Spirits in the Philippines

SPIRITS IN THE PHILIPPINESEuromonitor International October 2015 ............................. 5 Sales of Spirits by Category: Total Value 2009-2014 .......................................................................... 9 Sales of White Rum by Price Platform: % Total Volume 2009-2014 ......................................... 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 .............................................................................................................................................................................................. 6 Sales of Spirits by Category: % Total Volume Growth 2009-2014 ... 15 © Euromonitor International Passport I ......................................................... 8 Sales of Spirits by Off-trade vs On-trade: % Value Growth 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 ............. Imports and Exports ................. 8 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 20092014 ........................................................ 11 LBN Brand Shares of Spirits: % Total Volume 2011-2014 ................................................................................................................................................................................................................................................................................. 13 Production...................................................... 4 Category Background .......................... 8 Sales of Dark Rum by Price Platform: % Total Volume 2009-2014 ........................ 4 Vodka...................................... 14 Forecast Sales of Spirits by Category: Total Value 2014-2019 ..................... Imports and Exports of Rum: Total Volume 2008-2013 ........................................................................................................... 15 Forecast Sales of Spirits by Category: % Total Value Growth 20142019 ................................................................................... 9 Sales of Other Blended Scotch Whisky by Price Platform: % Total Volume 2009-2014 ........... Gin...... 11 Imports of Spirits by Country of Origin: Total Volume 2008-2013 ............................ 7 Sales of Spirits by Off-trade vs On-trade: Volume 2009-2014................ 13 Production............. 13 Forecast Sales of Spirits by Category: Total Volume 2014-2019 ................................................ Dark Rum and White Rum Price Band Methodology ................................................................................................................... 5 Category Data .......... Imports and Exports of Whiskies: Total Volume 20082013 ........................................... Imports and Exports of Gin: Total Volume 2008-2013 ...............................................SPIRITS IN THE PHILIPPINES LIST OF CONTENTS AND TABLES Headlines .... 10 GBO Company Shares of Spirits: % Total Volume 2010-2014 ............................... 8 Sales of Spirits by Off-trade vs On-trade: Value 2009-2014................................................... 14 Forecast Sales of Spirits by Category: % Total Volume Growth 20142019 .............................. 1 Production............................. 1 Trends ........................ 12 Imports of Spirits by Country of Origin: Total Value 2008-2013 ............................................................. Other Blended Scotch Whisky..................................................................................... 12 Production.................................................................. 4 Summary 1 Benchmark Brands 2014 ........................... 7 Sales of Spirits by Category: % Total Value Growth 2009-2014 .... 10 NBO Company Shares of Spirits: % Total Volume 2010-2014................................... 3 Prospects ................................... 2 Competitive Landscape ...................................................... 13 Production........................................ Imports and Exports of Vodka: Total Volume 2008-2013 ............... 13 Production.......................................................................... Imports and Exports of Brandy & Cognac: Total Volume 2008-2013 ............... SPIRITS IN THE PHILIPPINES © Euromonitor International Passport II . however. Brandy and rum showed positive volume sales growth with a 2% and 16% increase in volume sales respectively. attributes this decline to an 18% retail price increase that was imposed in 2013. Both on. but retained demand for the Johnnie Walker brand. the growth puts blended Scotch whisky back on track to its forecast market growth. The main sales channel for spirits remains off-trade establishments. Largely driven by the increasing demand for the Johnnie Walker brand portfolio. Tanduay Distillers’ flagship brand registered a 19% increase. © Euromonitor International Passport 1 . Whiskies recorded the highest on-trade current average unit price growth of 16% in 2014. with 16% volume sales growth in 2014. and with Emperador Distillers’ acquisition of the major Scotch whisky producer Whyte & Mackay. Growth experienced a slight slowdown in 2013. the main driver in the gin category with a 89% volume share. 