Grupo Ypioca, Producer of Cachaca Ypioca, Invests in Technology and Inaugurates an Industry that Can Produce All Sugarcane Derivatives

SAO PAULO -

- With an R$80 million investment, Brazilian group further consolidates itself in the cachaca market and opens new production sites

Cachaca, ethanol, neutral alcohol, anhydrous alcohol: all sugarcane derivatives that will now be produced, in just one factory, by Grupo Ypioca, the largest estate producer of cachaca in the world. The new unit, inaugurated in October, is among the most modern precisely because of its use of leading edge technology to produce different products based on the same structure. With 100,000 square meters of industrial space on a property of 6 thousand hectares, the factory has installed capacity to annually produce 50 million liters of ethanol or 90 million liters of cachaca, making it the world’s largest manufacturing facility of cachaca, and one of the most modern in the field of ethanol. This manufacturing unit, the company’s sixth, is located in the city of Jaguaruana, some 180 kilometers from Fortaleza in the state of Ceara.

(Photo: www.newscom.com/cgi-bin/prnh/20091029/SPTH002 )

“There is no industry more modern than this in today’s market, allowing for the production of every product derived from sugarcane. Such versatility allows us to set the course for production with each new harvest, varying products in accordance with the needs of the company and the market,” says Everardo Telles, president of the Group, and representative of the fourth generation of the company, the oldest of any family-run business in Brazil, in existence for 163 years.

With investments of approximately R$ 80 million, the new unit should increase the company’s annual revenue by 20%, and will be responsible for the creation of 360 new jobs to go along with the current 3,200. “The city of Jaguaruana lacks skilled labor, therefore we are organizing an internal recruitment and training program. As with the Group’s other units, we know that this type of investment generates an immediate social impact for the region, radically increasing income and employment indicators,” added Aline Telles, director of Marketing at Ypioca.

The new unit underscores the Group’s consolidation in the ethanol segment. “We strongly believe in the growth of this market in the medium and long terms, and we are applying all of our expertise in investments to accompany this segment,” explains Everardo Telles. Among the new factory’s technological advances are electronically controlled startup motors for a supervisory system completely controlled by computers — a novelty in the market that, along with other advances, makes this one of the most modern industrial facilities in Brazil’s sugar alcohol sector.

In addition to the innovative production process, the alcohol distilled at the Jaguaruana unit will go through the same rigorous quality control that is used in the production of Ypioca cachaca, creating a product that is differentiated in the market, with a high level of purity, which could be used in the production of hydrated alcohol (for fuel, the pharmaceutical and chemical industries), anhydrous alcohol (as part of a mixture with gasoline) or neutral alcohol (for the manufacture of other beverages).

Ypioca

The 100%-Brazilian company Ypioca is the country’s largest estate producer of cachaca, with operations throughout the entire country. With an intelligent logistical system, the company sells its products through 80 representatives established in the South, Southeast, Central West, North and Northeast regions.

Responsible for an installed capacity of 126 million liters, Ypioca has distinguished itself in the foreign market since 1968, when Brazil exported its cachaca to Germany for the first time, opening up the foreign market for Brazilian cachacas. Due to the excellence of its products, Ypioca is one of the 40 largest world brands of spirits according to the ranking of the British IWSR (International Wine and Spirits Record).

In addition to the cachaca industry of the same name, Grupo Ypioca is made up of the companies Naturagua (mineral water), Yplastic (PET packaging company), Pecem (cardboard packaging company), Cachacaria Ypioca, and Y-Park (entertainment), a solid group constantly seeking to expand and diversify its businesses, operating in various economic sectors and creating thousands of jobs directly and indirectly.

Company information: Ketchum Estrategia - Brasil Bianca Ferreira +55-11-5090-8900 extension 8916 bianca.ferreira@ketchum.com.br Adriana Toledo +55-11-5090-8968 adriana.toledo@ketchum.com.br

Source: Ypioca Agroindustrial LTDA.

Bianca Ferreira, +55-11-5090-8900, ext. 8916, bianca.ferreira at ketchum.com.br; or Adriana Toledo, +55-11-5090-8968, adriana.toledo at ketchum.com.br, both of Ketchum, for Ypioca Agroindustrial