Lucio Co’s The Keepers buys into Spanish winery

MANILA, Philippines — Retail tycoon Lucio Co, has acquired 50 percent of Spain-headquartered winery Bodegas Williams & Humbert SA, a move that marks his entry into liquor manufacturing from just import and distribution.

Co’, through The Keepers Holdings Inc., the largest imported liquor distribution in the Philippines, executed yesterday an agreement to acquire  50 percent  interest in Bodegas Williams & Humbert, the company behind the Alfonso brand which is the company’s biggest name in its portfolio of imported drinks.

The acquisition represents a strategic long-term investment that will enhance the competitive position of the group and strengthen its hold and secure the company’s supply line of its flagship brand and category, “Alfonso” brandy.

“It will also transform the company’s business model from a pure trading to a manufacturing and distribution one and provide an opening into markets outside the Philippines. The equity investment will also be bottom line accretive from its share in the future net income of Bodegas Williams & Humbert,” The Keepers said.

Under the agreement, The Keepers will pay 88.75 million euros, a price based on the independent valuation undertaken by PricewaterhouseCoopers (PwC). The cash consideration will be paid upon signing the share purchase agreement and completing other legal and closing requirements, The Keepers said.

Bodegas Williams & Humbert, a family-owned winery in Jerez de la Frontera founded 140 years ago, produces a wide variety of wine and spirits specially sherry and is the leading producer of light brandy.

The company distributes its products in Spain and in 50 countries worldwide. It has been producing Alfonso, the Keepers biggest brand and the number one imported brandy in the Philippines for more than two decades now.

The Keepers owns Montosco Inc., Meritus Prime Distributions Inc. and Premier Wine and Spirits Inc., three operating companies engaged in the importation, distribution and marketing of imported alcoholic and non-alcoholic beverages.

These companies distribute international liquor brands such as Alfonso, Johnnie Walker, Chivas Regal, Glenfiddich, Jose Cuervo, Jim Beam, Martell, Absolut, Red Bull and Jinro.

The Keepers reported a net profit of P981 million in the first half of the year, up 39.5 percent from P703 million a year ago.