The article discusses Emperador, the world’s largest brandy producer, and its plans to expand into agave-based spirits such as tequila and mezcal. The company has acquired a 60% stake in Destileria Los Danzantes, a Mexican distiller, for $5.9 million.
According to Glenn Manlapaz, Emperador’s director, president and CEO, the market for agave-based spirits is growing rapidly, with tequila having been consumed as shots but now being sipped neat or used in cocktails like whisky. He believes that mezcal has potential to grow significantly in European markets.
Manlapaz sees a long-term payoff from Emperador’s investment in Destileria Los Danzantes and plans to use the same strategy it employed with its whiskies, introducing mezcal into bars and restaurants before making it available for purchase at liquor stores. He likened this approach to how Emperador introduced Dalmore as a “premium” offering.
The article mentions that Emperador’s revenue from whisky segment has grown significantly in recent years, contributing 35% of the company’s total revenue in its most recent quarter. Manlapaz believes that growing the mezcal business would diversify Emperador’s revenue stream and provide a new opportunity for growth.
Overall, the article suggests that Emperador is cautiously optimistic about its prospects despite uncertainties such as the Iran war, which has raised energy prices and inflationary pressures.
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