Asia Brewery
1. Short history/Milestones

With Lucio Tan’s predominant desire to improve the Filipino beverage standards, he started out Asia Brewery, Inc. (ABI) and launched its first brand, Beer Hausen Pale Pilsen, in January 27, 1892 in Cabuyao, Laguna. In 1995, Manila beer was introduced, and 3 years after, Beer Pale Pilsen (now known as Beer na Beer), its most successful and most controversial brand, was launched. Due to the growing demand in the Mindanao market, ABI established its second brewery at El Salvador, Misamis Oriental, with a capacity of 2 million hectoliters of beer per annum. In the same year, the company expanded its product line from beer to non-alcoholic beverages, with the introduction of Summit Natural Drinking Water and Absolute Pure Distilled Drinking Water. The company further expanded its product line by introducing Colt 45, America’s Premium strong beer in 1995, which opened doors to many strong beer brand. In 1999, Beer na Beer was reintroduced in the market and won a gold medal in the Monde Selection in Brussels, Belgium. Pacific Iced tea was launched in the same year, which strengthened the position of the company in the market. In 2006, 100 Plus Isotonic Sports Drink and Cobra Energy Drink, both were targeted towards individuals with an active lifestyle, were launched. Further expanding its product line, the company introduced Coors Light and Coors Original in 2007 and Summit ZeroCal in 2008. Tanduay Ice was launched a year after, and the company launched its first dairy product, Vitamilk, in 2010. Roots Ginger Brew was also a good addition in the line-up of non-alcoholic beverage of the company in 2011.

2. Industry

Asia Brewery is one of the leading Industries in the production of alcoholic and nonalcoholic beverages in the Philippines. They produce several products, an example of their well-known products are Absolute Distilled Drinking Water, Summit Natural Drinking Water, Cobra Energy Drink, Brew Kettle, Asahi, Beer na Beer, Manila Beer and Tanduay. The company is considered a regional brewery since their one the biggest breweries in the country and they have two breweries one located in Cabuyao,Laguna and the other at El Salvador Misamis Oriental. The Cabuyao plant is their biggest and most modern manufacturing plants which has an annual production capacity of 4 million hectoliters of beer which supplies the whole of Luzon. The plant also houses a glass plant capable of making 20 different kinds of bottles. It has also has a wastewater treatment plant, plastic crate manufacturing and warehousing The El Salvador plant is their second plant which supplies the increasing market in Visayas and Mindanao. The annual production capacity of El Salvador is 2 million hectoliters of beer. 3. Business Model

In the interview conducted with Jimmy Uy, the NCR regional sales manager of Asia Brewery Incorporated, the company first started off in 1980 following the manufacturer business model and mainly produced beer products catering to the mass market. At the same time, it had its own sales, marketing, and distribution arms exclusively carrying their own products. Throughout the years, it has evolved and expanded into importing other products while maintaining their focus on beverages. At present, the business model of the company has expanded because it not only sells and market their own produce, but also sells and distributes other beverage products other than beer. On top of this, they also import certain beverage products like Vitamilk, which is a Thailand based soy drink, and Asahi beer from Japan. In summary, the current business model is a combination of the manufacturer business model and the distributor business model.

4. Organizational structure