Emperador Inc., the liquor business of tycoon Andrew Tan, is aiming to double the sales of its branded single malt whisky by 2025 as it banks on market premiumization and the growing demand for high-priced scotch in China.
In an investors’ briefing, Emperador said that its single malt sales currently accounts for 70 percent of its branded scotch whisky business and “even more important in margins terms.” The segment registered a compounded annual growth rate (CAGR) of 8.6 percent from 2016 (P11.4 billion) to 2020 (P15.9 billion).
“Perceived as dynamic, international and sophisticated drink by urbanized and high income consumers, Emperador’s single-malt scotch whisky business has grown rapidly in China during the last five years,” the firm said.
Emperador noted that its unit Whyte & Mackay is now the 6th largest scotch whiskey manufacturer globally with its single malt whiskey brands Dalmore, Fettercairn, Jura, and Tamnavulin.
Since its acquisition by Emperador, Whyte & Mackay has rapidly grown its business by expanding from a UK-centric whiskey firm to a more internationally and “globally recognized portfolio of brands.” Whyte & Mackay has significantly outperformed the rest of the market in Greater China with sales in 2020 amounting to 24 times its level in 2015.
CAGR is 114 percent for Mainland China while CAGR for Greater China (including Hong Kong, Macau and Taiwan) is 89 percent.
To achieve its aggressive growth target, Emperador aims to generate 50 percent of its revenues from the sale of both whisky and brandy outside of the Philippines In July, Emperador said profit for the first half of the year reached P5.1 billion, up 53 percent from P3.33 billion. Meanwhile, sales hit P25.3 billion, up 18 percent from P211.44 billion.
Apart from the whiskey brands, Emperador also owns Fundador Spanish Brandy de Jerez, and locally produced Emperador Brandy.