Diageo to Acquire Don Papa Rum

Diageo said it agreed to acquire Don Papa Rum, a super-premium dark rum from the Philippines.  Diageo will initially pay Eur 260 million (about $280.37 million) with a further potential consideration of up to Eur 177.5 million (about $191.41 million) through to 2028, subject to performance.

This acquisition will enable us to strengthen our position in the exciting rum category which is in early stages of premiumization and has a compound annual growth rate (CAGR) of 18% in Europe and 27% in the U.S. 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 flavor 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 flavors of vanilla, honey, and candied fruits.

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