Alliance Global acquires Diageo’s liquor facility

Tycoon Andrew Tan has struck a deal to take over the Philippine bottling plant of global premium liquor firm Diageo in Laguna, an acquisition seen to bring 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 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,” he added.

The acquisition is expected 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 sales volume and a wholly owned subsidiary of AGI, has concluded the purchase of a production plant facility from Diageo Philippines.

The facility is situated at The Laguna Technopark in Biñan.

Brandy is currently being manufactured by EDI under the Emperador and Generoso labels.

Emperador, at 72 proof, targets the relatively mature consumers 25 years old and above, and is marketed in 1.75 liters, 750 ml and 375 ml bottles.

Generoso, a lighter and sweeter brandy at 65 proof, is meant to appeal to 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 soft-launched by the EDI group in November 2008 with two variants in lemon-and-lime gin and orange vodka. The brand had its grand launch in April 2009.

Two more variants followed: the apple vodka in 2009 and the strawberry vodka in May 2010. The BaR, with its fruity flavors, targets active young drinkers. It is offered at a more affordable price compared with the premium-priced brandy products.

The drink is 50.6 proof and comes in 700 ml bottle.

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 P16.4 billion in the first quarter—up by 52 percent from a year ago.

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.