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. Gin. with a 27% total volume sales increase. In the off-trade pricing. The positive volume sales growth is an optimistic sign that the category is starting to recover. is expected to expand in the next five years. The category’s growth is evidenced by 14% total volume sales CAGR over the review period. Canadian whisky and Irish whiskey registered minimal growth in 2014. the average unit price of Dutch gin increased by 13%. Whiskies showed total volume sales growth of 89% over the review period. There is no excise tax increase for distilled spirits in 2014. which was mainly due to the imposed excise tax which resulted in an industry-wide price adjustment. which makes up 42% of the volume saved it from decline. Price adjustments are due to the excise tax increase which took effect in 2013. Total volume sales of spirits increased by 2% in 2014 to reach 689 million litres. Ginebra San Miguel. Blended Scotch whisky posted the highest total volume sales growth of 70% in 2014. still witnessed a decline in volume sales.015 million litres in 2014. The positive growth is due to increased awareness of whisky drinking and the growth of consumer buying power. making up 87% of total volume sales with 602 million litres. the category.SPIRITS IN THE PHILIPPINES SPIRITS IN THE PHILIPPINES HEADLINES Total volume sales increase by 2% in 2014 Whiskies rapidly growing with 27% total volume sales increase in 2014 Blended Scotch whisky posts the highest total volume sales growth of 70% in 2014 Whiskies records the highest on-trade current average unit price growth of 16% in 2014 Emperador Distillers Inc continues to dominate spirits A 2% total volume CAGR is expected over the forecast period TRENDS Whiskies grew rapidly in 2014.and off-trade showed improved volume sales growth in 2014 as demand for spirits started to recover. Bourbon/other US whiskey also showed positive growth of 6%. Similar to the rapidly growing blended Scotch whisky category. Whiskies registered positive volume sales growth of 27% to reach 1. putting total volume sales to 132 million litres. Rum showed a fast recovery. Although minimal. Sales from on-trade channels. particularly Scotch whisky. the growth is seen as a great improvement from the sales decline in 2013. There are no indications that this consumer preference is likely to shift. Consumers of spirits are largely men. Tanduay Distilleries owns production and distillation plants in Negros Occidental. namely Paradise Mango Rum Liqueur.SPIRITS IN THE PHILIPPINES however. Gin is primarily driven by Ginebra San Miguel’s flagship brand. Unlike traditional lambanog brands. IMPORTS AND EXPORTS Production of the three leading brands in spirits is completed domestically. showed faster recovery with 3% growth as compared to off-trade channels with only 2%. flavoured vodka accounted for 37% of total volume sales in 2014 with brands Antonov. tapuy and lambanog. tuba. they expanded distribution by making them available to mass market off-trade establishments such as supermarkets and convenience stores. Tequila is the only prominent product in the tequila (and mezcal) category. PRODUCTION. it is targeted at an upscale niche market with a premium price point. Honey-flavoured variants of popular bourbon brands Jack Daniel’s and Jim Beam that are targeted at female consumers are slowly gaining popularity. while vodka’s majority share is owned by Gilbey’s Vodka. Vodka continues to be dominated by non-flavoured variants. These properties are strategically located to assure that raw materials are easily accessible and final products are widely distributed. The company has recently acquired a vineyard and production facilities in Spain for the production of its own line of imported brandy. vodka and rum. particularly expats. Similar to Don Papa Rum. The spirits category is primarily driven by the three leading manufacturers. Chasers and mixers play a big role in the Filipino way of consuming spirits. Craft spirit exists in the country but it is targeted at an upscale niche market. production and distillation facilities located in Laguna and Batangas. gin and rum categories respectively. Micro-distillers in the Philippines are in the form of a cottage industry that produces traditional Filipino spirits such as basi. Mezcal is not popular in the Philippines and awareness is limited to a niche market. Laguna and Misamis Oriental. Domestically-manufactured spirits continue to dominate spirits in the Philippines making up 91% of total volume sales. both dark and white are almost 100% driven