Both are good deals, but both leave San Miguel still heavily dependent on the Philippines. Theoretically, at least, they would be spreading their risk. When it comes to the big, overseas acquisitions the company desperately needs, San Miguel has gone flat. One reason is that brewing is a surprisingly local business. Despite global branding by firms like Heineken or Carlsberg, as well some cross-border mergers in Europe this year, brewing remains a very fragmented industry that has resisted global consolidation.
Most national markets are beer oligopolies.
Brewing is very parochial business, peoples' tastes for beer are incredibly local. We don't want to buy anything just for the sake of acquiring something. We will see what opportunities come up. Review Publishing Company Limited, Hong Kong. All rights reserved.