Emperador is a leading high-growth international spirits company with a deep portfolio of globally recognised, market-leading whisky and brandy brands distributed in over 10 countries. Listed on the Singapore Exchange mainboard since July 2022, the group is organised into two segments: brandy and scotch whisky. These two segments represent the two major distilled spirits categories in which the group operates. Scotch whisky pertains to the UK operations, and the rest fall under brandy.
1. Emperador highlighted its diversified product portfolio as a key strength during economic challenges. Are there plans to further diversify into emerging segments such as craft spirits or ready-to-drink beverages?
Having a diversified portfolio ranging from accessible to luxury is an essential part of Emperador’s product strategy as it broadens our customer base across different demographics and socioeconomic classes.
Additionally, it is a good hedge against economic fluctuations as we have products for people on a budget as well as those who want an upgrade.
When considering new segments, we look into the product and the category’s longevity rather than go into short-lived fads. Furthermore, we assess whether the product fits into the strategy of the company.
Recently, Emperador, through its subsidiary Casa Pedro Domecq, acquired a majority stake in Los Danzantes, a company that produces premium Mezcal, a Mexican distilled spirit. This acquisition is attractive because mezcal is becoming increasingly popular, and it is also in line with Emperador’s “contemporise, premiums, internationalise” strategy.
2. What progress has been made in expanding Emperador’s presence in over 100 global markets? Are there any specific regions being prioritised for 2025, and what challenges are there?
Emperador is always open to opportunities to expand its distribution. Our priority is developing the markets where we see the most potential: Asia and America. These regions have the largest populations and very savvy drinkers who appreciate premium brandy and whisky. We have already gained a significant following, but we know we can do more. In China, we have partnered with Fuyu, one of China’s biggest beverage companies, to develop our presence further.
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One of our challenges is consumers trading down due to spending constraints. However, we expect this to improve over time. Another challenge is the political landscape in these areas, which can sometimes be very unpredictable. We are not fazed by those risks and challenges because we are confident that we can work with them.
3. How has the company’s premiumisation strategy evolved since 2022, and what new premium offerings are being developed to capture growth in markets like China and the US?
The premiumisation strategy is alive and well, and we still see the demand for better products despite economic uncertainties. For example, we launched the Jura 12-year-old Sherry Cask as an Asian exclusive in 2021, and it was a successful product that put Jura on the map in Asia. Many enjoy drinking Jura 12 Sherry Cask, but these customers did not have any upgrade options. Recognising the demand, we launched the Jura 15 Sherry Cask in 2024, which has performed well.
We also see premiumisation in the Dalmore, with step-up products adding to the core range, limited editions, and rare and aged products to meet the demands of drinkers who want more extraordinary drinks.
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4. The expansion of Scotch whisky in Scotland has been a significant focus. Can you share updates on the ongoing projects and their expected contribution to Emperador’s revenue mix?
Since the end of 2022, the Dalmore Distillery has undergone an expansion that will double its capacity. It is near completion. Once operational, we will begin producing new-make spirit, which will age for at least 12 years.
We had to expand the distillery now to ensure we have sufficient liquid to cater to future demand. As far back as 2018, Dalmore has been on allocation, as demand outstrips supply. We foresee that there will be greater demand for Dalmore in future, and to cater to that, we need to lay down the liquid now.
The new distillery’s impact on Emperador’s revenue mix will only be realised 12 years after the expansion is completed. Until then, Dalmore will continue to provide its consumers with one of the best whiskies in the world using its current liquid inventory, which is still sufficient to cater to a significant portion of the demand.
5. The Scotch whisky segment, which accounted for PHP18.2 billion ($423 million) in revenue for the first nine months, saw a 6% decline y-o-y. How is Emperador addressing market slowdowns in key regions like Asia-Pacific and North America?
The slowdown in the Scotch whisky segment is not unique to Emperador. Other liquor giants globally are also currently navigating the challenging landscape amid cost-of-living concerns.
The rare and aged market also seems to be adjusting at this point, rationalising from the sky-high prices of the past few years. This is positive as it will drive away speculators.
We believe the current challenges for Scotch whisky sales will be temporary. Emperador has been proactively pursuing different initiatives for different brands aimed at premiumising and acquiring new customers. Whisky education, through our brand ambassadors, is more active than ever because we need to communicate what makes our brand unique.
