Lucio Co paying P5B for 50% of Spanish brandy maker

Retail billionaire Lucio Co’s The Keepers Holdings Inc. is paying P5 billion to acquire 50 percent of top-selling brandy producer Bodegas Williams & Humbert SA of Spain, signaling a shift in its business strategy.

The Keepers Holdings is the country’s largest distributor of imported spirits, with names like Johnnie Walker whisky and Jose Cuervo tequila under its portfolio.

The investment in Bodegas, which makes Alfonso brandy, allows The Keepers to “transform” from a pure trading business model to include manufacturing and exportation.

It creates an opening for the company to embark on international expansion given Bodegas’ wide overseas distribution network.

The deal is also critical for The Keepers because Alfonso provides 60 percent of its revenues.

“The Keepers’ acquisition of 50 percent equity interest in Bodegas Williams & Humbert SA represents a strategic long-term investment that will enhance the competitive position of the group and strengthen its hold and secure the company’s supply line of its flagship brand and category, ‘Alfonso’ brandy,” the company said in a stock exchange filing on Thursday.

The transaction was valued at 88.75 million Euros or about P5 billion.

It will be paid upon signing of the final share purchase agreement and the completion of other legal and closing requirements, the filing showed.

Bodegas is a family-owned winery in Jerez de la Frontera, Spain with a 140-year-old history. Its products are sold in Spain and in 50 countries worldwide.

The Keepers saw first half 2022 profits jump 39.5 percent to P980.7 million on strong sales across imported spirits, wine and other specialty beverages.

Total revenue during the period rose 27.4 percent to P5.48 billion while sales volume surged 23 percent to over 2.1 million cases from January to June this year.