Date: May 21, 2019
Publication: bworldonline.com
Link: https://www.bworldonline.com/emperador-aiming-to-grow-whiskeys-revenue-contribution-to-30-in-5-years

EMPERADOR, Inc. looks to increase the contribution of its whiskey business to overall revenues moving forward, banking on the company’s stronger presence overseas.

“We are planning that whiskey will go up a bit in terms of ratio or business share. It will go up a bit year on year. Once we properly implement our global strategy, the brandy will grow as well,” Emperador President and Chief Executive Officer Winston S. Co told reporters after the company’s annual shareholders’ meeting in Quezon City on Monday.

Mr. Co said the whiskey segment could grow its topline contribution to 30% within five years from 28% in 2018. Its brandy business accounted for 72% of revenues last year.

Emperador’s top executive noted that this is part of the company’s five-year plan, but declined to give further details due to the competitive market.

Emperador is also focusing on growing its malt products to 80-85% of the whiskey business, from its 2018 contribution of 65-70%. The company’s malt brands include Shackleton, Tamnavulin, Jura, Fettercairn, and Dalmore, priced from P1,250 to P3,580.

For the brandy business, Emperador wants to continue the introduction of more high-end products such as Fundador Supremo priced at P12,800. The company introduced the product in the travel retail market in Europe and Asia, and has recently been made available in the Philippines.

Fundador Supremo is significantly more expensive than its existing brandy products, such as Emperador, Tres Cepas, and Fundador Light which have a price range of P120 to P350.

“We believe that the Philippines five years from now will be very different. The consumption pattern will change so much because of the affluence that is coming to our growing middle class. We believe that this will change the landscape of the Filipinos’ consumption,” Mr. Co explained.

This is part of the company’s strategy to boost its high-value and high-margin products.

“The direction is to go for high- value, high-margin, fast-growing segment of the market. And we are using our global distribution strength behind this as well. Collectively, Whyte and Mackay, Fundador, we are in more than 100 countries. If we are in more than 100 countries, we can have new products, innovation, and go through the pipeline,” Mr. Co said.

Emperador’s net income attributable to the parent rose 10% to P1.74 billion, after revenues also grew 13% to P11 billion.

Shares in Emperador were unchanged at P7.49 each at the stock exchange on Monday.