Competition in the Philippine brandy market is intensifying as Tanduay Distillers Inc. enters a distribution agreement with Spanish spirits producer Miguel Torres SA, aiming to chip away at the dominance of local giants and established imports.

Tanduay President and Chief Executive Officer Lucio Tan III said the partnership will introduce the Torres 5 Light label to the Philippine amid their aggressive push into the country’s mainstream spirits segment.

Local brand Emperador Inc. and imported label Alfonso currently command significant market share in the domestic market.

“The arrival of Torres in the Philippines reflects our vision to offer Filipino consumers world-class spirits,” Tan said. He described the tie-up as a union of two ‘great houses” ocused on long-term growth in Southeast Asia.

The Philippines represents a high-stakes battleground for brandy producers. While Emperador remains the world’s largest brandy by total volume, Torres claims the top global spot in terms of value and volume within the “on-trade” sector—which includes bars, hotels, and premium venues—according to Drinks International.

Christian Visalli, Torres Spirits Global Managing Director, said the company relies on IWSR data to track its leadership in the category.

He noted that the partnership leverages Tanduay’s extensive distribution network to reach a consumer base that is increasingly looking for authentic Spanish heritage.

The local market for imported brandy is estimated at 300,000 to 500,000 cases a month, providing a runway for new entrants.

Tanduay International Business Manager Roy Sumang said the company is targeting an initial market share of five percent to 10 percent for the Torres brand.

To reach that goal, Tanduay plans to price Torres 5 Light competitively against mass-market leaders. The product, crafted from grapes and aged in oak barrels using the traditional Solera method, is intended to offer a “premium feel” at a price point accessible to the average drinker.

Beyond the initial mass-market push, Tanduay plans to expand the lineup in the first quarter of the year. The company will introduce higher-end stock-keeping units, including Torres 10 Green Apple, Torres 15, Torres 20, and the ultra-premium Jaime Primero.

These products will be sold through liquor boutiques and high-end retailers such as S&R and Landers.

The Torres family has been cultivating vineyards in Spain’s Penedès region since the 16th century, though its formal brandy-making business began in 1928.