Emperador Inc., the liquor unit of tycoon Andrew Tan’s Alliance Global Group, anticipates continued headwinds for its global Scotch whisky business in 2025, citing competitive markets in North America, China, and Europe. However, the company projects a market rebound by 2026, according to president and CEO Winston S. Co.
At the firm’s annual stockholders’ meeting, Co described the downturn as cyclical, affirming long-term confidence in the category. “We believe that eventually the Scotch whisky business will return to growth,” he said, while noting that the high-end, rare-aged single malt segment is currently under more pressure than broader categories.
The slowdown has weighed on financials. Emperador’s whisky revenue dipped 1 percent in 2024 to ₱25.25 billion, while net income fell 9 percent to ₱4.5 billion. The first quarter of 2025 saw steeper declines: whisky revenue dropped 13 percent year-on-year to ₱4.54 billion, with segment profit plunging 56 percent to ₱404 million.
In contrast, the brandy division is showing signs of recovery. First-quarter income surged 76 percent to ₱1.44 billion, reversing a sharp decline in 2024 net profit, which had dropped more than 50 percent to ₱1.81 billion.
The company is addressing market and tariff volatility proactively. The U.S., accounting for 10-12 percent of its whisky business, remains a strategic focus, and Emperador is engaging with partners to maintain shelf prices despite cost pressures. Meanwhile, a 50 percent tax cut in India is opening fresh market potential, with the firm actively working with distributors to capitalize.
Despite current challenges, Emperador is pushing forward with expansion. It has earmarked ₱4 billion in capital expenditures for 2025, primarily for its whisky operations. This includes the completion of the Dalmore distillery upgrade and a significant expansion of the Invergordon maturation complex, which will double in size and increase whisky aging capacity by 1.5 million casks.
“These investments ensure we are well-positioned for a long-term resurgence in global demand,” Co said.
