Spirits in the Philippines

SPIRITS IN THE PHILIPPINES Euromonitor International October 2015

SPIRITS IN THE PHILIPPINES

LIST OF CONTENTS AND TABLES Headlines ..................................................................................................................................... 1 Trends ......................................................... ................................................................. ................ 1 Production, Imports and Exports .................................................................................. ................ 2 Competitive Landscape ..................................................... ........................................................... 3 Prospects ..................................................................................................................... ................ 4 Category Background ........................................................ ........................................................... 4 Vodka, Gin, Other Blended Scotch Whisky, Dark Rum and White Rum Price Band Methodology ....................................................... ................................................................. ..... 4 Summary 1

Benchmark Brands 2014 .............................................................. ................ 5

Category Data ........................................................ ................................................................. ..... 5 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 Table 23 Table 24 Table 25 Table 26 Table 27 Table 28

Sales of Spirits by Category: Total Volume 2009-2014 ................................ 5 Sales of Spirits by Category: Total Value 2009-2014 ................................... 6 Sales of Spirits by Category: % Total Volume Growth 2009-2014 ............... 7 Sales of Spirits by Category: % Total Value Growth 2009-2014 .................. 7 Sales of Spirits by Off-trade vs On-trade: Volume 2009 -2014...................... 8 Sales of Spirits by Off-trade vs On-trade: Value 2009-2014......................... 8 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2009 2014 ............................................................. ................................................ 8 Sales of Spirits by Off-trade vs On-trade: % Value Growth 2009-2014 ........ 8 Sales of Dark Rum by Price Platform: % Total Volume 2009-2014 .............. 9 Sales of White Rum by Price Platform: % Total Volume 2009-2014 ............ 9 Sales of Other Blended Scotch Whisky by Price Platform: % Total Volume 2009-2014 ....................................................................................... 9 Sales of Gin by Price Platform: % Total Volume 2009-2014 ........................ 9 Sales of Vodka by Price Platform: % Total Volume 2009-2014 .................. 10 Sales of Vodka by Flavoured vs Non-flavoured: % Total Volume 2009-2014 ............................................................... ................................... 10 GBO Company Shares of Spirits: % Total Volume 2010-2014 ............... ... 10 NBO Company Shares of Spirits: % Total Volume 2010-2014 ................... 11 LBN Brand Shares of Spirits: % Total Volume 2011-2014 ......................... 11 Imports of Spirits by Country of Origin: Total Volume 2008-2013 .............. 12 Imports of Spirits by Country of Origin: Total Value 2008-2013 ................. 12 Production, Imports and Exports of Brandy & Cognac: Total Volume 2008-2013 ............................................................... ................................... 13 Production, Imports and Exports of Rum: Total Volume 2008-2013 .......... 13 Production, Imports and Exports of Whiskies: Total Volume 20082013 ............................................................. .............................................. 13 Production, Imports and Exports of Gin: Total Volume 2008 -2013 ............ 13 Production, Imports and Exports of Vodka: Total Volume 2008 -2013 ........ 13 Forecast Sales of Spirits by Category: Total Volume 2014 -2019 ............... 14 Forecast Sales of Spirits by Category: Total Value 2014-2019 .................. 14 Forecast Sales of Spirits by Category: % Total Volume Growth 20142019 ............................................................. .............................................. 15 Forecast Sales of Spirits by Category: % Total Value Growth 20142019 ............................................................. .............................................. 15

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SPIRITS IN THE PHILIPPINES HEADLINES 

Total volume sales increase by 2% in 2014

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Whiskies rapidly growing with 27% total volume sales increase in 2014

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Blended Scotch whisky posts the highest total volume sales growth of 70% in 2014

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Whiskies records the highest on-trade current average unit price growth of 16% in 2014

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Emperador Distillers Inc continues to dominate spirits

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A 2% total volume CAGR is expected over the forecast period

TRENDS 

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Whiskies grew rapidly in 2014, with a 27% total volume sales increase. The category’s growth is evidenced by 14% total volume sales CAGR over the review period. Growth experienced a slight slowdown in 2013, but retained demand for the Johnnie Walker brand, which makes up 42% of the volume saved it from decline. Whiskies showed total volume sales growth of 89% over the review period, and with Emperador Distillers’ acquisition of the major Scotch whisky producer Whyte & Mackay, the category, particularly Scotch whisky, is expected to expand in the next five years. Total volume sales of spirits increased by 2% in 2 014 to reach 689 million li tres. Although minimal, the growth is seen as a great improvement from the sales decline in 2013, which was mainly due to the imposed excise tax which resulted in an industry-wide price adjustment. The positive volume sales growth is an optimistic sign that the category is starting to recover. Brandy and rum showed positive volume sales growth with a 2 % and 16% increase in volume sales respectively. Gin, however, still witnessed a decline in volume sales. Ginebra San Miguel, the main driver in the gin category with a 89% volume share, attributes this decline to an 18% retail price increase that was imposed in 2013. Blended Scotch whisky posted the highest total volume sales growth of 70% in 2014. Largely driven by the increasing demand for the Johnnie Walker brand portfolio, the g rowth puts blended Scotch whisky back on track to its forecast market growth. The positive growth is due to increased awareness of whisky drinking and the growth of consumer buying power. There is also an emerging trend of the preference for imported spirits due to the decrease in the price difference between imported and domestic spirits. Whiskies recorded the highest on-trade current average unit price gro wth of 16% in 2014. In the off-trade pricing, the average unit price of Dutch gin increased by 13%. Price adjustments are due to th e excise tax increase which took effect in 2013. There is no excise tax increase for distilled spirits in 2014. Rum showed a fast recovery, with 16% volume sales growth in 2014. Tanduay Distillers’ flagship brand registered a 19% i ncrease, putting total volume sales to 132 million litres. Whiskies registered positive volume sales growth of 27% to reach 1,015 million li tres in 2014. Similar to the rapidly growing blen ded Scotch whisky category, Bourbon/other US whiskey also showed positive growth of 6%. Canadian whisky and Irish whiskey registered minimal growth in 2014. The main sales channel for spirits remains off-trade establishments, making up 87% of total volume sales with 602 million litres. Both on- and off-trade showed improved volume sales growth in 2014 as demand for spirits started to recover. Sales from on-trade channels,

