KYLE TAN: MODERNIZING A HERITAGE BRAND
TANDUAY DISTILLERY
TANDUAY DISTILLERY
KYLE TAN: MODERNIZING A HERITAGE BRAND AT TANDUAY DISTILLERS
Project by: Malvern Kandemwa
Words by: Michelle Duncan
As Chief Operating Officer of Tanduay Distillers, Kyle Tan represents the next generation of leadership for one of the Philippines’ most iconic and long-standing liquor brands. Tanduay, a company with over 170 years of history, is the world’s best-selling rum brand by volume and a pillar of Filipino industry and identity. Under Kyle Tan’s leadership, the company is not only holding onto its legacy but also reimagining it for the future.
Kyle Tan, the son of Lucio “Bong” Tan Jr. and grandson of Filipino business tycoon Lucio Tan, stepped into the leadership role at Tanduay Distillers with both a reverence for its heritage and a bold vision for modernization. Educated in the United States with a degree in Computer Science from the University of Southern California (USC) and earlier experience at Microsoft, Kyle brought a unique blend of technology, innovation, and global outlook to a traditional manufacturing and distribution business.
His entry into the family business was not simply to continue a legacy, it was to transform it.
As COO, Kyle is redefining what a 170-year-old brand can achieve in the digital age while staying rooted in Filipino values and artisanry.
Tanduay’s rich legacy dates to 1854, when the Ynchausti family first entered the rum business under the name Ynchausti y Compañia. In collaboration with Valentin Teus e Yrisarry, they began producing rum at a distillery in Hagonoy, Bulacan. By 1860, operations had moved to Isla de Tanduay, a narrow strip of land between the Quiapo and San Miguel districts in Manila—a move that would ultimately lend the brand its iconic name.
The next major chapter in Tanduay’s history came in 1988, when the company was acquired by the Tan family. Business tycoon Lucio Tan, Kyle Tan’s grandfather, bought the brand from Elizalde & Company through Twin Ace Holdings. This acquisition marked the beginning of a sweeping modernization and expansion effort, transforming Tanduay from a respected local distillery into a powerhouse of global rum production. In 1999, Twin Ace Holdings officially became Tanduay Distillers, Inc., further aligning the brand’s identity with its heritage.
“When my grandparents acquired the company, they were committed to preserving its cultural significance,” Kyle Tan explains. “They kept the original recipes and aging process intact—despite the higher costs— because maintaining that heritage was, and still is, a core value for us.”
This deep respect for tradition, paired with bold investments in innovation and infrastructure, has allowed Tanduay to stay true to its roots while competing confidently on the world stage.
MAINTAINING THAT HERITAGE WAS, AND STILL IS, A CORE VALUE FOR US.
LEADERSHIP APPROACH: BALANCING HERITAGE WITH INNOVATION
Kyle Tan’s leadership is characterized by strategic global expansion, digital transformation, and process optimization—with a heavy emphasis on innovation and sustainability.
He describes his leadership philosophy as “building with intention.” That means understanding the traditions and values that built Tanduay and finding new ways to evolve those pillars into contemporary strengths.
One of his major goals has been expanding Tanduay’s global footprint. In the last decade, under his guidance, Tanduay has entered more than half of the U.S. states, with continued growth into Europe, Latin America, and the Middle East. His vision is not to simply sell rum in new regions but to culturally integrate the brand in a way that respects the identity of the local markets while celebrating Tanduay’s Filipino roots.
“We’re moulding Tanduay, so it is compatible with those countries’ markets while still remaining true to our own identity and cultural significance,” Kyle has said in interviews.
To unlock the brand’s full potential abroad, Kyle Tan recognized the need to adapt Tanduay’s offerings to suit international markets—particularly the U.S.
“In the United States, I noticed that the best-selling products were ultra-premium rums—those aged longer and positioned at a higher price point,” he explains.
With that insight, Tan led a strategic shift toward the premiumization of Tanduay’s portfolio.
“It was about understanding our roots—we already had a well-established identity—and then asking how we could evolve that to align with the preferences of the ultra-premium segment,” he says. “That was one of the first initiatives I championed when I came on board.”
Today, that strategy is paying off. Tanduay’s high-end offerings are gaining traction in key global markets, and Tan is optimistic about what lies ahead.
“We’ve built strong momentum, and I’m incredibly proud of how far we’ve come.”
While Tanduay Distillers has broadened its product portfolio over the years, rum stays its cornerstone and defining spirit. The company’s flagship offering is its renowned five-year dark rum, but the lineup has expanded to include a diverse choice of blends and aged variants.
