industr y updates and ana l y ses f or sound business p l annin g

A publication of the School of Economics, University of Asia & the Pacific, Philippines

In this issue
Feature

2 The Philippine Alcoholic Beverage

Industry (Part 1):
Not So ‘Sin-ful’ After All

Dr. Cid L. Terosa

Emilio Mar Antonio
Marcella Maria Karaan
Julian Lorenzo Martinez
Ivy Zuñiga

Industry statistics
12 Gross value added in manufacturing
by industry group

issn 0117– 1798

september The industry monitor is a monthly publication of the School of Economics of the University of Asia and the Pacific •
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Acknowledgements: Editing  Karen N. Atienza •  Layout  Rommel B. Casipit • Design  Art & Copy Communication Design
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 september 2014  F E A T U R E

The Philippine Alcoholic Beverage Industry (Part 1)

Not So ‘Sin-ful’ After All

Filipinos enjoy consuming beer and other alcoholic drinks, and the alcoholic beverage industry contributes
industry monitor

significantly to the Philippine economy. However, industry players and observers are concerned that the new Sin
Tax law might affect consumer behavior and decrease the industry’s earnings. This comprehensive study, which
consists of several parts, looks at the history of this major industry, examines its current structure and economic
contribution, and analyzes the overall impact of said legislation.

Dr. Cid L. Terosa

Associate Professor
School of Economics, UA&P

and

Emilio Mar Antonio

Marcella Maria Karaan
Julian Lorenzo Martinez
Ivy Zuñiga
Industrial Economics Program
School of Economics, UA&P

W
ith the onset of the Sin Tax that was implemented and signed into law in
early 2013, many local producers of alcoholic beverage in the Philippines
feel threatened by a possible decline in sales and profits. Considering this
problem, our team studies the current condition of the alcoholic beverage industry to
propose strategies that can alleviate the adverse effects of the said law.
The macroeconomic contributions of the alcoholic the Sin Tax, alcoholic beverage industry players have few
beverage industry to the Philippine economy shows that options left, including lessening the cost of production,
the industry comprises a small portion of the value- tapping a wider market through distribution networks,
added of the entire manufacturing sector. However, its and using various advertising and promotion methods.
main contributions are in the forms of excise taxes and its
forward and backward linkages with other industries. Since Drinking: a lifestyle choice
an alcoholic beverage is primarily a final consumption good, Filipinos love to drink. In the Philippine culture, “to
individuals and households have a fixed expenditure for drink” is not merely a general verb applied to any beverage,
alcohol as part of their income, despite relative increases in but one that particularly pertains to the consumption of
prices of some goods. This fact demonstrates that alcoholic alcoholic beverages. A proof of how Filipinos love to drink
beverages in general are price inelastic. is a news report on the study conducted by the Department
Nonetheless, recent trends show that consumption of of Health (doh) in 2009 stating that Filipinos are “the
beer has been declining as more people prefer other types heaviest drinkers of alcoholic beverages in Southeast Asia”.
of alcoholic drinks. This trend is seen as an effect of many The study showed that “11% of the population aged 15 to
factors such as the rising middle-income class; a widening 74 regularly drink alcoholic beverages at an average rate of
consumer base especially in the markets of females, about four or more days in a week”. The report also said
teenagers, and young professionals; and recent product
innovations introduced by other players in the industry.

abscbnNEWS.com, “Pinoys heaviest beer drinkers in SE Asia-
-DOH study,” ABS-CBNnews.com, February 27, 2009, Friday,
Faced by greater competition and changes in consumers’ http://www.abs-cbnnews.com/lifestyle/02/27/09/pinoys-heaviest-beer-
preferences in addition to the threats brought about by drinkers-se-asia-doh-study (accessed July 13, 2013).
F E A T U R E
that “24% of Filipinos aged 15 to 19 years are regular teen
drinkers”.
This reality is not difficult to believe since it is known
that the Philippines is the home of the first brewery in
Southeast Asia. San Miguel Corporation (smc), formerly
known as the La Fabrica de Cerveza de San Miguel, was
established in 1890 by Manila businessman Don Enrique
María Barretto de Ycaza y Esteban, who was commissioned
by the Spanish royalty to brew beer in the Philippines.
The company eventually became one of the leading beer
producers and bottlers not only in the country but also
in Hong Kong, China, Indonesia, Vietnam, Thailand,
and Malaysia. At present, smc is a large conglomerate
involved in other businesses such as food manufacturing,
infrastructure, properties, fuel and oil, and aviation.
Alcohol consumption among Filipinos is found to
have a number of positive health and psychological
effects. A report conducted by Labajo (2010) entitled
“The Filipino as the Quintessential Drinker: A Study of
Alcohol Drinking Patterns Among Filipinos” highlighted
that “45.5% of Filipinos drink to socialize, 23.8% said
that alcohol removes stress and burden, while 17.5% of
the respondents asserted that they drink just to be happy
or to gain pleasure”.
In the country, drinking alcohol also brings friends
and families together especially during special occasions
such as fiestas, birthdays, graduations, or even on regular
weekends after a stressful week of work. Labajo (2010)
summarizes these health benefits by saying that alcohol “is
a tool for bonding, socializing, and depressing inhibitions
since it facilitates self-expression and self-disclosure”.
Because of the relief that alcohol brings, more Filipinos are
encouraged to drink beyond their means.
Despite the health benefits, drinking too much alcohol
also has known adverse effects on public health and
social order. Drinks with alcohol generally contain toxic
substances that may harm the organs, especially the liver,
and affect the proper functioning of different parts of
the body. Based on the 2010 data of the World Health
Organization (who), liver diseases ranked 14th among the
top 50 causes of death of Filipinos with 7,232 deaths,
while liver cancer ranked 3rd among the types of cancer
with 6,358 deaths. Drinking alcohol also causes social
disorder due to intoxication. Alcohol is one of the factors
blamed in some cases of drunk driving. In 2006, the Metro

Ibid.

San Miguel Corporation, “Our History” http://www.sanmiguel.
com.ph/company/page/806/Our_History.html (accessed July 13,
2013).

Maritona Victa Labajo, “The Filipino as the Quintessential
Drinker: A Study of Alcoholic Drinking Patterns among Filipinos”
(May 2010), http://www.ihra.net/files/2010/05/02/Presentation_
23rd_M10_Labajo.pdf [PDF document] (accessed July 13, 2013).

Ibid.

World Health Rankings, “Health Profile: Philippines,” http://www.
worldlifeexpectancy.com/countryhealth-profile/philippines (accessed
July 13, 2013).

