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
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