Emperador Inc., the liquor unit of billionaire Andrew Tan’s Alliance Global Group, is repositioning its brandy portfolio toward the lower-priced segment in a bid to recover from a difficult 2024, where net income dropped sharply on the back of weakening global demand and continued investment spending.
The company told the Philippine Stock Exchange that it expects 2025 to perform better than last year, despite persistent macroeconomic headwinds and shifting global trade policies — particularly from the United States.
“We are keeping a close eye on developments on US tariffs and their effect on global market dynamics,” Emperador said, signaling concern over new trade measures that could affect exports and global supply chains.
Emperador reported a 27 percent decline in net income in 2024, falling to ₱6.32 billion from ₱8.7 billion in 2023. Revenue slipped by 6 percent to ₱61.46 billion, weighed down by a significant drop in the brandy segment, which fell 9 percent to ₱36.4 billion. Whisky revenue was relatively stable, easing just 1 percent to ₱25.3 billion.
The company attributed the revenue contraction to soft consumer demand amid global economic challenges and inflationary pressures, which pushed consumers to tighten spending.
“The brandy segment was challenged by weaker consumer demand, as customers downtraded to bottom-shelf products,” the company noted, highlighting a 51 percent plunge in brandy profits to ₱1.81 billion. Meanwhile, the whisky segment showed greater resilience but still posted a 10 percent dip in net income to ₱4.5 billion due to interest rate pressures and higher tax costs.
Despite its move to court value-conscious consumers with more affordable offerings, Emperador reaffirmed its long-term strategy to grow its premium liquor portfolio — which spans from mass-market brandy to some of the world’s most expensive whiskies.
“The company will continue to pursue its premiumization strategy,” it said, underscoring a dual-track approach to strengthen both its value and high-end segments in an increasingly volatile global market.
Emperador’s evolving brand strategy comes as liquor companies worldwide grapple with changing consumer behavior and macroeconomic volatility, forcing legacy players to recalibrate pricing and product positioning to sustain profitability.
