Diageo Acquires Cachaça Brand Ypióca For $470MMay 29, 2012
Diageo has purchased premium cachaça brand Ypióca from Brazil’s Ypióca Agroindustrial Limitada for approximately £300 million ($470m). With annual sales of around 6 million nine-liter cases, Ypióca is the world’s third-largest cachaça label, following Industrias Muller de Bebidas’ Cachaça 51 (18.6 million cases) and Engarrafamento Pitú’s Pitú brand (10 million cases). Ypióca has annual net sales of around £60 million ($94m) and, according to Diageo, accounts for 8% of the total cachaça category and more than 60% of the category’s premium end in Brazil.
“Brazil is an attractive, fast-growing market for Diageo with favorable demographics and increasing disposable incomes,” said Diageo CEO Paul Walsh. “The acquisition of Ypióca gives us… an enhanced platform from which to accelerate the long term growth of our premium international spirits brands in Brazil.” Diageo claims that its portfolio currently has route-to-market penetration for about 160,000 outlets in Brazil, while Ypióca’s figure is above 250,000 outlets. In addition to the Ypióca brand, Diageo’s purchase includes the brand’s distillery in Paraipaba, Ceará, a bottling plant in Fortaleza, Ceará, and a warehouse in Guarulhos, São Paulo.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.