by Tanduay Distilleries’ range of rum brands. Scotch whisky is also gaining popularity amongst women as it is being marketed as a cocktail mixer. Amadeo Liqueur and Manille Liqueur de Calamansi. Economy brands continue to dominate gin. Emperador Distillers has three bottling. Ginebra has the biggest production capacity with nine © Euromonitor International Passport 2 . Tequila is dominated by the mid-priced brands José Cuervo Especial and Pepe Lopez Gold. Belgium and the Czech Republic. whiskey and rum with cola. A product that is slowly becoming popular is Don Papa Rum. however there is an emerging trend of marketing efforts to attract women to traditionally male-dominated brands. this craft spirits line appeal to tourists and expats. In rum. Destileria Limtuaco is also venturing into craft spirits with its range of liqueurs. Spirits cut across socioeconomic groups as brands continued to be segmented by economy. In 2014. Economy brands make up 98% for gin and 72% for vodka. produced by The Bleeding Heart Rum in partnership with Ginebra San Miguel. and gin with fruit juice are popular. Brandy with iced tea. launched its ‘artisanal lambanog’ called Lakan in October 2014. This trend is prominent in the whiskies category. Emperador Distillers. standard and premium positioning. Philippine Craft Distillers. Ginebra San Miguel and Tanduay Distillers that are leaders in the brandy. located in specific regions in the country. Absolut Kurant and Absolut Citron. Consumers who prefer to go out to bars and restaurants to drink and socialise are more likely to adjust and accept the price increase. 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. A new player. Batangas. Diageo Philippines has the highest number of imported brands that are faring well in the Philippines. COMPETITIVE LANDSCAPE Emperador Distillers dominate the spirits category with a 44% volume share. including brands such as Johnnie Walker. Destileria Limtuaco. the company posted a minimal increase of 2% in 2014. whiskies and vodka. 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. led by Meritus Prime Distribution. Albay. Laguna. Valenzuela and Negros. although still market leader. Pangasinan. and Ginebra San Miguel recorded a total sales volume decline of 6%. posted a decline in most its brands. Emperador Distillers. Tanduay Distillers followed with 16% sales volume growth as its brands recovered from sales decline in 2013. The facilities are located in Cebu. Brandy continues to grow as new players. also by Diageo Philippines. It terms of sales growth. Meritus Prime Distribution which distributes Fundador Brandy. respectively. Emperador Distillers. The Scotch brand is pegged to appeal to the young working middle class demographic. As with other types of alcoholic drinks. The company distributes the Ginebra brand to 22 countries.00 per 750 ml bottle. On the other hand. bottling and distilling facilities around the country specifically for its liquor business. private label brands are negligible in spirits. purchased from India’s United Sprits. International brands were the greatest gainers in sales volume growth in 2014. Its international subsidiaries acquired a 50% stake in Bodega Las Copas SL.SPIRITS IN THE PHILIPPINES production. had the most visible marketing campaign as it aggressively promoted Red Label as an entry-level Scotch whisky and made it more affordable at PHP490. This is due to the high demand of Fundador in the light brandy category. including Australia. posted 2% growth in 2014. Ginebra San Miguel and Tanduay Distillers remain the leaders in brandy. Isabela. The acquisitions are worth PHP 3. José Cuervo Smirnoff. © Euromonitor International Passport 3 . which is distributed in limited quantities and selected areas in the Philippines registered a 5% decline in sales. Imported brands lead in cognac. Compañero from Tanduay Distillers and Excelente from Montosco. Gilbey’s and Baileys Irish Cream. Thailand and China. USA and UAE. meanwhile. Emperador Distillers announced two more acquisitions for 2014. tequila (and mezcal). Brunei. a Spanish company and a 100% stake in Whyte & Mackay Group Ltd. Japan and Hong Kong. gin and rum. VAT 69 is a more affordable Scotch whisky launched by Diageo Philippines in the last quarter of 2014. Tanduay Distillers exports to Hong Kong. Canada. Diageo Philippines and Mast-Jägermeister AG with an average volume sales growth rate of 19%. Johnnie Walker. enter the category. Generoso Brandy. liqueurs. Its sales growth was driven by the Emperador Brandy brand with total volume sales of 300 million litres in 2014. Ginebra San Miguel is considered the biggest exporter of spirits with a global distribution system of its mother company San Miguel Corp. Tanduay Distillers had the highest volume sales growth among domestic brands with a 16% increase in volumes sales. Domestically manufactured brands continue to dominate spirits volume sales imported