YPIÓCA FACT SHEET

THE LEADING PREMIUM CACHAÇA BRAND IN BRAZIL

Ypióca is the leading premium cachaça brand in Brazil, with a 160 year heritage.

The Ypióca brand has net sales of BRL 177 million (approximately £60 million)* and related production and distribution assets, including a cachaça distillery in Paraipaba/Ceará, a bottling plant in Fortaleza/Ceará and a warehouse in Guarulhos/São Paulo.

Ypióca’s key brand (Contagota Silver/Gold) retails above BRL 9 per litre (~50% above the average price in the category), with their lowest priced brand (Sapupara) retailing above BRL 7.

YPIÓCA

Ypióca is the leader in the premium cachaça segment. It is the number 2 by value and the number 3 by volume in the overall cachaça category. In addition, Ypióca has an extensive sales and distribution network in the Northeast of Brazil and the second largest retail penetration nationwide. Ypióca has an 8% market share of the total cachaça category, at 6.6million 9L cases.

CACHAÇA

Cachaça is the largest spirits category in Brazil, with 86m 9L cases. Cachaça is the national drink and embedded into Brazilian culture; it is consumed across all demographic segments, LPA age groups and regions. It is a spirit distilled from fermented sugarcane juice. It is also the base of Brazil’s national cocktail, the “caipirinha”.

Premium** cachaça currently represents only 2% of the cachaça category volume. The premium** segment is growing at +11% 5 year CAGR in volume. Out of the four key players, Ypióca is the only one that has successfully developed a premium portfolio.

THE BRAZIL MARKET

Brazil is the world’s 6th largest economy. While GDP growth is forecast to slow, per capita income is forecast to increase consistently at 4% 5 year CAGR. It has attractive demographics (191m population, with 50% of Brazilians under 29 years old; progressive urbanisation; accelerated middle class growth) and is hosting two major events (FIFA World Cup 2014; Rio 2016 Olympics).

•6.6million 9L cases

•Net sales of BRL 177 million (approximately £60 million)*

•Number 2 by value and the number 3 by volume in the overall cachaça category

•8% market share of the total cachaça category

•Leader in the premium** cachaça segment with 62% market share

•Ypióca Premium** 5 yr CAGR at 14% vs category at 11%

•An exciting heritage brand; strongest brand image and quality attributes in the category

•Leadership position in home-state of Ceará, Northeast of Brazil

•Strong route to market: second largest in POS penetration within category, reaches 256,000 outlets

YPIÓCA KEY FACTS

*Based on the pro forma adjusted figures as of December 2011.

**Premium includes Flavours

85,749Volume market share

(’000 9L cases)

2010

Volume

51 Pitu Ypióca VB Other

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

51%5%12%24% 8%

TOTAL BEVERAGE ALCOHOL (TBA) IN BRAZIL

The Brazilian TBA market totals 1.4bn 9L cases and BRL 9bn (£2.9bn) sales revenue, dominated by beer with 89% volume share, followed by spirits with 8% volume share. Cachaça represents 6% of the TBA market and 80% of the spirits market.