Keepers Holdings sees bigger market from millennials

MANILA, Philippines — Lucio Co-owned The Keepers Holdings Inc. sees consumer preference favoring higher quality imported liquor brands.

It projects the wine and spirits industry to sustain growth despite the negative impact of the COVID-19 pandemic.

“The premiumization phenomenon, which has been experienced in the food sector in recent years, is now also being felt in the wine and spirits market,” said Jose Santamarina, president of The Keepers.

The company is the distributor of brands such as Alfonso, Johnnie Walker, Jose Cuervo, Jim Beam and Jinro, among many others.

He said younger customers are driving the steady growth in the market.

The Philippine population at legal drinking age is growing annually at around 2.1 percent.

“There is a growing segment in the market with increased sophistication in terms of favoring quality over quantity, which they can get from imported liquor products. Millennials, for example, are known for their desire for authentic and high-quality products,” Santamarina said.

A recent Global Trends Report by IWSR Drinks Market Analysis said ‘premium-and-above’ spirits are projected to increase their global volume market share to 13 percent by 2024, as consumers continue to favor quality over quantity, including cocktails and high-end sipping spirits.

Health-conscious drinkers who generally adopt a policy of moderation are likely to choose a higher-quality beverage or one they perceive as healthier when they do choose to drink. Some are willing to pay a premium for organic or even low-alcohol or no-alcohol alternatives.

In the first half of the year, the company reported consolidated net sales of P4.3 billion, up 34.8 percent from the P3.19 billion in the same period in 2020. As a result, the company’s net income climbed 56.8 percent to P650.7 million.

Montosco Inc., Meritus Prime Distribution Inc. and Premier Wine and Spirits Inc. recorded a 40.9 percent jump in total sales volume to over 1.7 million cases sold in the first six months.

“While we remain cautious of pandemic-related developments, we are optimistic about the business prospects for the second semester. We are seeing a very encouraging trend with our current sales under the brandy segment, which are already surpassing pre-pandemic levels,” Santamarina said.