Tech Savvy Lucio Tan III Leads Tanduay’s Continued US Market Growth Amid Pandemic, Eyes Europe Distribution in Q4

Tanduay Distillers’ Inc. president and chief operating officer Lucio Tan III, a software engineer, has been aggressive in bringing the Filipino rum to more customers worldwide, making it available not just through traditional marketing and selling but tapping into online channels as well.

 

Even as most businesses are reeling under the effect of the pandemic, Filipino rum maker Tanduay’s growth continues on an upwards trajectory.

Now headed by Lucio Tan III, the third-generation scion to one of the Philippines’ big-gest conglomerates, Tanduay continues to successfully enter new international mar-kets. Most recently, it inked deals with the largest US wines and spirits distributors, Johnson Brothers and General Beverage. 

Tanduay can now be found in Hawaii, Nevada, Wisconsin, Florida, New York, New Jersey, Illinois, California, Tennessee, and Michigan, and in the territory of Guam. It is also available in China and Singapore and will be available in Europe by the end of the year.

A software engineer, Tan’s direction for the 165-year-old Tanduay business is to bring it to more customers worldwide, making it available not just through traditional marketing and selling but tapping into online channels as well.

“Even before the pandemic, we were already working on making Tanduay available through tech-driven channels. Last June, we launched an online selling site for our Filipino customers, shots.ph. In the US, we have partnered with Caskers and Flaviar, and we are also available through the online sites of our distributor-partners.” ~Lucio Tan III, Tanduay Distillers’ Inc. President and Chief Operating Officer, a Software Engineer, a Graduate of Stanford University

Tanduay’s push toward a more visible international presence started in the 2000s. Its more recent initiatives in the US included a partnership with the Golden State Warriors, making it the first Philippine brand to sponsor an NBA team. It had naming rights to the Tanduay Club in the Oracle Arena, and Tanduay Rum can be found at retailers in the Golden State Warriors’ blue and gold “Strength in Numbers” collectible boxes in California. Tanduay currently has its own branded bar at the Chase Center, the Golden State Warriors’ brand-new arena in San Francisco’s Bay District which opened in 2019.

Tanduay also became the official rum of the Barclays Center and the Brooklyn Nets. It has been a Presenting Sponsor of the 40/40 CLUB and an Associate Sponsor of the arena's Brooklyn Show platform. Tanduay also made a foray into entertainment by being one of the sponsors of the Emmy Awards, the first for any Filipino brand.

Tanduay also made a foray into entertainment by being one of the sponsors of the Emmy Awards, the first for any Filipino brand.

The company credits its international partnerships and aggressive marketing efforts for its domination of the international rum category. For three years now, Tanduay has been declared the World’s Number One Rum by Drinks International magazine. It has sold millions of cases worldwide, even outselling more popular international rum brands.

“When we market Tanduay internationally, we are also highlighting the craftsmanship of the Filipino. Tanduay is a product that we can proudly say is Philippine-made—from the sugarcane, it uses to the unique distilling process it undergoes. These are all products of the Filipino’s hard work and ingenuity. We’re combining our traditional practices in rum-making with new ways of marketing our products.” ~Lucio Tan III, Tanduay Distillers’ Inc. President, and Chief Operating Officer, a Software Engineer, a Graduate of Stanford University

Tanduay mainly sources its sugarcane from Bacolod in the Visayas, which is a place known for its long history of sugarcane farming. The island is home to the country’s 100-year-old sugar milling company.

Founded in 1854, Tanduay uses the same distillation process that is employed in its now decommissioned distillery in Manila. A Master Blender, who serves as the guardian of Tanduay’s formulas, checks on the consistency and quality of the rums before they are sent for bottling and packaging.

“We’re combining our traditional practices in rum-making with new ways of marketing our products.” ~Lucio Tan III, Tanduay Distillers’ Inc. President, and Chief Operating Officer, a Software Engineer, a Graduate of Stanford University

About Tanduay 

Tanduay is one of the most-awarded rum brands in the Philippines, receiving various local and international citations. In 2017, it was declared the World’s Number One Rum by Drinks International magazine. Tanduay will hold this title for three consecutive years.

Tanduay started out as a distillery in Hagonoy, Bulacan, a province in the island of Luzon known for its heroes and craftsmen. It changed ownership throughout the decades and has been under the Lucio Tan Group of Companies, Inc., one of the biggest conglomerates in the Philippines.

Even as the years passed, Tanduay has maintained the traditional way of distilling its rums, a practice that started in its Manila distillery. It has likewise consistently maintained its product quality, ensuring that Filipinos and foreigners alike will enjoy the same taste and aroma of a Tanduay product wherever they are in the world.

