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:
- Mexico
- WestLAC (Caribbean, Free Trade Zones, Central America, Argentina, Chile, Peru, Bolivia, Ecuador)
- Andean (Colombia and Venezuela)
- 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
- Don Julio Tequila
- Cacique
- Pampero
- Captain Morgan
- Zacapa
- Old Parr
- Buchanan’s
- JεB
- Smirnoff
- Baileys
- 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