RAW MATERIALS AND PRODUCTS

TOYOTA

HONDA

GARDENIA

HYTEC POWER INC

UNION GALVA STEEL

HINO MOTORS PHILS.

TANDUAY DISTILLERS INC

Raw Materials and Principal Suppliers Principal raw materials in the rum production process are the
following:

1. Alcohol: TDI uses Ethyl alcohol, which is distilled form sugarcane molasses. TDI obtains most of its
ethyl alcohol from its two subsidiaries – AAC and ADI and other suppliers. It is intended that Manapla
Distillery will soon be one of the exclusive alcohol suppliers to the Group. Manapla is owned by Victorias
Milling and is currently being rehabilitated under the technical supervision of AAC‘s personnel. Alcohol is
delivered directly to the plant by tanker. Quality of alcohol is being checked prior to acceptance. In 2013,
alcohol accounts for 28% of product cost while specific tax on alcohol is at the rate of P20.00 per proof
liter and accounts for 35% of the total cost. The tax is generally included as part of the cost charged by
the alcohol supplier. With the temporary shutdown (please refer to page 17 / Legal proceedings) of
AAC‘s operations, TDI increased its importation of alcohol from Pakistan, India, South Africa & Indonesia.
The distillery companies obtain their molasses from sugar mills and traders. Major suppliers are
Victorias Milling Co., Binalbagan Sugar Company and Tate & Lyle Corp.

2. Sugar: This is added when deemed necessary to enhance the sugary taste and aroma of a particular
product.

3. Water: The plants use significant amounts of water for blending liquor products and cleaning bottles.
The water is supplied by the local utility. Each plant has its own water storage and demineralization
facilities.
4. Flavoring Agents: For some products, essences and other flavoring agents are added to attain the
desired color, flavor and aroma as well as to reinforce the natural quality of rum as derived from
molasses and ageing in oak barrels.

5. Bottles TDI‘s liquor products are bottled in glass bottles. Glass bottles account for approximately 17%
of cost of goods sold for TDI‘s products. The cost is managed in part by recycling the bottles. TDI
maintains a network of secondhand bottle dealers across the nation who retrieves the bottles from the
market and sells them back to TDI. The cost of the secondhand bottles including its cleaning is 50%
lower than the cost of purchasing new bottles. 10

6. Caps: All products are sealed with tamper-proof resealable aluminum caps, which average 3% of total
product cost. The aluminum closure sheets being used by the main supplier in the manufacture of caps
is being imported from Italy.

7. Labels: The labels being used are made from imported base coated paper as its main raw material.
Label cost accounts for 1% of product cost. There are no long-term purchase commitments as purchases
are made through purchase orders on a per need basis from a list of accredited suppliers.

Products The Company has brands in all major liquor categories – rum, gin, brandy, vodka, whiskey and
wine. The Company‘s primary products consist of the following:

 Tanduay Five Years Fine Dark Rhum - 80 proof - 250ml, 375ml, 750ml, 1 liter This rhum reflects the
hallmark of Tanduay‘s rich and lively heritage. The ageing process of this extra special blend is extended
for five long years. As a result, the aged rum reveals a lush shade of mahogany and a lasting aroma of
sweet nutty smoked flavor. The brand accounts for 74% of TDI‘s total sales by volume and 76% by
revenues.

 Tanduay Rhum 65 Fine Dark Rhum 65 proof - 375ml, 750ml Exuding a well-rounded character with a
smooth mellow finish, this exciting dark rum exhibits a grand array of flavors that is full-bodied yet with
an edge of sweetness on the tail.

 Tanduay E.S.Q. Fine Dark Rhum - 65 proof - 375ml, 750ml This extra smooth rum is expertly blended
to obtain a more robust, pronounced flavor, with just the right amount of sweetness and aroma. 6

 Tanduay White Premium Rhum - 72 proof - 375ml, 750ml Exquisitely blended and flawlessly light, this
special rum is meticulously filtered resulting in a sparkling clear spirit with a subtle sweet and spicy tang,
enhancing any drink it is mixed with.

 Tanduay Superior Dark Rhum - 80 proof - 700ml This is considered the ―Cognac‖ of rum. Aged in oak
wood barrels for twelve years, this superb rum boasts of a compelling flavor with a hint of smokiness
and a long well rounded finish.