Aggressive Expansion, International Partnerships Push Tanduay Rhum to Number 1 Spot Anew

“Being declared the World’s Number 1 Rum for the third year is an achievement not just for Tanduay but for the entire country as our products are proudly Philippine-made using materials sourced locally. We celebrate this feast with our fellow Filipinos and we thank our international partners who have helped us market Tanduay globally. At present, we are working toward bringing Tanduay to Europe as rhum sales in the region outstripped gin. The value of rhum in Europe is growing faster than volume, which is very encouraging because that suggests premiumisation leading the industry to long-term growth prospects. Nowadays, drinkers have a more developed taste when it comes to their drink of choice. Aside from rhum, we are also exploring other spirit categories to supply markets here and abroad.” ~Paul Lim, Tanduay Senior Vice President for Sales and Marketing 

Early this year, Tanduay won five medals from the Beverage Testing Institute. Tanduay Asian Rum Gold topped the list with a gold medal. Silver medals, meanwhile, were awarded to Tanduay Asian Rum Silver and Boracay Cappuccino Flavored Rum. Tanduay Double Rum and Boracay Coconut Flavored Rum both received bronze medals.

Tanduay‘s international partnerships and global expansion bolstered its worldwide sales, making it the world’s top-selling rum for the third consecutive year. Tanduay Rhum sold 20.5 million cases in 2019, an increase from its 20.1 million cases in 2018, according to Drinks International magazine which hands out the awards. Tanduay products are currently available in Florida, New York, New Jersey, Illinois, California, Wisconsin, Tennessee, Michigan, and Guam in the U.S, and will be available in Hawaii, Indiana, Nevada, and Minnesota within the year.

The company has also successfully entered the markets of China, the United Arab Emirates, Singapore, and Australia.

It was in 2018 that Tanduay first dislodged Bacardi on the top spot of the world’s number one rum list. The following year, the Filipino rum maintained its leadership against 153 other brands in the category.

Tanduay is currently working on expanding its product portfolio for both local and international markets.

Tanduay Partners with Octopus Distribution Now Available in Singapore

“Partnering with the Octopus Group is part of our effort to bring Tanduay to the global market. We are glad to finally make our products available to our kababayans in Singapore and at the same time introduce them to the Singaporeans.” ~Tanduay President and COO Lucio K. Tan, Jr

Present during the rooftop launch in Singapore were (from left) Mr. Paul Lim, SVP for Marketing, Tanduay Distillers Inc.; Mr. Marc Ngo, Senior Brand Manager, Tanduay Distillers Inc.; Mr. Daniel Schwalb, Chief Commercial Officer, Octopus Group; Ms. Dato Elaine-Teh, Executive Chairman, Octopus Group; Mr. Lucio K. Tan Jr., President and COO, Tanduay Distillers Inc.; Mr. Matthew Ruscoe, Managing Director, Octopus Group; Ms. Karlu Tan-Say, Director of Eton Properties; Ms. Jane Ong , AVP for Exports, Tanduay Distillers Inc.; and Mr. Roy Sumang, Asst. Manager for Business Development, Tanduay Distillers Inc.

Tanduay increased its market share abroad by expanding its distribution networks. It is currently available in the USA, Germany, China, UAE, Guam, and Australia. In 2017, it further amplified its marketing initiatives. From that year, it experienced a two-year compound annual growth rate (CAGR) of 86.25% in its export business.

Mr. Lucio K. Tan Jr., President, and COO, Tanduay Distillers Inc.

Tanduay Distillers, Inc. recently entered into a partnership with Octopus Distribution Networks, the leading distributor for both alcoholic and non-alcoholic beverages in Singapore, to further its international expansion plan.

To celebrate the deal, it held a rooftop launch at the Octopus Building in Ubi Road 3 in the Lion City. With the theme "Tanduay Sunset Party", the event was attended by Tanduay President Lucio K. Tan, Jr., the executives, and staff of the Octopus Group, F&B directors, restaurant owners, bar managers, and members of the media. Tanduay's resident mixologist, Dondz Bolante, served high-end cocktails such as the Guava-Basil Mint, Tanduay Negroni, Manila Mule, and Basil Mojito.

After the party, the Octopus Group held a trade launch at El Mesa in Clarke Quay. Attendees enjoyed free-flowing mojitos, Dondz special macadamia sour as well as Lechon while being entertained by El Mesa's in-house bands.

Tanduay’s international marketing initiatives include creating a presence in both sports and entertainment. It has a partnership with the Golden State Warriors, making it the first Philippine brand to sponsor an NBA team. It has naming rights to the Tanduay Club in the Oracle Arena, and Tanduay Rum can be found at retailers in the Golden State Warriors’ blue and gold “Strength in Numbers” collectible boxes in California.

