Emperador seeks to expand market share in China, USA

Singapore. Emperador Inc., a liquor company led by businessman Andrew L. Tan, wants to take over the world by expanding its market share in two economic superpowers, China and the United States.

By 2025, the company plans to generate more than half of its revenues outside the Philippines.

On Thursday, Emperador became the first company listed on the Philippine Stock Exchange (PSE) to have a secondary listing on Singapore’s Securities Trading Ltd. (SGX). The company is listed in order of introduction, which means that no additional shares have been sold to the public. All of its shares will remain in the Philippines.

Del Monte Pacific Ltd., owned by the Campos family. is also a dual-listed Philippine company, but its primary listing is on SGX.

Emperador shares closed at SGD 0.45, compared to an opening price of SGD 0.435. It traded under the ticker “EMI”.

On the PSE, the company’s shares closed at 18.10 pesos a share, up 3 percent from the previous close.

The price of its shares at the moment will reflect the price of PSE.

Trading EMI shares on SGX is subject to a 0.6% share transaction tax paid by the Philippine Internal Revenue Service based on the gross sale price or gross cash value of the shares traded. Gross selling price refers to the total amount of money or its equivalent that the buyer pays to the seller as consideration for the shares.

This structure will remain in place for the time being as Emperador officials said the company has no plans yet to raise funds from the Singapore platform through a new share sale.

Company officials said the listing enhances Emperador’s ability to attract other international investors who want to buy part of the company.

“This is a really big milestone for Emperador. And it has strengthened the globalization of Emperador,” said company chairman Andrew Tan.

La Boon Chee, CEO of SGX, said Emperador will track its journey on the Singapore Exchange on its own and determine how it will conduct its fundraising activities. The listing, he said, opened up many opportunities as the company would gain a larger investor base.

“You have chosen a path of sustainable growth thanks to the resilience of your business and portfolio of iconic brands.”

Kevin Andrew Tang, director of the company, said its expansion in China would complete the company’s plans to build a global alcohol empire.

“We want to add to our portfolio in other categories. At Emperador, we hope we can conquer the world of single malt and Spanish brandy,” said the younger Tang, adding that they have always aimed to expand in China.

Brian Donaghy, head of Emperador’s whiskey business and CEO of Whyte and Mackay, said the Chinese and US markets will be an important part of the company’s revenue growth as Emperador dreams of becoming one of the global distillers like London’s Diageo and French. Pernod Ricard firm.

Foreign markets account for 30 to 40 percent of Emperador’s revenues. The company wants this figure to rise to 50 percent by 2025.

“We have grown a lot in Asia over the last 5 years. We have probably increased our business in the Asia-Pacific region by 10 times; and much of it is in greater China. And it will continue to grow… So I don’t have numbers in my head about what share it will be in China, but it is one of our target markets along with the US. But I expect growth in Europe as well. And I expect to grow in Canada and I expect to grow around the world,” Donaghy said.

Image credits: Photo provided