The brandy war is expected to heat up in the country with ultra bilyonaryo Andrew Tan shooting for total domination in all price points by unleashing the leading Mexican brand, Presidente.
A Babbler said Tan is betting on Presidente to rule the market segment currently lorded over by Spanish brandy, Alfonso, owned by bilyonaryo Lucio Co’s The Keepers Holdings (KEEPR).
Tan’s global liquor empire, Emperador (EMI), currently dominates the brandy market – from the mainstream (Emperador) to premium (Fundador) except for the P200 to P300 price segment ruled by Alfonso.
KEEPR generated the bulk or 75 percent of its profit (P1.6 billion in the first nine months of 2022) from Alfonso.
Babbler said EMP, which booked P7.185 billion in profit in the first three quarters of 2022), planned to sell Presidente at the same price point as Alfonso with an eye on controlling the biggest hole in its portfolio, the middle or standard market.
Presidente is one of three brands that Tan acquired when he took over Casa Pedro Domecq in 2017 or two years after gulping down Spanish brandy giant, Bodegas Fundador. The other two were Don Pedro and Azteca de Oro.
Even before he became one of the country’s biggest property tycoons, Tan’s fortune was rooted in the liquor business starting with Andy Player whiskey in the 1980s and exploded with Emperador in the 1990s.
Tan has been crowned the brandy king with EMI which sold over 23 million cases of Emperador worldwide in 2021.