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however, showed faster recovery with 3% growth as compared to off-trade channels with only 2%. Consumers who prefer to go out to bars and restaurants to drink and socialise are more likely to adjust and accept the price increase. 

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Micro-distillers in the Philippines are in the form of a cottage industry that produces traditional Filipino spirits such as basi, tuba, tapuy and lambanog, located in specific regions in th e country. Craft spirit exists in the country but i t is targeted at an upscale niche market. A product that is slowly becoming popular is Don Papa Rum, produced by The Bleeding Heart Rum in partnership with Ginebra San Miguel. It is sold in selected off -trade channels in major cities and is set to fare better in export sales as it is currently exported to France, Belgium and the Czech Republic. Destileria Limtuaco is also venturing into craft spirits with its range of liqueurs, namely Paradise Mango Rum Liqueur, Amadeo Liqueur and Manille Liqueur de Calamansi. Similar to Don Papa Rum, this craft spirits line appeal to tourists and expats. In 2014, they expanded distribution by making them available to mass market off-trade establishments such as supermarkets and convenience stores. A new player, Philippine Craft Distillers, launched its ‘artisanal lambanog’ called Lakan in October 2014. Unlike traditional lambanog brands, it is targeted at an upscale niche market with a premium price point. Economy brands continue to dominate gin, vodka and rum. In rum, both dark and white are almost 100% driven by Tanduay Distilleries’ range of rum brands. Economy brands make up 98% for gin and 72% for vodka. Gin is primarily driven by Ginebra San Miguel’s flagship brand, while vodka’s majority share is owned by Gilbey’s Vodka. There are no indications that this consumer preference is likely to shift. Tequila is the only p rominent product in the tequila (and mezcal) category. Mezcal is not popular in the Phili ppines and awareness is limited to a niche market, particularly expats. Tequila is dominated by the mid-priced brands José Cuervo Especial and Pepe Lopez Gold. Domestically-manufactured spirits continue to dominate spirits in the Philippines making up 91% of total volume sales. The spirits category is primarily driven b y the three leading manufacturers, Emperador Distillers, Ginebra San Miguel and Tanduay Distillers that are leaders in the brandy, gin and rum categories respectively. Vodka continues to be dominated by non-fla voured variants, flavoured vodka accounted for 37% of total volume sales in 2014 with brands Antonov, Absolut Kurant and Absolut Citron. Consumers of spirits are largely men, however there is an emerging trend of marketing efforts to attract women to traditionally male-dominated brands. This trend is prominent in the whiskies category. Honey-flavoured variants of popular bourbon brands Jack Daniel’s and Jim Beam that are targeted at female consumers are slowly gaining popularity. Scotch whisky is also gaining popularity amongst women as it is being marketed as a cocktail mixer. Chasers and mixers play a big role in the Filipino way of consuming spirits. Brandy with iced tea, whiskey and rum with cola, and gin with fruit juice are popular. Spirits cut across socioeconomic groups as brands continued to be segmented by economy, standard and premium positioning.

PRODUCTION, IMPORTS AND EXPORTS 

Production of the three leading brands in spirits is completed domestically. Emperador Distillers has three bottling, production and distillation facilities located in Laguna and Batangas. The company has recently acquired a vineyard and production fa cilities in Spain for the production of its o wn line of imported brandy. Tanduay Distilleries owns production and distillation plants in Negros Occidental, Batangas, Laguna and Misamis Oriental. These properties are strategically located to assure that raw materials are easily accessible and final products are widely distributed. Ginebra has the biggest production capacity with nine

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production, bottling and distilling facilities around the country specifically for its liquor business. The facilities are located in Cebu, Pangasinan, Laguna, Albay, Isabela, Valenzuela and Negros. 

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Diageo Philippines has the highest number of imported brands that are faring well in the Philippines, including brands such as Johnnie Walker, José Cuervo Smirnoff, Gilbey’s and Baileys Irish Cream. On the other hand, Ginebra San Miguel is considered the biggest exporter of spirits with a global distribution system of its mother company San Miguel Corp. The company distributes the Ginebra brand to 22 countries, including Australia, Brunei, Canada, Japan and Hong Kong, Thailand and China. Tanduay Distillers exports to Hong Kong, USA and UAE. Domestically manufactured brands continue to dominate spirits volume sales imported brands only make-up a small portion of spirits available in the Philippines. Emperador Distillers, Ginebra San Miguel and Tanduay Distillers remain the leaders in brandy, gin and rum, respectively. Imported brands lead in cognac, liqueurs, tequila (and mezcal), whiskies and vodka.

