POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

In Partial Fulfillment

Of the Requirements for the course subject

INTERNATIONAL BUSINESS AND TRADE

Submitter by:

Mark Melo Emmanuel R. Segui

BSAME 3-1

Submitted to:

Mr. Mar Jonathan Flores

July 2023
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Overview

About the Company

Emperador Inc. (EMP) is a holding company which operates an integrated business of

manufacturing, bottling and distributing distilled spirits and other alcoholic beverages from the

Philippines and Europe.

Through Emperador Distillers, Inc. (EDI), EMP has established its identity in the Philippine

alcoholic beverages business with steady growth and production of high quality liquor. EDI is

the Philippines’ largest liquor company and the world’s largest brandy producer.

The consolidated product portfolio is comprised of domestic and foreign brands led by

Emperador Light, Emperador Deluxe, Andy Player Whisky, Smirnoff Mule, The Bar, The

Dalmore and Jura Scotch single malt whiskies, and Fundador.

In 1990, Emperador Brandy was launched as Philippines’ first brandy label. This brandy was

produced through a delicate blending and aging process. The result is a brandy of distinctive

aroma flavor and consistent mellow quality. One look, one sip and it becomes clear to all that

Emperador is a world-class product that is easily affordable.

Through dynamic marketing and by establishing a reputation for product quality, EDI created

demand for brandy in the Philippine spirits market. Emperador Brandy has now started to

expand its brand footprint outside the Philippines. It holds its position as the world's largest

brandy by volume and it is now being distributed in 40 countries across Asia, North America,

Africa, Middle East, and Europe.

In 2010, Emperador Light was introduced in response to a growing market for alcoholic

beverages with lower alcohol content and targeted the younger alcoholic beverage consumers.
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In 2014 and 2015, the company acquired Whyte and Mackay, and Bodegas Fundador,

respectively. Through Whyte and Mackay Group Limited (WMG or Whyte and Mackay) of

United Kingdom, EMP has entered the global Scotch whisky business.

WMG has a rich heritage of a Scottish spirits company, which is the fifth largest Scotch whisky

manufacturer in the world, and its products are distributed in over 50 countries. And with EMP’s

most recent purchase of the brandy and sherry business from Beam Suntory (Bodegas

Fundador, completed in February 2016), EMP has fortified its brandy and sherry business, and

has strengthened its overall liquor business.

As a global company, Emperador Inc. is now able to capitalize on its worldwide distribution

network catapulting its full range of brandy and whisky products led by Emperador and

Fundador brandy as well as single malt whisky The Dalmore and Jura plus Whyte & Mackay

and John Barr blended whiskies.

A new era has indeed begun for Emperador.

Vision

Bring world-class products to the Philippines and Emperador products to

the rest of the world

Mission

To provide fantastic, superb and iconic drinks to consumers from all walks

of life all over the globe

Values

Strive to uphold the Filipino values of loyalty, integrity, hard work,

excellence, and passion

 
 
 
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Value Creation

Business

Emperador Brandy is the world’s best-selling brandy. In 2013, it sold 400 million bottles in Asia,

primarily in the Philippines and the Middle East. It is a brandy of unparalleled quality,

smoothness and flavor. Emperador Brandy owes its success to an intricate blending and aging

process. All it takes is one sip to fully appreciate Emperador Brandy as a world-class product –

that just happens to be conveniently affordable.

In 2010, Emperador Light was introduced, becoming the country’s first light yet full-flavored

brandy. Factoring in the brand’s monumental success are its exceptional quality, widespread

market availability, and charming campaign focused on keeping things light.

In 2011, the brand launched its “Gawin mong Light” campaign, which encouraged drinkers to

look at the lighter side of life’s daily challenges. This philosophy resonated well with our target

consumers, who constantly work hard to achieve their personal goals but prefer to keep things

light when it comes to their social life.

