EMPERADOR DISTILLERS INC IN

ALCOHOLIC DRINKS
(PHILIPPINES)
Euromonitor International
June 2017
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LIST OF CONTENTS AND TABLES

Strategic Direction ........................................................................................................................ 1
Key Facts ..................................................................................................................................... 1
Summary 1 Emperador Distillers Inc: Key Facts ............................................................. 1
Competitive Positioning ................................................................................................................ 1
Summary 2 Emperador Distillers Inc: Competitive Position 2016 .................................... 2

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EMPERADOR DISTILLERS INC

STRATEGIC DIRECTION
 As a subsidiary of Emperador Inc, Emperador Distillers Inc manufactures and distributes
brandy in the Philippines.
 Whilst it is known for brandies such as Emperador and Emperador Light, the company also
distributes E&J Gallo products in still light grape wine and wine-based RTDs, such as Boone’s
Farm and Carlo Rossi.
 The company has been active in terms of acquisitions. After acquiring a 50% stake in Bodega
Las Copas from the Spanish brandy producer Gonzalez Byass in 2014, the company
acquired a 100% stake of the Scottish whisky producer Whyte & Mackay Group in the same
year. In February 2016, the company acquired brandy brands Fundador, Terry Centario and
Tres Cepas, and sherry brand Harveys.
 With the company’s momentum towards diversifying its product portfolio, Emperador Distillers
has been strengthening its presence domestically and globally. Most notably, the company
will be able to sustain its dominance in brandy because of the availability of products at
different price points.

KEY FACTS
Summary 1 Emperador Distillers Inc: Key Facts
Full name of company: Emperador Distillers Inc
www: www.emperadorbrandy.com
Activities: Manufacturer and distributor of spirits and
RTDs
Source: Euromonitor International from company reports, company research, trade press, trade sources

COMPETITIVE POSITIONING
 Emperador Distillers remained the second largest player in the alcoholic drinks market in
2016, with a 12% total volume share. In 2016 the company reached total volume sales of 296
million litres. It owes its strong position to its leadership in brandy, thanks to the strength of
Emperador and Emperador Light, and the distribution of Spanish brandies such as Fundador
and Terry Centario.
 Since 2013 the company’s total volume share has been declining, following the
implementation of the “sin tax”. Despite its decline in volume share in 2016, the company’s
total volume sales saw 7% growth from 2015. The company is also moving closer to its peak
volume sales in 2012, of 332 million litres.
 Whilst it cannot be ignored that Emperador Distillers has a strong foothold in brandy, the
economy brandy segment is mature. The recognition that the economy segment is becoming
saturated is reflected in the company’s move to diversify its portfolio, both within brandy and
in other alcoholic drinks.
 Following its active acquisitions, the company no longer relies only on brandy to generate
volume sales in the alcoholic drinks market. In 2016 the company’s brandy portfolio, which

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includes Emperador and Generoso, further expanded to include Fundador, Terry Centario
and Tres Cepas, as well as Harveys, a sherry brand. The company also has a presence in a
dynamic spirits category, whiskies, with Whyte & Mackay single malt whisky brands such as
The Dalmore and Jura, and its domestically manufactured brand Andy Player. Another
dynamic category in which the company is present is wine, with Carlo Rossi. Meanwhile,
Emperador Distillers also has wine-based RTD brands Boone’s Farm and Wild Vines, and two
spirit-based RTDs, Smirnoff Mule and Andy Player Whisky & Cola (launched in late 2016).
 Whilst it was initially a company that primarily focused on offering economy brands, the
company now caters to different incomes and age groups with its wider portfolio. For
example, Emperador may cater to mass consumers over 40, but Andy Player caters more to
the middle-income millennial group. The Dalmore and Jura, on the other hand, cater to high-
income consumers.
 Emperador Distillers has its share of innovations in the alcoholic drinks market. For instance,
the company is trying to renew interest in RTDs by increasing the marketing support for
Smirnoff Mule and adding Andy Player Whisky & Cola to its RTD product portfolio. Its stronger
push for Andy Player in terms of marketing and distribution also allows the company to take
advantage of consumers’ increasing awareness of whiskies.

Summary 2 Emperador Distillers Inc: Competitive Position 2016

Product type Total volume share Rank
Alcoholic drinks 11.8% 2
Beer - -
Wine 11.3% 2
Spirits 43.2% 1
Cider/perry - -
RTDs/high-strength premixes 7.6% 4
Source: Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

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