Manila, 20 Nov, 2008 – San Miguel Corp has been ordered to pay damages of PHP 132 million (US$ 2.7 million) to rival Asia Brewery Inc for unfair trade practices.
The decision related to a case dating back to 1997 when the Marikina Regional Trial Court found San Miguel guilty of removing from circulation and hiding more than a million bottles and thousands of plastic crates owned by Asia Brewery, a court decision released yesterday said.
The ruling found that San Miguel actions had deprived its rival of profits by effectively disrupting its production, marketing and distribution systems.
San Miguel has denied the allegations and said it would pursue all legal remedies, including an appeal to a court of higher jurisdiction.
The company, which is the Philippines’ largest food and beverage outfit, said the bottles and crates found in its possession were there legally as they were part of a swapping arrangement between the two companies. San Miguel said that Asia Brewery had failed to retrieve the bottles and crates.
A San Miguel spokesman said: “We trust that in the end we will be vindicated in this case."