyal fan base of
the Ginebra San Miguel basketball team. Today, the term also refers to the
growing base of Ginebra consumers and, internally, to employees of Ginebra San
Miguel, Inc.

Kuwentong Ginebra refers to tales of life with Ginebra (or Buhay Ginebra) as
told by generations of its employees.

** La Tondeña Incorporada (LTI), 1902-1987

La Tondeña Distillers, Inc. (LTDI), 1987 - 2003
Ginebra San Miguel, Inc. (GSMI), 2003 - present

K-AUGUST 07 5
 Growing A
Trusted Brand
Spirit
Never Say Die
in the
Trade Strengthening Ginebra San Miguel
Sales in Luzon through Creative Trade
The Ginebra Programs and Community Involvement
Despite aggressive competition and an increasingly more-difficult-to-please to entry and core drinkers increased per capita
Philippine consumer market, Ginebra San Miguel’s flagship brand, GSM, has consumption of GSMI brands as parallel programs
stubbornly refused to renounce its position as industry leader. In fact, GSMI expanded distribution to areas that are difficult to reach
closed the second half of 2007 with 6% growth over the same period last to increase availability.
year from increased sales of flagship’s Red and Blue lines in Luzon. Sales and Programs like Todo Sigla, a trade activation
marketing decision makers maintain that their success lies in the “never say composed of raffle draws, sampling and selling, were
die” spirit that runs through the entire organization and in the singleminded held periodically in supermarkets, transport terminals
pursuit of expanding their primary market — Barangay Ginebra. and other commercial areas to increase brand awareness.
Penetration packs labeled ‘G4’ containing two SKUs
Keeping an ear to the ground and constantly fine- “In an effort to grab market share in Pareto each of GSM Blue and Gran Matador in a duffel bag or
tuning marketing efforts to meet consumer needs where Barangays, we made sure that we maximized the direct any four SKUs of GSM Red line encouraged indirectly
and when their products are enjoyed has powered the coverage of our Dealer Sales Personnel (DSP). In areas served outlets to carry the newer brands. During the
Ginebra sales and marketing team’s success throughout that were difficult to reach, we resorted to Alternative election months of April and May, a special election
its history. This and the seamless partnership enjoyed Distribution Modes to include routing by franchised package promotion was offered nationwide. This was
by management, marketing, the sales force, and GSMI wholesalers and sub-dealers to ensure penetration especially popular in the provinces in Bicol and Batangas
dealers across the country are the oil that keeps the cogs and increase availability. This now becomes our Fixed where aspirants gave away GSM Red to voters during
in the GSMI engine running efficiently in the trade. Distribution System (FDS) and only when this has the campaign period. This program will be implemented
In the GSM stronghold of Luzon in northern been set up will we start implementing the below-the- again for the coming Barangay Elections in October.
Philippines, this teamwork enabled the business to line activities in a targeted barangay” explains GSMI “Consistent trade activations to excite the
further increase volumes in a challenging market through National Sales Manager Val Vega. market actually work to allow products like GSM Red
customer and consumer programs designed to stimulate Active participation during fiestas and special which have experienced dips in product popularity to
consumption. It was this consistent effort to excite events, activities like house-to-house selling, pay day sales ‘rebound’,”explains South Luzon Area Sales Manager
drinkers with ‘below-the-line” activities that drove GSM in plants and factories, and the strategic introduction of (ASM) Ramon Valencia.
volumes in the first half of the year. mixed drinks like Gin-Pom, Gin-Guy, and JuManGin