COMPETITIVE LANDSCAPE 

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Emperador Distillers dominate the spirits category with a 44% volume share. It terms of sales growth, the company posted a minimal increase of 2% in 2014. Its sales growth was driven by the Emperador Brandy brand with total volume sales of 300 million litres in 2014. Generoso Brandy, which is distributed in limited quantities and selected areas in the Philippines registered a 5% decline in sales. Meritus Prime Distribution which distributes Fundador Brandy, registered the biggest increase in total volume sales 2014 with 37% growth. This is due to the high demand of Fundador in the light brandy category. Tanduay Distillers followed with 16% sales volume growth as i ts brands recovered from sales decline in 2013. International brands were the greatest gainers in sales volume growth in 2014, led by Meritus Prime Distribution, Diageo Philippines and Mast-Jägermeister AG with an average volume sales growth rate of 19%. Tanduay Distillers had the highest volume sales growth among domestic brands with a 16% increase in volumes sales. Emperador Distillers, although still market leader, posted 2% growth in 2014. Destileria Limtuaco, meanwhile, posted a decline in most its brands, and Ginebra San Miguel recorded a total sales volume decline of 6%. Brandy continues to grow as new players, Compañero from Tanduay Distillers and Excelente from Montosco, enter the category. These imported light brandy brands were launched in the last quarter of 2013 and are performing well as consumer preferences are shifting to more affordable but better tasting light brandy. VAT 69 is a more affordable Scotch whisky launched by Diageo Philippines in the last quarter of 2014. The Scotch brand is pegged to appeal to the young working middle class demographic. Johnnie Walker, also by Diageo Philippines, had the most visible marketing campaign as it aggressively promoted Red Label as an en try-level Scotch whisky and made it more affordable at PHP490.00 per 75 0 ml bottle. As with other types of alcoholic drinks, private label brands are negligible in spirits. Emperador Distillers announced two more acquisitions for 2014. Its international subsidiaries acquired a 50% stake in Bodega Las Copas SL, a Spanish company and a 1 00% stake in Whyte & Mackay Group Ltd, purchased from India’s United Sprits. The acquisitions are worth PHP 3.7 billion PHP 31 billion respectively and are in line with the company’s vision to bring Emperador to the global market.

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PROSPECTS 

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A 2% total volume sales CAGR is expected over the forecast period. As expected, the category is starting to recover from its decline in 2013 and this is forecast to continue at a slow and steady pace. Price adjustments across the category are still anticipated and companies are set to attempt to mitigate the price increase so as not to lose consumer demand. Both on- and off-trade channels have shown initial signs of improvement and recovery. A potential forecast threat in the market share growth of domestic companies is the expected emergence of new players and competition. This is due to the ASEAN economic integration which will give way for other ASEAN companies to enter the Philippine market with the elimination of importation taxes. Blended Scotch whisky is anticipated to continue its growth with a 7% total volume sales CAGR over the forecast period. The Johnnie Walker other blended Scotch brand will drive this predicted growth, particularly its Red and Black label brands. New Scotch whisky brands are expected to enter the market starting in 2015 following Emperador Distillers’ acquisition of Whyte & Mackay. Bourbon/other US whiskey is expected to continue its steady growth, with a 6% total volume CAGR over the forecast period. Rum, cognac, liqueurs, vodka, tequila are all expected to recover sales demand. Consumers of these spirits are likely to be unfazed by the anticipated price i ncrease with the exception of rum. Both brandy and gin are predicted to post growth of 2% volume sales CAGR. Companies are expected to mitigate price increases due to excise tax adjustments with discounting, bundling and other price-based promotions during the forecast period. Specific spirits category types may explore higher volume packaging to appeal to the budgetconscious demographic. New brands in the whiskies category are expected to enter the Philippines market during the forecast period to ta ke advantage of the rapid expansion. Prices are still expected to increase across the board due to the higher excise tax adjustme nt. Whiskies are expected to increase in unit price the most, with a 2% average unit price CAGR over the forecast period. Vat 69, a Scotch whisky launched in the last quarter of 2014, caters to a broad market with a value-for-money proposition. It is expected to perform well with the emerging awareness in whisky drinking and the rapidly growing middle class market. Over forecast period, companies may expand their export and imports activities. Imports are showing initial signs of rising demand and the upcoming ASEAN integration in 2015 will be a good channel for companies to grow importation activities. More competition from players in the ASEAN region is expected to emerge i n the forecast period in addition to the expected Scotch whisky expansion of Emperador Distilleries. Mid-priced products are expected to recover growth in a slow but steady pace over the forecast period. More imported brands are positioning themselves in the mid -priced price band, taking advantage of the buying power of the growing mid dle class demographic.

CATEGORY BACKGROUND

Vodka, Gin, Other Blended Scotch Whisky, Dark Rum and White Rum Price Band Methodology 

Classification of these spirits products is based purely on pricing, taking a typical brand, usually the leading brand, by volume as the benchmark price, which is indexed as 100%. The benchmark brand will usually be a mid -priced brand. There will be exceptions, however,

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whereby an economy brand (likely for vodka in some countries in Eastern Europe) or a premium brand (typically the case for Scotch whisky in the US) is used as the benchmark brand. Refer to the guidelines below for further detail. 

