In its bid to solidify the presence of its product in the global market, Emperador International Ltd., a unit of Alliance Global Group Inc., has earmarked a P5.8-billion investment for Spain over the next 12 months.
In a filing with the local bourse, it was disclosed that the wholly owned liquor firm of tycoon Andrew Tan’s conglomerate will allocate a P5.8-billion investment in Spain alone, as part of its strategy to build Emperador into a strong global brandy brand.
Jorge Domecq Bohórquez, managing director of Emperador International, said part of the P5.8 billion has been invested through the Spain-based Bodega San Bruno S.A. and Grupo Emperador Spain S.A., which are both owned by Emperador.
“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.
The next phase of Emperador’s investment in Spain includes the acquisition of more vineyards and other brandy production facilities, which include distilling and bottling plants. Due diligence is currently being conducted for the acquisitions, the company said.
“We have achieved remarkable progress in our investment in Spain, of which we are very pleased,” said Domecq.
“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,” he added.
Emperador Deluxe Spanish Edition, a brandy 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. We are looking closely into tapping other Asian markets such as China and Vietnam, initially,” said Domecq.
In January, Emperador entered into a discussion with Gonzales Byass S.A. for the acquisition of 100-percent interest in Bodega San Bruno S.A., a company wholly owned by Gonzales Byass based in Jerez, the brandy producing region in Spain. The firm said that the agreement includes the acquisition of vineyards in Jerez, the San Bruno trademark, and inventory of high-quality and well-matured brandy.
Emperador is also targeting a sales volume of 62 million cases in the next five years, which is double the 31 million cases sold in 2012.