Dr. Andrew L. Tan’s vision of Emperador as a producer of worldclass quality products led to the

acquisition of the renowned Bodega San Bruno in Jerez – the brandy capital of the world. This

investment included sweeping tracts of vineyards in Toledo, the latest viniculture technology,

and a sizable inventory of high-quality brandy that is now being meticulously aged in sherry-oak

casks at Bodega San Bruno. Emperador’s acquisition of Bodega San Bruno brings together

over two centuries of brandy-making tradition. This enables the company to pursue innovations

in brandy production in a competitive and thriving global market. More importantly, the

acquisition provides a platform to expand Emperador’s global footprint and product offerings.
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The launch of Emperador Deluxe in 2013 further strengthened the company’s brandy portfolio.

This fine spirit has been well-received by consumers who enjoy its unparalleled taste and top-

notch quality. In less than a year, Emperador Deluxe became one of the largest brands in the

imported liquor segment. This established Emperador as a global brand, and a major player in

the premium liquor category.

Emperador Brandy’s Logo

Strategic Positioning

Emperador Inc., the largest global brandy company that owns the world’s iconic and

best-selling brandy Emperador Brandy as well as Fundador Brandy, is increasing its capital

expenditure budget this year to P3.0 billion from P1.74 billion in 2021 as it further expands its

global footprint in various international markets. “Most of the capex budget will be spent outside

the Philippines, bulk of which will be on the whisky business” says Emperador Inc. president

Winston Co. He added, “We operate in an ever-changing, dynamic and highly competitive

industry. Strategic investments are key to ensuring that as a global company, we can adapt to

evolving consumer preferences and demands. Not only this, but we are also able to deepen and

stengthen our premiumization and internationalization efforts." Emperador Inc., whose brandy

and whisky products are available in more than 100 countries across six continents, is a

publicly-listed company at the Philippine Stock Exchange

Benefits of Brandy:

Boosts Immune System

Suffering from cold or flu? Take a shot of brandy and wait for it to work magic. Brandy

has antibacterial components and its high proportion of alcohol helps to get rid of the cold,

throat pain and coughing in no time. The perfect pairing of its warming nature and relaxing

quality made it a trusted source to boost the immune system for hundreds of years.

Sleeping Aid

There is a reason why brandy is often denominated as an after-dinner drink. Because of

the soothing and relaxing qualities, it induces a person to a sound sleep. If you have a problem

sleeping at night, you might want to try sipping on brandy. Make sure you don’t drink it just

before you are preparing to sleep.

Reduces Weight & Cholesterol Level

Concerned about your weight or have high cholesterol? Brandy is made for you. Unlike

other alcoholic drinks, brandy contains no carbs and is low in cholesterol. This allows it to keep

your weight controlled. It can also be used as an aperitif. Thanks to its antioxidant compounds

which enables it to remove the bad cholesterol from the arteries and make way for good. So,

enjoy your waterfront fine dining alongside the best brandy without worrying about your weight

and cholesterol.

Anti-ageing Properties

Why try those expensive treatments, when you can simply enjoy your drink and prevent

the premature ageing symptoms? You read it right! Brandy contains antioxidant compounds

which eliminate or neutralize the effect of free radicals, which mutate the healthy cells in our

body. This prevents wrinkles on the skin, poor vision, cognitive issues and other ageing

symptoms.

Alleviates Inflammation in Arteries

The polyphenolic compounds present in brandy helps to reduce inflammation in the

arteries. It also lowers the blood pressure and prevents other cardiovascular problems. So, sip

on your brandy guilt-free, sitting in an amazing restaurant in Grand Cayman.

Attitude to Shopping: Part of the Investor Relations program of the Company is to encourage

continuous discussion between its management and its shareholders, stock brokerage firms,

analysts and investors in order to convey clear, timely, relevant and reliable information about

the Company. This is achieved through the following activities:

Marketing Strategy of Emperador.