Based on benchmark brand being mid-priced: Super premium: 30.00% or higher than price of the benchmark brand;

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Premium: 10.00-29.99% higher price than benchmark brand;

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Mid-priced: Between 9.99% lower or 9.99% higher than benchmark brand;

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Economy: At least 10.00% lower than the price of benchmark brand.

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Based on benchmark brand being economy: Super premium: 50.00% or higher than price of the benchmark brand;

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Premium: 30.00-49.99% higher than price of benchmark brand;

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Mid-priced: Between 10.00% and 29.99% higher than price of benchmark brand;

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Economy: Anything lower or up to 9.99% higher than the price of the benchmark brand.

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Based on benchmark brand being premium: Super premium: 10.00% or higher than benchmark brand;

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Premium: Any brand that is up to 9.99% higher or 9.99% lower than benchmark brand;

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Mid-priced: Between 10.00% and 29.99% cheaper than the benchmark brand;

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Economy: Anything over 30.00% cheaper than the benchmark brand.

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Based on benchmark brand being super premium: Super premium: Anything higher or up to 9.99% lower than the benchmark brand;

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Premium: 10.00% to 29.99% lower than benchmark brand;

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Mid-priced: 30.00% to 49.99% lower than benchmark brand;

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Economy: Over 50% lower than benchmark brand.

Summary 1

Benchmark Brands 2014

Category

Brand name

Positioning

Other blended Scotch whisky

Johnnie Walker Red Label

Mid-priced other blended Scotch whisky

Vodka

Absolut Blue

Mid-priced vodka

Gin

Gilbey’s

Mid-priced gin

Dark rum

Bacardi Gold

Mid-priced dark rum

White rum

Bacardi Superior

Mid-priced white rum

Source:

Euromonitor International from trade interviews, store checks

CATEGORY DATA Table 1

Sales of Spirits by Category: Total Volume 2009-2014

'000 litres

Brandy and Cognac - Brandy - Cognac Liqueurs

2009

2010

2011

2012

2013

2014

177,403.5 177,264.1 139.4 236.8

214,565.5 214,423.7 141.9 251.2

258,294.9 258,170.9 124.0 268.5

409,645.9 409,518.9 127.0 282.0

319,470.4 319,349.8 120.7 282.1

325,601.5 325,479.6 122.0 297.2

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- Bitters - Cream-based Liqueurs - Other Liqueurs Rum - Dark Rum - White Rum Tequila (and Mezcal) Whiskies - Bourbon/Other US Whiskey - Canadian Whisky - Irish Whiskey - Japanese Whisky - Blended Scotch Whisky - Single Malt Scotch Whisky - Other Whiskies White Spirits - Gin - Vodka Other Spirits - Aniseed-Flavoured Spirits - Lambanog Spirits Source:

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50.0 21.5 165.3 155,040.3 154,649.8 390.5 371.1 537.2 186.4

60.3 22.0 168.9 161,123.5 160,728.9 394.6 384.8 554.2 197.2

69.7 26.4 172.4 166,439.8 166,041.5 398.2 397.8 605.1 207.8

77.2 29.0 175.8 171,258.2 170,858.2 400.0 410.9 688.7 219.9

85.5 29.0 167.5 129,051.7 128,705.2 346.5 415.8 800.5 231.6

97.8 32.1 167.3 149,486.0 149,102.2 383.8 428.6 1,014.7 245.4

1.9 0.1 82.3 8.4

2.0 0.1 82.7 8.3

2.0 0.1 117.4 8.2

2.0 0.1 183.0 8.5

2.0 0.1 289.4 8.4

2.0 0.1 491.8 8.6

258.1 218,425.3 217,461.5 963.8 35,230.7 35,165.4

263.9 241,851.1 240,850.0 1,001.1 40,508.1 40,440.2

269.6 256,033.0 254,994.0 1,038.9 26,275.2 26,205.3

275.2 269,595.1 268,500.4 1,094.6 18,520.4 18,448.5

269.0 218,311.6 217,236.6 1,075.0 9,482.5 9,408.7

266.8 204,429.5 203,344.1 1,085.4 8,120.1 8,044.5

65.3 587,244.8

67.9 659,238.5

69.9 708,314.2

71.9 870,401.2

73.7 677,814.6

75.6 689,377.6

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 2

Sales of Spirits by Category: Total Value 2009-2014

PHP million

Brandy and Cognac - Brandy - Cognac Liqueurs - Bitters - Cream-based Liqueurs - Other Liqueurs Rum - Dark Rum - White Rum Tequila (and Mezcal) Whiskies - Bourbon/Other US Whiskey - Canadian Whisky - Irish Whiskey - Japanese Whisky - Blended Scotch Whisky - Single Malt Scotch Whisky - Other Whiskies White Spirits - Gin - Vodka Other Spirits - Aniseed-Flavoured

2009

2010

2011

2012

2013

2014

23,886.7 23,164.9 721.8 292.8 80.5 25.1 187.2 16,569.7 16,530.4 39.2 605.9 786.3 426.9

29,052.7 28,300.7 752.0 322.7 98.9 27.2 196.6 17,636.0 17,595.4 40.6 656.1 848.1 471.2

33,441.5 32,704.5 737.0 358.6 116.7 36.4 205.6 18,731.0 18,684.5 46.5 707.2 1,022.7 517.0

40,447.6 39,677.0 770.6 389.1 132.4 42.0 214.7 18,691.6 18,640.1 51.5 743.6 1,273.1 544.0

39,411.2 38,563.5 847.6 408.9 152.7 44.8 211.4 16,915.0 16,855.1 59.9 774.5 1,711.9 573.5