Manila Accident Reporting and Analysis System (mmaras)
reported that “0.27% of all fatal road traffic accidents
are due to suspected alcohol use; while in 2005, drunk
driving accounted for 1.16% of the road accidents in the
country monitored by the Traffic Management Group of
the Philippine National Police”.
These increased cases of diseases and social disorder
brought awareness to the government. Aside from the
explicit purpose of collecting more funds from tobacco and
alcohol products, the government also aspired to eliminate
health and social problems by discouraging consumption.
Thus, House Bill 5727 or Sin Tax Bill was passed into
law in December 2012. This law imposes an excise tax on
tobacco and alcoholic products or gambling activities in
the country.
The said law taxes tobacco and alcohol products
separately. Cigarettes have a two-rate structure for the
first two years (P14.00 and P30.00 per pack, respectively),
and a uniform rate of P30.00 per pack on the third
year. Meanwhile, alcohol products have an immediate
implementation of a unified rate of P25.00 per liter for
fermented liquor, and for distilled spirits, a two-year
transition period to a unified rate of P150.00 per proof
liter on the third year.
After the implementation of the said law, the Drinks
Business Review (dbr) reported that according to the
National Statistics Office (nso) alcoholic beverages and
tobacco had the highest consumer price indices (cpi)
at 166.5 in 201210. On the fifth year of operation, the
government aims to collect a total of P224.8 billion to
fund the P682.1 billion cost for the implementation of the
Universal Health Care program (uhc)11 under the Aquino
administration from 2012 to 2016. This 33% share in the
uhc cost is planned to be divided into three main areas:
P92.7 billion will go to the 100% subsidy of the 20%
poorest families in the country, P55.3 billion will serve
as the 50% for the next 5.6 million poorest families, and

Department of Health, “Road Safety as a Public Health Priority,”
Health Policy Notes, no. 3, Volume 3, (November 2008), http://www.
doh.gov.ph/sites/default/files/Vol.%203%20Issue%203%20Novembe
r%202008.pdf (accessed July 13, 2013).

Ibid.

Presidential Communications Development and Strategic Planning
Office and PREGINET, Sin Tax” (2012, The Official Gazette of the
UNIVERSITY OF ASIA & THE PACIFIC
Philippine Government), http://www.gov.ph/sin-tax/ (accessed August
9, 2013).
10
DBR Staff Writer, “Sin Tax Reform makes alcohol, tobacco top
CPI products in Philippines: NSO data,” DBR Drinks Business Review,
April 3, 2013, Wednesday, http://www.drinks-business-review.com/
news/sin-tax-reform-makes-alcohol-tobacco-top-cpi-products-in-
philippines-nso-data-030413 (accessed July 13, 2013).
11
The uhc program, also called the Kalusugan Pangkalahatan (KP)
program under the Aquino administration is a provision that aims to
improve the healthcare system in the country by providing affordable
and quality health benefits especially to the poorest Filipino families.
This includes enhancements in health human resources, health facilities,
and health financing, in the attainment of the country’s health-related
millennium development goals.
 september 2014  F E A T U R E

lastly, P76.8 billion will account for expenditures in the
health sector12.
This issue on the Sin Tax Bill is only one of the many
ongoing debates between economists and healthcare
supporters. Instead of increasing value through higher
industry monitor
beer and ale), and even the manufacture of low-alcohol
drinks (see Table 1 for the classifications under the beverage
manufacturing industry).
Table 1 • Classification of the Whole Beverage

prices, economic figures continue to decline because Manufacturing Industry by the PSIC
Item Code Description
of the decreasing demand for the products. According
to Dr. Jose Ramon G. Albert, Secretary General of the Section C Manufacturing

National Statistics Coordination Board (nscb), there was Manufacture of Beverages

a decreasing share of tax collected from alcohol products
to total revenue collection from 3.3% in 2002 to 2.6% in
201013. Observers therefore argue whether implementing
the Sin Tax law is still rational and relevant given the
continuing decline of alcohol consumption. Because of
the adverse effects of the law on the alcoholic beverage
industry, producers are now urged to formulate strategies
to overcome declining sales. The entire alcoholic beverage
industry must be able to adapt to these changes to ensure
continued survival in the market.
In this regard, the researchers of this study proposed the
following problem: Given the current particular condition
of the firms under the alcoholic beverage industry, what
strategies can they employ to alleviate the adverse effects
This division includes the manufacture of
beverages, such as non-alcoholic beverages
and mineral water, manufacture of alcoholic
Division 11 beverages mainly through fermentation, beer
and wine, and the manufacture of distilled
alcoholic beverages.
This division excludes the production of fruit
and vegetable juices, milk-based drinks, and the
manufacture of coffee, tea, and mate products.
Group 110 Manufacture of Beverages
The group includes the manufacture and
blending of alcoholic beverages such as whisky,
brandy, gin, distilled spirits, and neutral spirits;
wines, fermented but not distilled alcoholic
beverage; malt liquors such as beer and ale, etc.
including manufacture of low alcohol and non-
alcohol beverages. This category also includes
manufacture of softdrinks, mineral water, and
other types of bottled water.

of the Sin Tax Law? Three objectives were identified to Class 1101 Distilling, rectifying, and blending of spirits
answer this question. The researchers would first provide a Distilling, rectifying, and blending of spirits
macroeconomic view of the alcoholic beverage industry in This class includes:
• Manufacture of distilled, potable, alcoholic
the Philippines, which will be covered by Part I. Second, beverages: whisky, brandy, gin, liquors,
under Parts II, III, IV, and V, the business will be analyzed Subclass “mixed drinks,” and so on.
• Blending of distilled spirits
in terms of the condition of the key firms together with the 11010
• Production of neutral spirits
effects of the Sin Tax Law. Last, under Parts VI and VII, • Manufacture of ethyl alcohol
• Manufacture of non-distilled alcoholic
the gathered information and analyses are used to formulate beverages
strategies and create recommendations for industry growth. • Merely bottling labelling
It is hoped that with this study, the main participating Manufacture of wines
companies under the alcoholic beverage industry would This class includes:
• Manufacture of wines from fruits (mango
be aided and properly guided in their decisions for the wine), sugarcane (basi), vegetables and root
benefit of their own businesses, the economy, and society crops (ube wine), coconut (lambanog) and rice
• Manufacture of sparkling wine
as a whole. • Manufacture of wine from concentrated grape
Class 1102 must
• Manufacture of fermented but not distilled
The Alcoholic Beverage Industry alcoholic beverages: sake, cider, perry, mead,
Industry Definition other fruit wines, and mixed beverages
containing alcohol
Under the Philippine Standard Industry Classification • Blending of wine
(psic), the beverage industry was classified under the 11th • Manufacture of low alcohol or non-alcoholic
wine
division of the manufacturing sector. This division includes
two main classes: the manufacture of non-alcoholic drinks Subclass
Fruit wine manufacturing
11021
and the manufacture of alcoholic drinks. Non-alcoholic
Subclass
drinks include softdrinks, mineral water, and other types 11029
Wine manufacturing
of bottled water; while alcoholic drinks include beverages Manufacture of malt and malt liquors
produced through fermentation with distillation (such as This class includes:
whisky, brandy, gin, distilled spirits, and neutral spirits), • Manufacture of malt liquors, such as beer, ale,
Class 1103 porter and stout
fermentation without distillation, malt liquors (such as • Manufacture of malt
• Manufacture of low alcohol or non-alcoholic
12
Ibid. beer
13
Jose Ramon Albert, “What is so Sinful about the Sin Tax?” in Sexy Subclass
Manufacture of malt and malt liquors
Statistics (Philippine National Statistical Coordination Board), http:// 11030
www.nscb.gov.ph/sexystats/2012/SS20121129_sintax.asp (accessed CLASS 1104 Manufacture of softdrinks
July 13, 2013).
F E A T U R E 

