• ALCOHOL. The most important ingredient in rhum is distilled alcohol. Tanduay's main supplier of distilled alcohol is Asian Alcohol, which provides 70% of the total requirement, while the remaining 30% comes from other local and foreign suppliers. Raw Alcohol is transported to the plant by tanker. Within the plant, the alcohol is blended together with demineralized water, sugar and other ingredients.

• SUGAR. Victorias Milling Corporation supplies some of the company's sugar, while the rest is imported.

• WATER. The plants use considerable amount of water for blending liquor products and cleaning bottles. Water is made available by the local utility. All of the plants are equipped with large tanks to store water and the process of demineralization is made easier using its own facilities.

• VARIOUS INGREDIENTS. Various ingredients and flavoring agents are used in the production of rum. The main distributor is International Flavors, which supplies 75% of the company's requirements.

• BOTTLES. Asia Brewery Incorporated, the Company's affiliate,manufactures the glass bottles. The bottles account for approximately 33% of the total cost of goods sold. Tanduay maintains a network of bottle dealers across the nation who retrieves the bottles from the market and sells them back to the Company. The cost of reprocessing used bottles is 50% lower than purchasing new bottles.