Cosco’s The Keepers buys 50% of liquor maker Sula
The Keepers Holdings Inc., the liquor distribution arm of holding firm Cosco Capital Inc., will officially enter the premium local spirits brand via a P40-million deal.
In a stock exchange filing on Wednesday, The Keepers said it would buy 50 percent of Cervia Global Trading Inc., the producer of the Sula flavored liquor.
Its products are made with ingredients grown in the Philippines, including coconut, dark chocolate and coffee, and are distributed locally and globally.
“The acquisition of a 50-percent stake in [Cervia] gives The Keepers Holdings Inc. a strategic entry point into the premium local spirits market, while also positioning the company for growth in international markets,” The Keepers said in its disclosure.
The transaction involves 125,000 shares at P320 apiece. The Keepers did not disclose a timetable for its acquisition.
Based on its website, Sula’s products are sold for at least P1,599 per bottle, and P9,299 for each case of six bottles.
Cervia’s products will add to The Keepers’ portfolio consisting of global brands such as Alfonso, Johnnie Walker, Chivas Regal, Suntory, Jose Cuervo and Red Bull.
In May, the Co family-led liquor distributor announced plans to set up its own chain of retail outlets via the creation of a new subsidiary, allowing an aggressive expansion as brandy sales continue to climb.
The Keepers currently does not have brick-and-mortar stores.
Its first-quarter earnings hit P690 million, up by 14 percent, due to higher gains from Alfonso, its imported brandy.
Revenues likewise expanded by a fifth to P4.06 billion, thanks to an 18-percent growth in volume of cases sold in the January to March period.
Meanwhile, parent firm Cosco benefited from recovering consumer demand during the period, resulting in a 7.6-percent rise in earnings to P3.68 billion. Cosco’s top line likewise increased by 11.5 percent to P56.7 billion, with Puregold Price Club Inc. and S&R Membership Shopping Club as the main growth drivers.