Table 1 • Classification of the Whole Beverage Figure 1 • Graphical representation of the Beverage
Manufacturing Industry by the PSIC Manufacturing Industry by the PSIC
Item Code Description

Manufacture of softdrinks Section C. Manufacturing

This class includes:
• Manufacture of softdrinks: non-alcoholic
flavored and/or sweetened waters: lemonade,
orangeade, cola, fruit drinks, tonic waters, etc. Division 11. Manufacture of Beverages

Subclass This class excludes:

11040 • Production of fruit and vegetable juices
• Manufacture of milk-based drinks Manufacture of Alcoholic Drinks Manufacture of Alcoholic Drinks
• Manufacture of coffee, tea, and mate products
• Manufacture of alcohol-based drinks
• Manufacture of non-alcoholic wine Distilling,
Manufacture
Manufacture
Manufacture
Manufacture
rectifying, and Manufacture Manufacture of drinking of other
• Manufacture of non-alcoholic beer of malt and
of softdrinks water and
of sports and
beverages,
blending of of wines
• Merely bottling and labelling malt liquors energy drink
spirits mineral water n.e.c.

Manufacture of drinking water and mineral

Class 1105 Source: Philippine Standard Industry Classification (PSIC), 2009
water
Subclass
Manufacture of bottled water
11051
Table 2 • Types of Alcoholic Beverages
Subclass
Manufacture of carbonated water
11052 Type Description Sub-Types Description
Class 1106 Manufacture of sports and energy drink - are fermented and
- created by
Subclass conditioned at low
Manufacture of sports and energy drink fermenting
11060 a) Lager beers temperatures to give them a
any variety
milder taste
of starches
Class 11090 Manufacture of other beverages - usually have a light color
including
Subclass malted barley, - are made from malted
Manufacture of other beverages
11090 rice, wheat, or barley and involve warm
maize. fermentation with brewer’s
Source: Philippine Standard Industry Classification (PSIC), 2009
- can be b) Ales
yeast.
anywhere - stout drinks such as
Beer
from 2% up to Guinness are also a type of ale
In this study, the researchers only focused on the alcoholic 12% alcohol
beverages section, which pertains to Classes 1101, 1102, by volume - are made with wheat as well
(ABV) as barley, which is what gives
and 1103 only. Under the classification of alcoholic drinks - low-alcohol
c) Wheat
them their distinctive taste
beers
are three subclasses, namely, manufacture of distilled, beers have - this type of beer is
approximately particularly popular in Europe
rectified, and blended spirits14; manufacture of wines 1.2% alcohol
- are often made by adding
including sparkling and fruit wines; and the manufacture but some have
d) Fruit beers flavor extracts to beer rather
lower than this
of malt liquors and malt that include beer, ale, and low- than fermenting fruit
alcohol beer (see blue-colored boxes in Figure 1). - is made from red or black
The three classifications under the alcoholic beverages grapes
a) Red wine - the taste of red wine is often
can be commonly called the beer section, the wine section, described as more complex
and the spirits section. Based on these classifications, other than that of white wine
general products have been identified, which are available - is made from red grapes that
in the Philippine market, for inclusion in the scope of this b) Rosé wine undergo a special process to
create a pink appearance
study (see Table 2).
- can be - is produced using white
created from grapes
fermented c) White wine - this type of wine has a
grapes or lighter taste than the red or
UNIVERSITY OF ASIA & THE PACIFIC

other fruits rosé wine

- tend to be
from 9% to d) Champagne - gets its bubbles from the
12% alcohol (sparkling fermentation process due to
by volume wine) carbon dioxide in the bottles
(ABV)
- (including sherry and port)
have a distilled beverage
e) Fortified added to make them stronger
wines - became popular because
they were easier to transport
around the world by ship

-  made from fermented apple

juice
14
Spirits are defined by the Merriam-Webster Dictionary Online f) Cider
- sometimes referred to as
as the liquid containing ethanol and water distilled from an alcoholic apple wine
liquid or mash.
 september 2014  F E A T U R E

rice wine or the tapuy15, which is consumed by the Igorots

Table 2 • Types of Alcoholic Beverages
at special dinners and ritual celebrations.
Type Description Sub-Types Description Other known native alcoholic beverages are the lambanog
g) Sugarcane
- fermented sugarcane extract
and tuba of the Southern Tagalog Region, especially the
Wine (Basi)
provinces of Quezon and Laguna16. Tuba is considered as the
industry monitor

