Keepers keen on expansion, eyes double-digit growth

MANILA, Philippines — The Keepers Holdings Inc. of retail tycoon Lucio Co is keen on adding more imported brands to bolster its already extensive portfolio as the company aims to sustain a double-digit growth amid a challenging environment.

Jose Paulino Santamarina, president of The Keepers, said the company is on the lookout for expansion opportunities.

“In the premium segment, although at present we do have a really balanced portfolio of spirits and under spirits,  we have a slew of segments there like scotch, single malt, cognac, brandy, vodka, tequila, rum, gin and so forth. And on wines we do have sparkling, red, white and fortified. We are still open to filling in the gaps of our portfolio to grow and we are always looking to expand,” Santamarina said.

“We are very particular about the niche that we play on which is the imported segment of the alcohol beverage sector. That’s where the expansion will be coming from,” he said.

The Keepers imports and distributes world-class spirits, wines and related products in the country.

It holds a leading market position in the imported distribution segment in the Philippines and has extensive and long-standing relationships with brand owners who are global market leaders.

“For 2024, we’re still looking at good solid number. We always would like to do double-digit growth. We started the first quarter on a double-digit growth, so we’d like to continue that,” Santamarina said.

“It’s a period of adjustment now, but consumers are adjusting to the new prices. We still believe that this company and this industry will continue to grow,” he said.

The Keepers saw its net income surge by 43.6 percent to P603.8 million in the first quarter as sales rose by 15.9 percent year-on-year to P3.3 billion.

Santamarina said consumers are now feeling the impact of the rising cost coming from the supply chain disruption that has been caused by the COVID pandemic.

With the inflation and the economic slowdown, he said consumers are a little bit price sensitive at present.

“There’s a little time needed for them to adjust to the new realities. What we’re seeing in the current period is they are still going out, but not as frequent as before,” he said.

“But it’s manageable. The beauty of the portfolio that we have is because it is very balanced, so we have premium products, really expensive products, $300 to $500 a bottle. But we also sell P215 to P300 imported product and this will continue to deliver the volume and the bottom line that we need,” Santamarina said.

The Keepers expects the entry level priced brands like Alfonso to drive sales volume this year.

“A lot of growth will be coming from that particular category and also the reliable brands like Johnnie Walker for scotch, Jameson for whiskeys. When there’s a slowdown, consumers tend to go to the brands that they are really comfortable with. The standard and the leading brands. And those brands are what we have in our portfolio,” Santamarina said.

The Keepers believe that the spirits segment is undergoing shifts in consumer preferences in favor of higher-quality and premium offerings.

The group intends to continue to capitalize on such trend to gain ground against local competitors.

“Moving forward, we expect the trading environment to still be challenging given the supply disruptions and high inflation environment and other macroeconomic uncertainties,” The Keepers investor relations officer John Marson Hao said.

“Notwithstanding these factors, we are confident in the strong fundamentals of the company, the resilience of the industry and the ability of our operating business units to navigate these challenges and continue to deliver higher profits in 2024,” he said.