Lucio Tan to invest P1.25 B more in South

ZAMBOANGA CITY — Bullish on the economic prospects of Mindanao, business tycoon Lucio Tan revealed yesterday that he is investing P1.25 billion more in liquor and softdrink facilities on the island.

"Seeing the great potential of Mindanao as a growth area, we are expanding our presence here by investing P1 billion in the Tanduay facility beside the Asia Brewery plant and another P250 million for a softdrink facility, (both) in Cagayan de Oro City," Tan said.

Tan bared his investment plan in his speech entitled "Investing in Mindanao: A Testimony" during the opening of the plenary of the three-day 15th Mindanao Business Conference here.

He said Tanduay Holdings Inc., a wholly owned subsidiary, is now expanding its production in Mindanao.

He said the $100-million liquor facility of Asia Brewery in Cagayan de Oro City — the first in Mindanao — is one of his biggest investments.

The state-of-the-art brewing plant is capable of producing 24 million bottles of beer a year.

In its annual report, Tanduay Holdings said it has cornered 49 percent and 35 percent of the market in the Visayas and Mindanao, respectively, with Luzon contributing only 16 percent.

In 2005, its total sales went up slightly by 0.59 percent to P6.8 billion from P6.76 billion a year ago. Tanduay’s Five Year Rum topped all brands, capturing 74 percent of total sales.

The new investment in the brewing and liquor facilities in Cagayan de Oro City is in anticipation of the company’s export market, Tan said.

Earlier, Tanduay Distillers Inc. bared its plan to export its rhum and other liquor products and spirit beverages in the Asia-Pacific region by next year.

According to the company’s website, its rhum products include Tanduay 5 Years, Tanduay Gold, Tanduay Rhum 65, Tanduay White, Tanduay Philippine Gold, Tanduay Dark, Tanduay Centennial Rhum, Tanduay ESQ, and Tanduay Superior.

Its wines include Ban de Vendange, Chardon Blanc, Cuvee de la Californie, and Vino Blanco. Its other products are Cossack Vodka, London Dry Gin, Guerrero Brandy, and Barcelona Brandy.

Tan said his group of companies will continue to maintain — and even expand — its presence in Mindanao.

Allied Bank, for one, has a total of 40 branches in Mindanao, 11 of them in Zamboanga City. The Philippine National Bank, which Tan controls, has 49 branches on the island.

The Tan-led Philippine Airlines and Air Philippines have daily flights to at least seven major points in Mindanao. Tan also has major meat, dairy and tobacco interests on the island.