Beer In The Philippines Case Study

Introduction Beer is one of the most consumed products in the world. In the Philippines, there are 2 major firms in the beer industry. They are Ginebra San Miguel Inc (GSMI) and Asia Brewery Inc. GMSI was incorporated as La Fabrica de Cerveza de San Miguel in 1913 and is the Philippines’ largest brewery, accounting for 90 percent of the beer market share. In addition to beer products, GSMI also produce soft drinks, bottled water, and several other products. The brewing company, Asia Brewery Inc., was established in 1982 and is owned by LT Group Inc. They account for 10 percent of the market share. Beer is the most consumed alcoholic beverage in the Philippines that amounts to 70% of the domestic alcoholic drinks in terms of volume. Beer is distributed in any variant of markets like convenience store and sari sari store. With increasing disposable incomes, a young demographic population will evolve. This, together with the emerging influence of Western drinking and pub culture, will collectively act to positively increase alcoholic drinks in the country. In terms of types of alcoholic drinks, beer and spirits will continue to comprise the largest volumes.

Production Fermented beer is the main product being sold in the market. Production is measured in millions of liter in every production run. In beer brewing, commonly used inputs are ingredients, machineries, labor, and packaging. Ingredients of the product include water, malt, adjuncts, hops, and