Letter from the chairman

Responsible progress, a shared benefit

The year 2021 was challenging and difficult, but also an exercise in which we made significant progress, paving the way for our transformation and consolidating our leadership and value contribution to society.

The path to achieving this was not easy due to multiple barriers related to the pandemic, yet, all in all, it was a great year in which we exceeded our expectations, achieving a record turnover of 1,472.2 million euros, 17.5% higher than the previous year, and a sales volume of 18.7 million hectolitres, 5.6% more than in 2020. All of this was thanks to a team made up of nearly 3,900 professionals who, with their enormous commitment and talent, allowed us to successfully meet all the challenges that this extremely changing environment placed in our way.

People always come first with us, and last year this was even more evident because of the special situation we found ourselves in due to the health crisis and its impact on the economy. Accordingly, our efforts were focused on protecting jobs and promoting the well-being of our workforce. We established preventive measures in all our work centres, put forward initiatives for promoting the physical and mental health of our employees, and launched actions for enhancing flexibility and work-life balance. This led to our obtaining, yet again, the Family-friendly Company (FFR) certificate from the Más Familia Foundation with a rating of Excellent.

Our commitment to contributing to our country’s recovery once again marked our activities and the relationship with our customers, both on-trade and off-trade, which we supported in this difficult context and to whom we are so grateful for their ongoing efforts and their value contribution.

In 2021, the on-trade sector started to glimpse signs of improvement, which made it seem that the worst had passed; however, there was a still a long road ahead. The on-trade sector needed, and will continue to need, attention and resources. That’s why we dedicated over 185 million euros to helping bars and restaurants reactivate their businesses, as well as to developing levers such as digitalisation and sustainability, which are essential for their future continuity. Likewise, we worked hard to be good travelling companions for our off-trade customers, adapting to their needs with flexibility and agility, for which we were recognised as the best brewer for our efficient service, according to the 2021 Benchmarking Supply Chain study conducted by AECOC, the Spanish Association of Manufacturers and Distributors.

Our brands, synonymous with quality for consumers, were also valued for their excellence in the most prestigious beer competitions. Mahou was, for the fourth year in a row, the most-awarded portfolio of Spanish beers in the world, an important recognition of the work of a magnificent team.

In 2021,
a challenging and difficult year, we exceeded our expectations, achieving important advances and paving the way for our transformation
Mahou San Miguel

Despite the difficulties and uncertainties in the world economy, we continued promoting the Company’s international business, with the growth of our Mahou Chile subsidiary, the marketing of our products in the main European markets, and the development of our craft brewers in the United States, Founders and Avery, which had to confront a very complex market context in light of the restrictions affecting on-trade activity due to COVID.

Our necessary focus on daily operations in no way diminished our long-term vision. Accordingly, we designed our 2022-2024 Strategic Plan last year to ensure our future sustainability. With the tagline El valor de cambiar (The value of change), we assumed the premise that the context would evolve rapidly and that we should do the same, moving even faster, to continue generating value with the courage and humility that goes with knowing that one can always improve. This is a philosophy that has led us to be valued, year after year, as the brewer with the best reputation in Spain, according the Merco Reputation and Leaders ranking, and to position ourselves at number 13 in the global ranking of our country’s 100 best companies.

Our business strategy is aimed at realising our reason for being as a company: creating moments of unity and connection that improve the lives of people and the planet. A mission in which our new strategic framework for sustainability for the coming decade, Vamos 2030, is, of course, key. We will dedicate over 220 million euros to pursuing three main lines of action: contributing to economic and social progress, protecting the natural habitat and promoting people’s well-being. This is a roadmap that aims to strengthen the role of Mahou San Miguel as an agent of social transformation based on what matters to people.

And with people in the centre, the Mahou San Miguel Foundation maintained is firm commitment to promoting the training and employment of vulnerable young people and, in 2021, expanded to new cities its Creamos Oportunidades en Hostelería programme, which has achieved an 80% rate of job placement since it was started eight years ago. It also channelled all the social action of our company and the volunteer programmes of our employees, who, for yet another year, demonstrated their enormous solidarity.

The immediate future also looks to be full of challenges and uncertainty. As I write this letter, we are facing a situation of great geopolitical instability and a context of inflationary prices which is generating economic and social tensions in all companies and for society as a whole. At Mahou San Miguel, we are facing it with the prudence that has always characterised us, with a long-term vision and the guarantee of having the best team of professionals for addressing any challenge.

I’m sure that we’ll be able to continue contributing a great deal of value to this society, together with our customers, distributors, suppliers and collaborators. Because our commitment is and will continue to be to progress responsibly, promoting a benefit shared by all.

José Antonio Mahou Herráiz Chairman