MANILA, Philippines – Emperador Inc. of business tycoon Andrew Tan has acquired Mexico’s top brandy in a landmark deal marking the company’s expansion into the Americas after successfully buying two iconic European liquor brands in the past two years.
The acquisition expands Emperador’s foray in the global market. It is now considered the world’s largest brandy company.
Tan signed the deal in Madrid just a few days ago, a reflection of yet another successful global buying spree by a homegrown Filipino company.
“Any success for Emperador is a success for the Filipino. We’re really working to put the Philippines on the global map,” Tan’s eldest son, Kevin told The STAR in an interview yesterday.
Emperador, through its Spanish subsidiary Bodegas Las Copas purchased the Domecq brandies and wines of Pernod Ricard in Mexico as well as Mexican brandy brands Presidente, known to be Mexico’s number one selling brandy, Azteca de Oro and Don Pedro. The deal, equivalent to billions of pesos, is still subject to closing conditions.
“Our goal is to bring Emperador almost everywhere in the world,” said Kevin, executive director of Alliance Global Inc., the holding company of Tan’s businesses.
The younger Tan said the expansion in Mexico was a strategic move to penetrate the Latin American market.
“This recent acquisition fits perfectly with our strategy to fortify Emperador’s status as the number one brandy company in the world,” Winston Co, president of Emperador, also said.
With the buyout, Emperador now has access to Latin America, particularly Mexico where Domecq brandies corner half of the brandy market.
It will also be able to distribute its products from the Philippines to the Latin American market.
In all, Latin American countries have over 600 million population to date.
Richard Lañeda, COL Financial Group senior analyst, said the move boded well for Emperador.
“The entry into Mexico will strengthen Emperador brandy global position through Presidente brandy, which is Mexico’s number one locally produced brandy,” he said.
In February, Emperador completed the purchase of Beam Spain’s four iconic brands – Fundador, the oldest and largest Spanish brandy in the world; Terry Centenario, the number one brandy in Spain; Tres Cepas, the largest selling brandy in Equatorial Guinea; and Harveys, the number one selling sherry wine in the world.
In 2014, Emperador bought Scotch company Whyte and Mackay, jumpstarting the company’s global expansion.
Whyte and Mackay is the fifth largest Scotch whisky manufacturer in the United Kingdom that is behind the brands The Dalmore, Jura Single Malt Whisky, Mackinlay’s Shackleton Malt Whisky, Whyte & Mackay Scotch Whisky, Vladivar Vodka, among others.
Emperador brands are now available in 100 countries around the world.
As of September, Emperador grew its net income by five percent on the back of higher margins achieved through cost efficiency.
The company recorded a net income of P4.9 billion on the back of consolidated revenues of P27.9 billion.
Sales are expected to get an even bigger boost in the last quarter of the year compared to previous quarters on the back of increased consumer spending as a result of the holiday season.
Moving forward, Tan said Emperador’s global acquisitions would not end in Europe and in the Latin Americas.
“We’re always on the lookout for rare opportunities like this,” Tan said.