Emperador sets P7B capex for 2023

Tycoon Andrew Tan’s brandy and whiskey conglomerate Emperador Inc. is earmarking P7 billion for its capital expenditures (capex) this year to fund its expansion initiatives.

In a disclosure to the Philippine Stock Exchange on Wednesday, Emperador said that bulk, or P6 billion, of its capex is allotted for the whisky segment, while the remaining P1 billion is allotted for the brandy business.

The P7 billion capital spending budget is aimed at expanding operations and upgrading machinery and facilities.

The higher capex for whisky business was due to its consistent growth with revenues increasing by 18% from 2020 to 2022, according to Emperador.

The company said that in order to meet the growing demand for its whiskies, facility upgrades are necessary to scale operations in its five distilleries across Scotland.

Emperador operates four malt distilleries namely, The Dalmore, Fettercairn, Jura, and Tamnavulin, which produce the company’s single malts of the same names, and one grain distillery.

Meanwhile, the remaining P1 billion of the capex will be used to improve brandy production facilities across the Philippines, Spain, and Mexico.

“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,” said Emperador Inc. president Winston Co.

Emperador is a global spirits conglomerate that owns Emperador Brandy and Whyte and Mackay. Its portfolio of iconic brands includes Fundador Brandy, The Dalmore, Fettercairn, Jura, and Tamnavulin Single Malt Scotch whiskies.

Emperador is a publicly-listed company at both the Philippine Stock Exchange and the Singapore Exchange. —VAL, GMA Integrated News