Drinks giant Diageo has announced that it has reached an agreement to acquire Philippine rum brand Don Papa for an initial €260m.
The brand, launched in 2012 by Stephen Carroll and Andrew John Garcia, and produced and aged in Philippines' Sugarlandia, is currently distributed in over 30 countries, with France, Germany and Italy being its biggest markets.
The acquisition will see Diageo pony up an additional €177.5m through to 2028 based on the brand's performance, taking the total potential value of the acquisition up to €437.5m.
Sugarlandia, Philippines. (Image Source: Phil Star Life)
“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, Co-Founder of Don Papa Rum
This move would build upon Diageo's existing rum portfolio which is currently hoisted by the Captain Morgan brand, and the distribution rights to the Zacapa and Bundaberg brands.
(Image Source: Diageo)
The drinks giant adds that more details will be announced after the release of its fiscal 2023 financial results on 26 January 2023, and that Don Papa co-founder Stephen Carroll will continue to work on the brand alongside Diageo.
Lead image from Don Papa.
88 Bamboo Editorial Team