just the Facts – Diageo in Latin America and the Caribbean

Next week, Diageo will host its latest investor conference, this time covering Latin America & the Caribbean. Here is an overview of the company’s presence in the region.

• Diageo’s business in the the Latin America & Caribbean (LAC) region covers 44 countries and a population of around 600m people, almost double that of the US
• According to the IMF, the region’s GDP grew last year by almost 5%, outpacing growth in the US and Europe
• The company employs around 1,600 people in the region
• Its LAC operations are split into four markets:

1. Mexico
2. WestLAC (Caribbean, Free Trade Zones, Central America, Argentina, Chile, Peru, Bolivia, Ecuador)
3. Andean (Colombia and Venezuela)
4. PUB (Paraguay, Uruguay, Brazil)

• The region currently accounts for 12% of Diageo’s net sales and 11% of its operating profits
• In fiscal 2012 – 12 months to end of June – the region posted net sales of GBP1.24bn, a year-on-year increase of 19%
• Volumes came in 10% up on the previous year, with operating profits jumping by 22%
• Brands of “heightened importance”, most of which are locally produced, include

1. Don Julio Tequila
2. Cacique
3. Pampero
4. Captain Morgan
5. Zacapa
6. Old Parr
7. Buchanan’s
8. JεB
9. Smirnoff
10. Baileys
11. Nega Fulô cachaça

• Brazil is the #1 market for Johnnie Walker Red Label in the world
• Wines and beer regional priorities also include Navarro Correas and San Telmo as well as Red Stripe and Guinness beer
• The region ships around 19m 9-litre cases, of which around 25% is domestically-produced through various third parties

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