Diageo has announced that it will acquire Don Papa Rum, a premium, dark rum from the Philippines. The upfront consideration is €260 million with a further potential consideration of up to €177.5 million through to 2028 subject to performance, reflecting the brand’s current growth potential, the company said in a release.
“This acquisition will enable us to strengthen our position in the exciting rum category which is in early stages of premiumisation,” it added.
Founded by entrepreneur Stephen Carroll, together with Andrew John Garcia, Dom Papa Rum launched in 2012. It is currently available in 30 countries, with France, Germany and Italy being its largest markets.
Diageo added that the rum has unique flavour profile, highly distinctive packaging and an authentic brand story rooted in the island of Negros Occidental — known locally as ‘Sugarlandia’.
“We are excited by the opportunity to bring Don Papa into the Diageo portfolio to complement our existing rums. 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,” said by John Kennedy, President, Diageo Europe and India.
“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.” Said by Stephen Carroll, Founder, Don Papa Rum.