Diageo to acquire Don Papa Rum, a super-premium, dark rum from the Philippines

17 Jan 2023

We are delighted to announce that Diageo has reached an agreement to acquire Don Papa Rum, a super-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.

This acquisition will enable us to strengthen our position in the exciting rum category which is in early stages of premiumisation and has a compound annual growth rate (CAGR) of 18% in Europe and 27% in the US between 2016-2021.

Founded by entrepreneur Stephen Carroll, together with Andrew John Garcia, Dom Papa Rum has gone from strength to strength since its launch in 2012, consistently outperforming the market in Europe. It is currently available in 30 countries, with France, Germany and Italy being its largest markets.

The rum has a unique flavour profile, highly distinctive packaging and an authentic brand story rooted in the beautiful island of Negros Occidental — known locally as ‘Sugarlandia’. The combination of local sugar cane and oak barrel ageing in a hot tropical climate provides the foundation for Don Papa Rum’s long, rich-textured finish, which carries flavours of vanilla, honey, and candied fruits.

“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.”

John Kennedy, President Europe And India
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.”

Stephen Carroll

Founder, Don Papa Rum

The acquisition will be funded through existing cash reserves and is expected to close in the first half of 2023.

 

About Don Papa Rum

Available in over 30 countries worldwide, Don Papa Rum is a super-premium dark rum from the Philippines. Distilled and aged in American oak barrels on the island of Negros Occidental (known locally as ‘Sugarlandia’), the pure, original Negros sugar cane is the foundation for Don Papa Rum’s long, rich-textured finish and flavours of vanilla, honey, and candied fruits. The namesake of Don Papa Rum is inspired by the unsung hero and mystic, Papa Isio, who was one of the leading figures of the late 19th century Philippine revolution. Initially a foreman at a sugar plantation, his leadership and courage played a critical part in liberating the island of Negros from Spanish rule. Don Papa is inspired by his legend and captures his spirit and sense of magic in every bottle.

Find out more about Diageo’s portfolio - https://www.diageo.com/en/our-brands/brand-portfolio

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