brands only make-up a small portion of spirits available in the Philippines. registered the biggest increase in total volume sales 2014 with 37% growth.7 billion PHP 31 billion respectively and are in line with the company’s vision to bring Emperador to the global market. the category is starting to recover from its decline in 2013 and this is forecast to continue at a slow and steady pace. companies may expand their export and imports activities. taking a typical brand. More competition from players in the ASEAN region is expected to emerge in the forecast period in addition to the expected Scotch whisky expansion of Emperador Distilleries. caters to a broad market with a value-for-money proposition. which is indexed as 100%. tequila are all expected to recover sales demand. by volume as the benchmark price. 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. There will be exceptions. Gin. with a 6% total volume CAGR over the forecast period. The Johnnie Walker other blended Scotch brand will drive this predicted growth. The benchmark brand will usually be a mid-priced brand. Whiskies are expected to increase in unit price the most. liqueurs. taking advantage of the buying power of the growing middle class demographic. Consumers of these spirits are likely to be unfazed by the anticipated price increase with the exception of rum. Both on. © Euromonitor International Passport 4 . with a 2% average unit price CAGR over the forecast period. a Scotch whisky launched in the last quarter of 2014. however. Blended Scotch whisky is anticipated to continue its growth with a 7% total volume sales CAGR over the forecast period. Both brandy and gin are predicted to post growth of 2% volume sales CAGR. usually the leading brand. Companies are expected to mitigate price increases due to excise tax adjustments with discounting. Dark Rum and White Rum Price Band Methodology Classification of these spirits products is based purely on pricing. Over forecast period. A potential forecast threat in the market share growth of domestic companies is the expected emergence of new players and competition. New brands in the whiskies category are expected to enter the Philippines market during the forecast period to take advantage of the rapid expansion. More imported brands are positioning themselves in the mid-priced price band. Specific spirits category types may explore higher volume packaging to appeal to the budgetconscious demographic. bundling and other price-based promotions during the forecast period. Mid-priced products are expected to recover growth in a slow but steady pace over the forecast period. 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. vodka. Rum. particularly its Red and Black label brands. It is expected to perform well with the emerging awareness in whisky drinking and the rapidly growing middle class market. CATEGORY BACKGROUND Vodka.and off-trade channels have shown initial signs of improvement and recovery.SPIRITS IN THE PHILIPPINES PROSPECTS A 2% total volume sales CAGR is expected over the forecast period. Prices are still expected to increase across the board due to the higher excise tax adjustment. cognac. New Scotch whisky brands are expected to enter the market starting in 2015 following Emperador Distillers’ acquisition of Whyte & Mackay. Other Blended Scotch Whisky. 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. Vat 69. As expected. Bourbon/other US whiskey is expected to continue its steady growth. 601.423.99% higher or 9.00% or higher than price of the benchmark brand.0 282.170. Based on benchmark brand being economy: Super premium: 50.2 5 .00% and 29.9 258.00% or higher than benchmark brand. Premium: 10.5 214. Economy: Anything lower or up to 9.5 409.9 124.99% higher than price of benchmark brand.0 297.99% lower or 9.00% and 29. Mid-priced: Between 10.99% higher price than benchmark brand.5 177.565.SPIRITS IN THE PHILIPPINES Passport 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.264.0 268.00% cheaper than the benchmark brand. Economy: Anything over 30.294.00-29.Cognac Liqueurs © Euromonitor International 2009 2010 2011 2012 2013 2014 177.8 120. Economy: Over 50% lower than benchmark brand.0 319.99% higher than benchmark brand.99% lower than benchmark brand.99% lower than benchmark brand.2 258.Brandy .00% or higher than price of the benchmark brand. Economy: At least 10.1 325.470.6 122. Mid-priced: 30.00-49. Premium: Any brand that is up to 9.9 251.99% lower than benchmark brand. store checks CATEGORY DATA Table 1 Sales of Spirits by Category: Total Volume 2009-2014 '000 litres Brandy and Cognac .00% to 29. Based on benchmark brand being mid-priced: Super premium: 30. Mid-priced: Between 10.1 139. Summary 1 Category Benchmark Brands 2014 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.9 127.645.4 319.7 282. Refer to the guidelines below for further detail.403. Based on benchmark brand being super premium: Super premium: Anything higher or up to 9. Based on benchmark brand being premium: Super premium: 10. Premium: 10.479.5 325.9 409.00% lower than the price of benchmark brand.00% to 49.518. Mid-priced: Between 9.7 141.8 214.99% higher than price of benchmark brand.99% cheaper than the benchmark brand.99% higher than the price of the benchmark brand.99% lower than the benchmark brand.349.4 236. Premium: 30. 