Spirits in the Philippines

PROSPECTS

Favourable economic development and rising spending power of millennials support consumption

The continued economic development in the Philippines, leading to rising disposable income and spending power, has supported the growing consumption of spirits at different price points. One key age group that has gained more attention is millennials.

Premiumisation intensifies in spirits

While the bulk of spirits products are in the standard segment, the dynamism of categories such as cognac and whiskies reflects a greater move towards premiumisation. Specifically, the fast-growing category of whiskies has received increasing attention from local players.

COMPETITIVE LANDSCAPE

Ginebra San Miguel Inc takes over the leadership in spirits

Thanks to the prominence of Emperador, the number one brandy in the country, Emperador Distillers had been the leader in spirits since 2011. However, Ginebra San Miguel retook the leadership in 2018 as it was able to combine above-the-line and below-the-line strategies, targeting different demographics with different variants of gin.

International players seek stronger growth in spirits

Notwithstanding the bulk of the category being made up of domestically-produced spirits, international players see opportunities in the expanding spirits category and are eyeing stronger growth in the country. Companies such as Diageo Philippines Inc, Moët Hennessy Philippines Inc and Pernod Ricard Philippines Inc as well as distributors such as Meritus Prime Distribution Inc and Future Trade International Inc are not only aggressively expanding their distribution in retail channels, but also increasing the visibility in bars/pubs and full-service restaurants of brands like Absolut, Bacardi, Chivas Regal and Johnnie Walker to try and capture more share.

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