Emperador unit acquires 230-hectare vineyard in Spain

A unit of Andrew Tan's Emperador Inc. is acquiring another vineyard in Spain as part of the plan to own 2,000 hectares of grape-producing land by 2016 to support the raw material requirements of its brandy production. 

 

In a disclosure to the Philippine Stock Exchange, Emperador said wholly-owned subsidiary Grupo Emperador Spain S.A. has signed an agreement to acquire 230 hectares of vineyard land in Toledo.

 

The land is adjacent to the Vinedos del Rio Tajo operated by Bodegas Las Copas, a 50 percent joint venture company between Emperador and González Byass.

 

No other details of the transaction were disclosed. 

 

The company said it will expand Vinedos del Rio Tajo, a vineyard beside the longest river in Iberian Peninsula. 

 

Jorge Domecq, managing director of Emperador Spain, said they will install state-of-the-art technology in the vineyard which is the largest in Spain that specializes in wine grapes for brandy distillation.

 

"By using state-of-the-art technology in vineyard operation and management, we hope to achieve a yield capacity of 30,000 kilos per hectare against an average yield of around 6,500 kilos by the vineyard industry in Spain," he said.

 

"This means that in every hectare of this vineyard land, we will be able to harvest five times more wine grapes. This will very well support the raw material requirements for our brandy production,” he added.

 

The acquisition of the property will give Emperador the best position to be the number one brandy in the world, Domecq said. "That gives us the capacity to expand our global market."

 

The company official also said Emperador Spain is continuously looking for more vineyards to buy. "We expect that our total vineyard property will reach close to 2,000 hectares by 2016,” Domecq added.

 

This bodes well with the parent firm's goal of doubling its profits to P11.6 billion by 2016-2017 from P5.8 billion as of end-2013.

 

In August 2013, Emperador International Ltd., the international liquor arm of Andrew Tan's listed Alliance Global Group Inc., said it invested P5.8 billion in Spain to acquire vineyards and other brandy production facilities to grow its brandy brand globally.

 

The company produces Emperador, Generoso and Emperador Light brandy and a line of flavored beverages called The Bar.

 

Emperador is also responsible for bringing Diageo's brands in the country.

 

Diageo owns the brands Johnnie Walker, Crown Royal, J&B, Windsor, Buchanan's and Bushmills whiskies, as well as Smirnoff, Ciroc and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray and Guinness. – Danessa O. Rivera/VS, GMA News