Sunday, July 1, 2012

Diageo acquiere cachaca Ypioca: A new step in a consolidated market

Diageo announced in late May, It has reached an agreement to acquire Ypioca Agroindustrial Limitada , the producer of cachaça Ypioca, for a total amount of 460 million dollars in cash.

"It allows Diageo to expand its presence in Brazil and have access to a growing number of consumers from the middle class, causing the growth of premium brands", says Diageo.

In volume terms, Ypioca is the third global brand of cachaça its annual sales totaled nearly 100 million dollars last year, behind Cachaca 51 which has 30% market share and Pitu Cachaca.

We can notice a consolidation of Cachaca brands in those recent months, Leblon cachaca recognized as the best because of the multiple medals acquired in different contest (Gold Medal Award Winner at the 2006, 2007, 2008, 2009, 2010, 2011, and 2012 at San Francisco World Spirits Competition)  , have sign a deal with Bacardi Martini who take a majority part of the company, and Pernod Ricard is looking for a major acquisition.

This type of acquisition allows major groups of wine and spirits to penetrate an emerging and festive market like Brazil, but also to be part of the significant growth of cachaca through one of the most popular cocktails The caïpirinha.


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