E-Malt.com News article: Brazil: Brazil becomes second-largest market for Johnie Walker whiskey

Brazilians’ increasing interest in alcoholic drinks other than beer has led the British multinational Diageo to double its revenue in the country between 2019 and 2025. This made Brazil the second largest consumer of Johnnie Walker whisky in the world last year, Diageo Brazil CEO Paula Lindenberg told Valor.

This growth contrasts with the scare caused by the methanol contamination crisis in September. According to Lindenberg, the sector has already seen a significant recovery, but sales have not yet fully recovered.

“We often read that alcohol consumption in Brazil is decreasing, but what the numbers show is a growing market [especially given the low penetration of some types of beverages]. It is a market that is growing significantly due to increased premium offerings. This [growth in the premium market] is reflected both in beer, which is the major beverage industry, and in spirits, especially cocktails and wines,” said Lindenberg. Among the brands in the group’s portfolio are Tanqueray, Smirnoff, and Cîroc.

The group does not disclose revenue details in Brazil, but noted that the country is one of its global growth engines. Diageo recorded net sales of $4.9 billion in the first fiscal quarter of 2026 (i.e., between July and September 2025), a 2.2% year-on-year decrease, driven by exchange rates and weakening markets, particularly in North America. Meanwhile, Latin America and the Caribbean saw an 11.1% increase in sales, to $512 million.

The surge in revenue in Brazil in recent years reflected investments in brand-building and efforts to increase the number of points of sale, Ms. Lindenberg said. “In 2019, we had 200,000 points of sale. In 2025, we will reach 600,000 points,” she added.

Part of the strategy was to get closer to partner retailers and improve the system's quality. Previously, there were approximately 110 distributors; that number has been reduced to 30. Another effort was to get closer to two key partners: Coca-Cola, which is vital for connecting with smaller supermarkets; and the Ambev Bees distribution platform, which delivers products to bars and restaurants.

The group also bet on diversifying packaging, producing more of the 750 ml whiskey bottles—previously, the drink was mainly sold in 1-liter bottles. “This made us more accessible to consumers who don’t know the brand and can now try it. Brazilians prioritized smaller packages, and this has been a driver of growth,” she said.

Diageo is the leader in the Drinks Intel consulting firm’s ranking of the largest spirits companies in Brazil. Pernod Ricard (of Absolut) and Campari follow closely behind.

One of the company’s main products is whiskey. In the first fiscal quarter of 2026, Brazil became the second-largest market, behind the United States—Diageo did not disclose which market ranked second at that time.

Lindenberg said that one of the strengths of whiskey in Brazil is its consumption with coconut water. The combination is famous in the Northeast and has sustained a strong demand for the Old Parr brand. According to the consulting firm IWSR, Brazil became the brand’s largest global market in 2018. Since 2022, Old Parr has been the best-selling 12-year-old whiskey in Brazil, according to Nielsen.

Amid slowing alcohol consumption in more mature markets, such as the United States and Europe, Brazil has become a major bet for the global beverage industry. This bet has gained further momentum amid talks between Mercosur and the European Union on a trade agreement, which is expected to reduce import tariffs on beverages here.

The agreement, however, is expected to have little impact on Diageo’s operations, especially since imports come from England and Scotland. According to Lindenberg, there are industry movements toward a bilateral partnership between the two regions.

The group has a factory in Itaitinga, Ceará, which was inaugurated in 2023. The investment was R$ 250 million. The plant replaced another factory in Messejana, also in Ceará.

Despite optimism about Brazil, Diageo is still recovering from the shock the methanol crisis caused to its business. Sales have improved, but Ms. Lindenberg noted that the segment has not yet returned to full strength.

“Now we are in a new phase, which is to restore consumer confidence in returning to consuming spirits as before,” she said. Part of the group’s strategy was to accelerate direct sales, which customers prefer. The biggest challenge today is consumption in bars, restaurants, and parties, which the methanol crisis has hardest hit.


06 January, 2026