San Miguel Corporation - History - Early Years

Early Years

In 1889, a well-known Manila businessman, Don Enrique Ma Barretto de Ycaza y Esteban applied for a royal grant from Spain to brew beer in the Philippines. He was awarded the grant for a period of twenty years and on 29 September (the Feast Day of St. Michael the Archangel) the following year, La Fabrica de Cerveza de San Miguel was declared open for business. Located at 6 Calzada de Malacañang (later called Avilés), the brewery took its name from the district to which it belonged, San Miguel. The facility had two sections: one devoted to the production of ice with a daily capacity of 5 tonnes, and the other to beer production.

The brewery was the first in Southeast Asia using the most modern equipment and facilities of the day. With 70 employees, the plant produced 3,600 hectolitres (about 47,000 cases) of lager beer during the first year and subsequently produced other types of beer, notably Cerveza Negra, Eagle Extra Stout and Doble Bock.

Early success led to the expansion of the business and Barretto decided to incorporate his brewery. On 6 June 1893, the company was incorporated and registered with a capital of P180,000. Those forming the corporation were Don Pedro P. Roxas y Castro, Don Gonzalo Tuazón y Patiño, Don Vicente D. Fernández y Castro, Don Albino Goyenechea, Benito Legarda y Tuazón, the heirs of Don Mariano Buenaventura y Chuidan and Barretto.

Don Pedro P. Roxas was soon appointed manager, playing a prominent role in the development of the firm. Don Pedro was the active member of the firm until 1896 when he left for Europe. Prior to his departure, he bought from Don Enrique Barretto, a share of his interest in the firm worth P42,000. When Barretto retired in May of the same year, Don Pedro through his attorneys bought the balance of Barretto’s stake in the business.

In 1895, San Miguel beer won its first of many awards as a product of the highest quality at the Exposición Regional de Filipinas. By 1896, San Miguel beer was outselling by more than five-to-one all imported beers in the country.

The 1900s ushered in a period of post-colonial prosperity. Demand for beer increased. For San Miguel, under the leadership of Don Pedro Roxas, modernisation included the installation of electric conveyors and automatic machines. Much of the brewery’s equipment was modernized in 1910.

By 1913, imported beer represented only 12% of the total consumption in the Philippines; San Miguel held a 88% share of the industry.

Don Pedro Roxas died in Paris in 1913. His death, following so soon after the deaths of Don Benito Legarda and Don Gonzalo Tuazon, made it advisable to change the form of the company from a firm of co-participants to a corporation. A son of Don Pedro Roxas, Don Antonio R. Roxas, was appointed president, with Don Enrique Brías de Coya and Don Ramón J. Fernández as managers.

By 1914, San Miguel had branched out into the exporting business and its products had found ready markets in such neighbouring ports as Hong Kong, Shanghai and Guam. When WW I broke out, exports came to a temporary halt because of the difficulties brought about by the war, such as shortage of raw materials and the consequent rise in manufacturing costs. It was not until prohibition was repealed in the United States that San Miguel was able to resume exporting to Guam and later to Honolulu.

By the end of 1914, Don Enrique Brías de Coya, after seeing that his efforts and industry had resulted in to a progressive and prosperous business, retired from active business life in favor of his son, Don Antonio Brías Roxas. In 1918, Don Antonio R. Roxas resigned from his position as president. Don Ramon J. Fernández assumed the presidency and Don Andrés Soriano, nephew of Don Antonio R. Roxas, was made acting manager. In 1923, Don Andrés was appointed manager and together with Don Antonio Brías managed the house of San Miguel with constantly increasing success.