0 788.5 1.7 18.9 152.2 605.6 59.0 0.8 800.Dark Rum .520.5 40.5 269.1 187.1 544.705.0 770.5 743.858.486.8 25.094.5 69.0 1.7 64.2 186.3 1.366.704.9 19.4 1.7 28.2 38.Other Liqueurs Rum .8 0.6 656.7 128.1 240.2 605.9 394.563.0 4.415.4 205.Other Whiskies White Spirits .6 75.8 1.512.440.Brandy .3 217.9 59.886.1 268.2 196.6 258.4 8.Vodka Other Spirits .4 42.7 219.8 32.230.2 29.336.8 428.205.7 35.569.4 1.Blended Scotch Whisky .6 26.0 8.648.9 870.5 707.211.8 292.4 1.9 721.429.6 3.7 517.1 218.Single Malt Scotch Whisky .5 9.1 28.311.4 2.6 408.014.4 40.480.5 203. trade press.8 17. trade associations.5 25.014.4 76.7 1.4 0.500.2 16.001.1 59.7 53.3 275.165.8 60.8 80.7 266.8 554.5 46.0 0.5 398.425.6 18.5 915.Lambanog Spirits Source: Passport 50.022.3 149.2 33.2 59.1 1.915.1 183.851.508.4 2.258.044.0 167.7 1.1 537.9 781.0 254.728.White Rum Tequila (and Mezcal) Whiskies .White Rum Tequila (and Mezcal) Whiskies .051.0 358.6 1.6 58.3 8.8 204.728.Irish Whiskey .Gin .482.Vodka Other Spirits .5 24.595.033.9 161.2 197.6 217.6 2.7 44.201.2 2.8 35.Gin .040.238.7 23.6 24.717.916.640.5 415.7 16.1 60.592.0 0. trade sources Table 2 Sales of Spirits by Category: Total Value 2009-2014 PHP million Brandy and Cognac .2 346.6 Euromonitor International from official statistics.408.1 0.7 908.Japanese Whisky .9 26.0 214.4 1.1 23.1 4.1 167.9 659.9 241.4 8.5 60.7 36.Other Liqueurs Rum .3 20.9 688.9 23.0 218.Bitters .5 165.8 166.855.3 3.871.649.Canadian Whisky .0 149.2 400.0 175.377.085.724.1 289.8 26.5 1.5 176.Cognac Liqueurs .9 573.029.0 16.1 132.5 847.Aniseed-Flavoured © Euromonitor International 2009 2010 2011 2012 2013 2014 23.6 1.439.0 3.447.2 246.2 260.120.2 4.1 471.0 17.Other Whiskies White Spirits .6 18.4 2.2 1. company research.6 18.0 2.5 160.6 116.344.5 2.9 708.7 752.4 39.4 60.Irish Whiskey .9 27.Aniseed-Flavoured Spirits .041.8 3.2 1.5 32.6 39.2 69.514.5 812.4 8.180.7 98.3 155.0 39.2 269.038.6 17.Cream-based Liqueurs .595.Cream-based Liqueurs .4 620.052.715.436.8 8.1 207.8 390.300.0 18.0 0.2 170.4 48.0 0.1 848.SPIRITS IN THE PHILIPPINES .2 1.1 40.9 29.4 56.0 21.5 231.5 371.Dark Rum .3 17.1 51.401.273.5 29.0 40.4 18.466.684.8 67.391.954.2 26.3 426.164.7 677.2 71.6 389.5 129.1 8.1 1.Bourbon/Other US Whiskey .9 55.7 218.1 22.520.8 77.1 82.3 587.765.4 172.6 256.8 605.346.3 4.677.9 0.Bourbon/Other US Whiskey .3 154.636.123.0 410. store checks.7 245.Canadian Whisky .5 6 .6 689.0 322.413.4 166.2 73.244.3 0.9 961.0 9.5 963.7 8.340.5 443.014.9 786.102.691.530.0 1.0 168.136.1 82.6 384.7 3.448.8 211.2 24.6 97.1 117.711.9 85.5 56.Japanese Whisky .236.814.035.9 0.994.626.1 40.4 39.4 263.2 269.2 383.Bitters .2 0.411.9 774.Single Malt Scotch Whisky .731. trade interviews.Blended Scotch Whisky .6 1.289.4 16.2 383.275.2 397.8 171.461.850.5 737.3 2.0 3.5 65.075.314.1 491.441.7 26.3 22. Bourbon/Other US Whiskey .4 1.4 -25.3 14.009.7 15.5 83.0 3.Lambanog Spirits Source: Table 4 2013/14 2009-14 CAGR 2009/14 Total 1. trade sources Table 3 Sales of Spirits by Category: % Total Volume Growth 2009-2014 7.9 8.4 8.4 -6.7 -1.905.0 0.Dark Rum .5 1.7 % total volume growth Brandy and Cognac .8 3.2 51.9 1.8 -6.4 11.3 6.5 65.7 -0.7 -0.5 1.8 15.Other Whiskies White Spirits .284. store checks.0 71.7 5.5 -0.1 497.5 49.Blended Scotch Whisky .6 -3. trade sources Sales of Spirits by Category: % Total Value Growth 2009-2014 % local currency.5 2.3 10.1 43.9 85.Other Liqueurs Rum .0 2.8 16.4 27.6 4.5 15.9 6.5 12.Single Malt Scotch Whisky .5 2.4 -6.2 82.White Rum Tequila (and Mezcal) Whiskies .6 11.120.Brandy .3 8.2 -3.Lambanog Spirits Passport 5.0 0.8 6.4 0.9 31.5 2.5 8.3 6. trade press.7 12.8 3. store checks. trade interviews.7 0.Cream-based Liqueurs .Bitters .9 12. trade interviews.White Rum Tequila (and Mezcal) © Euromonitor International 2013/14 2009-14 CAGR 2009/14 Total 3.3 2.Cream-based Liqueurs .5 119.6 -77.8 10.0 14. trade associations.3 3.8 75.5 3.5 94.5 25.8 34.3 -1.9 13. trade associations. company research.Vodka Other Spirits . company research.6 5. trade press.Japanese Whisky .0 -0.3 72.6 14.Brandy .4 -6.Aniseed-Flavoured Spirits .3 5.Irish Whiskey .6 5.8 11.7 2.8 3.5 3.5 88.233.6 -12.4 -25.5 3.1 1.4 -14.5 70.0 7 .5 91.1 5.1 Source: Euromonitor International from official statistics.Cognac Liqueurs .Dark Rum .5 5.0 -14.Other Liqueurs Rum .1 3.1 1.6 -1.4 89.3 2.5 95.1 26.Gin .6 13.1 14.2 -0.SPIRITS IN THE PHILIPPINES Spirits .8 17.7 6.Canadian Whisky .9 0.Bitters .9 1.4 Euromonitor International from official statistics.5 0.0 -77.9 -2. current value growth Brandy and Cognac .7 4.3 93.448.5 33.7 17.1 15.3 83.1 15.Cognac Liqueurs . 