TANDUAY DISTILLERS, INCORPORATED

(PLANT VISIT REPORT)

BATULANON, CARLO MARK I.

CLEMENTIR, REAN MANUEL A.
GEAL, JETER D. II
MALAGAMBA, ANTHONY P.

BACHELOR OF SCIENCE IN MECHANICAL ENGINEERING

ENGR. ARMAN T. GASCON

Instructor

DEPARTMENT OF MECHANICAL ENGINEERING

CENTRAL MINDANAO UNIVERSITY

INTRODUCTION
Tanduay Distillers, Inc. is the oldest among the subsidiaries and carries with it the
distinction of being one of the biggest brands in the distilled spirits category with a 99%
share in the rum category.
The success of Tanduay can be attributed to several factors that include ageing,
compounding and bottling facilitiesfound in 4 strategically-located plants all over the
country. The ageing facilities houses at least 200,000 oak barrels with a capacity of
approximately 40 million gauge liters which is a key competitive advantage that will take
25 years to replicate.
Born out of a constantly improving quality culture, Tanduay is able to ride with
the tide of times and offers a broad range of products that cuts across gender, age and
social class. Most especially, it has established a very strong base of loyal customers with
rum being a staple in the Visayas and Mindanao. With aggressive advertising and
promotions, the company has maintained a loyal and solid market following across the
country, while attracting a new generation of consumers with marketing and promotions
that engage both targets.
Much of Tanduays rise as one of the huge Philippine brands can be credited on
how it has become so much a part of the Filipinos lives. Its commitment is anchored on
the noble vision of the LT Group which is to make quality accessible to many. With a
competent and highly dedicated Products Development team, Tanduay strives to be at the
forefront of the distilled spirits market constantly innovating to adapt to the changing
demands of the market.

In 2012, Tanduay embarked on a global journey and launched Tanduay Asian

Rum in the United States. Available in 2 standard variants, the product extensions boasts
of Tanduays signature taste and character that instantly earned recognition from credible
rum experts in the US.
Tanduay is a national icon. And as the Spirits Drink of Filipinos, it represents the
nations true characteristics as a people. These include the spirit of honor and tradition;
the spirit of bravery, resiliency, and dedication; and the core trait of respect for elders and
family values. These characteristics have made Tanduay what it stands for today.

COMPANYS MISSION
To provide the consumers with quality products that will satisfy their taste at the
best possible value. To produce liquor products perfected and nurtured through ingenuity
and craftsmanship and elevate the Filipino stature in the global standard.

COMPANYS VISION
To be the best in the liquor industry in the Philippines and ultimately in the global
market with a vision of One World, One Spirit.

CORPORATE SUBSIDIARIES
Asian Alcohol Corporation is the second biggest distillery in the Philippines
located in Negros Occidental. It has a daily rated capacity of 210, 000 liters of quality
ethyl alcohol. It sells 100% of its output to Tanduay Distillers. This output comprises
70% of Tanduay Distillers ethyl alcohol requirements. Absolute Chemicals has a daily
rated capacity of 75,000 liters of fine ethyl alcohol. It sells 100% of its output to Tanduay
Distillers. This output comprises 30% of Tanduay Distillery's ethyl alcohol requirements.

BRIEF HISTORY
The original Tanduay distillery adopted its name from its location, a triangular
region encircled by the estuaries of San Miguel and San Sebastian in Manila, which
Spanish mapmakers referred to as Isla de Tanduay. The word "Tanduay" originated from
the word "tang-uay", an old Tagalog term for "peninsula". The word also meant "lowlying land" because the entire area, including Quiapo, was frequently flooded during the
rainy season. In the Cebuano and Visayan dialect, "tanguay" meant a place
where tuba (palm wine) is bought and sold.
It all began in 1854 when Don Joaquin Elizalde, together with his uncle Juan
Bautista Yrissary, and the Manila-based Spanish businessman and financier Joaquin
Ynchausti established a trading partnership, which acquired the Manila Steamship
Company. Ynchausti Y Cia subsequently ensued as main line business which was ship
chandlery and later on ventured into abaca making. Later, Valentin Teus, a cousin of
Elizalde, joined the partnership. Teus acquired a distillery in Hagonoy, Bulacan from
Elias Menchatorre and merged it with Ynchausti Y Cia. In 1893, Don Joaquin Elizalde
became the majority stockholder in Ynchausti Y Cia, and the company was renamed
Elizalde & Co. Inc. In May 10 1988, Twin Ace Holdings Corporation, owned and
managed by Lucio Tan Group of Companies (L.T.G.C.) acquired Tanduay Distillery from
the Elizalde Family.
On July 8, 1999 Asian Pacific Equity Corporation (APEC) a company listed in the
Philippines Stock Exchange, also owned and controlled by Lucio Tan Group, acquired
100% ownership of Twin Ace Holdings via a share swap with Twin Ace's existing
shareholders which formalized Tanduay's entry to the local stock market scene.