6 K-AUGUST 07

In the same manner, they succeed in bringing
new product variants into the mainstream: “GSM Blue
volume came from young, entry drinkers who have
developed a preference for mixed drinks,” confirms
GMA ASM Tom Gaerlan.
“Through a two-pronged strategy, we segmented
the market in order to better protect the strongholds
of our flagship brand GSM Red and counteract
competition with GSM Blue and Gran Matador in
competitor strongholds,” explains North Luzon ASM
Monina Cortez. “We supported even the smallest town
and barangay fiesta to strengthen our network down to
the barangay level. These are good venues for word-of-
mouth promotion of our products.”
In Territory Sales Manager (TSM) Ritche
Morta’s North Luzon West territory, intensive
penetration of directly-served outlets and an enhanced
trade incentive program for indirectly-served outlets
coupled with continuous trade activations helped
increase volume for GSM brands. In TSM Juan
Antonio Escalambre’s North Luzon East territory, a
routing wholesaler program encouraged trade partners
to stretch volume targets. Bundling GSM Red with
basic commodities such as Purefoods Carne Norte, San
Mig Coffee and Magnolia Powdered Juice in rural areas
where competitors are present, house-to-house selling
and wet sampling generated incremental sales.
But there is more than the sales programs which
contribute to GSM’s success in this market. Keeping
an ear to the ground and meeting consumer needs has
pushed GSMI to successfully position itself in the
territory as a “business that cares”, the kasangga ready to
help in times of need. In recent years, as South Luzon
was hit by one disaster after another, company employees
and GSMI dealers were quick to offer assistance,
trooping to calamity stricken areas to give relief goods to
countrymen devastated by typhoons and flooding. In the
B y M o n i c a G a tb o n t o n
wake of typhoons Reming and Seniang, dealer Rosa Kaw territory, Luzon drinkers continue to choose GSM over
worked with GSMI, SMC and municipal officials to the competition. But that choice to do so may be colored
provide fishing boats and a truckload of relief goods to by more than the creative sales push, the award-winning
residents of devastated fishing villages. products we sell, or the promise the brands bring. In
“Gestures like this from big companies such as the back of their minds, they know staying true to their
ours warm the hearts of countrymen who are also core favorite gin brand is a show of malasakit for a trusted
drinkers of the GSM brand. And as they say, doing friend—a kasangga—that will continue to look after their
good is good for business,” adds Valencia, citing that welfare in good times and in bad.
gin consumption is a part of the lives of the people
in the provinces with drinking the cheapest means of
recreation. Building on this premise, the South Luzon
area team went a step further and conceptualized
area promotions designed to better the livelihood
of communities such as a banca (fishing boat) raffle
promotion for fishing villages.
To ensure the replication of their work ethic,
sales and marketing leaders make sure they ‘transfer
the technology’ by involving their teams in both trade
activations and in community activities. In South Luzon,
Valencia commits to “keep the fire burning for Ginebra.”
It is not surprising then that with such a passionate
sales and marketing team behind our sales effort in the
THEN (1987-1999) NOW (2000-2007)
With Reports from Chito Maningat, Cyril Rodriguez and Jeffrey Cruz
POPULAR PRODUCTS
Ginebra San Miguel (Bilog) Ginebra San Miguel (Bilog & Kwatro Kantos)
Ginebra San Miguel (Kwatro Kantos) Infinit Gran Matador Solera & Reserva
Añejo Rum 65 Tondeña 65 Erg Antonov Vodka G.S.M. Premium Gin
Vino Kulafu Gordon’s (LTUD; 1996-99) St. George Premium Whisky Vino Kulafu
Johnnie Walker (LTUD; 1996-99) Don Enrique Mixkila GSM Blue GSM Lite
THE TYPICAL CONSUMER
The four ‘F’s: fishermen, farmers, factory workers, foremen The four ‘F’s + 20- and 30-something club-goers
TAG LINES THAT WERE ‘IN’
Magkasangga (1987) Bilog ang Mundo (2004) Masarap Makihalo
Ginebra ang Hari (1989) Tapangan Mo Make Yours a Premium Experience
Ang Ginebra ng Pilipinas (1998) Simula ng Init
ICONS
The Ginebra Man Anne Curtis, Angelica Panganiban,
At the heart of the Magkasangga campaign, the Ginebra Man’s focus Mark Caguioa, Jay Helterbrand, Eric
was his personal values such as kinship, tulungan, and walang Menk, Johnny Abarrientos, Ronald
iwanan. Julio Diaz came to symbolize the new Ginebra Man Tubid, Sunday Salvacion
as everyone’s loyal friend or kasangga in times of need (ang tunay
na kasangga, tunay na kaibigan sa oras ng pangangailangan,
lumayo man o naglagalag)
CALENDAR GIRLS
1988 - Monina Tan 1991 - Vanessa Escanio 2007 - Angelica Panganiban
1993 - Mia Pratts 2006 - Bruna Abdala Cristofili and Dana Gajiandzieva
1994 - Anjanette Abayari 1995 - Alma Concepcion 2005 - Maureen Larrazabal
1996 - Amanda Page 1997 - Rufa Mae Quinto 2004 - Belinda Bright and Maricar de Mesa
1998 - Michelle Aldana 1999 - Janna Victoria 2003 - Aubrey Miles 2002 - Rica Peralejo
2001 - Geneva Cruz 2000 - Patricia Javier
BASKETBALL GREATS
Robert Jaworski, Chito Loyzaga, Francis Mark Caguioa, Jayjay Helterbrand, Eric Menk
Arnaiz, Joey Marquez, Joey Loyzaga, Dondon Rudy Hatfield, Jonny Abarrientos
Ampalayo, Dante Gonzalgo, Romulo Mamaril,
Leo Isaac, Robert “Dudut” Jaworski, Jr.,
Rudy Distrito, Carlos Briggs
K-AUGUST 07 7
 GSMI “S
Spirit
Pride in
our
Products

The Ginebra
The
It has been 105 years since Ginebra’s founder, Don Carlos Palanca, Sr., pioneered the conversion of
alcohol from molasses and rolled-out his first liquor product—gin distributed in a 15-liter glass jar called a
demi-john or dama juana—manufactured at a distillery in Tondo, Manila.
And from this one successful product, GSMI now has a wide and impressive line-up of “spirits”—from
whisky, brandy, tequila, to vodka and more recently, ready-to-drink cocktails. Since then, much has also
been written about the brands, the ads and the events that have kept these “spirits” alive in the minds of
consumers. What makes each different from the other?

