By Arra B. Francia, Reporter
EMPERADOR, Inc. targets a 30-35% growth in sales volume for its Fundador brand this year, amid its efforts to encourage consumers to switch to its more premium offerings.
“We’re looking at 30-35% growth for Fundador business this year, that’s in volume,” Emperador President and Chief Executive Officer Winston S. Co told reporters in a briefing after the company’s annual shareholders’ meeting in Eastwood City on Monday.
The Fundador brand is part of the listed firm’s brandy business, which accounted for 71% of the company’s total revenues for the first quarter of 2018 at P7 billion. Aside from Fundador, its portfolio also includes Scotch whisky brands The Dalmore and Jura single malts.
“What we’re trying to do now is to promote brandy more aggressively internationally,” Mr. Co said.
Alongside efforts to grow the brandy business, Emperador is also offering the more premium Fundador Supremo. Mr. Co noted that the price of Fundador Supremo is at par with its single malt products, which range from P3,500 to P13,000.
“That product is already in the travel retail sector in Asia, China. So when you go to Beijing, Shanghai, Korea, at the airport, the product is already there. And soon, it will be available in Hong Kong and Singapore. We are trying to bring the Fundador brand more global, and more premium,” Mr. Co said.
For now, around 30% of Emperador’s revenues come from the international business, while the Philippine business accounts for around 70%.
“Overall, what we are saying here is that the significant part of our revenue and significant part of our margin moving forward will be coming from the international. And the international business coming from the whisky and from the brandy side are doing quite well,” Mr. Co said.
The Emperador executive said the five-year plan is expected to be finalized by the third quarter of 2018.
Meanwhile, Emperador is focusing its efforts to attract a bigger slice of the growing middle class segment in the Philippines.
“We are excited about the Philippines. Because when you look at the Philippines, you have a horizon of the next three to five years, and we believe that the Philippine economy at the rate that we’re growing, will be good for the consumers. There’s a consumption story because of the improving economy,” Mr. Co said.
Emperador is planning to develop two to three Fundador Cafes in the next couple of years.
The company’s first Fundador Cafe, which offers cocktails, spiked coffee and cupcakes, is located in the McKinley Venice Grand Canal Mall in Taguig City.
The liquor unit of tycoon Andrew L. Tan’s Alliance Global, Inc. reported its net income improved by 11% to P1.66 billion in the first three months of 2018. This was supported by an 8.5% growth in revenues to P9.7 billion, driven by its international operations.
Shares in Emperador rose two centavos or 0.28% to close at P7.18 each at the stock exchange on Monday.
