Emperador planning Asian debut of Los Danzantes
Liquor conglomerate Emperador Inc. will soon bring its newest brand acquisition to Asia as it sees a promising growth trajectory for mezcal in the region.
In a recent annual stockholders meeting, Emperador chair and president Winston Co said the takeover of Mexican mezcal maker Los Danzantes SA de CV “fit in perfectly” with their globalization and premiumization strategy.
Emperador in January announced its acquisition of 60 percent of Loz Danzantes for P225 million via subsidiary Casa Pedro Domecq, marking its first venture into the mezcal category.
Mezcal is a distilled alcoholic beverage made from any type of agave plant. This is to distinguish it from tequila, which can only be made from blue Weber agave.
The capital injection, equivalent to 80 million Mexican pesos, will be used mainly to develop the distribution and promotion of Los Danzantes’ brands, including Alipus.
According to Co, its brands were among the top 10 best-selling mezcals across the globe. Los Danzantes’ products are exported to around 20 countries in North America, Latin America and Europe.
“Utilizing our global reach, we expect to expand the availability of these products in more countries and we will bring the product here [in] Asia as well,” he added.
“We believe that with our global footprint and the desirability of these two top mezcal brands, Los Danzantes and Alipus, it will create another [opportunity] for our business.”
Recovery by next year
Emperador, which used to be a brandy-focused firm, also exports whisky to the United States via Scotland-based Whyte and Mackay, which distributes the Dalmore brand.
Despite having 10 percent to 12 percent of its business exposed to the US market’s tariffs, which could impact demand, Co pointed out that the whisky segment as a whole could recover by next year.
Emperador is particularly anticipating a surge in exports to India, whose government is expected to lower taxes on whisky.
Co earlier noted they were speaking to Emperador’s distributors in India to capitalize on the more favorable policy and drive up sales in the world’s most populous country.
