Diageo taps into lucrative Brazil market with $469 million cachaca buy
May 28 , 2012
British drinks group Diageo is buying a maker of Brazil's most popular spirit, cachaca, for $469 million in a bid to boost its expansion in fast-growing emerging markets.
The London-based maker of Johnnie Walker whisky and Smirnoff vodka aims to get half of its sales from emerging markets by 2015.
It has agreed to buy Brazil's Ypioca from its family owners.
Ypioca is the third-biggest producer of cachaca, a spirit made from fermented sugar cane also known as Brazilian rum.
Cachaca accounts for about 80 percent of the volume of the Brazilian spirits industry. When mixed with ice, sugar and lime, it makes the Brazilian cocktail Caipirinha.