Philippines: SMC Considers Shell Select C-store Acquisition

San Miguel, which has an option to take over a controlling stake in the country's largest oil refiner Petron Corp., said in a disclosure to the Philippine Stock Exchange that it was not interested in buying Pilipinas Shell itself but the convenience retail element of the business.

The Select store chain - which offers a wide range of snacks, refreshments, groceries and travel items, phone cards, newspapers and magazines as well as hot meals and beverages - can complement San Miguel's already vast distribution channel for consumer goods.

Shell pioneered the concept of a service station-based 24-hour convenience store in the Philippines.  In 1993, the first Select outlet opened at the North Luzon Tollway Shell service station, which has since then become a popular stop-over for people driving through the North Luzon expressway. On the other hand, the first Select Café opened in August 1998 in Shell Magallanes.

Through the years, the San Miguel group has taken an interest in the retailing business, which has also become alternative promotion and distribution channels for its products. Part of the strategy is to put up food shops carrying its major brands in high-traffic areas.

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