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MANILA, Philippines – Andrew Tan’s liquor business unit, Emperador Inc., said it plans to spend P3 billion ($67.44 million) in capital expenditures (capex) for this year since it is lining up 8 new products for launching domestically.
Emperador Chief Finance Officer Dina Inting, in an interview following the company’s annual stockholders meeting, said this year’s capital expenditures include P1.5 billion spending for its recently acquired Whyte & Mackay Ltd. in Scotland.
The remaining P1.5 billion ($33.72 million) will be used to expand domestic capacities, including construction of new production lines in its facility in Sta. Rosa, Laguna and the construction of new glass manufacturing plant in Canlubang, for its newly launched Smirnoff Mule.
New products
Smirnoff, launched in April and aimed for young consumers, will be available in at a suggested retail price of P32 per 330 mL bottle.
Smirnoff Mule and other liquor products that are aimed for launching this 2015 are seen to sustain the company’s continued strong sales growth, Emperador Director Kingson Sian said.
Sian said the company will also aggressively launch Whyte & Mackay products to Asian markets including Taiwan, China, Japan, and Korea.
After the completing the acquisition of Whyte & Mackay, Sian said the company remains on the lookout for other acquisitions.
New acquisition target
Sian said Emperador already submitted a bid to acquire 100% interest in French cognac maker Louis Royer from Japan’s Suntory Holdings Ltd.
Declining to disclose details about the bid, offer, Sian said the acquisition of Louis Royer will unlikely to cost more than the $700 million – which was the amount of Emperador’s offer to purchase Whyte & Mackay.
There would be another round of bidding following interested bidders’ submission last May 13.
Since the company has very little debt, Sian said Emperador could tap the debt market in case it wins the Louis Royer bidding.
If Emperador wins Louis Royer deal, this will be the third overseas acquisition for the Philippine brandy maker after buying Whyte & Mackay and 1,000 vineyards in Spain from Bodega Las Copas and San Bruno. – Rappler.com
$1 = P44.49
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