h) Rice Wine
- fermented rice extract fermented product from coconut juice while lambanog is the
(Tapuy)
distilled product from fermenting the coconut juice (simply
i) Coconut called distilled tuba). The production of the two can be done
- fermented coconut extract
Wine (Tuba)
simultaneously through fractional distillation because they
- is usually made from the
a) Vodka distillation of grains or have the same raw materials. Tuba undergoes fermentation
potatoes while lambanog uses the fermented coconut to undergo
b) Whiskey
- is distilled from fermented distillation, allowing it to achieve a higher alcohol content
grain mash than tuba (usually with an 80 to 90 proof variation).
c) Rum
- comes from the distillation of Because of the abundance of coconut trees in the
fermented sugarcane juice
Philippines, and because the process of producing tuba and
- alcoholic liquor distilled from lambanog is relatively cheap, they are known as poor man’s
d) Brandy wine or fermented fruit juice
- refer to
- usually contains 50% ABV drinks. Usually, after manufacture, tuba and lambanog are
alcoholic - is created from the blue drank communally in the provinces by farmers or by men
drinks that e) Tequila
have been
agave plant who want to celebrate and rest after work, usually with
distilled to f) Gin - made from juniper berries conversations and music playing17.
make them Lastly, one of the most common wines in the pre-
Spirits - made from a number of
stronger g) Absinthe
- can be different flowers colonial Philippines is the basi or sugarcane wine native
anywhere from
h) Ouzo
- made from anise, a type of from the Ilocos Region. The method of basi-making starts
20% to 80% plant
alcohol by with the pressing of the sugarcane stalk until the juices
volume (ABV) i) Coconut - made from distilling the come out. Water is added and then the mixture is boiled.
wine fermented product of the
(Lambanog) coconut extract (called tuba) In the ancient way, after boiling, this mixture is poured
- cover a wide range of drinks into the burnay or an earthen jar and then covered and
that involve the addition of securely tied with thickly padded samac leaves. After 3
herbs, nuts, fruits, spices,
cream, or flowers days, half of the residuals of the fermented mixture called
j) Liqueurs - it is possible to obtain other the gamu is removed and then added with “parec” or a
spirits that have been turned
into liqueurs (for example,
mixture of dry samac leaves and bark, powdered cardis
vodka liqueur) seeds, and rice. The mixture is then left to incubate by
covering it either with soil or with carabao dung for 3 to
Source: Drug and Alcohol Rehab Asia (DARA), Thailand, 2008
12 months18. Similarly, basi is usually drank for communal
celebrations, personal consumption, or special occasions.
History of the Alcoholic Beverage Industry in the Nonetheless, because of the poor economic condition of
Philippines the country during the pre-colonial times, these alcoholic
Alcoholic beverages had already been produced in the beverages did not have the opportunity to be introduced
country even before the Spanish conquest. Natives of to the market. Most of these manufactured products are
the country, particularly tribes from the mountains, kept for local consumption only because the country did
manufactured their own alcoholic beverages consumed not have the suitable technology to mass produce its wines.
according to various occasions and purposes. One of these However, the course of the alcoholic beverages industry
is the tapuy or rice wine made by the Igorots (the builder changed with the arrival of the Spanish colonizers.
of the world-famous Rice Terraces) of the mountain When the Spaniards arrived in the 16th century, the
provinces in the Cordilleras. Due to the abundance of country’s economy, especially trade and manufacturing,
rice and the seasonality of their harvests, the natives 15
Nobert Soloria Bermosa, “Production of Popular Native Wines
thought of storing rice for a longer time by producing in the Philippines” (Gomestic, 2008), http://gomestic.com/cooking/
wine out of it. It is made by soaking the raw glutinous production-of-popular-native-wines-in-the-philippines/  (accessed
August 9, 2013).
rice in hot water for an hour, draining and steaming it 16
Ibid.
for 25 minutes, cooling it on a tray for 2 hours, then 17
Jolene Porter, “Lambanog: A Philippine Drink” (TED Case
combining yeast and rice until blended, transferring the Studies,  2005),  http://www1.american.edu/ted/  lambanog.htm
mixture into a tightly covered container, and storing it in (accessed August 9, 2013).
a dry place to ferment for one month. The production is 18
Priscilla Sanchez, “Studies on the Traditional Sugarcane Wine
then completed when the rice mash is already separated (Basi) Production in the Philippines” (n.d.), http://www.cabi.org/gara/
FullTextPDF/2009/20093019566.pdf [PDF Document] (accessed
from the liquid portion. The final product is the liquid August 9, 2013).
F E A T U R E
exploded into a whole new system. Dr. Abercio Rotor
mentioned in his article on the 205th anniversary of the
Basi Revolt in 2012 that the country’s local wines, such as
basi, had been given the chance to be exported and traded
to other parts of the world as a result of the galleon trade
in the 17th and 18th centuries.19 Presumably, because of
the success of the alcoholic beverage industry during the
Spanish era, it was not long before the Spanish royalty
decided to make the Philippines the home of Asia’s first
brewing company.
The alcoholic beverages industry in the Philippines
was formally established by the Spaniards during the
colonial era. Aside from the conventional wines, a variety
of alcoholic beverages coming in and out of the country by
trade have been introduced to Filipinos. Beer was one of
these beverages.
The development of the beverage industry in the
Philippines started with Spain’s founding of a beer
company named La Fabrica de Cerveza de San Miguel. It
was established by a Spanish businessman named Enrique
Barretto y de Ycaza on September 1890 at Malacañan,
Manila under commission of the Spanish royalty. In
several years of operation, it became known as the first beer
brewery in Southeast Asia20. In 1913, the said fabrica began
exporting its beer to Guam, Hong Kong, and Shanghai,
and because of the continuous expansion of the business, it
grew increasingly larger until it achieved definite monopoly
of beer in the Philippines and some other countries where
it operates.
In 1963, La Fabrica de Cerveza de San Miguel was
renamed San Miguel Corporation (smc). In 1999, smc
became the largest beer company in the Philippines, selling
around $776 million worth of beer products. With the
corporation’s ingenuity in the industry, it developed into a
large conglomerate with various beverage subsidiaries such
as San Miguel Brewery Inc. (smbi) for beer production
and Ginebra San Miguel for gin production, enabling
smc to become one of the top nine corporations in the
Philippines in the same year. However, in the world of
alcoholic drinks, especially beer, smc had been the largest
and the country’s top producer, shoving off other local
competitors and international brands. At present, based
on the 2008 figures, smbi holds a total market share of
approximately more than 95%21.
During the early 20th century, a number of breweries
and distillers followed San Miguel Corporation, taking
their respective market shares after releasing their own
19
Abercio Rotor, “Bubud Yeast – Secret of Basi Wine Making”
(Living with Nature, 2012), http://avrotor.blogspot.com/2012/09/
bubud-yeast-secret-of-basi-wine-making.html (accessed August 9,
2013).
20
San Miguel Corporation. History (n.d.), http://www.sanmiguel.
com.ph/company/page/806/Our_History.html (accessed July 10,
2013).
21
San Miguel Brewery, Inc., Company Profile (n.d.), http://www.
sanmiguelbrewery.com.ph/corporate.html (accessed August 9, 2013).

