TANDUAY Distillers, Inc. (TDI) is targeting to grow sales volume by 10% this year, as it plans to expand overseas distribution of its products.
TDI Chief Financial Officer Nestor C. Mendones said the company is on track to hit its 10% sales volume target for this year. It hopes to boost sales to 22 million cases this year, from 20 million cases in 2018.
“For the first quarter, (sales volume) are ahead by five percent so hopefully we could continue to do that throughout the year,” he said during a briefing at the Century Park Hotel in Manila on Saturday.
Parent company LT Group, Inc. reported TDI revenues from liquor increased during the first quarter, “on the back of a 5% growth in volume.” This helped TDI’s net income surge 73% to P234 million in the first three months of 2019.
“Realistically siguro five percent increase… We’re happy with that, although we are trying to be aggressive by targeting 10% increase this year,” Mr. Mendones said.
TDI has seen lackluster second-quarter sales, as inventory from dealers is still high. But Mr. Mendones is optimistic sales will pick up in the third quarter, as sales typically peak during the first and third quarters.
However, TDI may face some headwinds as the incoming Congress is expected to restart discussions on a proposed hike in excise taxes on alcohol products.
Mr. Mendones said the higher excise tax would be “very detrimental” to local industry.
“What could possibly happen when excise taxes become extraordinarily high would be to encourage more the influx of foreign brands which can really shoulder these amounts of taxes because of their higher selling prices,” he said.
TDI Chief Marketing Officer Paul Lim said Tanduay distribution will be expanding to Singapore next month.
“Pina-priority namin kung saan muna maraming mga Pinoy. Kasi ’yung mga Pinoy ’yan ’yung mga tutulong sa’tin eh, we’re very proud of the Philippine product (We are prioritizing places where there are a lot of Filipinos. Because Filipinos, they’re the ones who will help us, we’re very proud of the Philippine product.),” Mr. Lim said.
TDI is also looking to further expand Tanduay distribution in the United States, Guam and five countries in Europe.
At the same time, TDI said global spirits market think tank Drinks International named Tanduay as the world’s number one rum for the second straight year.
“The two horse-race between Bacardi and Tanduay seems to be a thing of the past, with the latter boasting an additional 3 million cases in 2019,” Drinks International was quoted as saying by TDI in a statement.
Tanduay’s market share in the Philippines rose to 27% in 2018, from 25% in 2017. — Katrina T. Mina
