The premium segment, which still represents a small portion of the total cachaça market, is gaining market share from low end categories. This growth is driven by the trading up of local consumers moving from standard spirits into premium brands.

''The acquisition of Sagatiba, the leading super premium and fast growing cachaça brand in Brazil, significantly strengthens our brand portfolio in that key emerging market. It enables us to tap into the largest segment of the Brazilian spirits market as well as leverage the premiumisation trend being driven by socio economic improvement,'' the company said in a statement.

Milan-based Davide Campari-Milano manufactures spirits, wines and soft drinks.

Its products portfolio contains over 40 brands, marketed and distributed in over 190 countries worldwide, including Campari, SKYY Vodka, Wild Turkey, Cynar, Aperol, CampariSoda, Glen Grant, Ouzo 12, Zedda Piras, Dreher, Old Eight and Drury's brands in the spirits segment; Cinzano, Mondoro, Riccadonna, Sella & Mosca and Teruzzi & Puthod in the wines segment.

Its manufacturing activities are concentrated in 14 production plants, four in Italy, two in Brazil and one in France, Greece, Scotland, Ukraine, the US, Argentina two in Brazil and one in Mexico.