Digital Transformation

We see digital transformation as a key driver of sustainable development, whether it is in automating and digitizing processes to improve productivity or in investing in new technologies and innovation that future proof our businesses.

We began streamlining our manual processes in 1995, which led to adopting integrated Enterprise Resource Planning systems for financial consolidation, treasury, sales and manufacturing operations. Since then, we have periodically updated our systems, taking into account our business continuity and disaster recovery plans and our information security governance. In doing so, we have operated more efficiently, reduced costs, and enhanced our competitiveness in the market.

Starting in 2018, we shifted our processes to a cloud platform. This has enabled us to increase our disaster recovery capabilities, reduce reliance on on-premise infrastructure, and improve energy efficiency.

We have also implemented several IT innovations throughout the years. These include automation through workflow approval and launching various systems for management reporting, business controls, financial consolidation and reporting, and regulatory compliance.

To promote sustainable energy consumption, we procure only TCO Certified desktops, laptops, and printers. TCO Certified is the world’s most comprehensive sustainability certification for IT products. Furthermore, we have undertaken initiatives to pursue consolidation of our servers through virtualization and having an energy-efficient data center. By adopting invertertype technology for our cooling systems and modifying the DC rack design, we have reduced our power consumption from these systems by 30% and 15%, respectively. Our lower energy consumption decreased the carbon footprint from our data centers. Additionally, we ensure proper disposal of our IT assets and equipment in compliance with the DENR EMB’s Hazardous Waste Management standards.

Starting in 2018, we shifted our processes to a cloud platform. This has enabled us to increase our disaster recovery capabilities, reduce reliance on on-premise infrastructure, and improve energy efficiency.

On IT governance, we have implemented robust governance protocols to ensure compliance with policies and guidelines, thereby promoting a digitally safe work environment. Information security and cybersecurity measures are comprehensively managed through an established framework that safeguards company assets and data.

There are many other examples of initiatives within the Group that aim to digitally transform our ways of doing business for the better.

e-Commerce

We leverage online selling platforms to improve product accessibility. In 2022, we relaunched an online ordering system called San Miguel Mart as a mobile app and continued to utilize the country’s top e-commerce sites to sell our products.

Digital Marketing

Our Food Division connects and interacts with our consumers through digital media in the form of ads, online baking demonstrations, live veterinary consultations and webinars. Their consistent release of relevant and engaging digital content has effectively drawn audiences to our social media platforms. To date, our Magnolia Chicken, Purefoods Tender Juicy Hotdog, and Home Foodie Facebook pages have more than one million followers. Meanwhile, our Spirits Division has also delivered innovative and engaging campaigns across all its brands, such as cocktail making videos that showcase the unique flavors and versatility of its products. Its flagship brand Ginebra San Miguel has garnered acclaim for its digital advertising campaigns, winning the Catholic Mass Media Award for Best Digital Ad for three straight years (from 2020 to 2022).

Technical Leadership

Our Beer and NAB Division employs stateof-the-art brewing technology. Our highly experienced brewmasters and quality assurance practitioners provide technical leadership and direction to continuously improve and maintain the highest standards in product quality. New products and variants are explored and attuned to the evolving consumer profile and preferences.

Innovative Packaging

Our Packaging group maintains advanced manufacturing facilities and best practices in packaging procedures. Its glass manufacturing facility in Cavite uses robotic technology in its glass forming processes as well as highly automated equipment for palletizing. Moreover, glass molds are produced using modern machining technologies to provide total mold and machine solutions at superior quality. The lithograph sheets used for metal crowns and lug caps utilize ultraviolet or UV printing technology to achieve long-lasting, more vibrant, and clearer labels of metal closures, while minimizing VOCs in the process. Finally, its plastic pallets and slatted plastic flooring for poultry houses have several designs that are tailored to meet the unique needs and preferences of customers.

Robotics

We are among the pioneers of robotic palletizing system in the domestic feeds industry, which can perfectly stack 42 bags of feeds in just under five minutes; hence resulting in shorter cycle times, increased productivity and less wastage from torn bags. As of end-2022, six feed mills have robotic palletizers in place.