Cosco Capital unit eyes 5-10% share of light brandy market

MANILA, Philippines - Montosco, Inc., a unit of Cosco Capital Inc., aims to get a five to 10 percent market share in the light brandy category in five years with the launch of its new Excelente product line.

“We hope that in the next five years, we can grab a five to 10 percent share of the light brandy category,” Premier Wine and Spirits, Inc. president JP Santamarina told reporters during the launch.

Santamarina said that in the next two years, the aim is to sell at least 500,000 cases to generate sales of P500 million.

The category’s market leader is currently selling 31 million cases.

The low-alcohol new Excelente product line, which is made by Williams and Humbert from the vineyards and cellars of Jerez de la Frontera in Spain, is available for P95 per 750-ml bottle.

The new product line is already available in Puregold and S&R stores, and soon in other supermarkets.

Williams and Humbert invested $10 million for the production of the new light brandy, which is designed specifically for the Filipino market.

Santamarina said Montosco decided to introduce Excelente in the Philippines following the government’s move to apply uniform excise taxes on both local and imported distilled spirits.

“Before that, it is impossible to offer imported product selling P150 or selling P200 or even less than P100. The tax system is unfair to imported, skewed to local,” he said.

Republic Act No. 10351 or the Sin Tax Reform Law, which took effect at the beginning of this year, adopted a uniform tax system which applies equally to all distilled spirits.

Santamarina also said the introduction of the new product line was made as the light brandy category is growing.

“The light brandy category is a growing category maybe because Filipinos want to get healthy,” he said.

He added that there is potential for the category to grow because of the improving economy.

Apart from Montosco, which is the exclusive distributor of Spanish brands Alfonso Brandy, Vino Fontana as well as leading international brands Baileys Cream Liqueur, Patron Tequila, and Jack Daniels Whiskey, Cosco has two other liquor distribution units which are Premier Wine and Spirits, Inc. and Meritus Prime Distributions Inc.

Cosco’s liquor distribution holds the leading and dominant market positions in the premium imported liquor sector.

Cosco is also engaged in other businesses such as retail, real estate and oil and mineral.