Andrew Tan acquire’s global liquor giant’s Laguna plant

Andrew Tan. INQUIRER file photo

MANILA, Philippines – Tycoon Andrew Tan has struck a deal to take over the Philippine bottling plant of global premium liquor manufacturer Diageo in Laguna, an acquisition seen bringing Alliance Global Group Inc.’s liquor brand Emperador into the international market.

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 Diageo’s Sta.Rosa facilities will help increase our production and technical capabilities in the Philippines to boost our competitiveness in promoting Emperador as a strong global brand,” AGI chair Andrew Tan said in a press statement.

“Emperador Distillers Inc. (EDI) is looking at 2012 as another record year in terms of sales revenues and net income. EDI is targeting at least 20 percent growth in net income. Today, Emperador is recognized as the largest-selling brandy brand in the world by volume,” Tan added.

The acquisition is also seen to jack up the total bottling output of EDI by 20 percent.  It will also allow EDI to produce carbonated ready-to-drink products.

EDI, one of the largest Philippine liquor companies in terms of sales volume and a wholly owned subsidiary of AGI, has concluded the purchase of a production plant facility from Diageo Philippines. This facility is situated at The Laguna Technopark in Biñan Laguna.

Brandy is currently being manufactured by EDI under the Emperador and Generoso labels. Emperador, at 72 proof, targets relatively mature consumers 25 years old and above and is marketed in 1.75-liter, 750-ml and 375-ml bottles. Generoso, a lighter and sweeter brandy at 65 proof, is targeted at 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 launched by the EDI group in November 2008 with two variants in lemon-and-lime gin and orange vodka. Two more variants followed—apple vodka in 2009 and the strawberry vodka in May 2010. The BaR, with its fruity flavors, targets the dynamic and active young drinkers. It is offered at a more affordable price compared to the premium-priced brandy products. This fruity drink is 50.6 proof and comes in 700-ml bottles.

Meanwhile, AGI also expressed confidence that its real estate brands would post P55 billion in reservation sales this year compared to P37 billion in 2011 following robust first-quarter results.

AGI reported that its four real estate brands posted very strong reservation sales amounting to a record high P16.4 billion for the first quarter, up by 52 percent from the previous year. The four brands—Megaworld Corp., Empire East Land Holdings Inc., Suntrust Properties Inc. and Global-Estate Resorts Inc.—cater to niche markets ranging from the luxury, middle-income and affordable home sectors to the vacation homes segment.