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EL
SALVADOR, Misamis Oriental— Tanduay Distillers Inc. (TDI),
the hard-liquor manufacturing unit of the Lucio Tan
Group, expects sales in Mindanao to grow by at least 30
percent next year once its newest facility here starts
operating in February.
In an
interview, Tanduay Holdings Inc. president Wilson Young
said the facility, solely dedicated for producing rhum
drinks, will deliver an additional 300,000 to 400,000
cases per month to address demand in the region. Tanduay
Holdings is the parent firm of TDI and is listed in the
Philippine Stock Exchange (PSE).
The
Mindanao market consumes around 5 million cases of rhum
annually, which almost represent the average sales of
TDI every year. In 2008, Young sees requirement growing
to 6.5 million cases, as new drinkers are expected to
favor hard liquors more than beers.
And with
the P1-billion manufacturing facility that TDI is
completing, Young said they can very well capitalize on
the ballooning market.
“Mindanao is really an important market for us as we see
it as a growth area,” he said, adding that the company
has been on an aggressive tack as it recognizes
continued competition from Ginebra San Miguel and
Emperador Distillers.
The
Mindanao market currently accounts for 40 percent of
TDI’s total revenues annually, or about 15 million cases
each year.
As of
end-September, the company’s consolidated sales amounted
to P5.5 billion while net profit was valued at P153
million.
Young
said the
El Salvador
plant will allow TDI to serve its Mindanao market better
and faster.
“At the
same time, we will save on freight costs as the products
for the Mindanao customers will no longer be shipped
from the Luzon plants, which is currently the setup,” he
explained.
TDI
started building the facility in May 2006 and is up for
full operation next February. It also operates plants in
Murcia, Negros Occidental; Cabuyao, Laguna; and Quiapo,
Manila.
Seated
on a 10-hectare property, the plant is located beside
the beer bottling plant of Asia Brewery Inc., the beer
and softdrinks unit of the Tan Group. |
