Cosco Capital Inc., the retail investment arm of tycoon Lucio Co, will continue to distribute half of the country’s supply of Fundador brandy despite the acquisition of Andrew Tan’s Emperador Inc. of Bodegas Fundador of Jerez, Spain.
Leonardo Dayao, the firm’s president, told reporters that Cosco has forged an agreement with Emperador on distributing around 150,000 cases of Fundador. This is the number of cases usually sold each year by Puregold Price Club and S&R Membership stores nationwide.
Emperador will now distribute Fundador brandy to other retailers in the country, which would slash Cosco’s supply by half.
Dayao noted the domestic consumption of Fundador is about 300,000 cases a year.
“We will just make up for the other half with sales from our other brandy brand Alfonso,” Dayao said.
Cosco is the exclusive distributor of Alfonso brandy through subsidiary Montosco Inc. Montosco will now have a higher distribution allocation to make for the slack in the distribution of Fundador.
Last March, Grupo Emperador Spain S.A., the overseas subsidiary of Emperador Inc., completed the P13.-billion purchase of Bodegas Fundador from Beam Suntory.
“With the combined brandy production facilities of Emperador and Fundador, the world’s largest brandy company is born. We now have almost 1,500 hectares of vineyard land in Spain, around 1,000,000 sqm of cellar and bottling facilities, and four distilleries here in Spain,” Jorge Domeq, Grupo Emperador Spain S.A. managing director, said.