The owner of one of the world's largest rum brands has reported a tough first quarter caused by poor weather affecting the sugar cane crop and production of molasses.

Phillipines-based Tanduay Holdings is struggling against increased competition and two recent product price hikes amidst a troubled economy.

The firm, which owns Tanduay Distillers, this week reported profits and down by 50% and sales volumes down by 18% in the first quarter of 2010, compared to the same period of last year. Further figures were not released.

Tanduay Holdings stock price rose PHP0.1 to PHP$2.40, off a 52 week high of PHP$3.18.

The company is projecting confidence in its ability to recover losses in the second quarter, predicting output of 1.5m cases of rum per month during the remainder of 2010.

Tanduay Holdings owns interests in the liquor, distillery and finance businesses through its subsidiaries and affiliates.