In another sign that spirits giants are getting serious about the premium rum category, Diageo announced in January that it agreed to acquire Don Papa Rum. London-based Diageo will pay initial acquisition price of €260 million (more than $280 million), with a further potential consideration of up to €177.5 million (over $191 million) through 2028, depending on Don Papa’s performance.
Launched in 2012 by entrepreneur Stephen Carroll, together with Andrew John Garcia, Don Papa is a super-premium, dark rum from the Philippines that’s currently available in 30 countries. Carroll will remain involved with the brand and work with Diageo on growing Don Papa.
Diageo owns the spiced rum Captain Morgan, in addition to brands such as Johnnie Walker, Crown Royal, Bailey’s, Smirnoff and Ketel One. News of the Don Papa comes just a few weeks after Brown-Forman Corp. announced that it has completed its acquisition of Diplomático Rum. And Pernod Ricard said in October that it will “significantly” increase its minority stake in New-York luxury wine and spirits company Sovereign Brands, producer of Caribbean Bumbu rum.
