UK based distiller Diageo has just acquired the Philippine rum brand Don Papa in a deal potentially worth over £500m!
Initially the deal made by Diageo who also owns Guinness, is initially set for a staggering £385m, but this could also rise a further £155m through to 2028 depending on the brands performance reflecting it’s current growth potential.
Don Papa which launched in 2012 has consistently out performed the market, cementing its place amongst other super-premium alcoholic drinks like whiskey and tequila.
This isn’t the first deal Diageo has made in developing a super-premium range, they also bought in George Clooney’s Casimigos tequila back in 2017 for a cool $1bn, Don Julio in 2014 and late last year the Texas based high-end whisky distiller Balcones Distilling.
“We are excited by the opportunity to bring Don Papa into the Diageo portfolio to complement our existing rums.
This acquisition is inline 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.” - John Kennedy, President, Diageo Europe and India (Diageo)
“Diageo has a strong track record in nurturing founder-led brands…They believe in our unique story and have genuinely embraced our brand idea.
We believe this acquisition is a great opportunity to take Don Papa into the
next exciting chapter of its development.” - Stephen Carroll, Founder, Don Papa Rum (Grocery Gazette)