40,916.4 39,954.9 961.5 443.5 176.4 48.7 218.3 17,512.8 17,436.4 76.5 812.0 2,466.4 620.7

3.8 0.2 246.9 55.3

3.9 0.2 260.4 56.2

4.1 0.2 383.6 58.1

4.2 0.2 605.6 59.0

4.3 0.2 1,014.1 60.3

4.4 0.2 1,715.7 64.7

53.3 20,728.9 19,592.4 1,136.6 3,035.0 3,029.5

56.1 23,413.1 22,201.3 1,211.8 3,520.0 3,514.2

59.8 25,626.2 24,336.8 1,289.4 2,346.6 2,340.5

60.1 28,014.8 26,648.1 1,366.7 1,724.4 1,717.9

59.5 24,871.9 23,480.5 1,391.5 915.7 908.8

60.6 26,180.6 24,765.7 1,415.0 788.9 781.5

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Spirits - Lambanog Spirits

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5.5 65,905.3

5.8 75,448.7

6.2 82,233.9

6.5 91,284.3

6.9 85,009.1

Source:


Table 3

Sales of Spirits by Category: % Total Volume Growth 2009-2014

7.4 89,120.7

% total volume growth

Brandy and Cognac - Brandy - Cognac Liqueurs - Bitters - Cream-based Liqueurs - Other Liqueurs Rum - Dark Rum - White Rum Tequila (and Mezcal) Whiskies - Bourbon/Other US Whiskey - Canadian Whisky - Irish Whiskey - Japanese Whisky - Blended Scotch Whisky - Single Malt Scotch Whisky - Other Whiskies White Spirits - Gin - Vodka Other Spirits - Aniseed-Flavoured Spirits - Lambanog Spirits Source:

Table 4

2013/14

2009-14 CAGR

2009/14 Total

1.9 1.9 1.1 5.3 14.3 10.5 -0.1 15.8 15.8 10.8 3.1 26.8 6.0 0.9 0.5 70.0 2.0 -0.8 -6.4 -6.4 1.0 -14.4 -14.5 2.5 1.7

12.9 12.9 -2.6 4.6 14.3 8.4 0.2 -0.7 -0.7 -0.3 2.9 13.6 5.7 0.5 2.1 43.0 0.5 0.7 -1.3 -1.3 2.4 -25.4 -25.5 3.0 3.3

83.5 83.6 -12.5 25.5 95.5 49.5 1.2 -3.6 -3.6 -1.7 15.5 88.9 31.7 2.6 11.1 497.5 2.5 3.4 -6.4 -6.5 12.6 -77.0 -77.1 15.8 17.4


Sales of Spirits by Category: % Total Value Growth 2009-2014

% local currency, current value growth

Brandy and Cognac - Brandy - Cognac Liqueurs - Bitters - Cream-based Liqueurs - Other Liqueurs Rum - Dark Rum - White Rum Tequila (and Mezcal)

2013/14

2009-14 CAGR

2009/14 Total

3.8 3.6 13.4 8.5 15.5 8.8 3.3 3.5 3.4 27.7 4.8

11.4 11.5 5.9 8.7 17.0 14.1 3.1 1.1 1.1 14.3 6.0

71.3 72.5 33.2 51.5 119.3 93.8 16.6 5.7 5.5 94.8 34.0

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Whiskies - Bourbon/Other US Whiskey - Canadian Whisky - Irish Whiskey - Japanese Whisky - Blended Scotch Whisky - Single Malt Scotch Whisky - Other Whiskies White Spirits - Gin - Vodka Other Spirits - Aniseed-Flavoured Spirits - Lambanog Spirits Source:

44.1 8.2 2.3 2.1 69.2 7.3 1.9 5.3 5.5 1.7 -13.8 -14.0 6.8 4.8

25.7 7.8 3.1 3.6 47.4 3.2 2.6 4.8 4.8 4.5 -23.6 -23.7 6.1 6.2

213.7 45.4 16.5 19.6 595.0 17.1 13.7 26.3 26.4 24.5 -74.0 -74.2 34.4 35.2


Table 5

Sales of Spirits by Off-trade vs On-trade: Volume 2009-2014

'000 litres

Off-trade On-trade Total Source:

2009

2010

2011

2012

2013

2014

503,407.3 83,837.5 587,244.8

568,630.5 90,608.0 659,238.5

609,813.2 98,501.0 708,314.2

763,003.8 107,397.3 870,401.2

593,207.3 84,607.3 677,814.6

602,045.1 87,332.5 689,377.6


Table 6

Sales of Spirits by Off-trade vs On-trade: Value 2009-2014

PHP million


2009

2010

2011

2012

2013

2014

54,157.2 11,748.1 65,905.3

62,604.7 12,844.0 75,448.7

68,093.4 14,140.5 82,233.9

76,607.5 14,676.8 91,284.3

71,456.7 13,552.3 85,009.1

75,223.0 13,897.7 89,120.7


Table 7

Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2009-2014

% volume growth


Table 8

2013/14

2009-14 CAGR

2009/14 TOTAL

1.5 3.2 1.7

3.6 0.8 3.3

19.6 4.2 17.4


Sales of Spirits by Off-trade vs On-trade: % Value Growth 2009-2014

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% current value growth


2013/14

2009-14 CAGR

2009/14 TOTAL

5.3 2.5 4.8

6.8 3.4 6.2

38.9 18.3 35.2


Table 9

Sales of Dark Rum by Price Platform: % Total Volume 2009-2014

% total volume

Super Premium Premium Mid-Priced Economy Total Source: Note:

