Tanduay Distillers Inc., a subsidiary of Lucio Tan’s LT Group Inc., reported that it is gaining traction in the Chinese market despite being a newcomer in the country.
In a statement, the firm said Philippine rum brand Tanduay is starting to gain recognition among consumers after introducing them to the world of Asian rum.
“The Asia Pacific market, which includes China, was a big driver of Tanduay’s international business in 2023, which grew by 59.24 percent versus that of 2022. Our international sales also increased by 60.54 percent last year compared to the previous year,” said Tanduay International Business Development Manager and Senior Brand Manager Marc Ngo.
He added that one of their focuses is penetrating the bars around the country. “Our objective is to elevate the cocktail experience of the Chinese market,” Ngo pointed out.
Joseph Zhang, Marketing Manager for HengTe Selection Trading, Co., Ltd., Tanduay’s distribution partner in China, said the rum category, along with tequila, is experiencing growth in the Chinese market because of young consumers who have a penchant for cocktails.
“Our goal is to educate consumers about Tanduay -- its history, sugarcane varieties, craftsmanship, and unique taste, through digital media. This approach has so far helped us in raising awareness for the brand,” he said.
Tanduay achieved significant strides in mainland China in 2023, with its products making their way to shelves in cities like Beijing, Shanghai, Tianjin, Guangzhou, and Zhengzhou. While the initial volume was modest, these placements mark a promising start for the brand.
To boost the brand’s presence, Tanduay participated in the 109th Food and Drinks Fair in Shenzhen and hosted several tasting events. Its products were also made available on online platforms such as JD.com and Taobao for accessibility to consumers.
According to Zhang, Tanduay White Rum and Boracay Coconut Rum are the most popular among the brand’s products right now.
“Gen Z is the main market for imported spirits like Tanduay. They like to mix it in cocktails. They also prefer low-alcohol drinks,” he said.
For 2024, Zhang said that they will further build Tanduay’s image and increase market reach through tasting events and marketing campaigns.
“Our target this year is to achieve a 50 percent sales increase,” he said.
Tanduay is strongly expanding its international business even further. It is now available in China, the U.S., Singapore, Qatar, United Arab Emirates, France, Germany, Belgium, the Netherlands, Luxembourg, the United Kingdom, Austria, Poland, Georgia, Armenia, the Czech Republic, Costa Rica, Canada, New Zealand, Ukraine, and Taiwan.