Billionaire Andrew Tan’s liquor conglomerate Emperador Inc. is boosting capital spending by over 70 percent this year as it banks on international expansion to grow profits.
The world’s biggest brandy producer and owner of overseas brands such as Fundador and Whyte and Mackay said on Monday spending this year would hit P3 billion versus P1.74 billion in 2021.
Emperador president and CEO Winston Co said during the company’s annual stockholders’ meeting the expansion would help the company reach its target of generating half of revenues from oversees markets “in three to five years’ time.”
“Most of the capex (capital expenditure) budget will be spent outside the Philippines, bulk of which will be on the whisky business,” Co said in a separate statement on Monday.
“We operate in an ever-changing, dynamic and highly competitive industry. Strategic investments are key to ensuring that as a global company, we can adapt to evolving consumer preferences and demands,” he added.
At present, the company’s brandy and whisky products are available in over 100 countries across six continents.
During the stockholders’ meeting, Tan said they were also expanding the brandy business in Asia and Latin America.
Emperador ended 2021 with a net income of P10 billion, up 25 percent, as revenues increased 6 percent to nearly P56 billion.
Last April, Emperador said it had obtained conditional listing eligibility on the Singapore Exchange or SGX.
Emperador said the listing would depend on prevailing market conditions. Through an SGX listing, the liquor producer will gain better exposure to overseas investors.