Beam Suntory to sell brandy & sherry to Emperador

Deerfield-based Beam Suntory is selling its Spanish brandy and sherry businesses to the Filipino brandy giant Emperador for $291 million, Beam announced Monday.

Brands in the Beam Suntory portfolio, which is dominated by whisky and bourbon, include Jim Beam, Maker’s Mark, Hakusha, Yamazaki, Laphroaig, Teacher’s and Courvoisier.

They must really love it there. Also part of the purchase are Beam Suntory’s production operations in Jerez and Tomelloso, Spain.

Other assets also include a brandy distillery in Tomelloso, Spain with sufficient ageing inventory of brandy and sherry, which Emperador officials believe will drive the company’s future growth. “In our pipeline are several proudly Philippines-made products that we intend to introduce to the global markets starting next year”.

Fundador brandy is popular in the Philippines, while Terry Centenario is Spain’s best selling brandy and Harveys is the UK’s top selling sherry wine. “With the combined global reach of Whyte & Mackay (Group Limited) and Fundador, our expanded product portfolio will have access to more than 100 countries around the world”, Mr. Co was quoted in the statement as saying, referring to its £430-million takeover of the Scottish whisky maker previous year. Emperador was advised by Nomura (sole financial advisor), Allen & Overy (legal advisor) and KPMG (accounting advisor).

In November a year ago, Singapore’s sovereign wealth fund GIC Private Ltd bought nearly a 10 per cent stake in Emperador for P17.6 billion pesos ($391 million), its third direct investment in the Philippines in 2014.

Whyte & Mackay is the world’s fifth largest producer of Scotch.

Emperador is a wholly owned subsidiary of Alliance Global Group, a Philippine conglomerate with interests in liquor, real estate, resorts and gaming and fast food restaurants.