Emperador allocates bulk of P7-B capex to boost whisky business

EMPERADOR, Inc. on Wednesday said that it is allocating P6 billion in capital expenditures (capex) for its whisky segment out of this year’s P7-billion spending budget, as it gears up for overseas expansion.

“As we continue our internationalization journey and expand our market reach, we are investing in more and better capacity to ensure that we can supply the growing demand for our high-end premium brands,” Emperador President Winston S. Co said in a statement.

The P6 billion in capital spending for whisky will be used to upgrade the company’s five facilities in Scotland. The company currently operates four malt distilleries in the area, namely: The Dalmore, Fettercairn, Jura, and Tamnavulin, which produce the company’s single malts of the same names, and a grain distillery.

The move to allocate the bulk of the capex to the whisky business was due to its revenues’ 18% compound annual growth rate from 2020 to 2022, the company said.

The company reported that its whisky segment performed well last year due to increased sales of its single malt whiskies in major global markets, particularly in Asia, North America, and Europe. The recovery of travel retail also contributed to the segment’s performance.

Meanwhile, the remaining P1 billion was earmarked for Emperador’s brandy business, which aims to improve production facilities in the Philippines, Spain, and Mexico.

“To keep up with its fast-growing business, the company is investing in capital expenditures to expand operations, and upgrade machinery and facilities,” the company said.

The company aims to expand its international operations by 2025 to account for about 50% of its business by doubling its branded single malt sales and achieving high single-digit growth in brandy sales.

Emperador is a global spirits conglomerate focused on brandy and whisky. It owns Whyte and Mackay and other brands including Fundador Brandy, The Dalmore, Jura, and Tamnavulin single malt Scotch whiskies.

The company is listed on the Philippine Stock Exchange and Singapore Securities Exchange.

Emperador shares rose by 0.48% to P0.10 to end at P21.05 apiece. — Adrian H. Halili