Every wine or liquor

label states the “proof”
or alcoholic content of a
beverage. “Proof” is an
expression of alcohol content
equivalent to twice the
alcohol content expressed
in volume, e.g. 800P=40%
alcohol by volume.
The term originated in the
18th century when payments
to sailors included rations of
brandy. As “proof” that the
brandy had not been watered
down or was of good quality,
gunpowder was doused in it
to check if it would ignite. If
the brandy did not ignite, it
had too much water in it and
was thus considered low or
“underproof”.
GIN is a juniper berry-flavored “clear” spirit invented
in Holland during the 17th Century. Its name was derived
from genievre which is French for juniper. Spanish-
speaking people call it–you guessed it right–Ginebra which
is Spanish for Geneva where several distillers originated.
There are four types of gin: Dutch (just like
Ginebra San Miguel), London Dry (so-called because
BRANDYis a general term for distilled wine and is
of its origin), Old Tom, and Plymouth. Each one has its
obtained from the fermented juice mash or wine of fruits
unique aroma and characteristics.
like grapes. Although there are three primary types of
Dutch gin is very different in taste, color and
brandy, the majority of Filipinos are exposed to the grape
aroma from the English gins. It contains less alcohol
brandy-type like Ginebra’s Gran Matador Brandy Solera
and is usually 70-80 proof instead of the 80-94 proof
and Solera Gran Reserva.
standard of English-style gins. Flagship Ginebra San
Ginebra’s Gran Matador has been expertly
Miguel, for example, is 80-proof made from selected
blended according to the Grand Spanish Solera tradition
spirits and botanical extracts. The predominant flavor
using real brandy concentrate from Spain. The difference
emanates from juniper berries imported from Europe.
between Gran Matador’s Solera and Solera Gran
Ginebra San Miguel Premium Gin is a
Reserva brandies, is that Solera Reserva is aged a
70-proof top-of-the-class gin with a soothing, classy
minimum of one year while the Solera Gran Reserva is
taste and just the right kick of alcohol. It is made from
aged a minimum of three years.
Extra Neutral Alcohol (ENA) with an exquisite blend of
Brandy tastes best when sipped using the tulip-
botanicals, flavors of juniper berries splashed with a tang
shaped brandy glass. Holding the glass in a cupped palm
of delectable citrus.
keeps the brandy slightly warm.
G.S.M. Blue at 65-proof has a smooth, sweet
taste that gives drinkers a “light-on-the-chest” feeling
without the hangover. Much lighter is Ginebra San
Miguel Lite, the first-ever low-proof gin.

8 K-AUGUST 07
 By marie hernandez and Joel Guevara

“Spirits” TEQUILA This distilled spirit

WHISKY or whiskey (as spelled by American
and Irish distillers) refers to a broad category of alcoholic
beverages that are distilled and fermented from mash of
grain (barley, wheat, rye, corn) and stored and aged in
wooden casks like oak.
GSMI’s St. George Premium Whisky is a
high quality product that approximates the taste, aroma,
and alcohol kick of imported whiskies. It is made with
exquisite malt flavors and imported whisky concentrates.
is derived from the blue agave plant and
was first produced in the city of Tequila,
a town in the Mexican state of Jalisco
in the 16th Century. Mexican law and
NAFTA (North American Free Trade
Agreement) make it unlawful for other
distillers outside the state of Jalisco and a few surrounding
areas to use the word “tequila” for similar products.
Don Enrique Mixkila is GSMI’s entry to
the tequila category. It is made with distilled spirits and
choice imported essences of tequila with 40% alcohol
content.