On July 30, 1999 Twin Ace Holdings changed its corporate name to Tanduay
Distillers, Inc. and its authorized capital increased from 1 Million to 2 Billion at a par
value of 1.00 per share. On November 10, 1999, APEC changed its corporate name to
Tanduay Holdings Inc. and increased authorized capital from 1 Billion to 5 Billion at a
par value of 1.00 Php per share.

RAW MATERIAL

Rum is produced from molasses, the final by-product in the manufacture of raw
sugar from sugar cane. Sugar Cane, saccharum officinarum is one of the taller members
of the grass family with the potential to grow up to 14 feet high under tropical conditions.
Harvesting takes place by cutting the cane as close as possible to the ground. The cane
plant regenerates by sending out shoots ("ratoons") which grow into new stalks. As they
reach towards the heat and light of the sun photosynthesis creates sucrose that is stored
unchanged (unusual, since in most other plants, sucrose is converted to starch). At the
mill, the cane is chopped and then passed through a series of rollers and grinders that
squeeze out the juice from the stems. The acidic, green-coloured cane juice ("vejou") is
now heated and clarified before being pumped into evaporators which drive off excess
water. It is then cool-boiled in a vacuum to create a syrupy mixture from which Grade A
sugar crystals are extracted - the kind that we use to sweeten our coffee and tea. The
brownish-black liquid that remains is known as light molasses (light in both flavour and
colour), often used as a syrup for pancakes or waffles. After a second boiling, the
molasses is darker and thicker - generally described as black treacle. Blackstrap molasses,
the stuff from which rum is made, comes from a third boiling and is very thick, sticky,
dark and somewhat bitter, though it still contains approximately 55 percent of
uncrystallized sugar along with a large number of minerals and non-sugar compounds
essential for aroma and flavour. Approximately 1.5 gallons of molasses are needed to
make one gallon of rum.

APPLICATION OF THE PRODUCT

Main Applications
Rum is a distilled alcoholic beverage made from sugarcane byproducts, such
as molasses,

or

directly

from sugarcane

juice,

by

process

of fermentation and distillation. The distillate, a clear liquid, is then usually aged
in oak barrels. Rum can be referred to in Spanish by descriptors such as ron viejo ("old
rum") and ron aejo ("aged rum"). Rums are produced in various grades. Light rums are
commonly used in cocktails, whereas "golden" and "dark" rums were typically
consumed straight or neat, on the rocks, or used for cooking, but are now commonly
consumed with mixers. Premium rums are also available, made to be consumed either
straight or iced.

Alternative Applications
Rum is an eloquent spirit, with a divine taste that people cannot refute. However,
besides getting one tipsy or being known as the pleasure to no ends- rum has subsequent
uses that can be utilized for unique purposes beyond what it is recognized. There are
many alternate uses for rum both medicinally and then others that are not so medicinally
profound. From being used as a sedative, antiseptic, preventative for heart disease, and
brain deterioration ailments, rum can be used for many purposes beyond what we have
been or are completely educated about.

There are many alternate uses for rum that one can acquire by drinking and
consuming it in moderation of about 1 oz. per day. In fact, rum can be very beneficial

in many realms of healthcare and else-wise. Drinking any liquor in moderation can lead
to a longer life and promote a casual and relaxed lifestyle that reduces stress- induced
impairments. Here are a few alternate uses for rum that do not involve slamming shots,
dancing, and painting the town:

Rum can be used as an antiseptic when there is no anti-bacterial soap

handy.
The bottles in which rum are stored can be considered collectible.
When consumed in moderation rum can prevent kidney stones.
Rum is known to reduce the risk of stroke and heart disease.
Rum can be used as a sedative to sleep well.
Another alternate use of rum is it can be drank to reduce risk of diabetes.
It can be used as a preventative measure against dementia and Alzheimer's

disease.
It can decrease blood pressure and prevent high blood pressure and

hypertension.
It can be used as an aphrodisiac.
When poured on a snakebite it can soothe pain and discomfort that is

related.
Can be combined with honey and lemon to make a hot tot to soothe cold

and flu symptoms.