Declared the World’s Number One Rum by Drinks International for two consecutive years, Tanduay has received numerous awards from international bodies, the most recent of which were from the 2019 San Francisco World Spirits Competition (SFWSC).

Tanduay is also the official rum of the Barclays Center and the Brooklyn Nets. It has been a Presenting Sponsor of the 40/40 CLUB and an Associate Sponsor of the arena's Brooklyn Show platform.

Tanduay has also previously sponsored and will continue to sponsor the Emmy Awards this year.

Major Festivals in Bacolod celebrated Tanduay’s Rum Fest

“Fortunately for us, Tanduay really invested into this. It made the Rum Festival a reality and a big success, judging from its initial staging. It started with a big bang, and this big bang would resonate for sure in the years to come. For our other festivals, it was a case of holding the festival first, testing it, then later on legitimizing it through the legislative process,” Mayor Leonardia said. “This one (Rum Festival) was an ordinance before it became a festival. I consider myself an accidental politician. It all started when I got involved with the Masskara Festival. I was the one who drafted the constitution and by-laws of the Masskara Foundation. When I received invitations to run, I decided to join, run like it was another student council election. Even if you don’t have much money, if the people want you, you could become mayor. When you’re in tourism, you have to be people-oriented. You also go to a lot of places, your horizons get widened, your views become broader, and you get insights. You learn to think of the total development of the community and society. If you think about it and look back, we should be asking ourselves why we haven’t done this earlier. When you talk of rum, you talk about it being a derivative of sugar, and Bacolod is a city that has developed and prospered because of the sugar industry. It made us so rich, and it has also made us poor. It had its ups and downs. The Bacolodnons are the kind of people who are basically happy. We enjoy life. We know how to celebrate. We know how to spend our money. It’s a natural habitat for festivals, and this is the right place to hold the Rum Festival.” ~Mayor Evelio “Bing” Leonardia , Bacolod City Mayor

Bacolod City, The City of Smiles is more than just a welcoming heartwarming smile but a lot more of celebrations. Headed by Mayor Evelio “Bing” Leonardia now has six major festivals in its annual roster with the recent inclusion of the Rum Festival sponsored by Tanduay. This makes Bacolod the city with the most number of major festivals in the Philippines.

Hon. Mayor Evelio Leonardia, Bacolod City Mayor

In staging the first Rum Festival in the country, Mayor Leonardia it’s only fitting that it should be held in Bacolod. Mayor Leonardia likewise pointed out that Bacolod is a good place to hold festivals because of its people.

When he finally threw his hat into the political arena, he emerged as the number one councilor in his first try. He received a record number of votes, even more than those of the mayor or vice mayor during that time.

In the next election, he won again, this time as vice mayor. When he finally decided to run for mayor, he successfully toppled the ruling dynasty in his city. Heading the dynamic city of Bacolod, Mayor Leonardia cited his experience working in the Tour-ism Department as a factor in helping him deal with people and visitors.

Mayor Leonardia was president of the Student Council when he was studying Law at the University of Negros Occidental. he had specifically included a provision that said the chairman of the Masskara Foundation should not hold an elective position. Later on, Mayor Leonardia would come to the realization that the kind of involvement he had with the Masskara Festival was something that he was inclined to do.

Tanduay Rum Festival Court Painting

Held from Aug. 17 to 24, the week-long event is the first of its kind in the country. Known as the Tanduay Rum Festival, the event paid homage to the humble sugarcane as well as celebrated the Filipinos’ skill in the visual arts, culinary arts, mixology, dance, and music. For eight days, Bacolodnons participated in the Barrel Art Painting contest, basketball court painting, Culinaria and Mixology competitions, 5K Rum Run, float parade, street dance contest, and a concert headlined by iconic rock band Sandwich.

The Rum Festival was staged after an ordinance was passed declaring the third week of August as the date for holding the Rum Festival. In the ordinance, its author, former City Councilor Em Legaspi-Ang cited how Bacolod has been dubbed as the “Sugar Capital of the Philippines” and is the “home of the world’s largest selling rum.”

The Rum Festival joins Bacolod’s major festivals that include the Masskara Festival in October, the Bacolaodiat in January, Diwali in November, Chicken Inasal in May, and Halandumon in June.

Hosting festivals is not something new for Mayor Leonardia, who has been involved with the initial staging of the Masskara Festival—Bacolod’s most popular cultural celebration. He used to head the Masskara Foundation, and he has also worked for the Department of Tourism before running for public office after the EDSA Revolution.