RUM is derived solely from fermented sugarcane
juice, cane syrup or molasses. The origin of the word may
have come from the word rumbullion meaning “a great
tumult or uproar”. Eventually shortened to rum, its usage
is often based on its place of origin—ron in Spanish-
speaking locales, and rhum in French-speaking areas.
White Rums, also referred to as light or silver
rums, have very little flavor aside from a general
sweetness and generally used as base for cocktails.
GSMI’s exported brand Tondeña Manila Rum
(TMR) Silver is made from cane molasses alcohol aged
in oak barrels. A special second distilling process gives it
a distinct clarity.
Gold Rums are generally medium-bodied rums
which are generally aged. Also called amber rums, like
TMR Gold, these gain their dark color from aging in
wooden barrels. In contrast, Dark Rum, like TMR Dark,
is a grade darker than gold rum due to the use of caramel,
generally aged longer, and has a much stronger flavor
than either light or gold rum with a strong molasses or
caramel overtone.
In contrast, Age-Dated Rums are aged from
different vintages or batches that are mixed together to
insure a continuity of flavor in brands of Rum from year
to year. Premium Rums are highly-regarded for its full-
bodied flavor, smoothness and exquisite aroma. These
rums are generally very aged and carefully produced;
having more character and flavor than their “mixing”
counterparts. GSMI’s entries to these categories are
Añejo Rum Oro and Tondeña Rum 8 Years.
ALCOPOPS emerged
in the mid-90s and the term was
coined by media to describe bottled
alcoholic beverages. Also known as
RTDs (Ready-To-Drink) because
they are pre-mixed, FABs (Flavored
Alcoholic Beverages), FMBs
(Flavored Malt Beverages) or PPSs
(Pre-Packaged Spirits). They generally contain 1% to 8%
alcohol (by volume), fruit juices, sugar, colours and flavors.
Ginebra’s ERG is a sweet and smooth alcotonic drink
which combines vodka, juice extracts and guarana,
a renowned South American energy-boosting herb.
The newly-launched Infinit’, is a RTD, non-
VODKA is one of the world’s most popular distilled carbonated cocktail with 5% alcohol. It comes in six
beverages derived from grain or molasses. Its name could flavors using as base alcohol GSMI’s Gran Matador
have been derived from the Russian verb vodit meaning “to Brandy Solera, Tondeña Rum 8 Years, Antonov Vodka,
dilute with water” because of the absence of a distinctive G.S.M. Blue, Don Enrique Mixkila and St. George
character, aroma, taste or color—making it a great drink Premium Whisky.
mixed or “neat”.
GSMI’s version of one of Russia and Eastern
Europe’s gifts to mankind is Antonov Vodka—an
affordable pure vodka made from high-grade alcohol
which has undergone double distillation and charcoal
filtration with that signature neutral taste and aroma.
CHINESE MEDICINAL
WINES Rounding up Ginebra’s line of spirits is
Vino Kulafu the country’s most popular Chinese wine
launched in 1958. A favorite in Visayas and Mindanao,
Kulafu contains 14 authentic Chinese botanical herbs
and is appreciated for its health benefits. It is made
from selected cane spirits and traditional botanical herbs
combined through a special distillation process.

K-AUGUST 07 9
 Spirit
A
commitment
to
Quality
The Ginebra
A Matter of
Ginebra San Miguel drinkers can
tell whether they are drinking their
favorite gin or not from the liquor’s
distinct aroma and flavor.
A special team of GSMI employees
has made it their mission to
make sure that every bottle of
gin that comes out of any GSMI
facility meets the standards of gin
drinkers the world over. They are
the guardians of quality of the
Philippines’ first and largest
selling gin.
For the seven men and women of the Analytical
Services Laboratory (ASL) of GSMI’s Technical
Services Group, their senses are their “tools-of-trade”.
Having probably the keenest sense of sight, smell, and
taste in all of Barangay Ginebra, they continue to sharpen
these skills through long hours of analyzing samples and
keeping tabs on every stage of the alcohol production and
ageing processes.
Under the guidance of AVP for Technical Services
Lou Unsay and ASL Manager Rico Lasin, the ASL
team housed at the Central Analytical Laboratory
inside the Cabuyao Plant in Laguna provides all four
of the Ginebra plants—Bago City, Negros Occidental;
Sta. Barbara, Pangasinan; Mandaue City, Cebu and
Cabuyao, Laguna—with analytical information and
other allied technical services that keep GSMI product
quality consistent.
10 K-AUGUST 07
Taste
“We assist our internal customers in making their
decisions through the recommendations we make based
on the results of our analysis,” explains Rico Lasin. “We
have to ensure that the test results we provide them are
accurate and reliable.”
Regular physico-chemical, microbiological and
sensory analyses monitor product output. With the
team handling the accreditation of alcohol suppliers, the
Company is assured of the high quality of raw materials
received and that finished products released by all GSMI
plants conform to the desired quality standards.
Such accuracy demands a high degree of
commitment and hard work. As Chemist Iris
Pagdanganan recalls, “I was tasked to check on the
quality of the alcohol we imported from Australia. I was
the only GSMI representative present at that time so it
was incumbent upon me to make sure that the alcohol
produced conformed to the desired quality standards.
This meant that the vessel compartments needed to be
cleaned several times before they were filled with alcohol.
I did this myself, even going into the compartments to
check their condition after each cleaning.”
Accuracy in this field also demands that senses
are razor sharp. A Sensory Specialist’s heightened
sense of smell is his prized possession, one that might
undoubtedly command a high premium if there was
such an insurance policy in existence. “Being a Sensory
Specialist for GSMI is a big challenge,” shares Nathaniel
Gatbonton.“Sensory analysis involves all our senses
(including the sixth, if we have one) but it is the sense This team of seven
of taste and of smell that are most often used—they
must always be in perfect condition. We have to develop
and standardize sensory panelists in all GSMI plants. provides all four Ginebra
To do this, I must know the minutest sensory detail of
our different products because the results of the sensory
plants with analytical
analyses of GSMI products depend on me.”
information and other
allied technical services
that keep gsmi product
quality consistent.
 by Joel Guevara

their central facility in Cabuyao, Laguna,

GSMI frontliners can approach the trade
confident that what they offer customers are
products of only the highest quality.

ASL receives ISO/IEC 17025:2005 accreditation from PAO-DTI: ( from left-right) Mark Anthony Sabile, ASL Manager Rico Lasin, PAO-DTI
Laboratory Accreditation Manager Perla Baje, GSMI AVP & Technical Services Manager Lou Unsay, PAO-DTI OIC Cirila Botor, GSMI President
Gerry Payumo together with laboratory personnel recognized as PAO approved signatories apart from Lasin and Sabile. they are
Flordeliza Lauron, Jacinto Centeno, Ma.Carmencita De Villa, Iris Grace Pagdanganan, and Nathaniel Gatbonton.