product lines. Some of them are Asia Brewery Inc. (abi),
Tanduay Distillers Inc. (tdi), and Emperador Distillers
Inc. (edi)22.
Industry Players
The country has several producers representing the three
main divisions under the alcoholic beverage industry: the
beer section, the wine section, and the spirits section.
In this study, the researchers analyze only the company
conditions of the top producers under each section. For
the beer section, smbi and abi are included; for the wine
section, Bel Mondo Italia Corporation (bmic); and for the
spirits section, Ginebra San Miguel Incorporated (gsmi),
tdi, and edi.
Out of the Philippines’ Top 1000 Corporations, 80
companies were from the processed food and beverage
industry, with total gross revenues of PhP 687.578 trillion
in 2009. About a fourth (PhP 173, 598 million) of the said
amount was contributed by the top three manufacturers
of malts and liquors. The combined gross revenues (PhP
36.941 trillion) of the top five companies for distilling,
rectifying, and blending of spirits comprised 5% of the
total gross revenues of the processed food and beverage
industry23.
A partial list of the key players in the alcoholic beverage
industry made by Ditas Macabasco (2011) in the Food
and Agribusiness Monitor of the Center for Food and
Agribusiness, University of Asia and the Pacific, include:
1) abi, 2) Diageo Philippines Inc., 3) Distileria Bago Inc.,
4) edi, 5) gsmi, 6) smc, and 7) tdi. Labajo (2010) further
stated that manufacturing of beer and liquors is one of
the most profitable industries in the Philippines with four
of its manufacturing companies (i.e., smc, tdi, gsmi, and
abi) consistently among the top 75 out of the top 1,000
corporations in the country”24.
Unfortunately, no major domestic wine producers were
mentioned in her report25. The reason is that most of the
country’s commercial wines are imported from countries
such as Australia, Spain, France, Italy, and many others26.
22
John Rivera and Paolo Reyes, “Assessing the Economic
Contribution of Sin Industries to the Philippine Economy: The Dilemma
between Macroeconomic Growth and Microeconomic Welfare”
(2013), http://www.iioa.org/files/ conference-3/821_20120229010_
IIOA2012-Rivera&Reyes-SinIndustriesinthePhilippines.pdf (accessed
UNIVERSITY OF ASIA & THE PACIFIC
July 10, 2013)
23
Ditas R. Macabasco, “A Brief on the Processed Food and
Beverage Industry in the Philippines,” Food and Agribusiness Monitor,
(May 2011), 3-16.
24
Maritona Victa Labajo, “The Filipino as the Quintessential
Drinker: A Study of Alcoholic Drinking Patterns among Filipinos,”
(May 2010), http://www.ihra.net/files/2010/05/02/Presentation_
23rd_M10_Labajo.pdf (accessed July 15, 2013)
25
Macabasco, Ditas. “A Brief on the Processed Food and Beverage
Industry in the Philippines.” Agri-Food Trade Service | Service
d’exportation agroalimentaire. http://www.ats-sea.agr.gc.ca/ase/6212-
eng.htm (accessed October 13, 2013).
26
“Manila Premier Wines.” Manila Premier Wines. www.manila-
wines.com/ (accessed October 13, 2013).
 september 2014  F E A T U R E

The Philippines does not have an outstanding domestic Table 4 • Company Shares of Alcoholic Drinks: Percentage
company included in the country’s top 1,000 corporations, of Total Volume (2008-2012)
but has few small domestic firms producing the beverage, 2008 2009 2010 2011 2012
such as Bel Mondo Italia Corporation, which is the San Miguel Brewery Inc. - 75.9 75.2 71.8 71.1
producer of the leading wine Novellino; Lang-ay Wine Alliance Global Group Inc. 4.9 4.5 5.9 9.8 10.7
industry monitor

Producers Association Inc. of the Mountain Province,

Tanduay Distillers Inc. 6.6 6.5 6.5 6.5 6.4
which produces fruit wines; Don Roberto’s Winery
SABMiller Plc. 4.1 4.0 3.8 3.8 3.7
Corporation, which is known for its ripe and green mango
Asia Brewery Inc. 4.2 4.2 3.7 3.4 3.3
wines; the local branch of DJ Crater Inc. of Tacloban,
Leyte, which produces Vino de Coco (coconut wine); and London Birmingham Distillers Ltd. 0.3 0.3 0.4 0.3 0.3

Dielle’s Apiary and Meadery, which is known for its honey Bel Mondo Italia Corp. 0.1 0.1 0.1 0.1 0.1

wines. Destileria Limtuaco & Co. Inc. 0.2 0.2 0.2 0.1 0.1
In a separate study on the Philippine beer industry, the E & J Gallo Winery Inc. 0.1 0.1 0.1 0.1 0.1
Food and Agribusiness Monitor underscored the combined Beam Inc. - - - 0.1 0.1
total of gross revenues of smbi and abi to be at PhP 65.133 Others 79.6 4.2 4.2 4.0 3.9
trillion in 2010. Among the Philippines’ Top 1000 Total 100 100 100 100 100
Corporations, smbi ranked 20th with a total gross revenue Source: Euromonitor International from official statistics, trade associations, trade press,
of PhP 58.195 trillion while abi ranked 207th with P6.938 company research, store checks, trade interviews, and trade sources

trillion. It also showed that for the volume shares of beer

companies, smbi accounted for 87% while abi had an 11% Table 3 further shows that, after a near 3% margin, tdi
share.27 was placed in the 3rd spot (2.80% share) followed closely
Table 3 shows the top 9 domestic producers of 2010 by edi and Asia Brewery with market shares of 2.49% and
with available sales data from the Securities and Exchange 2.14%, respectively. Tanduay features its concentration
Commission (sec) in peso terms. smbi led the list with a on the rum industry while Emperador focuses on brandies
market share of 17.46%. It is followed by its own beer and Asia Brewery offers low alcohol alco-mix drinks and
subsidiary, Ginebra San Miguel, with a market share of some varieties of beer. Meanwhile, among the weakest
6.62%. Even though these percentages seem small, smc sales performers were some known small distilleries, such
still led with 75.2% of the total volume sales in 2010 as Diageo Philippines (0.43%) which is known for spirits
(see Table 4). After more than 100 years, San Miguel (Bailey’s and Guinness) and wines (Chalone)28; Distileria
Brewery and Ginebra San Miguel still take pride in their Bago Philippines Inc., which is a subsidiary of gsmi
leading performance in the market, which proves that their (0.32%); and Destileria Limtuaco, which produces a wide
products are still popular among consumers. range of alcohol products such as brandy, rum, vodka, and
other liquors (0.06%).
Table 3 • Sales (in Pesos) and Market Share of Nine
Chosen Domestic Firms in the Alcoholic Beverage Products and Services
Industry of the Philippines, 2010 The alcoholic beverage industry in the Philippines may be
Selected Firms in the
2010 Sales
Market Market considered as one of the most prestigious in the world.
Alcoholic Beverage Industry Share Share2 With a long history spanning over 100 years, numerous
1. San Miguel Brewery Inc. 55,835,000,000 17.46% 0.0305 awards handed out by the Monde Selection, and strong
2. Ginebra San Miguel 21,170,276,000 6.62% 0.0044 export and import performances, the industry is home to
3. Tanduay Distillers Inc. 8,955,884,182 2.80% 0.0008 some of the world’s best breweries and distillers.
4. Emperador Distillers Inc. 7,960,845,070 2.49% 0.0006
5. Asia Brewery 6,856,593,463 2.14% 0.0005
Beer Section
6. Destileria Bago, Philippines 1,019,541,700 0.32% 0.0000
There are many varieties of beer produced both locally
7. Diageo Philippines Inc. 1,388,011,619 0.43% 0.0000
and internationally. The two industry giants –smc and
8. Destileria Limtuaco 196,829,155 0.06% 0.0000
abi – both have their own product lines of beer that are
9. Bel Mondo Italia Corp. 258,272,878 0.08% 0.0000
crafted to meet various consumer tastes and preferences.
10. Others 216,213,545,933 67.60% 0.4569
Because of the duopoly in the beer industry, the products
Total Industry Sales 319,854,800,000 100% --
and services available for this industry are virtually limited
HHI (Total (Market Share2)) 0.4937
to these two companies; according to Euromonitor
Concentration Ratio (CR) 0.2936
International’s report about beer in the Philippines, smc
Source: Securities and Exchange Commission, i-Report – i-View, https://ireport.sec.gov.
ph/iview/login.jsp and abi held 99% of the total volume share in 201129. An
28
“Wines.” Home. http://www.diageo.com/en-row/ourbrands/
categories/Pages/Wines.aspx (accessed September 8, 2013).
27
Danica Iza P. Ching, “Cheers to the Philippine Beer Industry,” 29
Beer in the PH. Euromonitor International. http://www.
Food and Agribusiness Monitor (November, 2011), 2-11. euromonitor.com/beerintheph (accessed September 8, 2013)
F E A T U R E 

