The Elizalde Family invested and developed agricultural properties in Western Visayas, particularly in Panay and Negros Occidental, wherein they grew sugar cane. These plantations became a vital necessity in the production of sugar, the most important raw material in making rhum. Ynchausti Y Cia used the steamboats to transfer the raw materials to the Tanduay compound where they produced rhum.

In 1893, Don Joaquin Elizalde became the majority stockholder in Ynchausti Y Cia, and the company was renamed Elizalde & Co. Inc. This paved the way for further diversification of its business interests. Slowly but surely, Tanduay was transformed into a successful industry, producing quality rhum and other distilled spirits for both the domestic and international markets.

In May 10, 1988, Twin Ace Holdings Corporation, owned and managed by the Lucio Tan Group of Companies (L.T.G.C.), acquired Tanduay Distillery from the Elizalde Family. The new management launched a plant modernization and expansion program that increased the distillery's production capacity by almost 50 times.

On July 8, 1999, Asian Pacific Equity Corporation (APEC), a company listed in the Philippine Stock Exchange, also owned and controlled by the 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 its authorized capital from 1 Billion to 5 Billion at a par value of 1.00 php per share.