An ASL chemist or microbiologist is also expected
to be able to switch hats from being an analyst of flavors,
raw materials or samples, to a calibrator of measuring
equipment. Add that to a growing list of tasks which
includes logistics manager, methods developer, mentor
and trainor to 45 analysts and 283 sensory panelists,
quality systems manager, laboratory operations auditor,
and overall “guardian” of GSMI’s quality standards.
This admirable task list does not, however, go
unnoticed and unrewarded. This July, the Philippine
Accreditation Office of the Department of Trade and
Industry (PAO-DTI) awarded the ASL with an ISO/
IEC 17025:2005 accreditation which recognizes the
technical competence and credibility of six laboratory
personnel to do chemical, microbiological and sensory
analytical testing. Says LouUnsay, “This new
achievement in our quality systems will give us a greater
competitive advantage especially in the world market.”
A total of seven GSMI testing personnel were also
awarded by the PAO-DTI as approved signatories in
the areas of chemical testing of alcoholic beverages and
water; chemical testing for the sensory evaluation of food;
and microbiological testing of food, and beverages and
water. With this, the group’s growing roster of local and
international customers are guaranteed of the reliability
and accuracy of the laboratory’s testing services.
“Being among the few, if not the first to be
approved by PAO-DTI as a signatory in the area of
chemical testing for the sensory evaluation of foods is
already a big achievement for me as it proves
my competence in this field,” says Nathaniel
Gatbonton.
In the years to come, a host of challenges
and victories are in store for Ginebra as the
currents of the great “blue ocean” take the
company into unfamiliar waters. New
opportunities will certainly pose
a different level of demands
on GSMI employees.
With the ASL team
as “guardians of
quality” from

K-AUGUST 07 11
 b y M AR K A r a b a c a

Malasakit

Spirit
for the
Company
and
each other

The Ginebra
GSMI’s 20th anniversary celebration
was an extra special milestone for
24 GSMI employees because it also
marked their 20th year of dedicated
service to a company that they call
their second home. The recognition
ceremony held on August 3 at the
Manila Polo Club also honored
GSMI Employee Service Awardees
for the first time since the company
became an SMC subsidiary. In this
issue, one 20-year awardee shares
his secret to his long and fulfilling
career with GSMI.
Ponciano Castro, or more fondly called “Mr.
Ponce” by co-workers at Ginebra Mandaue Plant, has
served as operator-mechanic for most of the almost three
decades he has served GSMI. While his 29 years in
Ka-Barangay Ginebra
total, including years spent with the former La Tondeña
Incorporada, may seem like a lifetime to many, he muses
(My Friend, My Ka-barangay Ginebra)
it seems like only yesterday when he first walked through
GSMI’s doors as a probationary lucky winners of a Company-sponsored Visayas-Mindanao operations is up against. His
employee on March 15, 1978. dinner date, complete with dinner and advise to his younger Ka-barangays, “Higugmaa ang
Since then, he has gained many dancing, at a popular restaurant in Cebu. inyong trabahao. Paghatag ug Malasakit sa kompanya
happy memories including years as “I was truly happy to spend it with my kay ang kaayuhan sa kompanya mobalik ra usab sa inyo.
dailies union president, attributing wife. It is touching to note that the Pamilya ninyo ang Ginebra. (Love your work. Show
his length of service to “malasakit” Company makes it possible to bring the malasakit or concern for the company for whatever
or a genuine concern for the family even closer to one another.” success the company achieves, you will enjoy as well
company. It is through GSMI that he was because Ginebra is your family.)” And in the face of
able to provide his family with a good organizational changes, “Mr. Ponce’s” advice is to take
future. With his income, he was able to everything with a grain of salt and maintain a positive
send his two children to private schools work attitude. “Panan-aw nako, top management is just
from Elementary to College. “Imagine, classmates sa looking forward. Naningkamot sila na maipadayon ang
akong mga anak, anak ug mga dato samtang ako operator planta.” (I believe that our top management has set
lang sa Ginebra (Imagine, the classmates of my kids its sights on the future. They are striving to keep the
are children of rich people while I am just an operator Mandaue Plant vital and operational.)
at Ginebra),” he laughs. His eldest, a BS Radiology “Mr. Ponce” showed his full support alongside
Technology graduate is now working in Iowa, Chicago eleven other Dugong Ginebra from GSMI Mandaue
as a Radio Technologist. The second is currently in Plant and the VisMin Sales team, as they raised their
College taking up Nursing. voices proudly in unison: “Tuloy ang Laban ng Barangay
He is aware of the challenges that Ginebra’s Ginebra!” (Barangay Ginebra’s fight lives on!)
This malasakit led him to serve both the Company
and his co-employees. It was during Mr. Ponce’s castro (extreme right, first row) stands proud with other GSMI Employee Service Awardees
term as union president, from 2002 to January 2007, and ginebra’s Management committee at the first gsmi esa.

