November 24, 2013

Tanduay to enter brandy market

Rum-maker Tanduay (a unit of the LTG Holdings) is reportedly entering the local brandy market with the planned launch of its CompaƱero Brandy product next month. According to a report by interaksyon.com, it is looking to initially sell 50,000 cases a month.

Our take: We view the move as part of the company’s plan to strengthen its presence in Luzon given that its rum product predominantly serves the Visayas market. The move should also help offset lower margins through increased volumes. However, Tanduay has to contend with Emperador which has established strong leadership in Luzon. – WealthSec