INQUIRER Sports

HAVING DEVOTED THE EARLY YEARS of my career to advertising and marketing, It was easy for me to understand the rationale behind the change of name of the Purefoods TJ Giants to the B-Meg Derby Ace Llamados.

As explained in the press kit distributed during the press launch of the Llamados, the objective of the change was to generate brand recognition for B-Meg.

After more than 20 years of exposure in the PBA, San Miguel Purefoods Co. Inc. president Butch Alejo said the hotdog brand can now afford to give way to the feeds business of its sister company, San Miguel Foods Inc., which is competing very aggressively in the game fowl market.

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?It?s a P20 billion industry. There?s a big market to tap,? said Butch, whom I?ve known since more than 30 years back when he was still a product manager at SC Johnson.

In addition to the business angle, Butch and his group are looking to boost international tourism in the country through game fowl competitions or cockfighting.

?Cockfighting or ?sabong? is a big tourist attraction,? he said.

But he was quick to add that the B-Meg feeds are not exclusively for game fowls but ordinary chickens, which are cooked and served on the dinner table as well.

Butch proudly announced that San Miguel?s feed business is headed by Dr. Norman C. Ramos, who holds a BS Animal Science degree from UP Los Baños, and a Masters and Doctorate degree from the Kansas State University in the United States.

?Magaling yan,? said Butch when the doctor was introduced to us during the press conference at the A. Venue in Makati last Wednesday.

Butch is himself a graduate of the Harvard Business School Advanced Management Program.

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The day after the B-Meg press conference, I came across an interesting Bloomberg article.

It said that San Miguel Corp., the country?s biggest food and drinks manufacturer, has plans to sell shares of its food, liquor and packaging assets to raise the $2 billion the company will need to expand its infrastructure, energy, telecommunications and mining businesses.

Of late, the order of the day for the giant conglomerate is expansion and diversification.

According to the report, San Miguel has been aggressively moving out of the food and drinks business and moving into power, infrastructure, and mining.

Quoting SMC president Ramon Ang, Bloomberg said the food and drinks conglomerate has made offers for its processed food maker, gin distillery and packaging unit.

San Miguel is said to have received a 49 percent offer for San Miguel Purefoods Co. Inc., which comprises the food companies of San Miguel Corp. and another 49 percent for its packaging business.

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The plan is to sell Ginebra San Miguel Inc. to sister company San Miguel Brewery, of which Japan?s Kirin Holdings Co. has a 48 percent share. Kirin is interested to increase this to majority stakes.

The brewery is not for sale, according to Ang, who disclosed that the company?s prospective infrastructure projects include a commuter train in Manila and the development of an airport in Boracay, among others.

Ang?s vision is for all of San Miguel?s expansion and diversification projects to be done in a year?s time.

I must remember to call Butch to ask him for the implications these giant moves will have on the San Miguel teams in the PBA.