Sale of Don Papa Rum to Diageo

DonPapa_Diageo Sale of Don Papa Rum to Diageo
Don-papa-products Sale of Don Papa Rum to Diageo

January 2023


Strategic acquisition

Up to €437.5m consisting of €260m upfront and up to €177.5 based on performance through 2028

Food & Beverage

Transaction Overview

Spayne Lindsay is delighted to announce that it has advised the founders of Don Papa Rum (“Don Papa”), a high growth super-premium, single-island dark rum from the Philippines, on the sale to Diageo, a global leader in alcoholic beverages. The upfront consideration is €260 million with a further potential consideration of up to €177.5 million subject to performance through to 2028, 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 Manila-based AJ Garcia, Don Papa 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 unique and beautiful island of Negros Occidental — known locally as ‘Sugarlandia’.


The rum is distilled in the Bago distillery on the island and aged on the island in American oak barrels. The combination of the local sugar cane, unique soil and climate and the oak barrel ageing in the hot tropical climate provides the foundation for Don Papa’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 have 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 partnership is a great opportunity to take Don Papa into the next exciting chapter of its development.”


Founder Stephen Carroll will remain involved with the brand, working alongside Diageo to build on Don Papa Rum’s growth potential.


Jens Brodersen, Senior Advisor, Spayne Lindsay & Co. commented: “Having followed the journey of this unique brand from inception, it has been a privilege advising Stephen and AJ on this partnership transaction with Diageo.  It is a milestone for the brand and we wish Diageo and the brand founders all the best taking Don Papa to the next level.”


Tom Lindsay, Partner, Spayne Lindsay & Co. commented: “We are delighted to have helped Stephen, AJ and the Don Papa team find the best long-term home for Don Papa. We think Diageo’s global business will be able to maximise the huge potential for the business. It is a fantastic brand in one of the fastest growing segments of the spirits sector. It has been a huge pleasure working with such an exciting product and the fantastic team behind it. This is another great step forward for Spayne Lindsay in a global consumer sector we are really focused on developing.”

Contact Spayne Lindsay for further information