La Tondeña stockholders approve merger

Stockholders of La Tondeña Distillers Inc. (LTDI) approved in a special meeting yesterday the merger of Sugarland Beverage Corp., Metro Bottled Water Corp. and SMC Juice Inc. into LTDI with La Tondeña as the surviving corporation.

The merger is part of the restructuring of the water and juice businesses of LTDI in connection with the proposed sale of the brands and assets of these businesses to The Coca-Cola Company (TCCC) and Coca-Cola Bottlers Philippines Inc. (CCBPI) which LTDI parent firm San Miguel Corp. (SMC) re-acquired recently.

Eduardo M. Cojuangco Jr., SMC and LTDI chairman, said that with proceeds from the sale of the water and juice businesses, La Tondeña will gain the financial flexibility it needs to fully implement its strategies. LTDI’s efforts are now focused on restoring liquor growth and profitability in Southern Philippines, building new markets and intensifying exports, and preparing for allied businesses which would further capitalize on its existing competencies, Cojuangco said.

During the first semester of the year, La Tondeña reported a creditable performance despite an increasingly difficult operating environment. Its consolidated revenues in the first half rose by 12 percent to P7.841 billion from P6.995 billion a year ago. First semester operating income amounted to P1.5 billion.

As part of its key strategy to bring its liquor business to a new growth level, LTDI has been aggressively developing new products and penetrating new markets. La Tondeña has launched K35 and GSM Blue, lower proof variants of Vino Kulafu and Ginebra. These two new products, launched primarily for the Visayas and Mindanao markets, are giving consumers in these areas a greater variety of choice and thus effectively challenging the competitor’s stronghold.

The company also achieved a significant breakthrough in regional expansion, exporting close to 200,000 cases of various products to Thailand. LTDI’s goal is to double these orders by the end of the year and become a more active player in Thailand’s Bh85-billion liquor market.