5 82.Vodka Other Spirits .1 69.157. trade interviews.Japanese Whisky .7 Euromonitor International from official statistics.Blended Scotch Whisky .6 4.6 0.8 -14.207.501.2 34.5 689.5 587.552.8 107. company research.905.9 5.5 3.244.3 83.5 -74.093.7 6. company research.6 Euromonitor International from official statistics.3 85.0 708.3 62.0 13.238.009.2 763. trade press.4 3.5 90.8 4.9 76. trade press.844.003.608. trade sources Table 6 Sales of Spirits by Off-trade vs On-trade: Value 2009-2014 PHP million Off-trade On-trade Total Source: 2009 2010 2011 2012 2013 2014 54.Canadian Whisky .Irish Whiskey .3 870.0 -74.3 26.0 75. trade associations.5 14.630.045.6 602.401.8 4.8 91.604.140.2 17. store checks.4 16.6 -23.6 595. trade interviews.607.6 4. trade associations.748.7 7.3 19.2 Euromonitor International from official statistics.2 7.2 2.8 4.4 Euromonitor International from official statistics.8 3. trade press.5 19.2 11.233.5 1.2 593.Single Malt Scotch Whisky .448.1 13.7 45.7 13.814.332. trade associations.Gin .SPIRITS IN THE PHILIPPINES Passport Whiskies .6 47.314.3 71. company research.2 1.3 1.3 5.397.813.377.0 6.456.5 609.3 2.7 26. trade sources Sales of Spirits by Off-trade vs On-trade: % Value Growth 2009-2014 © Euromonitor International 8 . store checks. trade interviews.7 3.Bourbon/Other US Whiskey . trade press.8 3.7 68.1 6.120.7 12.5 -23.4 35.1 87.4 24.0 17. trade associations.Lambanog Spirits Source: 44.223.8 568. trade sources Table 7 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2009-2014 % volume growth Off-trade On-trade Total Source: Table 8 2013/14 2009-14 CAGR 2009/14 TOTAL 1.407.Aniseed-Flavoured Spirits . store checks.2 2.4 14.7 -13.2 213.2 98.1 75.676.0 659.7 89.897.3 677. company research.Other Whiskies White Spirits .1 3.837.1 65. trade sources 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. store checks.3 84. trade interviews.284.8 25.1 8.607. 0 Euromonitor International from official statistics. store checks. company research.0 0.3 100.2 72.5 100.4 22. trade sources ‘-’ indicates data not available Table 11 Sales of Other Blended Scotch Whisky by Price Platform: % Total Volume 2009-2014 % total volume Super Premium Premium Mid-Priced Economy Total Source: Note: Table 12 2009 2010 2011 2012 2013 2014 11.8 100.6 57. trade press. store checks.9 18.0 26.SPIRITS IN THE PHILIPPINES Passport % current value growth Off-trade On-trade Total 2013/14 2009-14 CAGR 2009/14 TOTAL 5. trade sources 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 0.0 10.1 99. trade interviews. trade press.9 100.2 99.4 89.0 10.9 91.6 66.2 99.0 0. company research.9 100.3 35.0 11.2 Source: Euromonitor International from official statistics.4 89.3 100.9 14. store checks. company research.2 100.2 99.0 0.2 99.3 66. trade associations.0 0. trade sources ‘-’ indicates data not available Table 10 Sales of White 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 8. trade press.5 100.0 29.7 100. company research. trade associations. store checks.8 100. trade associations.2 38.2 99.0 20.2 55.7 21.0 22.0 9.2 100. trade press.8 3.6 100.4 89.1 10. trade associations.3 2.5 4. trade interviews.0 Euromonitor International from official statistics.0 10.5 89.0 10.8 100.9 19.8 100.6 100.6 100.6 7.8 100. trade interviews.2 63.8 6.0 0.0 Euromonitor International from official statistics.7 100. trade sources ‘-’ indicates data not available Sales of Gin by Price Platform: % Total Volume 2009-2014 © Euromonitor International 9 .4 6.8 90. trade interviews. 9 100.8 63.8 73. company research.0 97.9 100. company research.3 43.0 Euromonitor International from official statistics.2 0.8 100. trade interviews.0 0.1 0.1 21.4 0.2 0.8 23.3 1.4 74.4 37.0 100.2 100.2 0.2 100.3 25.2 0. store checks.0 0.8 64.2 0.3 100.3 26.6 18.1 100.2 100.4 0.3 0.7 0.5 63.2 0. trade press.4 100. trade sources ‘-’ indicates data not available 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 98.0 36. store checks.4 1.7 98.0 0.0 1.0 1.3 23.2 0.0 - 10 .1 1. trade press.5 100.2 0.4 0.5 32.0 Euromonitor International from official statistics.6 29.3 100.2 0.SPIRITS IN THE PHILIPPINES Passport % total volume Super Premium Premium Mid-Priced Economy Total Source: Note: 2009 2010 2011 2012 2013 2014 0.0 0.0 36.9 71.0 0.7 98.3 24.9 22. trade interviews.0 0.4 43.0 36.1 19. trade associations.0 36.0 1. store checks.0 0.0 0. trade sources 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 © Euromonitor International 2010 2011 2012 2013 2014 20.0 1.2 100.1 1. trade press.4 0.3 - 0.3 25.7 73.0 36.2 100.1 1.0 Euromonitor International from official statistics.9 74.4 0.1 2.7 98.1 1.6 63. trade associations.5 73.0 1.5 33.3 24.2 0.0 0. trade interviews.2 100.4 0. company research.9 98.1 1. trade associations.3 - 0.5 63.7 63. trade sources ‘-’ indicates data not available Table 13 Sales of Vodka by Price Platform: % Total Volume 2009-2014 % total volume Super Premium Premium Mid-Priced Economy Total Source: Note: 2009 2010 2011 2012 2013 2014 1.3 0.3 - 0.8 36.6 0.2 100.2 44.5 100.6 31.8 100. 