Diageo swoops for Brazilian spirits maker

  • Print
  • Share
  • Comment
  • Save

Diageo is pushing ever deeper into the BRIC markets with the acquisition of premium Brazilian cachaca brand Ypioca.

The drinks giant has struck a cash deal with Ypioca Agroindustrial Limitada to acquire the brand and certain production assets for about £300m.

The deal, which is expected to complete in a month will expand Diageo’s footprint in Brazil as it looks to tap into a growing middle class consumer base in the country.

Cachaca is the largest spirits category in Brazil and Ypioca leads the premium segment with net sales totalling about £60m at the end of December 2011.

The acquisition follows Diageo’s swoop on leading spirits group Sichuan Chengdu Quanxing in China which completed earlier this year. 

Diageo CEO Paul Walsh said the latest deal would help the company accelerate the long term growth of its premium international spirits brands in Brazil and be “accretive” to top line growth. 

“Brazil is an attractive, fast growing market for Diageo with favourable demographics and increasing disposable incomes,” he said. “This investment represents the continuation of our strategy to increase Diageo’s presence in the fastest growing economies of the world.”

Have your say

These comments have not been moderated.

You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment.

Any comment that violates these terms may be removed in its entirety as we do not edit comments.

If you wish to complain about a comment please use the “report this comment” facility or email groceremails@wrbm.com


Related images

  • Print
  • Share
  • Comment
  • Save
Sign in

Newsletter Sign-up


I wish to receive the following newsletters:

For Members

Become a Gold Member to receive these newsletters:

Become a Finance Member to receive these newsletters:

Become a member of The Grocer



CLICK HERE to search for the products, services and companies you need in the definitive guide to the UK food and drink industry.


The Grocer's commentators and opinion makers