Emperador takes over premium liquor maker in Mexico

FILE PHOTO

MANILA, Phlippines — Brandy and whisky conglomerate Emperador Inc. has widened its premium portfolio following its P225-million takeover of a Mexican mezcal maker, banking on international expansion to drive liquor growth.

In a stock exchange filing last Friday, the company led by billionaire Andrew Tan said its Mexican subsidiary, Casa Pedro Domecq, had acquired 60 percent of Los Danzantes SA de CV.

The capital injection, equivalent to 80 million Mexican pesos, will be used mainly to develop the distribution and promotion of Los Danzantes’ brands.

These include Loz Danzantes and Alipus, both of which are considered one of the top 10 bestselling mezcal brands across the globe, Emperador said in its disclosure.

Its products are exported to around 20 countries.

Mezcal distillery

“The addition of luxury mezcal to the group’s whisky and brandy portfolio further amplifies and strengthens the premiumization and internationalization strategy of Emperador Inc.,” Winston Co, president of Emperador, said in a statement.

Mezcal is a distilled alcoholic beverage made from any type of agave plant. This is to distinguish it from tequila, which can only be made from blue Weber agave.

This expansion comes amid weak demand and tight competition in the Philippines, Mexico and Spain.

Emperador, which used to be a purely brandy-focused firm, saw its net income slide by 27.26 percent to P4.3 billion in the first nine months of 2024 on shifting consumer behavior.

Still, the company is anticipating a rebound in global consumer confidence.

The brandy unit of conglomerate Alliance Global Group Inc. is betting on the whisky segment for growth, describing single malt as a “bright spot in the total alcohol beverage industry.”

Whisky expansion

Last year, Emperador announced plans to spend P6.5 billion to expand whisky operations under Scotland-based unit Whyte & Mackay by increasing the capacity of its Dalmore distillery.

Dalmore is among the Emperador’s single malt brands, along with Jura and Tamnavulin.

Invergordon, another distillery in Scotland, will also expand. Emperador aims to double the footprint of the facility to 92 hectares for it to eventually house an additional 1.5 million casks.