8 0.3 37.7 100.0 0.3 43.3 100. trade interviews.0 0.1 0.6 100.0 4.5 0.2 0.3 0.6 100.0 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 5.6 25.5 2.9 23.6 2.0 100.3 0.1 100.2 100.9 8.3 43.0 0.0 Euromonitor International from official statistics.8 100. trade associations.6 1.4 0. trade sources 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 © Euromonitor International Company 2011 2012 2013 2014 Emperador Distillers Inc 25.4 100.5 33.0 14.8 24.3 0.1 14.3 100.1 Tanduay Distillers Inc Tanduay Distillers Inc Emperador Distillers Inc 1.2 0.0 0.2 0.4 0.6 31.0 7. trade interviews.0 26.0 0.7 1.0 2010 2011 2012 2013 2014 20.8 6.7 0.9 0.0 1.3 31.9 43.7 100.3 1. company research.0 Meritus Prime Distribution Inc Tanduay Distillers Inc Others Total 11 .6 0.0 0.4 8.2 44.8 0.8 36. trade press.4 0.8 42.2 100.6 Ginebra San Miguel Inc 3.0 0.3 0.0 16.7 0. trade associations.0 0.0 8.2 0.0 5.0 8.3 0.6 100.6 - - - 0.1 Ginebra San Miguel Inc 27.3 2.1 Tanduay Distillers Inc Ginebra San Miguel Inc 17.9 100.0 0.0 Euromonitor International from official statistics.SPIRITS IN THE PHILIPPINES Passport González Byass SA Emperador Distillers Inc San Miguel Brewery Inc Others Total Source: 8.6 29.4 8.1 19.1 1.0 4.7 28.4 14. trade sources Table 16 Source: 8.1 21.0 4.1 1.4 32.2 1.0 0. store checks.0 0.0 0. company research.0 0. store checks.0 0.0 4.4 0.6 19. trade press.3 0.4 0.0 0.2 0.4 9. 4 20.0 0.3 1.9 0.2 1. 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. Euromonitor International ‘-’ indicates data not available © Euromonitor International 2008 2009 2010 2011 2012 2013 454.4 64.289.0 38.SPIRITS IN THE PHILIPPINES Source: Passport Euromonitor International from official statistics.1 0.1 9.1 0.6 48.6 0.044.2 0.3 33.1 0.0 0.795.0 31.3 0.8 5.2 1.9 190.0 107.8 0.0 0.0 4.5 518.7 5.1 0.2 2.5 728.0 18. trade sources Table 18 Imports of Spirits by Country of Origin: Total Volume 2008-2013 '000 litres Spirits – Korea.2 13.9 1.9 28.2 1.3 6.6 12.0 573.S.9 5.8 0.) Spirits – India Spirits – Italy Spirits – Brazil Spirits – China Spirits – South Africa Spirits – Total Source: Note: GTIS.2 0.4 515.8 1.5 10. trade interviews.6 3. trade associations.1 0. 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.5 4.9 57.0 240. Euromonitor International ‘-’ indicates data not available Table 19 Imports of Spirits by Country of Origin: Total Value 2008-2013 PHP million Spirits – Korea.6 2.0 0.6 4.1 12.6 0.S.5 1.0 0.0 0.2 0.2 0.7 25.1 0.050.6 16.3 0.7 455.1 15.6 0.0 1.1 75.1 0.6 18.553.2 12 . store checks.5 0.693.0 2.1 1.7 1.2 192.4 GTIS.8 1.2 0.1 0.3 0.6 172.1 0.8 33.0 54.3 52.7 7.4 0.3 2.1 0.1 0.) Spirits – India Spirits – Italy Spirits – Brazil Spirits – China Spirits – South Africa Spirits – Total Source: Note: 2008 2009 2010 2011 2012 2013 1. trade press.4 66.4 9.983.1 4.3 36.8 29.8 0.4 1. company research.0 7.9 4.3 0.7 5. 1 8.671.313.7 731.9 1.3 5.466.7 GTIS.7 115.8 4.4 1.8 915.2 103. Euromonitor International ‘-’ indicates data not available Table 21 Production.518.2 3.1 7.4 78.8 772.128.813.1 13 .2 703.235. Euromonitor International ‘-’ indicates data not available Table 22 Production.9 1.0 935.2 2.9 4.4 33.7 763. 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 - 7.0 221.738.1 5.6 487.211.301.286.0 62.087. Imports and Exports of Whiskies: Total Volume 2008-2013 '000 litres Whiskies – Imports Whiskies – Exports Source: Note: 2008 2009 2010 2011 2012 2013 - 3.5 390.927.401.412.2 5.3 GTIS.9 16.5 - 1.2 474.4 2.2 395.0 6.2 5.554.171. Imports and Exports of Vodka: Total Volume 2008-2013 '000 litres Vodka – Imports Vodka – Exports Source: Note: GTIS.015.1 423.SPIRITS IN THE PHILIPPINES Table 20 Passport Production. Euromonitor International ‘-’ indicates data not available Table 23 Production.1 1.3 2.3 36.4 GTIS.287. Euromonitor International ‘-’ indicates data not available © Euromonitor International 2008 2009 2010 2011 2012 2013 - 1.582.8 3. Imports and Exports of Gin: Total Volume 2008-2013 '000 litres Gin – Imports Gin – Exports Source: Note: 2008 2009 2010 2011 2012 2013 - 59.8 3.270.0 4.613.571.282. Euromonitor International ‘-’ indicates data not available Table 24 Production.9 366.2 873.6 GTIS.925. Imports and Exports of Rum: Total Volume 2008-2013 '000 litres Rum – Imports Rum – Exports Source: Note: 2008 2009 2010 2011 2012 2013 - 142.4 528.8 294.9 2. 