Emperador ties up with Diageo for premium drinks line

MANILA, Philippines - Emperador Distillers Inc. (EDI), the liquor unit of Alliiance Global Group Inc. (AGI) of tycoon Andrew L. Tan, and the world’s biggest premium drinks group are joining forces to bring world famous alcoholic beverages into the Philippines.

The new alcohol brands are targeted toward the growing middle class in the country, EDI said.

In a disclosure, EDI said it has entered into an agreement with Diageo to bring world-class iconic brands into the Philippines.

“The partnership signals the opportunities for growth in the alcohol drinks sector driven by the Philippines’ thriving economy and a rapidly growing middle class that is expected to almost double by 2020,” EDI said.

EDI earlier announced its plan to capture the open space, which is the growing middle class. In four to five years, the middle class will account for 10 percent of the spirits industry, translating to seven to eight million cases.

Diageo, which produces premium spirits, beer and wine including Johnnie Walker, Smirnoff, Captain Morgan and Guinness, said the new licensing agreement with EDI involves products that are not yet available in the market.

"The agreement with EDI will help Diageo participate in the growing middle-class that is expected to almost double by 2020," Diageo said in a statement.

EDI, meanwhile, is the company behind Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.

In 2012, EDI bought the Biñan, Laguna production facility from the Philippine unit of Diageo, the world’s biggest premium drinks group.

With the new facility, EDI targets to increase its production and technical capabilities as it promotes Emperador as a global brand.

The liquor firm posted a net income of P5.8 billion last year, up 17.4 percent from P5 billion in 2012, on the back of higher revenues. It sold a total of 33 million cases last year to maintain its position as the world’s largest selling brandy brand.

Aside from beverage, parent firm AGI is also into property (Megaworld Group), fastfood (McDonald’s franchise operator Golden Arches Development Corp.) and hotels and casino (Travellers International Hotel Group Inc.).