that a landmark agreement was reached between

plant management and daily paid employees where a
Memorandum of Agreement covering two successive
bargaining cycles was inked, doing away with the usual
Collective Bargaining Agreement (CBA) negotiations.
“Nisalig ko sa management (I trust in the
management),” he emphasizes. “Ang management sa
GSMI transparent ug open. Gihatag pa man gani ang mga
butang nga wala sa CBA (GSMI management has always
been transparent and open. They would even give more
than that what is indicated in the CBA).”
He has always appreciated the Company’s practice
of involving employees in planning and implementing
the programs. One of the most memorable moments for
him was one Valentine’s Day where he was one of two

12 K-AUGUST 07
 By Chito Loyzaga

Never

Spirit
Once myword
A Gin King,
say die
in
life
Always
The Ginebra
Nothing embodies Barangay
Ginebra’s “never say die” spirit
A
Gin King
more than the basketball
team that carries its name.
In this issue of Kaunlaran,
Chito Loyzaga, the Gin Kings’
power forward from 1986 up
to 1993 and one of the team’s
pioneers, shares his thoughts on
their special brand of magic.
Loyzaga, one of the league’s
celebrated “basketball
legends,” wore many hats in
his career with GSMI. As sales
manager, Loyzaga introduced
Viva! Mineral Water to consumers
just getting acquainted to the
virtues of bottled water. Upon
leaving GSMI in 1998, he was AVP,
National Sales Manager for the
Key Accounts Group. He currently
represents San Miguel in the
Philippine Basketball League Board
of Governors.
I knew that my basketball career would turn
from good to great when when I decided to play for La
Tondeña Incorporada’s Ginebra San Miguel Team in the
Philippine Basketball Association (PBA) in 1986. It was
every player’s dream to play alongside PBA’s dynamic
duo of Robert Jaworski and Francis Arnaiz. To top that,
I was part of a team that had won the first championship
for that franchise year, with the help of imports like the
“Black Superman” Billy Ray Bates and “Bull Strong”
Michael Hackett.
It was also at about this time that The Ginebra Up to this day, I consider myself very lucky to have
Team was gaining popularity among the working class. been a part of Barangay Ginebra. It will always be my
We became the “team of the masses” because at every team. My years with them played a big role in molding
game, we were the proverbial underdogs who played me into the person that I am now. They inspired me to
with a big heart. We embodied the qualities of “the deafening cheers, gaining the respect of the fans and achieve the goals that I set for myself, and gave me a
everyman”—we were about determination, teamwork and fellow players. Such was the power of our fans and their better insight into balancing my family life and my career.
that “never say die” spirit. As we struggled to stay on in unbending support. It was truly magical. They gave me a good perspective and understanding of
every game, our fans cheered even louder. As a team, we showed our fans the same my social responsibilities such that I am today conscious
As they grew in number, our fans would occupy commitment by giving our 100% at every game. that I must always place myself in a position that allows
most of the gallery section at each of our games until the Coach Jaworski pushed us to play each game as if it me to take advantage of opportunities and make a
section was eventually christened “Barangay Ginebra”, the were the championship game. This brand of playing difference in the lives of others.
Ginebra fans’ turf. At every game, they would chant from won us even more die-hard fans, especially those who After twenty or more years and a fair share of
the gallery in unison, “Malinaw na malinaw, Ginebra and loved underdogs because most of our winning games championship titles, I am proud that Ginebra is still
Hari!” Yes, the Ginebra Team was king of the basketball were “come-from-behind” victories. To this day, only one of the most popular PBA ball clubs of all time.
court and Ginebra San Miguel was King of the gin the Ginebra Team holds the record of winning a It’s heartwarming to see familiar faces among the fans
market. And I speak for many of my teammates when I championship after being down 1-3 at a best-of-seven today—faces I would see as I would look out into the
say that the heights we reached were made more possible finals. crowd back then—still strongly committed to the present
because of them. The management and coaching staff opened our crop of Ginebra players. I realize that to these die-hard
There definitely is a certain “aura” that a player practices to the fans to accommodate those who could fans, it is the Ginebra Team that matters and not the
acquires as a member of the Ginebra Team that I believe not afford tickets to the Ginebra games. This was their personalities that make up the team. And this is the secret
he immediately loses once he moves to another team. I chance to interact with the players. We also extended behind Ginebra’s enduring popularity. And in the same
witnessed how players who were not at all outstanding ticket privileges to as many fans as possible, depending way that Team Ginebra has that overpowering effect on
or who did not have the best skills in the league could on the ticket allocation of the team. All this further its fans, it leaves a mark in those of us who gave it our all.
magically transform on the hardcourt in response to the strengthened our bond with them. The Ginebra spirit lives on in my heart.

