NEWSFLASH

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SAN MIGUEL BEER PRICES UP 8.6% NEXT MONTH

Manila, Nov. 19, 1997 - The Asian regional currency turmoil will soon be felt by Filipino beer drinkers.

A San Miguel Beer will cost 8.5% more next month, a move aimed to help San Miguel Corporation offset higher costs for imported raw materials following the depreciation of the peso.

The price for a regular bottle of pale pilsen will be P10 instead of P9, while the higher- alcohol Red Horse will cost P8.50 instead of P8 per bottle.

San Miguel slashed beer prices last July to boost stagnant sales and win back beer drinkers who had shifted to the cheaper Beer na Beer of Asia Brewery. The price rollback, combined with the peso depreciation, spelled ruin for SMC's earnings.

"We held on to our prices as long as we could," said Bienvenido Bautista, president of San Miguel Brewing Philippines. "Unfortunately, economic realities necessitate the adjustment."

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