Used when cooking various foods and recipes to enhance flavor- things

such as rum balls .

Rum is known to prolong life and influence longevity of individuals who

drink it in moderation.
It can be used to improve vascular health.
It can aid in prevention of certain types of cancers such as breast,

pancreatic, and lymphomas.

It helps the digestive system process wastes.
Can be uses as an anti-inflammatory for arthritis sufferers.

It has been linked to preventing Macular degeneration (eye disease that

causes blindness.

PROCESS INVOLVED
Fermentation

Fermentation is a process wherein diluted molasses called wort is being

converted into ethyl alcohol and carbon dioxide by the action of yeast. During the first
stage, proprietary yeast is being acclimatized in the laboratory then propagated in
cultivators, followed by final fermentation in fermenting vats to produce beer or
fermented mash.
Distillation
Distillation is the separation between several components by virtue of their
difference in boiling points. It starts by feeding fermented mash or beer to distilling
columns by using steam as the heating medium in order to separate crude alcohol from
the beer. The crude product further undergoes purification, rectification, and polishing
to produce high quality alcohol.
The final product of 95-96% alcohol will be collected in receiving tanks and
being analyzed in the laboratory prior to transfer to storage tanks.
Aging
Aging is one of the key components in achieving a rum character that can only be
produced by Tanduay. Each batch of distilled sugarcane spirit is filled into carefully
selected oak barrels and aged to its desired maturity. Tanduay has the biggest aging
facility in the country, with a capacity of approximately 30 million gauge liters or
approximately 200,000 barrels, an advantage that will take 25 years to replicate.
Blending

Blending is the final step in preparing the final spirit before each batch of rum is
bottled. Aged rum is normally blended to achieve a desired flavor, character and aroma.
In the blending process, ingredients are added in the achieve specific characteristics such
as alcohol strength, color, mouthfeel, and smell.
Packaging
All bottles undergo a mechanical cleansing & rinsing process and are all subjected
to strict quality inspection. Clean bottles pass through state of the art filling machines,
then passes through a pilfer-proof capping machine that seals every bottle with an
aluminium cap that guarantees its authenticity. All filled and capped bottles pass through
automatic label machines, automated packing lines and an automated inspection devices
that sort out rejects.

MANUFACTURING FLOW CHART

ALCOHOL, WATER & OTHER

INGREDIENTS

LABORATORY
BOTTLE FEEDING

AGEING

BLENDING

WASHING

BOTTLE
INSPECTION

RINSING

FILTERING
FILLING
FINISHED
LIQUOR
CAPPING

LABELING

LIQUOR
INSPECTION

LABEL
INSPECTION

INK JET CODING

FINAL
INSPECTION

PACKING

CARTON TAPING

WASTE DISPOSAL

WASTE WATER TREATMENT

When water is contaminated with microorganisms, pathogenic and nonpathogenic, organic and inorganic substances which can be soluble or insoluble in water,
solid substances such as sand, trash, macro-solids, etc., the water becomes wastewater.
This type of water is poor in quality and high in microorganism count. Water is treated to
acceptable limits before discharging it.

Screening
Solid wastes are primarily separated from the influent

Equalization & neutralization

The ph of water is controlled to make it suitable for the organisms that digest the
nutrients from the wastewater.

Chemical treatment
Water is treated to make it suitable for anaerobic bacteria.

Anaerobic treatment

The anaerobic bacteria digest nutrient from the wastewater and produce methane
gas. In the process, the chemical oxygen demand (cod) is reduced to 40-65%. COD is
reduced to measure the amount of organic compounds in water expressed in ppm, mg/L
or mass of oxygen consumed per liter of solution.

Aeration
The nutrients from wastewater is digested by the aerobic bacteria.

Extended aeration
This sustains the need of bacteria for air. The activated sludge at this stage
continuously digest the nutrients from wastewater. Activated sludge is the treated
wastewater using air and a biological flocculent composed of bacteria and protozoa.

Clarification
The sedimentation of particulate matter, chemicals and precipitates from suspension.

APPENDICES

Figure 1. Sugarcane grown on plantations

Figure 2. Coat at arms (Tanduay Official Logo)

Figure 3.
Products of Tanduay Distillers, Inc.
REFERENCES

http://www.rumwisdom.com/usesforrum
https://en.wikipedia.org/wiki/Rum
http://www.tanduay.com
http://www.khukrirum.com