understanding of smc and abi presents a picture of how the Table 5 • San Miguel Corporation Beer Product Portfolio
beer industry operates in the country. SAN MIGUEL BEER PRODUCTS
As of 2013, smc had a beer line comprised of 10
Product Label Description Variants
variants, three of which are classified under their “Lifestyle
- 330 mL bottle
Brews.” This category targets discriminating consumers Red Horse Extra - High-alcohol beer - 330 mL can
of premium beer, while other variants cater to the Strong Beer - 6.8% alcohol by volume - 500 mL bottle
- 1000 mL “litro” bottle
general public. Production and distribution of these beers
concentrate more in the local market. - Low-calorie beer (100
- 330 mL bottle
San Miguel Light - 330 mL can
abi has 11 beer products, and its product line contains calories per bottle)
- 30-liter keg
- 5% alcohol by volume
a combination of beer and alcomix30 beverages, as well - 50-liter keg

as a mix of both original brews and the distribution of - Lowest calorie count
internationally recognized brands. Currently, abi carries San Miguel Zero
for San Miguel beers (60
calories per bottle) - 330 mL bottle
two foreign brands: usa’s Coors Beer and Japan’s Asahi Beer
- 2.6% alcohol by volume
Super Dry. - Zero sugar content

smc and abi create similar products to compete against - Available in Lemon and
each other in the beer industry. For example, the extra Apple flavors
San Miguel Flavored
- No bitter aftertaste - 330 mL bottle
strong beer variants are dominated by Red Horse Extra Beer
- Smooth and easy to
Strong Beer from smc and Colt 45 Premium Strong Beer drink

from abi. Meanwhile, smc’s San Miguel Pale Pilsen and - 4.5% alcohol content by
- 320 mL bottle
Gold Eagle Beer - 750 mL bottle
abi’s Beer na Beer compete with each other in capturing volume
- 1000 mL bottle
the market for pale lager beers. Source: San Miguel Beer Website, http://www.sanmiguelbeer.com.ph/
Table 5 shows the data on beer variants and their
descriptions.
Table 6 • Asia Brewery Incorporated Beer Product Line
ASIA BREWERY BEER PRODUCTS
Table 5 • San Miguel Corporation Beer Product Portfolio
Product Label Description Variants
SAN MIGUEL BEER PRODUCTS
- Japan’s No. 1 Beer
Product Label Description Variants - Refreshing barley flavor, - 330 mL flint bottle
Asahi Super Dry
crisp aftertaste - 330 mL can
- San Miguel Pale Pilsen
- 5.0% alcohol by volume
- 5% alcohol by volume 320 mL
- Refined, well-balanced - San Miguel Pale Pilsen - 320 mL amber bottle
flavor 330 mL Long Neck - Pale, lager beer
- 750 mL amber bottle
San Miguel Pale - Pale, golden lager has - San Miguel Pale Pilsen - Smooth, clean and
Beer Na Beer - 1000 mL aluminum
Pilsen a hint of pleasant, hoppy in can 330 mL refreshing taste
can
aroma - San Miguel Pale Pilsen - 6.0% alcohol by volume
- Draft 30-liter keg
- Medium body, balanced, 1000 mL “Grande”
smooth, and moderate - San Miguel Pale Pilsen - 330 mL amber bottle
- High-alcohol beer
bitterness; a snappy clean Draft 30-liter keg - 500 mL amber bottle
Colt 45 - 7.2% alcohol by content
palate. - San Miguel Pale Pilsen - 1000 mL amber bottle
- Brewed in the USA
Draft 50-liter keg - 330 mL aluminum can

- 100% malt, 5% alcohol - Crisp taste

San Miguel Premium by volume - 330 mL bottle - Refreshing and easy to
Coors Light - 330 mL amber bottle
All-Malt - Distinctive smoothness - 330 ML can drink
and taste - 4.1% alcohol by volume

- 5% alcohol by volume - Golden lager beer

San Miguel Super - 330 mL bottle Coors Original - Crisp, clean, full-bodied - 330 mL amber bottle
- Clean, crisp, dry taste
Dry - 330 mL can taste
and elegant finish
- Alco-mix of Spanish
UNIVERSITY OF ASIA & THE PACIFIC

- 5% alcohol by volume Magnum 8.8 brandy and white rum - 330 mL flint bottle
- Made with roasted malt - 8.8% alcohol by volume
Cerveza Negra - Caramel-flavored, full-
- 330 mL bottle
bodied, dark lager - All-malt
- 330 mL flint bottle
- Distinct sweet roasted Manila Beer - Fuller body, cleaner taste
- 1000 mL flint bottle
aroma - 7% alcohol by volume

- 6.3% alcohol by volume -100% malt

San Miguel Strong - Ice-filtered - 330 mL bottle -30% less calories than
Manila Beer Light - 330 mL flint bottle
Ice - Smooth, high-alcohol - 330 mL can Manila Beer
beer - Full-bodied, crisp taste
- Premixed, vodka-based
- Made from triple-
30
“Alcomix” is an informal term used by Filipinos and producers distilled spirit
of alcoholic beverages to refer to flavored alcoholic drinks with blended Tanduay Ice - Comes in four variants: - 330 mL flint bottle
components of spirits and various fermented fruits differentiated Original, Blue, Red, and
through flavors and alcoholic content. The term may also refer to “non- Yellow
- 5% alcohol by volume
beer” and “non-wine” alcoholic drinks sold in the market.
 september 2014 10 F E A T U R E

Table 6 • Asia Brewery Incorporated Beer Product Line Table 7 • San Miguel International Breweries and Product
Portfolio
ASIA BREWERY BEER PRODUCTS
San Miguel Brewing
Product Portfolio
Product Label Description Variants International Ltd.
- San Miguel Pale Pilsen
- Alco-mix of rum and cola - 330 mL amber bottle - San Mig Light
Tanduay Black
industry monitor