We have also launched many new products, such as the Jura 15-year-old Sherry Cask, the Tamnavulin Wine Cask range, the Dalmore 12-year-old Sherry Cask, and the Dalmore Cask Curation Series, to capture new market segments.
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6. Brandy’s revenues fell 10% y-o-y due to weaker performance in global markets like Spain, Mexico, and the Philippines. Are there plans to rejuvenate demand in these regions, or are you looking to pivot to other markets?
Emperador will continue to develop the brandy market in these territories because we see strong growth potential. However, brandy is currently lagging behind other categories due to a lack of exciting developments or innovations, which has resulted in the category being labelled as an “uncle’s drink.”
Emperador is working to change that. We rolled out the award-winning Fundador sherry cask range, which includes the Fundador Sherry Cask Doble Madera, a brandy perfect for mixing into cocktails. This is a new approach to brandy. Traditionally, brandy is for sipping or drinking neat. Mixing brandy in cocktails reintroduces the spirit to younger consumers and makes it a relevant category for them.
7. Emperador has set ambitious sustainability goals, including carbon neutrality for Whyte & Mackay by 2030 and net-zero emissions by 2040. What progress has been made toward achieving these targets, particularly in the past year?
2024 was a big year for Whyte & Mackay’s sustainability because it completed projects that are crucial for the company’s goal of carbon neutrality by 2030.
The Jura Biomass Boiler, which decarbonises the Jura Distillery, produced its first steam in December 2024 and is ready for use in 2025.
Carbon capture is ready for use starting in January at the Invergordon Distillery. This can capture 8,500 tonnes of CO2 annually.
The Bioenergy Center at the Invergordon Distillery which processes spent wash, pot ale and draff (a co-product) from Invergordon and Dalmore Distillery under anaerobic conditions to create biogas, which is then updated to biomethane was completed in June 2024.
All electricity contracts for Whyte & Mackay have been carbon neutral since 2022.
With the completion of these projects in 2024, Whyte & Mackay is on track to becoming carbon neutral by 2030.
8. What steps are being taken to reduce packaging waste and incorporate eco-friendly materials in Emperador’s product lines, given the increasing focus on sustainability in the spirits industry?
There are several ongoing initiatives to make our products more sustainable and more friendly towards the environment. For instance, we are reducing the weight of our bottles, which will allow us to reduce the use of virgin materials, as well as produce more bottles from recycled glass.
For the whiskies, close to 90% of all components used in packaging are recyclable. The larger boxes have been reduced to a smaller, simpler box for easier recycling. We also continue to rethink and redesign the packaging with a goal for it to be 100% recyclable.
9. Given the high demand for Whyte & Mackay’s luxury single malts, are there plans to increase production capacity or expand distribution channels further?
The company constantly reviews its stock inventory and market demand to determine whether it needs to expand.
For the Dalmore, the distillery expansion is underway and will be completed very soon. Though the demand for Dalmore is high, we remain selective when it comes to distribution as it is a luxury brand. We carefully screen the distributors to make sure that they can sell luxury brands well and are very selective in choosing the channels where the Dalmore is made available.
However, we are always looking for opportunities to expand our customer base and will engage where we find the right fit.
10. What are the most significant opportunities Emperador foresees in the global spirits industry in 2025, and how is the company preparing to capture them?
In 2025, the global spirits industry will start to normalise. Trade will be destocked back to reasonable levels, and once that happens, sales and distribution will be healthier across the industry. Prices across the sector will also normalise, making it easier to navigate.
When that happens, the appetite for exploring new products will also return. This is good for our products because innovation is in our DNA. We have new products such as the Tamnavulin wine cask range, which is exciting because it is a fresh take on single malt scotch, which we believe will be enjoyed by many consumers.
10 in 10 – 10 Questions in 10 Minutes with SGX-listed companies
Designed to be a short read, 10 in 10 provides insights into SGX-listed companies through a series of 10 Q&As with management. Through these Q&As, management will discuss current business objectives, key revenue drivers as well as the industry landscape. Expect to find wide-ranging topics that go beyond usual company financials.
This report contains factual commentary from the company’s management and is based on publicly announced information from the company. For more, visit sgx.com/research. For more company information, visit www.emperadorinc.com
Raphael Lim is associate director for research and FinLit at the Singapore Exchange Group