184.Irish Whiskey .3 996.475.4 203.SPIRITS IN THE PHILIPPINES Table 25 Passport Forecast Sales of Spirits by Category: Total Volume 2014-2019 '000 litres Brandy and Cognac .126.5 1.973.0 0.350.569.453.194.9 360.4 8.538.1 3.3 17.4 188.9 334.Cream-based Liqueurs .6 17.4 149.5 341.5 267.6 656.7 123.5 43.3 102.446.5 147.9 708.7 2.5 812.4 814.5 55.664.Lambanog Spirits Source: 2014 2015 2016 2017 2018 2019 325.9 1.6 80.0 0.8 436.3 509.199.275.742.1 33.1 82.Bitters .1 108.115.1 535.8 207.289.7 147.5 17.1 199.9 961.237.8 228.4 76.273.7 37.6 17.8 147.9 3.2 212.9 1.169.7 238.1 78.3 743.8 308.051.301.916.1 486.6 3.5 225.4 8.8 300.3 1.896.5 466.5 43.6 874.6 689.6 3.584.5 325.6 334.880.033.024.3 361.5 114.9 79.382.3 4.312.7 149.8 121.436.Canadian Whisky .4 891.7 40.0 297.016.Bourbon/Other US Whiskey © Euromonitor International 2014 2015 2016 2017 2018 2019 40.6 77.9 78.White Rum Tequila (and Mezcal) Whiskies .073.2 1.708.4 451.0 188.0 149.Brandy .7 180.829.0 451.044.Blended Scotch Whisky .7 36.631.3 57.545.4 329.9 246.232.1 125.2 443.073.3 149.5 203.4 2.337.2 51.6 122.8 32.2 328.696. trade press.828.8 390.2 305.414.0 266.0 2.617.Other Liqueurs Rum .2 1.203.3 319.8 384.Dark Rum .2 289.2 128.601.Other Whiskies White Spirits .3 277.9 75.8 3.0 1.467.496.2 77.8 8.1 4.441.486.7 1.910.1 204.Dark Rum .1 680. company research.954.Vodka Other Spirits .7 218.2 168.1 607.014.Cream-based Liqueurs .9 148.3 259.5 3.4 534.178.841.Aniseed-Flavoured Spirits .Gin .160.1 175.997.0 220.7 44.3 148.1 268.528.1 167.2 53.8 8.Bourbon/Other US Whiskey .3 8. trade sources Table 26 Forecast Sales of Spirits by Category: Total Value 2014-2019 PHP million Brandy and Cognac .2 14 .2 84.0 1.1 76.6 386.5 443.6 392.787.6 2.4 620.145.085.4 48.301.4 122.Bitters .0 274.White Rum Tequila (and Mezcal) Whiskies .2 17.5 771.429.2 211.4 388.4 44.436.202.0 0.1 17.8 204.479.1 491.2 383.682.7 3.0 148.691.8 17.120.358.3 693.442.8 428.3 5.866.8 321.386.3 59.0 150.364.3 341.Single Malt Scotch Whisky .3 2.446.Brandy .2 97.7 8.0 0.1 35.8 467.8 2.356.9 271.1 642. trade interviews.7 218.1 2.1 42.414.1 1.6 725.504.019.7 45.8 34.Cognac Liqueurs .4 843.5 Euromonitor International from trade associations.Japanese Whisky .073.178.0 858.0 219.Other Liqueurs Rum .2 1.2 459.0 17.344.3 147.7 245.044.123.7 41.5 5.5 17.1 171.4 39.7 1.6 17.7 346.0 1.2 226.512.102.2 274.1 2.2 225.Cognac Liqueurs .0 0.848.4 689.878.0 206.720.0 17.1 8.2 351.001.2 2.2 3.6 99.1 572.4 126.2 696.9 1.7 1.9 827.9 731.014.6 17.6 1.419.4 231.0 0.796.9 332.634.377.093.9 3.8 8.0 41.5 176.106.5 351.084.8 42.6 213.0 181.534.2 79.466. 7 8.0 359.9 Euromonitor International from trade associations.Lambanog Spirits Source: Table 27 Passport 4.851.7 1.4 2.0 63.737.7 5.1 7.Brandy .1 8.5 10.298.3 38.5 15.4 0.7 90.3 9.9 7.Gin .5 -16.019.7 -1.1 2.Vodka Other Spirits .291.9 61.White Rum Tequila (and Mezcal) Whiskies .1 3.Other Liqueurs Rum .7 7.5 330.Other Whiskies White Spirits .8 4.4 0.4 0.6 6.Gin .Blended Scotch Whisky .4 -7.8 -58.430.8 27.4 554.7 64.7 7.110.0 95.8 4.1 3. company research.1 0.9 -1.4 27.5 60.7 5.5 1.507.5 89.766.2 1.6 61.3 6.2 26.9 10.879.9 4.4 0.7 25.5 0.8 92.1 2.Japanese Whisky .197.4 1.Canadian Whisky .9 5.Vodka Other Spirits .6 24.4 3.Dark Rum .Irish Whiskey .2 3.3 11. trade sources Forecast Sales of Spirits by Category: % Total Value Growth 2014-2019 % local currency.9 5.595.1 1.3 12.6 26.2 2.484.5 62.156.960.1 31.5 61.2 1.2 62.3 1.070.2 1.1 4. trade press.562.4 386. company research.5 28.560.715.8 1.1 3.3 1.7 1.8 562.798.5 4.Blended Scotch Whisky .SPIRITS IN THE PHILIPPINES . trade interviews.Aniseed-Flavoured Spirits .221.1 0.5 16.7 4.6 0.8 4.4 0.4 0.5 0.4 0.3 394.4 89.3 26.0 2.4 457.9 11.Single Malt Scotch Whisky .1 1.2 27.Aniseed-Flavoured Spirits .2 7.3 29.1 2.0 321.4 4.Cognac Liqueurs .Lambanog Spirits Source: Table 28 2014/15 2014-19 CAGR 2014/19 Total 2.7 0.9 781.2 2.1 1.Japanese Whisky . trade sources Forecast Sales of Spirits by Category: % Total Volume Growth 2014-2019 % total volume growth Brandy and Cognac .Canadian Whisky .8 2.4 2.565. trade interviews.9 2.Bitters .522.1 Euromonitor International from trade associations.1 449.180.6 60.2 2.0 2.0 11.Irish Whiskey .Other Whiskies White Spirits .8 63. trade press.7 1.1 97.5 2. constant value growth 2014/2015 © Euromonitor International 2014-19 CAGR 2014/19 TOTAL 15 .2 1.7 3.765.8 61.4 0.454.442.4 0.9 1.415.2 4.5 7.Cream-based Liqueurs .1 0.5 0.2 -16.7 351.1 -4.120.8 26.6 -59.5 2.0 0.2 2.0 788.117.1 25.5 2.7 24.7 0.Single Malt Scotch Whisky .1 24.8 2.Bourbon/Other US Whiskey .8 -5.6 62. 3 2.8 10.0 1. trade press.Japanese Whisky .Brandy .3 3.9 6. trade interviews.3 3.9 9.0 4.White Rum Tequila (and Mezcal) Whiskies .9 20.Bourbon/Other US Whiskey .8 4.0 7.Other Liqueurs Rum .Irish Whiskey .0 11.4 3.0 1.5 5.5 0.5 1.4 23.2 2. company research.1 2.Blended Scotch Whisky .Canadian Whisky .9 2.Vodka Other Spirits .8 5.0 0.4 2.Cream-based Liqueurs .3 31.Aniseed-Flavoured Spirits .3 -8.3 2.7 20. trade sources © Euromonitor International 12.Lambanog Spirits Source: Passport 3.0 12.6 0.8 37.Cognac Liqueurs .6 1.9 3.0 2.8 2.5 0.4 0.5 1.9 5.7 -8.Dark Rum .4 7.Single Malt Scotch Whisky .3 -1.0 -16.0 -16.3 -0.8 5.1 2.4 11.3 4.4 9.9 16 .Gin .0 1.1 11.2 -58.6 29.0 2.2 2.4 0.9 2.9 Euromonitor International from trade associations.0 3.8 1.8 3.2 42.4 0.4 6.Bitters .0 3.SPIRITS IN THE PHILIPPINES Brandy and Cognac .1 10.3 1.Other Whiskies White Spirits .0 1.4 -4.4 -58.0 5.0 3.8 2.