MANILA, Philippines - Emperador Inc., the liquior unit of tycoon Andrew L. Tan, has invested anew in Spain, buying into an integrated brandy producer for P3.7 billion to improve its production base.
In a disclosure, Emperador said its subsidiary Grupo Emperador Spain has reached an agreement to invest P3.7 billion for a 50-percent stake in Bodega Las Copas S.L., a company owned by González Byass S.A.
Bodega Las Copas is a fully-integrated brandy production company with a vineyard near Toledo, distillery plant in Tomelloso, Ciudad Real and brandy production facility in Jerez.
“With González Byass and Grupo Emperador joining hands, we are combining more than 200 years of experience in brandy- and wine-making,†said Jorge Domecq Bohórquez, managing director of Emperador International.
“By bringing together the markets of both companies, we have created a sizable global brandy market base that enables us to more aggressively pursue improvements in our brandy production, and invest in modern vineyard technology and innovation on a very large scale,†he added.
The 275-hectare specialized vineyard project of Bodega Las Copas near Toledo will be the first of its kind in Spain to grow the finest grapes dedicated exclusively for brandy distillation and production.
The pioneering vineyard uses sustainable, state-of-the-art technology, an innovation that will improve the company’s efficiency in producing top-quality brandy, Emperador said.
Bohórquez said the acquisitions will give the company a competitive advantage in brandy production.
González Byass, formed in 1835, is one of the largest sherry, wine and brandy producers in Spain. Emperador is the world’s second-largest selling liquor brand.
On the back of its numerous acquisitions last year, Emperador has boosted its vineyard property in Spain to almost 1,000 hectares.
Last August, Emperador Inc. committed to invest P5.8 billion in Spain as part of its plan to become a significant global brand. It earlier acquired 100 percent of Spanish brandy maker Bodega San Bruno, including the San Bruno trademark that has been registered since 1942.
Emperador targets to double its sales volume in the next five years as it intends to corner a third of the global brandy market. The liquor maker sold 31 million cases of brandy last year.
Emperador produces and sells Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.
In January to September last year, Emperador’s net income of Emperador improved 31 percent to P4.5 billion from a year ago while revenues picked up 22 percent to P20.6 billion.