San Miguel Brewery Inc., the beer unit of conglomerate San Miguel Corp., said it obtained the approval of the Securities and Exchange Commission to diversify into non-alcoholic beverages.
SMB said in a disclosure posted on its Web site the SEC approved the amendments in the company’s articles of incorporation to include the non-alcoholic beverage business as part of the primary purposes.
The new business includes manufacturing, importing, selling or dealing in water and water-based beverages and non-alcoholic beverages.
The board of SMB in December approved the adoption of a multi-beverage strategy to capitalize on the opportunities in the rapidly growing non-alcoholic beverage industry.
The beer company noted that the non-alcoholic beverage category had a larger share of the whole beverage industry and was growing at a faster pace than the alcohol sector.
Unit Ginebra San Miguel Inc. agreed to sell its non-alcoholic business to SMB.
GSMI in December reported its board authorized the sale and transfer of certain non-alcoholic beverages assets of the company, consisting of property plant and equipment of as of Dec. 31, 2014 and inventories as of March 31, 2015.
GSMI’s non-alcoholic beverages include Magnolia Fruit Drink Mix, Magnolia Healthtea Mix, Magnolia Fruit Drink, Magnolai Healthtea Bottle, Magnolia Purewater and Berri Juice.