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Emperador Inc

Emperador Inc. is a holding company operating in the manufacturing, bottling, and distribution of distilled spirits and other alcoholic beverages. It launched Emperador Brandy in 1990 as the Philippines' first brandy label. Emperador Inc. has expanded its brandy and whisky brands to over 100 countries through acquisitions and partnerships with global manufacturers. While international business provides benefits like improved revenues, Emperador Inc. faces challenges such as currency risk, cultural risk, commercial risk, and country risk in its overseas operations.

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Rena Jocelle Nalzaro
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519 views

Emperador Inc

Emperador Inc. is a holding company operating in the manufacturing, bottling, and distribution of distilled spirits and other alcoholic beverages. It launched Emperador Brandy in 1990 as the Philippines' first brandy label. Emperador Inc. has expanded its brandy and whisky brands to over 100 countries through acquisitions and partnerships with global manufacturers. While international business provides benefits like improved revenues, Emperador Inc. faces challenges such as currency risk, cultural risk, commercial risk, and country risk in its overseas operations.

Uploaded by

Rena Jocelle Nalzaro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 3

RENA JOCELLE C.

NALZARO BSA-3

EMPERADOR INC

World Count: 912

In 1990, Emperador Brandy was launched as Philippines’ first brandy label. This brandy was produced
through a delicate blending and aging process. Emerador Distilleries is one of three companies within
the Alliance Global Group, headed by Dr Andrew Tan, a self-made Chinese Filipino billionaire whose
business interests embrace not only drinks but also real estate and fast food. Emperador Inc. (EMI) was
originally incorporated on November 26, 2001 as Touch Solutions, Inc. with the primary purpose of
establishing and operating information technology services and products. On July 31, 2013, the
Securities and Exchange Commission approved the change in the Company’s primary purpose to that of
a holding company. On September 5, 2013, the SEC approved the change in name to the present one.
The Company is currently a holding company which operates an integrated business of manufacturing,
bottling and distributing distilled spirits and other alcoholic beverages.

EMI offers an array of liquor products through its acquisition and partnerships with global
manufacturers. These include United Kingdom-based Whyte and Mackay Group Limited, the fifth largest
Scotch whisky manufacturer in the world; Bodegas Fundador S.L.U in Spain, owner of the iconic
"Fundador" brand; and Domecq Bodega Las Copas, S.L which manufactures Mexican brandies and
wines.

Through dynamic marketing and by establishing a reputation for product quality, EDI created demand
for brandy in the Philippine spirits market. Emperador Brandy has now started to expand its brand
footprint outside the Philippines. It holds its position as the world's largest brandy by volume and it is
now being distributed in 40 countries across Asia, North America, Africa, Middle East, and Europe. To
date, Emperador’s brandy and whisky brands are available in more than 100 countries.Emperador, Inc.
chooses those countries to do business because they sees brighter prospects for its brandy business
across the United States in 2021. According to Kevin Tan, CEO of Emperador's parent firm, Allience
Global Inc., They also look forward to exporting more of our proudly Filipino-made products into more
countries as they continue to raise our flags and facilities all over the world because they think, at this
point, it’s important for the country to have a symbol that we can be proud of.

Expanding business overseas means reaching new clients or customers and potentially boosting profits.
Emperador Inc. deals alot of challenges in doing business internationally. These challenges includes
currency risk, cross cultural risk, commercial risk and country risk. 1) CURRENCY RISK refers to the risk of
adverse fluctuations in exchange rates. Fluctuation is common for exchange rates, or the value of one
currency in terms of another. Currency risk arises because international transactions are often
conducted in more than one national currency. 2) CROSS CULTURAL RISK refers to a situation or
event where a cultural miscommuni- cation puts some human value at stake. 3) OMMERCIAL RISK
refers to the firm’s potential loss or failure from poorly developed or executed business strategies,
tactics, or procedures. Managers may make poor choices in such areas as the selection of business
partners, timing of market entry, pricing, creation of product features, and promotional themes. 4)
COUNTRY RISK (also known as political risk) refers to the potentially adverse effects on company
operations and profitability caused by developments in the political, legal, and economic environment in
a foreign country. In 2019, Emperador, Inc have been affected by by the impact of COVID-19 particularly
on-trade and global travel retail resulting from lockdowns and dry law implementation such as the liquor
band to match the strict lockdown and the consumption of spirits was stunted in countries where bars,
restaurants and hotels had closed but the Emperador President Winston S. Co reveals that said the
resilience of the company revealed the strength of the business and its whisky and brandy portfolio
globally, which resulted in stability and growth despite the challenges. The company also took the
opportunity to streamline efficiencies to enable the company to be nimble and effective in the markets.
2020 has set a new path and platform for our future growth.

Emperador, Inc. derives benefits from engaging in international business and trade such as improving
their market margin, further improving their overall revenue by increasing market sales, diversifying the
business by spreading demand across the multiple countries and they can connect with suppliers in
international market and taking advantage of raw materials and resources unavailable to the domestic
markets. According to the President and CEO of Emperador Winston Co, their international business
continued to perform well led by the single malt whisky portfolio, which continues to be amongst the
fastest growing single malts in the world. EMPERADOR, Inc. posted a 4.7% increase in attributable net
income to P3.14 billion in the second quarter from P3 billion a year earlier after booking higher brandy
sales while whisky drove its international business. Growth continued to be strong in Asia, Europe, and
North America, Mr. Co said, adding that overall, the company is looking forward to a “stronger” second-
half performance. Emperador is said to be exploring a joint venture in China to further strengthen its
international business.

References:

Emperador Brand. (n.d.). Emperador Brandy. Retrieved March 13, 2023, from

https://www.emperadorbrandy.com/about-us.html
Emperador Inc. (n.d). Emperador Inc. - Company Information. PSE Edge. Retrieved March 13, 2023, from
https://edge.pse.com.ph/companyInformation/form.do?

Kokemuller, N. (2020, February 5) Why Do Companies Go International? Bizfluent. Retrived from March
13, 2023, from https://bizfluent.com/facts-5256365-do-companies-go-international.html

Cavusgil, S. T., Rammal, H., & Freeman, S. (2014). International business: the new realities. Pearson
Higher Education AU. Retrieved March 13, 2023, from https://sites.google.com/site/ibwvietnam/4-risk-
in-internatio

Ochave, R. M., (2021, March 12) Emperador earnings up 18% to 8 Billion. BusinessWorld. Retrieved from
March 13, 2023, from
https://www.google.com/amp/s/www.bworldonline.com/corporate/2021/03/12/349865/emperador-
earnings-up-18-to-p8-billion/%3famp

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