K-AUGUST 07 13

Malasakit
Spirit
Community
for his
Ginebra
The
Ginebra San Miguel, Inc. has had a long and fruitful history of giving back to its communities, first through the
stewardship of the La Tondeña Foundation, Inc. and now as part of San Miguel Corporation’s social development
arm, the San Miguel Foundation, Inc., GSMI’s host communities—made up of farmers, fisherfolk, women, youth
and other marginalized groups—are proactively assisted with programs focused on community development,
environment, education and disaster management. Here are some of GSMI’s recent Corporate Social
Responsibility (CSR) projects.
Scholarships
The former La Tondeña
Foundation (GSMI’s social
development arm), gave101
students scholarships from 1995
to 2003, in the field of Science,
Engineering and Education.
Under the San Miguel Foundation
Community Scholarship Program,
three scholars from Lucena were
able to graduate and currently
two scholars from Sta. Barbara,
Pangasinan are enrolled in Hotel
and Restaurant Management
and Computer Science at
the Pangasinan College of
Science and Technology. The
scholarship covers tuition fees,
book and project allowances.
Leadership and communication
skills enhancement seminars
are also part of the program. In
return, the scholars are required
to do community work within the
duration of their scholarship.
14 K-AUGUST 07
B y C a m i ll e B u e n a v e n t u r a a n d V i c D u g a n
Caring for
Communities
GSMI Way
the
Supplemental
Feeding
GSMI partnered with the San
Miguel Foundation for a feeding
program for malnourished
children.
In Lake Sebu, South Cotabato,
the GSMI Mindanao Sales Force
identified 25 malnourished
children from a remote day
care center. After six months
of continuous feeding, all the
children improved in weight and
graduated from malnutrition.
In Bago City, Negros
Occidental, 90 malnourished
children from the host barangays
of Disteleria Bago, Inc. (DBI) were
beneficiaries to the supplemental
feeding project. Because of
the success of the project, the
LGU requested for a second
year which will include 150
malnourished children from three
public schools near DBI.
Hanapbuhay,
Habangbuhay
Selected retirees of GSMI
Lucena are now managing
their own business. Shortly after
their retirement, they availed
of trainings on agriculture and
aquaculture from where they
learned the trade of breeding
ornamental fishes.
With the zero-interest capital
from San Miguel Foundation, they
were able to start a Freshwater
Ornamental Fish Farm. The
retirees envision that once their
project grew, they will reach out
to the out-of-school youth in the
community and involve them in
the business.
The long-time partner
cooperatives of DBI are now
ready for self-sustaining livelihood
projects. With capital from the
San Miguel Foundation and
the hands-on mentoring of DBI,
the AIMATABA Multi-Purpose
Cooperative started its Fishing
Supplies Center while MSMC Multi-
Purpose Cooperative launched
its Bakeshop and Coffeeshop
Project. The cooperatives
earn extra income as well as
provide basic necessities for the
community at affordable prices.
 B y G e r r y C a s a s a n d Ap r i l N h o r P e r e z

DBI-SK CUP07: Not just a basketball game

This year, Distileria Bago, Inc. (DBI) in Negros Occidental, co-sponsored the DBI-SK Cup ‘07, a major project of
Barangay Taloc’s Sangguniang Kabataan. More than just another basketball tournament, the SK activity is a tool
that helps build progressive communities by promoting youth development by nurturing the spirit of unity and
camaraderie. It has resulted in strengthening DBI’s mutually beneficial relationships with its host communities.
Basketball fans came in droves to see twenty-five basketball teams from DBI’s relationships among DBI’s assisted communities— Barangays Taloc, Calumangan
host barangays Taloc and Calumangan, and the nearby barangays of Bago City, battle and Sampinit. DBI’s four other assisted communities, the AIMATABA MPC and
it out in this year’s tournament in their quest for the championship trophy and the cash Purok Para I/Camingawan both in Barangay Taloc, MSMC MPC in Barangay
prize of P10,000 donated by DBI. The Gran Matador Team, representing GSMI’s Calumangan, and Purok Batad and Paghidaet in Barangay Sampinit look forward to
assisted community organization in Barangay Calumangan, bested all the other nine this action-packed event which includes basketball, volleyball, track and field, boxing
teams to claim the Championship crown in the open category of the DBI-SK Cup ’07. and cheering competition.
The Community Sportsfest, has always been one of DBI’s most anticipated and *Gerry Casas is DBI’s Community Relations Coordinator and April Nhor Perez is the Sangguniang
Kabataan Chairman of Barangay Taloc in Bago City, Negros Occidental.
well-attended projects as it promotes camaraderie, sportsmanship, and harmonious

Disaster Response
At times of calamities such as the
Mt. Mayon eruption and the
destructive typhoons Reming
and Milenyo, the GSMI sales
force as well as other members
of the GSMI organization are the
first to volunteer to help in the
distribution of SMC relief goods to
the affected communities.
The GSMI volunteers are
displaying the Barangay Ginebra
spirit of camaraderie by making
the communities feel that they Bottling Ginebra Spirits for 15 Years Running
are present not only during good
times but during hard times as
well.