With a strategic push into the U.S. market, Tanduay introduced its first premium-tier product, the Double Rum, in late 2020. This sophisticated blend—crafted for sipping neat—combines 16-year-old and five-year-old rums, further aged together in ex-bourbon barrels for an added two years.
“It was our first entry into the premium space,” says Kyle Tan, COO. “It’s a sweeter blended rum with a smooth finish, and definitely one of my personal favourites.”
Building on that momentum, the company is preparing to launch another premium expression: the Tesoro Project. This three-stage series features an overproof blended rum finished in sherry casks, offering a bold and refined profile for discerning palates.
“We’re constantly innovating in the premium space,” Tan explains. “Our goal is to deliver
something unique while staying true to the craftsmanship that defines Tanduay.”
But Tan’s vision goes beyond just crafting exceptional rum. Innovative market engagement strategies are equally central to the U.S. expansion. Recognizing the power of cultural and community connection, Tanduay is using sports marketing as a key channel to build brand awareness and affinity.
By pairing product innovation with creative market positioning, Tanduay is effectively reshaping beliefs of Filipino rum and staking its claim in the competitive global spirit’s market.
In recent years, Tanduay Distillers has set up high-profile partnerships with several NBA teams, including the Golden State Warriors, Minnesota Timberwolves, Milwaukee Bucks, Phoenix Suns, and Brooklyn Nets. These collaborations are more than just marketing—they reflect Tanduay’s deep-rooted connection
to basketball, a sport that has long been intertwined with the brand’s identity.
Tanduay’s affinity for basketball dates back decades. In 1975, the company was one of the founding members of the Philippine Basketball Association (PBA)— Asia’s first professional basketball league and the second oldest continuously operating league in the world after the NBA. Competing as the Tanduay Rhum Masters, the brand became a household name not only in the rum industry but also in Filipino sports culture.
By aligning with NBA franchises today, Tanduay is bridging its proud heritage with global ambitions— using the universal language of basketball to connect with diverse audiences and elevate its presence on the world stage.
Tanduay is already making impressive inroads internationally, with its products now available in more than half of the U.S. states, each supported by individual dis-
tribution agreements. With a solid foundation laid in the American market, the company is now shifting its focus toward broader international expansion.
“Another significant region for us is Europe—particularly the Benelux countries: Belgium, the Netherlands, and Luxembourg,” says Kyle Tan, COO of Tanduay Distillers. “We’re also seeing strong demand in the Middle East, especially in Qatar.”
In recent months, Tanduay has continued to push boundaries. The brand has entered Central America via Peru and, shortly before that, launched in Italy, reflecting its dynamic approach to market exploration and growth.
While the opportunities for global expansion are abundant, Tan acknowledges that breaking into new markets comes with its challenges.
“The most difficult part is often making that first connection,” he explains. “There’s a natural hesitation in some countries when it comes to welcoming foreign businesses and investors.”
Yet, often, the product speaks for itself. Sharing a bottle of Tanduay rum—with its rich flavour profile and deep cultural roots—proves to be the ultimate icebreaker, transforming scepticism into enthusiasm.
“Letting people experience the rum firsthand has been one of our most powerful tools in building partnerships,” Tan adds. “It’s more than just a spirit—it’s a story of Filipino craftsmanship and heritage.”
A VISION FOR THE FUTURE
As challenging as transformation can be, Kyle Tan has never been one to resist change. In fact, he assumed his role at Tanduay Distillers during one of the most turbulent times in modern business history—the height of the COVID-19 pandemic. The global crisis forced virtually every industry to rethink operations, and for the alcohol sector, the shift was especially dramatic. With bars and restaurants shuttered and consumers confined to their homes, Tanduay had to quickly pivot to the off premises drinking market.
But the challenges didn’t end there. Even traditional retail became less accessible as customers avoided stores altogether. To stay relevant and reach consumers where they were, ingenuity and adaptability became essential.
Fortunately, Tan’s background in technology proved invaluable. Equipped with both a digital mindset and a clear strategic vision, he began laying the groundwork for Tanduay’s transition into the digital commerce space.
“A lot of the distribution we started pursuing was in online sales, and that’s really when we began developing a mobile app tailored to the market,” Tan explains.
This bold shift not only allowed Tanduay to remain competitive during the pandemic—it also accelerated the company’s digital transformation, setting it up for future growth in an increasingly e-commerce-driven world.
FIND OUT MORE ABOUT TANDUAY TANDUAY.COM