- 6.9% alcohol by volume -1000 mL amber bottle - Blue Star King

- Valor
- Blue Star Premium
- 30% less calories than
San Miguel Baoding Brewery - Blue Star Draft
Tanduay Ice
(North China) - Blue Star Refined Brew
- Comes in two variants:
Tanduay Ice Light - 330 mL flint bottle - Blue Star Regular
Apple and Pomelo &
- Blue Star Premium Light & Crispy
Peach
- Blue Star 88
- 4.5 alcohol by volume
- Blue Star Hao Shuang
Source: Alcoholic Beverages, Asia Brewery Website, http://asiabrewery.com/alcoholic-
- Blue Star Light & Crispy
beverages/ - San Miguel Pale Pilsen
- San Mig Light
- Dragon Draft
San Miguel Corporation has also diversified its product Guangzhou San Miguel - Dragon Platinum
portfolio over the past decades with the establishment Brewery (South China) - Dragon Gold
- Dragon
of breweries all over the world. San Miguel Brewing - Valor Light
International Ltd. is comprised of five breweries, namely: - Valor
- Guang’s Pineapple Beer
a) San Miguel Hong Kong Brewery Ltd. (Hong Kong)
San Miguel Brewery Thailand - San Miguel Pale Pilsen
b) PT Delta Djakarta TBK (Indonesia) Ltd. (Thailand) - San Mig Light
c) San Miguel Baoding Brewery (North China)
- San Miguel Pale Pilsen
d) Guangzhou San Miguel Brewery (South China) San Miguel Brewery Vietnam
- San Mig Light
e) San Miguel Brewery Thailand Ltd. (Thailand) Ltd. (Vietnam)
- W1N Bia
f) San Miguel Brewery Vietnam Ltd. (Vietnam) Source: San Miguel Brewing International Ltd., http://www.sanmiguelbeerinternational.
com/

Aside from carrying the flagship brands of smc in the

Philippines such as San Miguel Pale Pilsen and San Mig abi, on the other hand, has only two notable breweries

Light, each producer also distributes regionally produced in the Philippines and has no facility outside the country.
and international beers. Table 7 shows the product lines of These two breweries are in Cabuyao, Laguna and El
each of the breweries. Salvador, Misamis Oriental.

Table 7 • San Miguel International Breweries and Product

Distilled Spirits Section
Portfolio Aside from having a wide range of beer products, smc and
San Miguel Brewing abi also have affiliated brands that produce other alcoholic
Product Portfolio
International Ltd. beverages. To cater to the liquor market, smc diversified
- San Miguel Pale Pilsen its product base through gsmi, while abi consolidated ties
- San Mig Light
- Blue Ice with tdi. gsmi holds 14 liquor brands ranging from gin
- Valor to brandy, while tdi boasts of an impressive 17 different
- Bruck
- Knight alcoholic beverages, with rum as its strong point.
San Miguel Hong Kong
- Guang’s Pineapple Flavor Beer Tables 8 and 9 present the two companies’ product
- Stella Artois
Brewery Ltd. (Hong Kong)
- Hoegaarden portfolios, which provide a clearer picture of this other
- Leffe part of the alcoholic beverage industry.
- Beck’s
- Lowenbrau
- Boddingtons
- Samuel Adams Table 8 • Ginebra San Miguel Product Portfolio
- J. Boag & Son GINEBRA SAN MIGUEL PRODUCTS (subsidiary of SMC)

- San Miguel Pale Pilsen Product Label Description Variants

- San Mig Light
- 80-proof, Dutch-type
- Anker Bir
gin
PT Delta Djakarta TBK - Anker Stout
- Predominantly berry-
(Indonesia) - Carlsberg
flavored from juniper - 350 mL bottle
- Kuda Putih Ginebra San Miguel
berries - 700 mL bottl
- Sodaku
- Made from sugarcane
- Soda Ice
alcohol and imported
essences
- 65-proof, sugarcane - 350 mL bottle
alcohol - 700 mL long neck
GSM Blue
- Blended with juniper bottle
berries
F E A T U R E 11

Table 8 • Ginebra San Miguel Product Portfolio Table 9 • Tanduay Distillers Product Portfolio
GINEBRA SAN MIGUEL PRODUCTS (subsidiary of SMC) TANDUAY DISTILLERS products (subsidiary of abi)
Product Label Description Variants Product Label Description Variants
- 25% alcohol by - Aged 15 years
volume - 350 mL bottle - 40% alcohol by volume
- Lowest alcohol content - 700 mL long neck Tanduay Rum 1854 - Blended from Tanduay’s - 700 mL bottle
GSM Blue Light
for gin in the market bottle special reserve of aged
- Smooth, sweet, clear rums
taste
- Aged 8 years
- 38% alcohol by Tanduay Primero 8 - 40% alcohol by volume
- 700 mL bottle
volume Años - Smooth flavor and nutty
- Blended with juniper aroma
Ginebra San Miguel berries, botanical - 750 mL long neck
Premium Gin extracts, and citrus bottle - 32% alcohol by volume
- 375 mL bottle
- 70-proof gin Tanduay E.S.Q. - Robust, sweet,
- 700 mL bottle
- 35% alcohol by pronounced flavor
volume
- Lush shade of mahogany
- 250 mL bottle
- Extra light alcohol - Sweet and slightly smoky,
- 375 mL bottle
content (25% alcohol by Tanduay Five Years lasting aroma of dark
- 350 mL bottle - 750 mL bottle
volume) sugar and oak
- 700 mL long neck - 1000 mL bottle
GSM Blue Flavors - Available in four - 40% alcohol by volume
bottle
variants: Apple, Lychee,
Mojito, and Brown - Well-rounded character,
Coffee smooth finish
- 375 mL bottle
Tanduay Rhum 65 - Full-bodied taste,
- 32.5% alcohol by - 700 mL bottle
- 350 mL bottle sweetness on the finish
volume
- 700 mL long neck - 32.5% alcohol by volume
- Rich, distinct aroma
Gran Matador Brandy bottle
- Smooth taste Tanduay Fine White - Subtle, sweet spicy taste - 375 mL bottle
-1000 mL long neck
comparable with foreign Rhum - 36% alcohol by volume - 700 mL bottle
bottle
brandies
- 25% alcohol by - Aged in oak wood barrels
- 350 mL bottle Tanduay Superior Dark - Hint of smokiness, well-
volume - 700 mL bottle
- 700 mL long neck Rhum rounded finish
- Same flavor as Gran
Gran Matador Light bottle - 40% alcohol by volume
Matador Brandy, but
- 1000 mL long neck
has lesser alcohol
bottle - Limited to 100 bottles
content Tanduay Centennial - 1000 mL bottle
- Aged rhum dating 1976
- 72-proof premium Dark Rhum
- 40% alcohol by volume
brandy
Gran Matador Gran
- Expertly blended - 700 mL bell bottle - The world’s first light
Reserva
according to the Grand rhum
- 700 mL bottle
Solera tradition T5 Light - 60-proof
- Light and easy to drink
- Most popular Chinese
- 30% alcohol by volume
wine in the country - 350 mL bottle
Vino Kulafu
- A blend of 14 Chinese - 700 mL bottle - Strong, smooth, easy
botanical herbs - 700 mL bottle
T5 Extra Strong Rhum to drink
- 70-proof whiskey - 50% alcohol by volume
- Taste, aroma, and
St. George Premium - 25% alcohol by volume
alcohol kick similar to - 70 cL bottle
Whiskey - 50 proof
foreign whiskeys Boracay Rum - 700 mL bottle
- 35% alcohol by volume - Available in two flavors:
Coconut and Cappuccino
- 80-proof rum
- Light-bodied, aged in - A blend of quality
Añejo Rum oak barrels - 375 mL bottle essences and extra neutral
- Aged with cane Gin Kapitan - 350 mL bottle
alcohol
molasses spirits - 40% alcohol by volume
- Blend of vodka,
carbonated water, sugar - 90 proof gin
UNIVERSITY OF ASIA & THE PACIFIC