Kaunlaran
kaunlaran is published every month
for employees and friends of San Miguel
Corporation by the Corporate Affairs Office.
kaunlaraN is Filipino for progress.
GSMI Sta. Barbara Plant employees can Issue No. 8 40 San Miguel Avenue Mandaluyong City,
relate most to the 20th anniversary of Ginebra Volume No. 40 Metro Manila, Philippines 1550
August 2007 tel. no. (632) 6323529
San Miguel, being the first manufacturing editor
fax no. (632) 6381303
e-mail: mveloso@smg.sanmiguel.com.ph
facility built following the entry of La Tondeña Maricar Y. Veloso smc website: www.sanmiguel.com.ph
Incorporada into the San Miguel Group. Fondly Design director For more of the latest on San Miguel, visit
Elsie Chua­-Dormiendo our employee website, SMCentral, even
referred to as the "mother of all plants" within without access to the internet at
www.smcentral.com, and watch our weekly
the GSMI family, the facility located in Tebag
photographer
Alexies L. Santiago editions of SMC Newsbreak.
West, Sta. Barbara, Pangasinan, was built 15 editorial board TALK TO US. Are we
years ago to cater to the growing demand Kin G. Lichauco sending the right number
Leah M. Huang of Kaunlaran copies to the
for gin in the Northern Luzon, Central East and right person? Do you know
Cagayan Area. From a three-line operation of a unit that hasn’t been
receiving Kaunlaran? Do
producing only GSM Round ("Bilog"), the facility update us by phone, fax,
or e-mail.
today also manufactures GSM Hari, Frasco and contributors this issue
Mark Arabaca l Camille Buenaventura l Gerry Casas l Vic Dugan l
Angelito, Gran Matador Brandy, GSM Blue, Monica Gatbonton l Joel Guevara l Marie Hernandez l Chito Loyzaga l
GSM Premium Gin, and GSM Lite. —Aimee F. Reyes April Nhor Perez l Aimee Reyes l Cyril Rodriguez

K-AUGUST 07 15
 SMC President and COO
Ramon s. Ang being
interviewed by media after
the meeting.

San Miguel’s SMC Chairman and CEO

Blueprint
Eduardo M. Cojuangco, Jr.
lays out SMC’s new
direction in his speech to
stockholders.

for the Future

San Miguel Bares Diversification Plans at the
2007 Annual Stockholders Meeting
This year, stockholders were asked to vote on such important matters as an
increase in the Company’s authorized capital stock; a proposal to invest in
new businesses, and the forthcoming spin-off of the domestic beer business.
At the meeting, Cojuangco presented the
Company’s planned ventures into “new engines of
growth” which were approved by stockholders.
Vicente Dimaya, a 68-year old retiree and
stockholder for the past 13 years, expressed his support
for management’s new initiatives: “I am very excited
about the plans of the management of San Miguel to
diversify into new businesses. It has made me believe
even more in the long-term value of the Company,”
said Dimaya. “I intend to keep my stocks because it is a
strong investment and I believe it will be a valuable gift
to my children.”
Earlier in his speech to the stockholders,
Cojuangco expressed confidence that the Company’s
planned ventures into mining, power, infrastructure,
water, other utilities and property will deliver optimum
value for shareholders who will reap the benefits of
higher earning potential for San Miguel.
“We want to be in industries that have scale and
will grow and we are determined to build leadership
positions in key areas where important trends are driving
future growth, not just for San Miguel but for the
Philippines too,” said Cojuangco.
Showing faith in SMC’s management, smc stockholder
stockholders positively responded to Cojuangco’s Cojuangco cited the proposed spin-off of SMC’s Vicente Dimaya is
appeal for the amendment of the Company’s articles of beer business into an SMC wholly-owned company as optimistic about the
company’s plans for
incorporation that would allow San Miguel to increase “another logical step in the same direction.” He added,
the future.
its capital stock to enable the Company to issue 1.5 “It is a move that will allow us to unlock the value of
billion preferred shares. “The funds that will be derived our flagship and extract the full potential inherent in this
from the “preferreds” would give us greater flexibility business. The time is ripe for beer to exploit the benefits
in raising additional capital and would enable us to pay of focus as a stand-alone business.”
down debt or fund new businesses and acquisitions.” Looking forward, San Miguel management is
Addressing concerns about the Company’s excited about its future plans and the results these will
diversification plans, Cojuangco was quick to point out generate.
that the Company will continue to observe prudence “We have so many reasons to believe in our future.
in operating these new businesses as it had in the past In the recent past, we have made our market-leading
adding that its history of building shareholder value positions stronger. We have strengthened our business
through acquisitions is “generally sound and successful.” platforms to deliver the kind of financial growth and
“Despite our ambitions, our intent has always been durability that our shareholders have every right to
to act with caution,” the SMC chairman said adding that expect from us,” Cojuangco concluded.
the new businesses will constitute only a fraction of total With this kind of optimism and confidence,
portfolio with the larger portion still consisting of its core Dimaya and the rest of San Miguel’s close to 40,000
businesses of food and beverage. stockholders can be sure that the best is yet to come.
He added that the San Miguel Group has
managed to grow and prosper as a collection of
independent and interdependent operating units.
16 K-August 07