LISTED whisky and brandy producer Emperador, Inc. has earmarked P4 billion for capital expenditure (capex) this year to boost production capacity.
Emperador will use most of the capex for the ongoing expansion of its Dalmore distillery in Alness, Scotland, which is scheduled for completion in the second half of the year. This year’s capex is lower than the P6.5 billion allocated for 2024.
“We are almost at the completion of the Dalmore distillery expansion in Alness, Scotland. This is envisioned to double the brand’s production capacity while also providing a new visitor experience,” Emperador Chairman and President Winston S. Co said in a regulatory filing on Monday.
The company is also expanding the whisky maturation complex at its Invergordon distillery, doubling its footprint to 92 hectares from 45.4 hectares. This will allow the grain distillery to house an additional 1.5 million casks of maturing whisky.
“All this effort will ensure the capability of the whisky business to meet greater global demand for single malt and blended whiskies in the long term,” Mr. Co said.
During the virtual stockholders’ meeting on Monday, Mr. Co said Emperador remains optimistic about its long-term growth prospects.
“We believe that the global business will continue to grow next year. When we look at the five-year horizon, we are very excited. All global reports indicate that there will be a continuous growth maybe following this year on a global basis,” he said.
“We believe that both the brandy and the whisky will have very good prospects in the coming years,” he added.
Mr. Co said Emperador is looking to tap new opportunities in markets such as China and India to support its growth plans amid tariff-related uncertainties.
“We are looking at opportunities wherein we can capitalize. One of the opportunities that have happened recently is the lowering of the Scottish whiskey taxes in India. The taxes came down by around 50%. We expect a surge in the importation into India,” he said.
Mr. Co said the company’s whisky business is also expected to return to growth despite strong market competition.
“We see that whiskey is still much more stable and resilient compared to the other categories in the alcoholic beverage sector. Nevertheless, we are seeing a slowdown in the whiskey business across the world. The market has become very competitive. We believe, however, that this is cyclical,” he said.
“We believe that eventually the Scotch whiskey business should return to growth. We are hoping that starting 2026, there should be a resurgence and a rebound back to regular consumption. It’s in the premium high-end segment that is a little bit affected. But we believe that consumption should continue,” he added.
Meanwhile, Emperador stockholders approved the election of Mr. Co, Katherine L. Tan, Kendrick Andrew L. Tan, and Kevin Andrew L. Tan as directors.
Stockholders also elected Jose Rene Gregory D. Almendras, Jesli A. Lapus, and Ho Poh Wah as independent directors.
Tycoon Andrew L. Tan stepped down from the board but was named chairman emeritus during an organizational board meeting following the stockholders’ meeting. Enrique M. Soriano III also stepped down as lead independent director. Mr. Almendras and Ms. Tan were elected to the company’s board in their place.
Mr. Co was named chairman and president, while Glenn D. Manlapaz was appointed chief executive officer.
Emperador shares rose by 0.55% or eight centavos to P14.50 apiece on Monday. — Revin Mikhael D. Ochave
