San Miguel sticks with McCann for beer brief

San Miguel made its decision to stick with McCann within days of the pitch, said to be the biggest account review in the Philippines in two decades.

It is believed that San Miguel Beer has a budget of 500 million pesos (close to US $10 million).

Industry sources said McCann would need to address several marketing issues facing San Miguel Beer, not least to dispel perception that the beer is favoured by middle-aged or elderly drinkers. A similar marketing issue faced the brand in Hong Kong in the mid-'90s, resulting in the 'Take a fresh look' campaign by J. Walter Thompson to update its image.

In the Philippines, San Miguel Beer is the dominant brand commanding 80 per cent share of the beer market. The country's beer market is estimated to comprise 46 million drinkers between 15 and 65 years. Despite its strong foothold, San Miguel is not seen as a fashionable brand among the younger crowd who prefer trendy light beers.

This has worried San Miguel executives who are concerned that introducing new light beer variants would "cannibalise

the popular Pale Pilsen brand - the one in the famous short brown bottle.

The brewer's annual report showed that domestic beer sales volumes dropped three per cent last year from 2000 levels due to a slowdown in consumer spending. Its sales revenue in the last financial year also declined by one per cent. Apart from the shift to lighter beers, the slump has also been blamed on declining farm incomes since San Miguel Pale Pilsen is the traditional drink among rural communities.

McCann faced off against Jimenez & Partners, Ace/Saatchi & Saatchi, Lowe & Partners and FCB. Industry sources said McCann's standing as the Philippines' top-ranked agency in billing terms depended on it retaining the account.