Emperador focuses on overseas business
Tycoon Andrew Tan-led Emperador Inc. plans to focus on growing its international business this year to maximize a string of storied European companies and assets that it had acquired in recent years.
In a briefing after the stockholders’ meeting of Emperador Inc., president and director Winston Co said the company would earmark the bulk of its capital expenditure overseas—specifically in Scotland—as its scotch whisky business continued to grow.
Without giving any figure, Co said consumption of premium liquor had been rising particularly in the Europe, Asia and North America.
“A lot of people gained purchasing power. In fact, we are already seeing this happening today … We believe our imported brands like Fundador, Shackleton and Whyte and Mackay will be bought by consumers in a couple of years,” Co said.
In line with the company’s route to global expansion, it is also eyeing to strengthen its footprint in Latin America where it recently bought three Mexican brands, namely, the Presidente, Azteca de Oro, and Don Pedro under Mexico’s Pernod Ricard.
In 2014, it also bought Scottish whisky maker Whyte and Mackey as part of a plan to go beyond its traditional brandy offering.
According to Co, brandy remains the main revenue driver of its local business, while whisky is strong overseas. The goal then is to promote brandy more aggressively in the international market and increase the presence of whisky and other premium liquor in the Philippines.
Despite the imposition of an additional excise tax on alcohol products, Co said the company was banking on the country’s expanding economy to grow its business in the country.
Co noted that the adjustment in the income tax of middle-income earners gave consumers stronger purchasing power that enabled more people to spend on luxury items like liquor.
For this year, Emperador will be adding three more Fundador Cafés in the country where visitors can enjoy spiked coffees and cupcakes, in addition to its flagship store in Venice Grand Canal Mall, also owned by Tan.
Emperador Inc. independent director Enrique Soriano said they were hoping there would not be any further increase in the excise tax on alcohol products.
“I think everybody in the industry feel the same way. The 4 percent is already good for the government. The current law on excise tax is actually quite enough … Any further increase would be a problem” he said.
