Diageo PLC Diageo to acquire Don Papa Rum (8944M)
17 Gennaio 2023 - 8:00AM
UK Regulatory
TIDMDGE
RNS Number : 8944M
Diageo PLC
17 January 2023
DIAGEO TO ACQUIRE DON PAPA RUM
17 JAN 2023: Today, Diageo announces it has reached an agreement
to acquire Don Papa Rum, a super-premium, dark rum from the
Philippines. The upfront consideration is EUR260 million with a
further potential consideration of up to EUR177.5 million through
to 2028 subject to performance, reflecting the brand's current
growth potential.
The super-premium plus segment of the rum category is in the
early stages of premiumisation, with a compound annual growth rate
(CAGR) of 18% in Europe and 27% in the US between 2016-2021.
Through the same period, Don Papa Rum consistently outperformed the
market in Europe, delivering a 29% CAGR*.
Launched in 2012 by entrepreneur Stephen Carroll, together with
Andrew John Garcia, Don Papa Rum is currently available in 30
countries, with France, Germany and Italy being its largest
markets. Don Papa 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 rum is distilled and aged on the island in
American oak barrels. The combination of the local sugar cane and
the 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.
John Kennedy, President, Diageo Europe and India, commented: "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."
Stephen Carroll, Founder, Don Papa Rum, 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."
Stephen Carroll will remain involved with the brand, working
alongside Diageo to build on Don Papa Rum's growth potential.
The acquisition will be funded through existing cash reserves
and is expected to close in the first half of 2023. The company
will be available to discuss the transaction in more detail after
the release of Diageo's fiscal 23 interim results on 26 January
2023.
* IWSR 2016-21
ENDS
Enquiries:
Diageo Global Press Office
Media relations press@diageo.com +44 (0) 7803 856 200
Investor relations Investor.relations@diageo.com
About Diageo
Diageo is a global leader in beverage alcohol with an
outstanding collection of brands including Johnnie Walker, Crown
Royal and J B whiskies, Smirnoff, Cîroc and Ketel One vodkas,
Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
Diageo is a global company whose products are sold in more than
180 countries around the world. The company is listed on both the
London Stock Exchange (DGE) and the New York Stock Exchange (DEO).
For more information about Diageo, our people, our brands, and
performance, visit us at www.diageo.com. Visit Diageo's global
responsible drinking resource, www.DRINKiQ.com, for information,
initiatives, and ways to share best practice.
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.
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END
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