Brown-Forman has agreed to buy Venezuelan brand Diplomático, the world’s leading ultra-premium rum, for an undisclosed sum.
Brown-Forman will buy the brand and its assets, including a production facility in Panama, from Spain’s Destillers United Group. Diplomático will become the first rum to join Brown-Forman’s portfolio.
According to IWSR 2021 data cited by the company, Diplomático is the number-one ultra-premium rum and the second biggest-selling super-premium rum worldwide.
The firm noted that super-premium-plus rum has grown at an annual rate of 17% over the past five years, with rum accounting for approximately 8% of spirits.
The brand is available in more than 100 countries, with France, Germany and the US being its biggest markets.
“Diplomático Rum will join our expanding portfolio, giving Brown-Forman a market-leading entry into the fast-growing super-premium rum category,” said Lawson Whiting, president and CEO, Brown-Forman.
“This aged rum brand has distinctive packaging, strong brand positioning, and is a delicious tasting spirit.”
Diplomático Rum consists of three ranges – the Traditional line with its Reserva Exclusiva, and Selección de Familia bottlings; the Prestige range, which includes Single Vintage; and the limited edition Distillery Collection, which showcases the brand’s ‘unique’ distillation methods.
Destillers United Group will continue to produce the rum at the original distillery, based at the foot of the Andes mountains.
Destillers United Group said in a statement that it was ‘proud to have pioneered and been instrumental in developing the super-premium-plus rum category around the world’.
“Diplomático Rum is ready to accelerate its growth with Brown-Forman, one of the world’s most well-known spirits and wines companies,” the statement continued.
“We share a similar familial culture and know the brand will continue building on our legacy. We look forward to working together to bring Diplomático Rum to consumers around the world.”
Furthermore, Brown-Forman will add more than 100 new employees as part of the transaction.
The deal is expected to close within 90 days, subject to certain conditions.
The purchase comes one month after Brown-Forman agreed to acquire Spanish gin brand Gin Mare for an undisclosed sum.
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Author: Nicola Carruthers