Diageo to increase presence in Brazil with Ypioca acquisition
Premium drinks business Diageo has acquired Brazilian cachaca brand Ypioca and certain production assets.
The deal, understood to be worth around £300m, is expected to be completed before the end of May and will expand Diago’s presence within Brazil as it targets the growing number of middle class consumers driving growth of the consumption of premium brands.
Last year, Ypioca saw net sales of around £60m, the acquisition announcement claims.
Paul Walsh, CEO of Diageo commented: "Brazil is an attractive, fast growing market for Diageo with favourable demographics and increasing disposable incomes. The acquisition of Ypioca gives us the leading premium brand in the largest local spirits category. It will also provide Diageo with an enhanced platform from which to accelerate the long term growth of our premium international spirits brands in Brazil.
"The acquisition meets our return criteria and will be accretive to Diageo's top line growth.
"This investment represents the continuation of our strategy to increase Diageo's presence in the fastest growing economies of the world,” he concluded.