Emperador invests P5.8 B in Spain

MANILA, Philippines - The liquor unit of tycoon Andrew L. Tan has committed to invest P5.8 billion in Spain as part of plans to become a significant global brand.

Emperador International Ltd., a member of conglomerate Alliance Global Group Inc. (AGI), will pour more funds in Spain over the next 12 months, the company said.

“Part of the P5.8 billion has already been invested through the Spain-based Bodega San Bruno S.A. and Grupo Emperador Spain S.A., which are both owned by Emperador,” said Jorge Domecq Bohórquez, managing director of Emperador International.

In January, the brandy firm said it would acquire 100 percent of Spanish brandy maker Bodega San Bruno, including the San Bruno trademark that has been registered since 1942. AGI earlier said the acquisition cost would not be more than P3 billion.

“We have completed the first phase of our acquisition, which includes a sizable inventory of high-quality, well-matured brandy, which are now being stored and aged in sherry casks, as well as 509 hectares of prime vineyard land in Toledo, Spain,” Domecq said.

For the next phase of Emperador’s investment in Spain, the brandy maker will acquire more vineyards and other brandy production facilities, which include distilling and bottling plants.

Due diligence for the next stage of acquisition is currently being conducted, Emperador said.

“Our next steps forward will further strengthen our position as the world’s No. 1 brandy company by volume, and make us exceptionally competitive as a global brandy producer,” Domecq said.

“We have achieved remarkable progress in our investment in Spain, of which we are very pleased,” Domecq said. The brandy maker is grooming Spain to account for 25 percent of Emperador’s production.

Emperador Deluxe Spanish Edition, produced and bottled in Spain, is Emperador’s newest successful offering.

“We launched Emperador Deluxe early this year to a very warm reception, and the response of the Philippine market continues to be very good,” Domecq said.

Emperador is looking to tap other Asian markets like China and Vietnam for its new offering, Domecq said.

Early this year, Emperador said it will double its sales volume in the next five years as it intends to corner a third of the global brandy market.

Emperador sold 31 million cases of brandy last year. In May, Emperador purchased a Biñan, Laguna production facility from the Philippine unit of Diageo, the world’s biggest premium drinks group.

Diageo produces a wide collection of beverage alcohol brands across spirits, beer and wine. Among these brands include Johnnie Walker, Smirnoff, Captain Morgan and Guinness, which are sold in more than 180 countries.

To date, Emperador produces and sells Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.