Philippine distiller Emperador, one of the core businesses of Alliance Global Group, on Tuesday said it has purchased Beam Suntory’s brandy and sherry businesses in Spain in the latest deal that underscores Southeast Asian companies’ hunger for growth.
Emperador, already the world’s largest brandy producer in 2013, paid 275 million euros ($291 million) for the acquisition of Fundador Pedro Domecq, the Philippines’ largest selling premium imported brandy brand; Terry Centenario, Spain’s No. 1 selling brandy; Tres Cepas, Equatorial Guinea’s No. 1 brandy; and Harveys, the U.K.’s No. 1 selling sherry wine.
The deal with Illinois-based Beam Suntory follows Emperador’s acquisition of U.K.-based Whyte & Mackay, the world’s fifth largest selling Scotch whiskey, for 430 million pounds ($723 million at that time). It also bolsters Emperador’s investments in Spain, where it has already spent at least 5.8 billion Philippine pesos ($123 million) for the acquisition of vineyards and bottling facilities.
The investments abroad give Emperador a wider market, where it can distribute other products, like its namesake brandy in the Philippines.
“With the combined global reach of Whyte & Mackay and Fundador, our expanded product portfolio will have access to more than 100 countries around the world,” said Emperador President Winston Co. “In our pipeline are several proudly Philippine-made products that we intend to introduce to the international markets starting next year.”
Beam Suntory’s Spanish businesses will be immediately accretive both to Emperador’s revenue and net income, which stood at 29.1 billion pesos and 4.7 billion pesos, respectively, in the nine months ending September.
Alliance Global, controlled by Philippine billionaire Andrew Tan, owns property giant Megaworld, Resorts World Manila operator Travellers International Hotel Group, and the Philippine franchise of the McDonald’s fast-food chain.
Source and image: Nikkei