2009

2010

2011

2012

2013

2014

0.1 99.9 100.0

0.2 99.8 100.0

0.2 99.8 100.0

0.2 99.8 100.0

0.2 99.8 100.0

0.2 99.8 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources ‘-’ indicates data not available

Table 10

Sales of White Rum by Price Platform: % Total Volume 2009-2014

% total volume


2009

2010

2011

2012

2013

2014

8.9 91.2 100.0

9.8 90.3 100.0

10.5 89.5 100.0

10.4 89.6 100.0

10.4 89.6 100.0

10.4 89.6 100.0


Table 11

Sales of Other Blended Scotch Whisky by Price Platform: % Total Volume 2009-2014

% total volume


Table 12

2009

2010

2011

2012

2013

2014

11.6 66.7 21.7 100.0

11.3 66.4 22.3 100.0

22.6 57.9 19.5 100.0

29.2 55.9 14.9 100.0

26.2 63.1 10.7 100.0

20.2 72.6 7.2 100.0


Sales of Gin by Price Platform: % Total Volume 2009-2014

9


Passport

% total volume


2009

2010

2011

2012

2013

2014

0.1 2.0 97.9 100.0

0.1 1.9 98.1 100.0

0.1 1.8 98.2 100.0

0.1 1.7 98.2 100.0

0.1 1.7 98.2 100.0

0.1 1.7 98.2 100.0


Table 13

Sales of Vodka by Price Platform: % Total Volume 2009-2014

% total volume


2009

2010

2011

2012

2013

2014

1.3 25.5 73.2 100.0

1.3 24.8 73.9 100.0

1.3 23.9 74.8 100.0

1.3 24.4 74.3 100.0

1.3 25.7 73.0 100.0

1.3 26.9 71.8 100.0


Table 14

Sales of Vodka by Flavoured vs Non-flavoured: % Total Volume 2009-2014

% total volume

Flavoured Vodka Non-Flavoured Vodka Total Source:

2009

2010

2011

2012

2013

2014

35.8 64.2 100.0

36.7 63.3 100.0

36.5 63.5 100.0

36.5 63.5 100.0

36.6 63.4 100.0

36.8 63.2 100.0


Table 15

GBO Company Shares of Spirits: % Total Volume 2010-2014

% total volume Company Alliance Global Group Inc San Miguel Corp Tanduay Distillers Inc Suntory Holdings Ltd Destilería Limtuaco & Co Inc London Birmingham Distillers Ltd Diageo Plc AR Valdespino SA Pernod Ricard Groupe Beam Inc Fortune Brands Inc

2010

2011

2012

2013

2014

20.2 44.8 23.4 0.5

32.5 33.9 22.7 0.4

37.8 36.1 19.2 0.3

43.6 31.6 18.6 0.4

43.6 29.1 21.3 0.4 0.4

1.3

1.1

0.4

0.4

0.4

0.2 0.3 0.0 0.4

0.2 0.2 0.0 0.3 -

0.2 0.2 0.0 0.3 -

0.2 0.2 0.0 0.3 -

0.2 0.2 0.0 -

10


Passport

González Byass SA Emperador Distillers Inc San Miguel Brewery Inc Others Total Source:

8.9 100.0

4.7 100.0

4.3 100.0

NBO Company Shares of Spirits: % Total Volume 2010-2014

% total volume Company Emperador Distillers Inc Ginebra San Miguel Inc Tanduay Distillers Inc Meritus Prime Distribution Inc Destilería Limtuaco & Co Inc Diageo Philippines Inc Williams & Humbert Philippines Inc Pernod Ricard Philippines Inc Beam Global Philippines Inc Maxxium Philippines Inc Others Total

Table 17

5.4 100.0


Table 16

Source:

8.7 100.0

2010

2011

2012

2013

2014

20.2 44.8 24.7 0.4

32.5 33.9 23.8 0.3

37.8 36.1 19.7 0.3

43.6 31.6 19.0 0.3

43.6 29.1 21.6 0.4

0.5

0.4

0.3

0.4

0.4

0.3 0.3

0.3 0.2

0.2 0.2

0.3 0.2

0.3 0.2

0.1

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

8.8 100.0

8.6 100.0

5.3 100.0

4.6 100.0

4.2 100.0


LBN Brand Shares of Spirits: % Total Volume 2011-2014

% total volume Brand (Global Brand Owner) Emperador (Alliance Global Group Inc) Ginebra San Miguel (San Miguel Corp) Tanduay Rhum 5 Years Gran Matador (San Miguel Corp) Vino Kulafu (San Miguel Corp) Tanduay Rhum 65 Tanduay Rhum ESQ Generoso (Alliance Global Group Inc) Fundador (Suntory Holdings Ltd) Tanduay Superior Others Total

Company

2011

2012

2013

2014

Emperador Distillers Inc

25.3

31.8

42.9

43.1

Ginebra San Miguel Inc

27.6

25.7

28.0

26.1

Tanduay Distillers Inc Ginebra San Miguel Inc

17.5 2.0

14.9 8.1

14.3 2.0

16.7 1.6

Ginebra San Miguel Inc

3.6

2.1

1.3

1.1

Tanduay Distillers Inc Tanduay Distillers Inc Emperador Distillers Inc

1.2 1.0 7.1

1.0 0.8 6.0

1.0 0.8 0.6

1.0 0.9 0.6

-

-

-

0.4

0.4 14.1 100.0

0.4 9.2 100.0

0.4 8.6 100.0

0.4 8.0 100.0

Meritus Prime Distribution Inc Tanduay Distillers Inc Others Total

11


Source:

Passport


Table 18

Imports of Spirits by Country of Origin: Total Volume 2008-2013

'000 litres

Spirits – Korea, South Spirits – Singapore Spirits – United States Spirits – Japan Spirits – Australia Spirits – New Zealand Spirits – Malaysia Spirits – Netherlands Spirits – United Kingdom Spirits – Mexico Spirits – Taiwan Spirits – France Spirits – Hawaii (U.S.) Spirits – India Spirits – Italy Spirits – Brazil Spirits – China Spirits – South Africa Spirits – Total Source: Note:

2008

2009

2010

2011

2012

2013

1,289.7 7.6 4.5 518.7 455.9 28.8 1,795.0 107.4 20.8 33.6 18.0 573.9 190.7 5,044.6

0.3 0.2 1.4 1.9

4.9 1.6 16.8 0.9 0.8 5.0 2.6 3.3 36.0

240.6 172.5 1.0 31.3 0.8 29.1 0.3 33.9 5.2 0.4 515.2

1,553.9 57.3 52.1 15.4 9.7 5.1 0.1 1,693.7

1,983.4 64.0 1.8 1.3 2,050.4

GTIS, Euromonitor International ‘-’ indicates data not available

Table 19

Imports of Spirits by Country of Origin: Total Value 2008-2013

PHP million

Spirits – Korea, South Spirits – Singapore Spirits – Japan Spirits – United States Spirits – Australia Spirits – New Zealand Spirits – Netherlands Spirits – Malaysia Spirits – United Kingdom Spirits – Mexico Spirits – Taiwan Spirits – France Spirits – Hawaii (U.S.) Spirits – India Spirits – Italy Spirits – Brazil Spirits – China Spirits – South Africa Spirits – Total Source: Note:


2008

2009

2010

2011

2012

2013

454.3 0.3 1.0 18.1 12.2 192.5 10.6 12.6 2.5 4.1 0.2 13.3 6.5 728.3

0.1 0.1 0.0 0.1

0.5 0.2 0.8 0.0 0.0 0.2 0.2 0.2 2.0

7.7 25.1 0.1 0.8 0.0 4.0 0.0 0.6 0.2 0.0 38.6

48.1 4.2 1.6 0.4 0.1 0.1 0.0 54.4

66.1 9.0 0.1 0.1 75.2

12


Table 20

Passport

Production, Imports and Exports of Brandy & Cognac: Total Volume 20082013

'000 litres

Brandy and Cognac – Imports Brandy and Cognac – Exports Source: Note:

2008

2009

2010

2011

2012

2013

-

7,270.1

8,518.8

4,286.1

7,671.9

16,313.5

-

1,582.9

366.4

528.7

115.0

62.3


Table 21

Production, Imports and Exports of Rum: Total Volume 2008-2013

'000 litres

Rum – Imports Rum – Exports Source: Note:

2008

2009

2010

2011

2012

2013

-

142.6 487.0

221.8 772.7

763.2 873.4

1,235.2 474.8

915.1 423.4


Table 22

Production, Imports and Exports of Whiskies: Total Volume 2008-2013

'000 litres

Whiskies – Imports Whiskies – Exports Source: Note:

2008

2009

2010

2011

2012

2013

-

3,282.2 5,401.2

2,925.9 4,171.2

3,287.8 3,211.9

2,738.8 3,613.3

2,813.4 33.7


Table 23

Production, Imports and Exports of Gin: Total Volume 2008-2013

'000 litres

Gin – Imports Gin – Exports Source: Note:

2008

2009

2010

2011

2012

2013

-

59.4 2,015.3

5.1 1,412.8

294.0 935.3

36.7 731.5

390.4 78.6


Table 24

Production, Imports and Exports of Vodka: Total Volume 2008-2013

'000 litres

Vodka – Imports Vodka – Exports Source: Note:


2008

2009

2010

2011

2012

2013

-

1,301.2 5,927.9

1,571.0 6,087.9

1,128.1 5,466.2

703.0 4,554.2

395.2 103.1

13


Table 25

Passport

Forecast Sales of Spirits by Category: Total Volume 2014-2019

'000 litres


2014

2015

2016

2017

2018

2019

325,601.5 325,479.6 122.0 297.2 97.8 32.1 167.3 149,486.0 149,102.2 383.8 428.6 1,014.7 245.4

329,001.2 328,878.4 122.8 300.6 99.1 33.2 168.3 148,019.7 147,634.8 384.8 436.2 1,073.3 259.9

334,538.6 334,414.7 123.8 308.3 102.8 34.1 171.3 147,742.8 147,356.6 386.2 443.9 1,126.0 274.5

341,973.3 341,848.1 125.3 319.1 108.1 35.1 175.9 148,184.5 147,796.4 388.0 451.7 1,178.2 289.5

351,178.2 351,051.4 126.9 332.5 114.7 36.0 181.7 149,073.0 148,682.8 390.2 459.7 1,232.2 305.3

361,024.9 360,896.2 128.7 346.8 121.7 37.0 188.0 150,084.4 149,691.6 392.8 467.9 1,289.8 321.8