Emperador brand is the world’s number one selling brandy after more than doubling its volume

sales during 2011. Growth of 109.4% was achieved during a single year taking the Alliance

Global Group brand from 9.6 million 9-litre cases in 2010 to 20.10 million cases in 2011 (source:

The Millionaires Club 2012). Emperador’s 2011 performance saw it leap over the previous

category leader, the India-based United Spirits' brand, McDowell’s, which sold 11.72 million

cases in 2011 (source: The Millionaires Club 2012).

While the brand’s volume sales equate to around double that of the big cognac brands

Hennessy, Martell, Rémy Martin and Courvoisier collectively (source: The Millionaires Club

2012). Jeremy Cunnington, senior alcoholic drinks analyst at Euromonitor International said:

“Emperador benefited from favourable conditions which saw strong growth (high single digits) in

the domestic spirits market in 2011 caused by strong economic growth and a number of

elections (drinks are offered to voters at rallies to persuade them to attend).

“Yet the growth of Emperador was driven by strong innovation and marketing activity for the

brand, with a key driver the late 2010 launch of a light variant.”

Emperador’s results will be published alongside the world’s other million-case selling brands in

Drinks International's The Millionaires' Club 2012 supplement in July.

The research, compiled by Euromonitor International, is a definitive ranking of the world’s

largest spirits and liqueurs brands.

Problem Removal 

The biggest goal for Emperador started as a small brandy company in the Philippines. With

passion and a great product, Emperador became the biggest brandy producer and largest

spirits company in the Philippines. But Emperador had bigger ambitions. With

internationalization and diversification in mind, Emperador acquired Whyte & Mackay, the 5th

biggest scotch whisky maker in Scotland, and Bodegas Fundador, the biggest and oldest
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brandy maker in Spain. Armed with these iconic and heritage-rich brands in its roster,

Emperador is now embarking on its second phase of growth – internationalization.

Value Chain

Emperador Inc., the liquor firm of tycoon Andrew Tan, posted a net profit of P10.8 billion in

2021, a 35 percent increase from P8 billion in 2020. “Normalized net profit to owners went up by

34 percent year-on-year to P10.6 billion last year. Revenues rose by six percent to P55.9 billion.

Even after deducting an extraordinary non-cash deferred tax expense, net profit to owners

increased by 25 percent year-on-year to P10 billion,” Emperador said in a statement.

Emperador’s international brandy business was led by its Fundador brand, which performed

strongly in the UK, the US, Canada, Spain, Mexico and Asia, including the Philippines. The

whisky business performed strongly in North America, Europe, as well as Asia, led by Greater

China. Emperador president Winston Co said the company performed extremely well, marking

another banner year for the Tan-owned liquor business .Co said this was achieved despite the

global health pandemic that crippled many businesses. “Against a backdrop of the global

pandemic, Emperador managed to remain resilient. We are very fortunate to have a deep and

diversified brandy and whisky portfolio, and a vast product availability across at least 100

countries. This blends well with our highly seasoned and experienced management team from

the UK, Scotland, Spain, Mexico and the Philippines,” Co said. He said the company would

remain committed to growth despite new challenges, such as the global logistics constraints that

have resulted in supply chain problems for companies across the globe, as well as rising

commodity prices.“We remain steadfast in the face of new challenges in global logistics, rising

cost, and new surges of new COVID-19 variants. We remain optimistic economies will open up

more in the coming months,” Co said.Emperador is a brandy and whisky conglomerate listed in
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the local stock market with a market value of $5.2 billion. It owns Fundador – Spain’s oldest and

largest brandy and sherry maker. Likewise, Emperador is also the company behind Whyte &

Mackay – the fifth largest whisky manufacturer globally with 175 years of whisky heritage. At

present, Emperador is in at least 100 countries across six continents.

References:

https://www.emperadorbrandy.com/about-us.html

https://dollarsandsense.sg/5-things-know-emperador-inc-sgx-emi-largest-brandy-spirits-

company-philippines/

https://drinksint.com/news/fullstory.php/aid/2976/

The_Philippines__Emperador_leads_the_brandy_world.html

https://www.philstar.com/business/2022/04/25/2176458/emperador-profit-35-p108-billion
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