Puregold Owner's Liquor Business Buys 50% of Spanish Winery for P5 Billion

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Listed company The Keepers Holdings Inc. (TKHI), which is owned and controlled by Puregold’s Lucio Co, has bought 50 percent of Bodegas Williams & Humbert SA, a Spanish winery that is perhaps best known for its Alfonso brandy. 

This marks TKHI’s transition from liquor trading to manufacturing and distribution.

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Under the terms of the transaction, TKHI will pay 88.75 million euros (over P5.08 billion) in cash upon signing the Share Purchase Agreement and completing other legal requirements. 

The acquisition represents “a strategic long-term investment that will enhance the competitive position of the group and strengthen its hold and secure the company’s supply line of its flagship brand and category, Alfonso brandy,” TKHI said in a disclosure to the Philippine Stock Exchange. “It will also transform the company’s business model from a pure trading to a manufacturing and distribution one and provide an opening into markets outside the Philippines. The equity investment will also be bottom line accretive from its share in the future net income of Bodegas Williams & Humbert.” 

TKHI added that Alfonso is the number one imported brandy in the Philippines and accounts for 60 percent of The Keepers’ revenue.

With over 140 years of history, Bodegas Williams & Humbert is a “forward-looking company producing a wide variety of wine and spirits specially sherry and is the leading producer of light brandy,” TKHI said in a disclosure to the Philippine Stock Exchange. It distributes its products in Spain and in 50 countries worldwide and has been producing Alfonso, the Keepers biggest brand and “the number one imported brandy in the Philippines for more than two decades.” 

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TKHI is the largest distributor of imported spirits and beverages in the Philippines, with a market share of 74 percent based on volume and 66.9 percent based on retail sales. It is the exclusive distributor of globally renowned brands, which are market leaders in the industry such as Alfonso, Johnnie Walker, Jose Cuervo, Jim Beam, Jinro, Absolut, Bailey’s, Red Bull, and Perrier.

Formerly known as Da Vinci Capital Holdings, the company was formed after it acquired the liquor and specialty beverage distribution business of Lucio Co and family from Cosco Capital (PSE: COSCO) via share swap transaction. 

Co’s latest acquisition follows in the footsteps of fellow tycoon Andrew Tan, who, in 2015, acquired Spanish brandy business Fundador Pedro Domecq.  

Co is also founder and majority shareholder of retail giant Puregold Price Club, which, as of end-2021, owns and operates 532 stores nationwide, including 263 hypermarkets, 100 supermarkets, 28 extras, 22 S&R Warehouse Clubs, 47 S&R quick service restaurants, three Merkado branches, and 30 San Roque supermarkets.

 

 

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Paul John Caña
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