Tanduay to bring products into new markets overseas

MANILA, Philippines — The country’s top rum maker plans to expand overseas by making its products available in three new countries and three new states in the US this year.

Tanduay Distillers Inc. chief financial officer Nestor Mendones said the company plans to enter new markets this year.

“To go abroad, you need partners. Sometimes, you have to incorporate the company so that then, maybe you can get a local partner that is already in the market. Everything is in the exploratory stage,” Mendones said.

Apart from the Philippines, Tanduay is present in other markets such as Australia, Guam, Germany, China, United Arab Emirates, and the US.

In the US, Tanduay’s products are available in Florida, California, New York, and Chicago in Illinois.

Mendones said bulk of Tanduay’s sales still comes from the domestic market.

Last year, the firm sold 5,000 cases overseas.

Meanwhile, it sold around 20 million cases in the domestic market.

Mendones said the company would want to see sales increase by five percent this year.

In the domestic market, Tanduay wants to be able to expand its presence in Luzon.

This, as the company accounts for only two percent of the Luzon market.

“We want to double our existing share, Double two (percent]) to become four or five (percent) next year,” Mendones said.

Tanduay plans to spend P600 million for capital expenditures this year, with P500 million to be used mainly to improve production distribution in Luzon, and P100 million to go to Asian Alcohol Corp.’s biofuel production.

In addition to rum, Tanduay produces spirits, wines, brandies, gins and vodka.