Posted on August 07, 2013 10:57:24 PM
LIQUOR MAKER Emperador International Ltd. is investing nearly P6 billion in its operations in Spain, parent Alliance Global Group, Inc. said in a statement attached to a disclosure yesterday.
“Emperador International, a member of Alliance Global Group, will invest P5.8 billion in Spain over the next 12 months,” the statement read. “The investment is part of a dynamic strategy to build Emperador as a strong global brandy brand.”
According to Jorge Domecq Bohorquez, managing director of Emperador International, “part of the P5.8 billion has already been invested through Spain-based Bodega San Bruno S.A. and Grupo Emperador Spain S.A., which are both owned by Emperador.” Officials could not say how much had actually been spent for Bodega San Bruno and Grupo 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,” Mr. Domecq was quoted in the statement as saying.
Emperador Distillers, Inc. purchased Bodega San Bruno last January in a deal worth “not more than P3 billion,” according to a disclosure Alliance made that month.
The next phase of Emperador’s investment in Spain “includes the acquisition of even more vineyards and other brandy production facilities, which include distilling and bottling plants,” the company said.
Due diligence is currently being conducted for the said acquisition, it noted.
“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,” Mr. Domecq added.
The official said the company is also looking to expanding the distribution network of Emperador Deluxe Spanish Edition, a brandy produced and bottled in Spain.
“We launched Emperador Deluxe early this year to a very warm reception and the response of the Philippine market continues to be very good,” Mr. Domecq said.
“We are looking closely into tapping other Asian markets such as China and Vietnam, initially.”
Alliance Global, the holding firm of tycoon Andrew L. Tan, booked a net profit of P4.91 billion in the first quarter, up by 18.31% from P4.15 billion in the same period last year on the back of higher revenues.
In the same comparative periods, Emperador Distillers net profit jumped by 40% to P1.4 billion from P1 billion as revenues rose by 17% to P6.5 billion from P5.5 billion, according to a statement last May.
Shares of Alliance ended yesterday’s trading at P26 apiece, unchanged from their finish last Monday. — Cliff Harvey C. Venzon