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San Miguel plans to make Spam in Philippines

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2018/news/06/15/spam.jpg?ext=.jpg"/><figcaption>Spam luncheon meat is shown in this photo from the brand&#x27;s Facebook page.</figcaption></figure></div><p>MANILA -- San Miguel Corp is spending P742 billion to grow its food and beverage business, including manufacturing Spam luncheon meat locally, said its president, Ramon Ang.</p><p>It will be the first time for San Miguel to make Spam in the Philippines under its long-running partnership with Hormel. Its unit, San Miguel Purefoods, manufactures Purefoods Tender Juicy hotdogs and canned meats.</p><p>The proposed Spam factory can make up to 150,000 tons of luncheon meat every year, Ang said.</p><p>San Miguel is expanding notwithstanding the peso&#x27;s weakness against the dollar, which could pad borrowing costs, Ang said.</p><p>The company&#x27;s debt to equity ratio is currently at 2 percent. The debts were made with an exchange rate assumption of P50 per dollar, Ang said. The local unit recently breached the 53 level to the greenback.</p><p>&quot;With all of this expansion kahit tumaas (even if it increases to) 2.8 to 2.9 (percent), it is still very low,&quot; Ang said.</p><p>San Miguel also plans to build 5 breweries to reduce transportation costs. This includes upgrading its Sta Rosa bottling plant into a full-sized brewery, he said.</p><div><strong>-- report from Warren de Guzman, ABS-CBN News</strong></div>

<p>San Miguel Corp is spending P742 billion to grow its food and beverage business, including manufacturing Spam luncheon meat locally, said its president, Ramon Ang.</p>

San Miguel Corp is spending P742 billion to grow its food and beverage business, including manufacturing Spam luncheon meat locally, said its president, Ramon Ang.