UK drinks powerhouse Diageo has reached an agreement to acquire Don Papa, a super-premium dark rum brand from the Philippines.
According to Diageo, the initial purchase price is €260 million, with a further €177.5 million payable through to 2028, depending on the brand’s performance.
The company pointed out that the super-premium plus segment of the rum category is “in the early stages of premiumisation”, with a compound annual growth rate of +18% in Europe and +27% in the USA between 2016 and 2021. Through the same period, Don Papa rum outperformed the market in Europe, delivering a +29% compound annual growth rate.
“This acquisition is in line with our strategy to acquire high-growth brands with attractive margins that support premiumisation” – Diageo Europe and India President John Kennedy
Don Papa was launched in 2012 by entrepreneur Stephen Carroll, together with Andrew John Garcia. The rum is available in 30 countries, with France, Germany and Italy its largest markets.  The brand boasts a strong flavour profile, distinctive packaging and a brand story based on the island of Negros Occidental, known locally as ‘Sugarlandia’. The Don Papa portfolio includes Don Papa, Baroko, Don Papa 10, Gayuma and Masskara, along with a line of cask-finished expressions. The rum is distilled and aged on the island in American oak barrels. According to the brand, the combination of the local sugar cane and the oak barrel ageing in a hot tropical climate provides the foundation for Don Papa’s long, rich finish, which carries flavours of vanilla, honey, and candied fruits. |
Diageo Europe and India President John Kennedy said: “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.”
Don Papa Rum Founder Stephen Carroll commented: “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.”
Carroll will remain involved with the brand, working alongside Diageo to build on Don Papa rum’s growth potential.
