Emperador plots dominance in global brandy market

MANILA, Philippines–Emperador Distillers Inc., the liquor manufacturing arm of tycoon Andrew Tan, expects to double its sales volume in five years and become a dominant global brandy producer.

“We hope to have 33 percent of the world’s brandy market within five years. In that time, out of three bottles of brandy sold on this planet, one bottle will be Emperador. We are rapidly pursuing our international expansion and we expect to sell Emperador to more countries,” Jorge Domecq, managing director of Emperador International Ltd. said in a disclosure to the Philippine Stock Exchange.

Emperador International is a unit of EDI, in turn a wholly owned subsidiary of Alliance Global Group Inc.

“We also expect Emperador to be bottled in different parts of the world. Spain will eventually account for 25 percent of our Emperador production. We will continue to build Emperador as a strong global brand,” Domecq said.

Emperador is already the world’s largest-selling brandy brand in the world with a sales volume of 31 million cases in 2012.

EDI recently took a crucial step towards overseas expansion with its acquisition of Bodega San Bruno S.A., a brandy company based in Jerez, Spain.

In the Philippines, brandy is being manufactured by EDI under the Emperador and Generoso labels. Emperador, at 72 proof, targets the relatively mature consumers 25 years old and above and is marketed in 1.75 liters, 750 ml and 375 ml bottles. Generoso, a lighter and sweeter brandy at 65 proof, targets women and young drinkers aged 18 to 25 years. Emperador has been in the market for 19 years while Generoso was introduced in late 2006. A flavored alcoholic beverage under the brand name The BaR was soft-launched by the EDI group in November 2008.

EDI also previously acquired Diageo Philippines’ Sta. Rosa facilities in a bid to boost its competitiveness and promote Emperador as a strong global brand. Diageo produces global liquor brands such as Johnnie Walker, Crown Royal, JeB, Buchanan’s, Windsor and Bushmills whiskies, Smirnoff, Cîroc and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray and Guinness.

The acquisition of the Sta. Rosa facilities is seen helping increase Emperador’s production and technical capabilities in the Philippines to boost its global competitiveness. The acquisition is seen to jack up the total bottling output of EDI by 20 percent and also allow it to produce carbonated ready-to-drink products.