Tanduay Distillers, the liquor business of the LT Group Inc., will be launching a new brandy this year in an attempt to secure market share from current leader Emperador Distillers.
Wilson Young, Tanduay president, said they will introduce the new Compañero Brandy next month. Initial sale targets is pegged at 50,000 cases a month, which Young admitted is still far from top position in the brandy market.
The world's biggest brandy company in terms of volumes, Emperador reported selling around 31 million cases last year. In comparison, Tanduay’s reach in the brandy market is limited to Barcelona Brandy.
Young described the local market as “fickle” as Filipinos tastes shifted from gin to rum and now to brandy.
Data from Emperador showed that it current claims 48% of the Philippine spirits business by volume and 54% by market value at end-June. For brandy, the company commands 98%
Details about an upcoming marketing campaign are tight under wraps. Tanduay’s creative duties are currently held by Aspac while Carat manages media planning.
New products like Compañero Brandy are also an attempt to pull back Tanduay from the red after sustaining losses from higher taxes as a result of the Sin Tax Reform Law. This lead to a net loss of P41 million in the last nine months, reversing its P489 million profit recorded last year.
In July, the company started shipping two new Rum brands Silver Tanduay and Gold Tanduay (pictured) in the United States starting with 2,000 cases in Miami. Total exports will be brought to 5,000 cases by yearend.