Emperador sees better year for brandy business

MANILA, Philippines — Emperador Inc. expects 2025 to be a better year for its brandy business, while its whisky business could remain challenging due to the potential impact of new trade policies from the United States.

In its recent analyst briefing presentation, the global brandy and whisky conglomerate led by tycoon Andrew Tan said that “2025 will be better than 2024” for its brandy business, with higher margins expected this year.

Emperador is pivoting its brandy business to target low-priced segment and will continue to pursue premiumization strategy.

For its whisky business, however, Emperador expects the environment to remain challenging, especially with the new US trade policies.

Overall, the company said that it is keeping a close eye on developments on US tariffs and its effect on global market dynamics.

Emperador said that headwinds persisted in 2024, slowing down growth in revenue and net profit.

The company’s net profit fell by 27.4 percent to P6.32 billion in 2024 as a result of lower revenues coupled with continued investment in the business.

Revenues slipped by 6.1 percent to P61.64 billion due to weakness in consumer demand given economic challenges leading to tighter wallets.

The brandy segment was challenged by weaker consumer demand, posting a 51.2-percent drop in net profit to P1.81 billion.

The segment saw revenue decrease by nine percent to P36.39 billion on weak demand as consumers shifted to bottom-shelf products.

Its whisky segment was more resilient, with revenue slipping by 1.6 percent to P25.26 billion. Net profit of the segment declined by 9.6 percent to P4.51 billion due to interest rate and taxes.

Early this year, Emperador, through its Mexican subsidiary Casa Pedro Domecq, acquired 60 percent of Destileria Los Danzantes S.A. de C.V., a company that owns premium mezcal brands.

The addition of luxury mezcal to its whisky and brandy portfolio further strengthens the premiumization and internationalization strategy of Emperador.

Emperador, a publicly listed company at both the Philippine Stock Exchange and the Singapore Exchange, owns Emperador Brandy, the world’s best-selling brandy.

Its portfolio of iconic brands also includes Fundador Brandy, The Dalmore, Fettercairn, Jura and Tamnavulin Single Malt Scotch whiskies that are available in more than 100 countries.