 Tanduay Rum 1854 - 80 proof - 700ml Tanduay's rich 150 year history in distilling and blending fine
rums is captured in Tanduay Rum 1854, specially prepared in celebration of Tanduay's 150th year
anniversary. It comes from Tanduay's collection of reserved aged rum, masterfully blended to acquire an
aura of festivity and flavor.
  Tanduay Centennial Dark Rhum - 80 proof - 1 liter Exclusive to the Philippine Centennial celebration,
this distinctive rum was produced from 100 carefully selected barrels aged to perfect the bouquet and
aroma of a 20-year-old rum.

 T5 Light - 60 proof- 700ml The World‘s first Light Rum. Blended to a smooth, suave 60 proof. Destined
to be the rum of choice, the newest ―go to‖ drink of the young active set. Created to be enjoyed
straight, ―on the rocks‖ or with a mixer. Promises a vibrant yet light, easy-to-enjoy drinking experience.
 Tanduay Extra Strong Rhum - 100 proof- 700ml This unique rum is specially blended to be strong, and
yet smooth and easy to drink, robust without being intimidating, and vibrant without being aggressive.
Its 50% alcohol content and rich character are derived from choice sugarcane and Tanduay‘s traditional
techniques of ageing and blending.

 Tanduay Five Years Light - 55 proof- 375ml, 750ml, 1 liter Tanduay‘s Master Blender developed this
rich blend aged rum with just the right sweetness and aroma. This 55 proof special blend boasts of a
compelling smooth flavour without much woody notes, full-bodied yet with an edge of sweetness on
the tail.

 Boracay Rum- 50 proof- 700ml Smooth, white rum gets some attitude with the tropical sweetness of
coconut, fruity taste of melon and the unique kick of cappuccino. Suit the flavor to your mood whether
you take it straight, on the rocks or mixed.

 Tanduay Asian Rum Gold – 80 proof- 750ml Silky smooth Gold Rum from heritage Asian sugarcane
that revealed how Tanduay became the global leader in dark rum.

 Tanduay Asian Rum Silver – 80 proof- 750ml Silky smooth Silver Rum from heritage Asian sugarcane is
only moderately filtered for flavor, giving it a light straw appearance. Perfect for sipping straight yet well
balanced for mixing.

 London Gin – 80 proof- 375, 700ml Great taste and sparklingly pure, this gin is expertly distilled and
packaged with the most modern methods to suit discriminating tastes worldwide. This is bottled under
license from London Birmingham Distillers, Ltd., London, England. 7

 Gin Kapitan – 80 proof- 350ml Gin Kapitan was produced to address the preferences of local drinkers
for strong alcoholic drinks, particularly in Northern Philippines.

 Gin Kapitan Light – 50 proof- 350ml Gin Kapitan Light was produced to satisfy the growing preference
for low-strength spirits. It has the same quality ingredients as Gin Kapitan, only at 50 proof and made
smoother and lighter for longer bonding sessions.

 Barcelona Brandy – 65 proof- 350ml, 700 ml In 2001, Tanduay entered the fast growing local brandy
market by introducing its first brandy product, Barcelona. Made from the finest ingredients and blended
to perfection.

 Compañero Light Brandy – 55 proof- 700ml A blended smooth spirit with a deep golden color,
characterized by a rich bold aroma, and an extra smooth, sweet flavor with the taste of real Spanish
Brandy.
 Cossack Vodka Red - 80 proof- 250ml ,350ml, 700 ml The Pure Spirit. This vodka is treated through
carbon and force-filtered in the true Russian tradition to produce a premium, high quality vodka that
captures the spirit of Russian brands.

 Cossack Vodka Blue – 65 proof- 375ml, 700ml In 2009, this 65 proof vodka was introduced to address
the growing preference by young drinkers for smooth and easy to drink liquor.

 Embassy Whiskey – 72 proof- 700ml A smooth, mellow mix of imported malt whiskey and fine spirits
that has been skillfully and meticulously blended together to achieve the character and rich depth of
flavour associated with whiskies aged in oak barrels.

 Mardi Gras vodka schnapps – 40 proof- 700ml With its sweet and mild 20% alcohol content, Tanduay
launches the first, double-flavor Vodka Schnapps. Delight your senses with the tempting combo of
chocolate and a hint of fresh mint or feast with the refreshing fusion of mango and tangy orange.

 Tanduay Cocktails – 30 proof- 700ml Ready to serve premixed cocktails, with 15% alcohol per volume,
available in four variants: Mojito, Margarita, Strawberry Daiquiri and Blue Maitai.