Case Analysis of Tanduay Distillers

CASE ANALYSIS OF TANDUAY DISTILLERS, INC.

I. EXECUTIVE SUMMARY

This study focuses on Tanduay Distillers, Inc. that is primarily engaged in, operates, conducts and maintains the business of manufacturing, compounding, bottling, importing, exporting, buying, selling or otherwise dealing in, at wholesale and retail such goods as rhum, spirit beverages, liquor products; and any and all equipment, materials, supplies used and/or employed in or related to the manufacture of such finished goods. The Company sells its products in the domestic market mainly through major distributors. It’s very interesting to see how TDI will respond to the preferences of consumers change for various reasons driven largely by demographics, social trends in leisure activities and health effects. Entrants of new competitive and substitute products to address these customers’ preferences may adversely affect the business prospects.

II. INTRODUCTION, MISSION, OBJECTIVES AND STRATEGIES

Tanduay Distillers, Inc. (the Company) was incorporated in the Philippines as Twin Ace Holdings, Inc. (Twin Ace) on May 10, 1988. The Company is a wholly owned subsidiary of LT Group, Inc. (LTG) formerly Tanduay Holdings, Inc. (THI). The Company is primarily engaged in, operates, conducts and maintains the business of manufacturing, compounding, bottling, importing, exporting, buying, selling or otherwise dealing in, at wholesale and retail such goods as rhum, spirit beverages, liquor products; and any and all equipment, materials, supplies used and/or employed in or related to the manufacture of such finished goods. The Company sells its products in the domestic market mainly through major distributors.

Company’s vision. “To be the best in the liquor industry in the Philippines and ultimately in the global market with a vision of One World, One Spirit.”

Company’s mission. “To provide the consumers with quality products that will satisfy their taste at the best possible value. To produce liquor...