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.
source: bloomberg.com
