Emperador buys brandy and Sherry businesses from Beam Suntory

By Mathew Lyons

Published: 01 December, 2015

Philippine-based brandy business Emperador is to buy the Jerez-based brandy and Sherry operations from Beam Suntory.

The cash deal, valued at £193 million, includes Fundador, Harveys, Terry and Tres Cepas brands, as well as production facilities in Jerez and Tomelloso, Spain.

Steve Fechheimer, head of strategy and corporate development at Beam Suntory, said: "A recent review of our portfolio of brands and supply chain footprint led us to believe that our Spain-based brandy and sherry business could be of greater value to another company.

"Our teams in Jerez and Tomelloso are outstanding, and I am confident that the operations and the brands produced there have a very bright future as part of Emperador Inc."

Emperador is the world's largest brandy producer and dominates the domestic market in the Philippines. "We are very excited about adding the iconic brands of Fundador, Terry Centenario, Tres Cepas and Harveys to the Emperador portfolio," said Winston Co, president of Emperador Inc.

"We look forward to continuing to invest behind the acquired brands, welcoming the transferring employees to Emperador and engaging with the local community."

Fundador is the Philippines leading imported brandy. Harveys, Terry Centenario and Tres Cepas are the number one brandys in the UK, Spain and Equatorial Guinea, respectively,

The deal follows Emperador's acquisition of Whyte & Mackay from United Spirits last May for £430 million.

Whyte & Mackay is the world's fifth largest producer of Scotch. Brands include Jura and The Dalmore.

Emperador, which is part of the Alliance Global Group conglomerate, is aiming to double its earnings between 2014 and 2017.

Alliance Global Group is owned by Andrew L Tan.

Beam Suntory is the third largest drinks group in the world, after Diageo and Pernod Ricard. It was created last year by Suntory's £9.3 billion acquisition of Beam.

Brands in the Beam Suntory portfolio, which is dominated by whisky and bourbon, include Jim Beam, Maker's Mark, Hakusha, Yamazaki, Laphroaig, Teacher's and Courvoisier.

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