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Diageo PLC on Tuesday said it will buy Don Papa Rum, a dark rum from the Philippines, for an initial payment of €260 million.
Diageo is a London-based brewer and distiller with brands including Guinness, Baileys, Tanqueray, Johnnie Walker, Smirnoff and Captain Morgan.
Diageo said it will initially pay €260 million with a further potential payment of up to €177.5 million through to 2028 based on performance of the ‘super-premium, dark rum’. The company said that the ‘super-premium plus segment’ of the rum category had a compound annual growth rate of 18% in Europe and 27% in the US between 2016 and 2021.
Don Papa Rum was launched in 2012.
John Kennedy, President of Diageo Europe & India said: ‘This acquisition is in line with our strategy to acquire high growth brands with attractive margins that support premiumisation, and enables us to participate in the fast growing super-premium plus segment.
The company expects the sale to close in the first half of 2023.
Diageo shares were virtually flat at 3,701.00 pence each in London on Tuesday morning
By Tom Budszus, Alliance News reporter
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