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Diageo has reached an agreement to acquire Don Papa Rum, a dark rum brand based in the Philippines. The initial consideration is for €260 million with further potential consideration of up to €177.5 million through to 2028, subject to performance. Founded in 2012 by Stephen Carroll, Don Papa Rum is available in 30 countries, with France, Germany and Italy being its largest markets. John Kennedy, president of 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.” The rum is distilled and aged on the Negros Occidental island, a province in the Philippines. The combination of the local sugar cane and the oak barrel ageing in a hot climate provides the foundation for a rich-textured finish that carries flavours of vanilla, honey and candied fruits. Don Papa Rum’s founder 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. The acquisition will be funded through existing cash reserves and is expected to close in the first half of 2023.