Focus - The Future for Cachaca
Late last month, Diageo acquired the Ypióca cachaça brand in Brazil from Ypióca Agroindustrial Limitada. The domestic spirit may be struggling at home, but its global potential remains great.
A downward trend for cachaça in its home market of Brazil is pushing producers of the domestic white spirit to look abroad for growth, according to a new report.
Diageo's deal to acquire the Ypióca cachaça brand in Brazil puts the drinks giant in a better position to reel in Pernod Ricard in the country's growing market for premium spirits.
Earlier today (28 May), Diageo confirmed it will pay BRL900m (US$453.9m) for the Ypióca cachaça brand in Brazil from Ypióca Agroindustrial Limitada. Here, just-drinks looks at some of the figures that prompted Diageo to jump into the market for cachaça, Brazil's best-selling spirit.
Cachaça, Brazil's most popular spirits category, offers scope for further premiumisation but the opportunity is “relatively small”, according to an analyst.
Diageo is set to make another domestic spirits play in an emerging market, this time by acquiring the Ypióca cachaça brand in Brazil from Ypióca Agroindustrial Limitada.
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