Emperador Inc., the liquor firm of businessman Andrew Tan, said it will spend some P1.5 billion this year, some 50 percent higher than last year’s P1 billion, as it further expands its footprint in various international markets.
“Last year at the height of the pandemic we held back our capital expenditures [capex]. We expect pandemic to ease with the global vaccination program happening. We expect people to travel again by 2022; economic activities to return to some sort of normalcy. So we have decided this year to invest ahead so that our growth plan will be sustained,” Winston Co, the company’s president said.
Co did not provide a breakdown of the company’s capex this year.
He said the company is doing well in the United States and in Europe, especially in its stronghold in the United Kingdom. In these areas, liquor is considered an essential product.
Co said the company’s sales in the United States grew more than 20 percent. In the United Kingdom, the company grew more than 30 percent. In China, Emperador more than doubled its sales.
“In contrast, there have been liquor restrictions in certain areas in the Philippines over an extended period of time. Meanwhile, e-commerce is increasing its role in our business all over the world,” Co said.
“As a global company, we constantly adapt to changing consumer behavior especially in a challenging and difficult environment. Consumers around the world react differently by region or country depending on how liquor is positioned or perceived as either an essential or non-essential product.”
Emperador earlier said its attributable income in the first quarter grew 43 to P2.1 billion from the previous year’s P1.45 billion, still as a result of its strong overseas sales.
The company that sells brandy and whiskey said its revenues rose 13 percent to P12.1 billion from last year’s P10.53 billion.
“The current environment has shifted consumer behavior differently in various markets. The company has managed to adapt and grow with consumer and economic movements. We are optimistic that the gains we have achieved will lead the company to a new phase of growth. We expect the situation to improve and return to some level of normalcy towards the end of the year,” Co said.
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