2.0 0.1 491.8 8.6

2.0 0.1 535.8 8.4

2.0 0.1 572.4 8.3

2.0 0.1 607.3 8.2

2.0 0.1 642.7 8.1

2.0 0.1 680.8 8.0

266.8 204,429.5 203,344.1 1,085.4 8,120.1 8,044.5

267.1 204,475.4 203,382.2 1,093.3 5,708.5 5,631.1

268.8 207,301.0 206,194.7 1,106.3 4,584.1 4,504.9

271.2 212,436.2 211,312.3 1,123.9 3,910.1 3,829.2

274.0 219,496.7 218,350.9 1,145.8 3,528.9 3,446.3

277.2 226,997.5 225,828.0 1,169.5 3,358.2 3,273.9

75.6 689,377.6

77.4 689,014.9

79.2 696,044.6

80.9 708,453.1

82.6 725,301.2

84.3 743,569.5

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 26

Forecast Sales of Spirits by Category: Total Value 2014-2019

PHP million

Brandy and Cognac - Brandy - Cognac Liqueurs - Bitters - Cream-based Liqueurs - Other Liqueurs Rum - Dark Rum - White Rum Tequila (and Mezcal) Whiskies - Bourbon/Other US Whiskey

2014

2015

2016

2017

2018

2019

40,916.4 39,954.9 961.5 443.5 176.4 48.7 218.3 17,512.8 17,436.4 76.5 812.0 2,466.4 620.7

41,442.7 40,446.3 996.4 451.7 180.2 51.0 220.5 17,414.0 17,337.1 76.9 827.7 2,664.6 656.8

42,237.0 41,203.5 1,033.5 466.4 188.2 53.2 225.0 17,441.6 17,364.2 77.4 843.1 2,841.3 693.5

43,275.1 42,202.0 1,073.1 486.1 199.5 55.4 231.2 17,545.1 17,467.1 78.0 858.7 3,016.9 731.7

44,534.5 43,419.2 1,115.3 509.6 213.3 57.7 238.6 17,696.5 17,617.9 78.6 874.6 3,199.5 771.7

45,880.4 44,720.0 1,160.4 534.8 228.3 59.9 246.6 17,866.6 17,787.2 79.4 891.6 3,386.4 814.2

14


- Canadian Whisky - Irish Whiskey - Japanese Whisky - Blended Scotch Whisky - Single Malt Scotch Whisky - Other Whiskies White Spirits - Gin - Vodka Other Spirits - Aniseed-Flavoured Spirits - Lambanog Spirits Source:

Table 27

Passport

4.4 0.2 1,715.7 64.7

4.4 0.2 1,879.0 63.5

4.4 0.2 2,019.2 62.8

4.4 0.2 2,156.6 62.2

4.4 0.2 2,298.8 61.9

4.5 0.2 2,442.6 61.6

60.6 26,180.6 24,765.7 1,415.0 788.9 781.5

60.8 26,197.1 24,766.3 1,430.8 562.4 554.9

61.2 26,565.1 25,110.7 1,454.4 457.1 449.5

61.8 27,221.7 25,737.4 1,484.3 394.4 386.5

62.5 28,117.3 26,595.3 1,522.0 359.7 351.8

63.3 29,070.4 27,507.9 1,562.5 330.0 321.9

7.4 89,120.7

7.5 89,560.2

7.7 90,851.7

7.8 92,798.1

8.0 95,291.7

8.1 97,960.1


Forecast Sales of Spirits by Category: % Total Volume Growth 2014-2019

% total volume growth


Table 28

2014/15

2014-19 CAGR

2014/19 Total

2.8 2.8 1.4 4.3 6.1 2.7 3.5 0.7 0.7 0.7 1.8 4.7 5.4 0.2 1.7 5.9 -1.1 1.1 3.4 3.4 2.1 -4.8 -5.0 2.0 2.5

2.1 2.1 1.1 3.1 4.5 2.9 2.4 0.1 0.1 0.5 1.8 4.9 5.6 0.0 0.6 6.7 -1.5 0.8 2.1 2.1 1.5 -16.2 -16.5 2.2 1.5

10.9 10.9 5.5 16.7 24.5 15.3 12.4 0.4 0.4 2.3 9.2 27.1 31.1 0.1 3.3 38.4 -7.2 3.9 11.0 11.1 7.8 -58.6 -59.3 11.5 7.9


Forecast Sales of Spirits by Category: % Total Value Growth 2014-2019

% local currency, constant value growth 2014/2015

2014-19 CAGR

2014/19 TOTAL

15



Passport

3.0 3.0 4.0 5.0 7.0 3.9 3.3 1.0 1.0 1.0 1.9 5.8 5.5 0.6 1.4 6.3 -0.5 1.3 3.4 3.4 2.7 -8.3 -8.5 1.8 2.8

2.3 2.3 3.8 3.8 5.3 4.2 2.5 0.4 0.4 0.8 1.9 6.5 5.6 0.4 0.4 7.3 -1.0 0.9 2.1 2.1 2.0 -16.0 -16.3 2.0 1.9


12.1 11.9 20.7 20.6 29.4 23.0 12.9 2.0 2.0 3.9 9.8 37.3 31.2 2.0 2.2 42.4 -4.8 4.4 11.0 11.1 10.4 -58.2 -58.8 10.4 9.9

16

Spirits in the Philippines

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