'A MIXED YEAR AND A TOUGHER ONE THAN WE ANTICIPATED AT THE START': CFO DEIRDRE MAHLAN
LATIN AMERICA & CARIBBEAN: Vodka and cachaça win over middle classes
By Ben BOUCKLEY
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This region delivered good top-line growth for Diageo despite volatility, with Menezes insisting that Diageo is increasing its share of the “growing middle-class consumption occasion as we expand our portfolio, especially in vodka, cachaça and RTDs”.
Diageo bought premium Brazilian cachaça brand Ypioca (pictured) in May 2012 for £300m, specifically to access a growing middle class among whom demand for such brands is growing. Sugarcane juice-based spirit Cachaça is Brazil’s largest local category.
That said, Scotch sales fell 3% due to currency movements and weaker demand hit wholesalers and distributors in border zones, and destocking throughout the year.