It may come as a surprise to some that Tanduay is the second most popular brand of rum in the world. Quality and brand loyalty can be attributed to their success.
Power of Tanduay
by Mike Streeter
Just when you think you’ve been keeping up with all the latest trends in the rum industry, a new brand sneaks up on you out of nowhere. Tanduay, however, is not a new brand, nor is it a small one. They’ve been around for over 150 years and are producing and selling more rum than any other company with the exception of Bacardi. Impressive!
Tanduay is an interesting label. It was founded in the Philippines in 1854 by Don Joaquin Elizalde, his uncle, Juan Bautista Yrissary, and a Spanish entrepreneur named Joaquin Ynchausti. Initially, their business was shipping and fiber production. Later, a cousin of Elizalde’s named Valentin Teus joined the group, bought an established distillery and began producing spirits.
Don Joaquin Elizalde became the majority stockholder in the late 1800’s and continued to develop the Tanduay brand.
In 1988, Twin Ace Holdings Company acquired Tanduay from the Elizalde family and carried on the tradition of producing fine spirits and building their reputation as one of the world’s top rum companies.
Today, Luceo Tan owns Tanduay Holdings along with several other large corporations. Forbes Magazine recently named him the second richest man in the Philippines.
Over the years, Tanduay has been able to grow their business and create a huge sense of consumer allegiance. They now lay claim to 95% of the market share in the Philipines, but remain a relatively unknown product in the UK and US.
Like other high volume brands, their products run the quality spectrum. Their popular Dark Rhum is a top seller and makes for a worthy mix in cocktails. Their aged products are reportedly gaining in popularity but still make up a small percentage of overall business.
Sales during the first half of 2010 have been difficult for Tanduay. A slow-moving economy combined with a poor-weather-driven cost increase in molasses production has profits down by nearly 50%. Overall sales are down 18% but are beginning to pick up as weather improves. The company reports that an overall increase in annual sales should be at 5% before the end of 2010.
There has been gossip over the years about Tanduay expanding to Europe and maybe even the US. Aside from web-based sales, that expansion remains a rumor but we’re keeping our eye on this brand for future world domination.
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