Cosco spins off liquor businesses into DAVIN

Published February 23, 2021, 5:30 AM

by James A. Loyola

Businessman Lucio Co is spinning off his liquor distribution businesses in Cosco Capital Inc. to another publicly-listed firm, Da Vinci Capital Holdings Inc. (DAVIN).

In a disclosure to the Philippine Stock Exchange, Cosco said its Board of Directors has approved the acquisition of a controlling interest in DAVIN through a share-swap transaction.

The management of Cosco will enter into a Deed of Exchange of Shares with DAVIN, wherein DAVIN will issue common shares of stock to Cosco and, in exchange, Cosco will assign 100 percent of its liquor businesses in favor of DAVIN. 

These are unlisted companiesare Montosco, Inc.; Meritus Prime Distributions, Inc.; and Premier Wine and Spirits, Inc.

The final terms and conditions of the Share Swap, including the price or ratio, are yet to be determined by the parties. 

In the first nine months of 2020, Cosco reported that its liquor distribution business accounted for 19 percent of its consolidated core net income of P6.47 billion.

The Liquor Distribution business posted a 31.7 percent decline in revenues to P5.03 billion, on the back of a 27 percent decline in volume of cases sold due to Covid-19 community quarantine and liquor ban.

Net income for the liquor segment, however, increased by 4 percent to P750 million due to strategic cost control of its distribution, marketing and promotion expenses.

PWSI is engaged in the sales, distribution and marketing of imported wine, spirits, beer and specialty beverage brands. It caters to the imported and premium segment of the liquor and wines market. 

Premier is the exclusive Philippine distributor of world-renowned brands like Chivas Regal Scotch Whisky, Glenlivet Single Malt, Martell Cognac, Absolut Vodka, Jose Cuervo Tequila and Jagermeister, among others. It also carries brands from Gruppo Campari, eaven Hill, Distell and Osborne.

On the wine side, it has Mompo, the country’s favorite mass wine, Wolf Blass, Penfolds, Ruffino, Marques de Riscal and Vina Santa Carolina, which are among the leading wine companies in their respective countries of origin.

Montosco was acquired by Cosco in 2012 and is also a liquor importing and distributing company.

It is exclusive Philippine importer and distributor of Spanish brands Alfonso Brandy and Vino Fontana from Bodegas Williams & Humbert and Muga wines from Bodegas Muga. The list also includes leading international brands from Diageo, Castel Wines and Pegoes Wines.

Meritus became the exclusive Philippine distributor of Beam Global Spirits & Wine in March 2010.

Several notable international wine brand owners have partnered with Meritus, including the Treasury Wine Estates, the world’s top listed wine company and South Africa’s DGB. The company also carries key whiskey brands from Beam International, Jim Beam and Maker’s Mark.