and fruit extracts - 40% alcohol by volume

- 375 mL bottle
Antonov Vodka - Available in six flavors: London Dry Gin - Produced under
- 330 mL bottle - 700 mL bottle
Mixed Drinks Mandarin Orange, Ice, supervision of London
Apple, Ginger Ale & Birmingham Distillers Ltd.
Lime, Kamikaze, and
Cosmopolitan - Distilled alcohol blended
with pure water and
- Double-distillation, filtered through carbon
- 350 mL bottle
charcoal filtration Cossack Vodka - Pure and clean taste
- 700 mL bottle
- 80-proof - Comparable with Russian
- Neutral taste and vodka
Antonov Vodka - 70 cL bottle
aroma - 40% alcohol by volume
- Available in two
variants: Espresso Vodka - Made from alcohol and
and Currant Vodka pure water - 350 mL bottle
Cossack Blue
- Clear, crisp, smooth taste - 700 mL bottle
Source: Ginebra San Miguel Brands, Ginebra San Miguel http://www.ginebrasanmiguel.
com/alcoholic.php
- 32.5% alcohol by volume
 september 2014 12 F E A T U R E

Table 9 • Tanduay Distillers Product Portfolio

Torres added that wine production in the Philippines is
composed of “niche producers” that make wine depending
TANDUAY DISTILLERS products (subsidiary of abi)
on the raw materials that are abundant in a particular
Product Label Description Variants
region. Some examples are the Lang-Ay Wine Producers
- Rich, bold aroma
- 350 mL bottle Association that produces strawberry wines from Baguio or
industry monitor

Barcelona Brandy - Smooth, sweet flavor

- 32.5% alcohol by volume
- 700 mL bottle Don Roberto’s Winery Corporation that produces mango
- Smooth, mellow mix of
wines. Thus, there had been no more than one significant
Embassy Whiskey
malt whiskey and aged
- 700 mL bottle
wine producer with a double-digit market share, except
fine spirits
bmic, which accounted for 26% of the 2012 wine volume
- 36% alcohol by volume
Source: House of Tanduay, Tanduay Distillers website, http://www.tanduay.com/
shares because of their sales of the Novellino wines. bmic’s
New%20Folder/products/ ourBrands1854.html products are listed in Table 11.

Table 10 shows a list of edi’s popular brandy products.

Table 11 • Bel Mondo Italia Corporation Product Portfolio
BEL MONDO ITALIA CORPORATION PRODUCTS
Table 10 • Emperador Distillers Product Portfolio
Product Label Description Variants
EMPERADOR DISTILLERS products
- 4.5% alcohol content by volume
Rosso Classico - 750 mL bottle
Product Label Description Variants -Classic sweet red wine with less
Light
calories
Emperador Light - 55 proof -750 mL bottle
- 7.5% alcohol content by volume
- 72 proof
Rosso Vivace Light - Vibrant sparkling red wine with - 750 mL bottle
- Derives its superb
less calories
Emperador Brandy character from a delicate - 750 mL bottle
blending and aging
process - 4.5% alcohol content by volume
Strawberry Passion - Refreshing casual red wine
- Aged and crafted in - 750 mL bottle
Light blended with strawberry extracts
Bodega San Bruno by the - Soft and fruity, with less calories
makers of the best-selling
brandy in the world
Emperador Deluxe - 750 mL bottle - 4.5% alcohol content by volume
- Allows for deliciously
- Soft and subtle
distinct notes of Palomino Rosso Classico
- These lightly fermented wines - 750 mL bottle
grapes, toffee, almonds, (Red)
are the all-time favorite for all
and honey
occasions.
Source: Emperador Products, Emperador Distillers Inc., http://www.emperadorbrandy.
com/emperador-light.htm - 4.5% alcohol content by volume
- Soft and subtle
Bianco Classico
- These lightly fermented wines - 750 mL bottle
(White)
are the all-time favorite for all
Wine Section occasions.
The demand for wines in the Philippines is not as strong
as that for beer and distilled spirits. According to Torres - 7.5% alcohol content by volume
- Rich and lively
(2007), “the total wine market in the country is small Rosso Vivace (Red)
- These bubbly wines are perfect
- 750 mL bottle

compared to other Asian countries” although “the demand for parties and festive celebrations.

is continually growing”31. Torres reported that the wine - 7.5% alcohol content by volume
market in the country from 2000 to 2005 increased at Bianco Vivace (Red)
- Rich and lively
- 750 mL bottle
- These bubbly wines are perfect
an average annual rate of 13.4%, majority of which are for parties and festive celebrations.
accounted for by imported wines.
Torres also enumerated the leaders in the market for Casual Wines - 4.5% alcohol content by volume
• Strawberry - Made from 100% vinifera grapes
wine in 2005. On top of the list was Brumms Quality Passion and blended with natural fruit - 750 mL bottle
Wines Inc., a company that imports German wines; the • Luscious Peach extracts to give it the refreshing
• Wild Blackberry fruity twist.
business was launched in the 1980s by husband and wife
Klaus and Kitt Schroeder. The second largest player was E. - 9.5% alcohol content by volume
- Semi-dry red wine
& J. Gallo Winery headquartered in California, followed TRADIZIONALE - Created for those who seek the - 750 mL bottle
by Robert Mondavi Winery32 in the same state, as the third flavor of traditional Old World
wines
largest wine supplier. All of these products are imported
Source: Products, Novellino Wines, http://www.novellino-wines.com/products.htm
from their home base and sold in wine shops, retail stores,
or groceries and malls.
The next section of the series discusses the production
31
Torres, Florian Cecil. “How Flows the Wine Industry - process of wines and beers, as well as their contribution to
SME Insight.” INQUIRER.net Blogs. http://blogs.inquirer.net/ the macroeconomy. IM
smeinsight/2007/10/30/how-flows-the-wine-industry-1/ (accessed
October 13, 2013).
32
Ibid.