Emperador's year?

First Metro Securities Brokerage Corp. has issued a buy recommendation for Emperador Inc. (EMI), projecting that the liquor maker's stock price at the Philippine Stock Exchange will rise to P18.90 (it closed at P15.34 last Dec. 22) due to what they see as a brandy renaissance.

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In a report written by Estella Dhel Villamiel and Mark Angeles, they cited projections that point to a 20 percent growth in brandy revenues for 2026 that will come from new product sales.

Likewise, FirstMetroSec has adopted a new valuation framework approach using a sum-ofthe-parts (SOTP) methodology. In their report, they expressed their view that the SOTP better reflects the distinct growth and value creation dynamics of EMI's two core businesses.

They noted that the brandy segment is cash-generative and volumedriven, anchored primarily in Philippine consumption, while the whisky business is asset-heavy and benefits from time appreciation and luxury economics.

They acknowledged that while the segment faced headwinds from competitively priced players such as Alfonso brandy and other spirits, management expects brandy revenue to grow by 20 percent in 2026, supported by strong product momentum and portfolio innovation.

Growth drivers, they said, would include Fundador Super Special, which is an affordable premium brand that has gained significant traction, driving volume this year.

EMI management, they said, highlights a 40 to 50 percent growth in the third quarter alone, underscoring its success in capturing the value-conscious segment.

Another product, CLVB EMPI, is a competitively priced, smooth brandy targeting younger consumers, particularly Gen Z. Since its soft launch in March this year, the product has received positive reviews and strong demand signals, with large orders from retailers and on-premise establishments ahead of its official launch next year.