# Diageo Agrees to Buy Don Papa Rum for Up to $473 Mln **URL:** \ **Category:** News\ **Created:** [January 17, 2023, 9:58am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829 "2023-01-17T09:58:00Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Oliver](https://community.rumx.com/user_avatar/community.rumx.com/oliver/32/33024_2.png) [@Oliver](https://community.rumx.com/u/Oliver)\ **Post date:** [January 17, 2023, 9:58am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/1 "2023-01-17T09:58:00Z")
[https://www.marketwatch.com/amp/story/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln-271673939667](https://www.marketwatch.com/amp/story/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln-271673939667?utm_source=rumx&utm_medium=referral&utm_campaign=rumx-forum) Diageo buys Don Papa for a record sum - and from petty cash. 🤓 What do you think about the deal? * * * **Update:** How the range develops under Diageo is easy to follow on the [Don Papa page on RumX](https://rumx.com/en/brands/don-papa-rum/?utm_source=rumx&utm_medium=referral&utm_campaign=rumx-forum), every bottling with community ratings. ---
**Author:** ![JakobM](https://community.rumx.com/letter_avatar_proxy/v4/letter/j/c4cdca/32.png) [@JakobM](https://community.rumx.com/u/JakobM)\ **Post date:** [January 17, 2023, 10:18am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/2 "2023-01-17T10:18:48Z")
Three thoughts: 1. it will not change the relevancy of the product or brand for me personally 2. there might be a negative impact for consumer pricing overall when Diageo raises prices, introduces „limited released“ and marketing spent and it works, others might follow and market prices might rise. If LVMH joins, this will be amplified 3. Diageo made way too much money with the practices in (2) such that they can just spent the cash like this in an economy like today ---
**Author:** ![Mariano56](https://community.rumx.com/letter_avatar_proxy/v4/letter/m/bc8723/32.png) [@Mariano56](https://community.rumx.com/u/Mariano56)\ **Post date:** [January 17, 2023, 10:18am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/3 "2023-01-17T10:18:50Z")
„Diageo said the “super-premium plus” segment of the rum category that Don Papa Rum resides is in the early stages of premiumization…“ 😂😂😂 ---
**Author:** ![JakobM](https://community.rumx.com/letter_avatar_proxy/v4/letter/j/c4cdca/32.png) [@JakobM](https://community.rumx.com/u/JakobM)\ **Post date:** [January 17, 2023, 10:20am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/4 "2023-01-17T10:20:24Z")
It’s a statement of intent, just phrased as an observation. Wait for it… ---
**Author:** ![Mariano56](https://community.rumx.com/letter_avatar_proxy/v4/letter/m/bc8723/32.png) [@Mariano56](https://community.rumx.com/u/Mariano56)\ **Post date:** [January 17, 2023, 10:21am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/5 "2023-01-17T10:21:40Z")
Kann man auch als Drohung verstehen, das ist richtig ---
**Author:** ![Thunderbird](https://community.rumx.com/user_avatar/community.rumx.com/thunderbird/32/1630_2.png) [@Thunderbird](https://community.rumx.com/u/Thunderbird)\ **Post date:** [January 17, 2023, 10:24am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/6 "2023-01-17T10:24:15Z")
Since Don Papa is definitely not one of my rum I prefer, I personally do not care! ---
**Author:** ![DevidedByZero](https://community.rumx.com/user_avatar/community.rumx.com/devidedbyzero/32/44040_2.png) [@DevidedByZero](https://community.rumx.com/u/DevidedByZero)\ **Post date:** [January 17, 2023, 10:24am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/7 "2023-01-17T10:24:39Z")
> [@Oliver](#): > > What do you think about the deal? I couldn’t care less. I don’t care at all for Diageo, except for Caol Ila, Lagavulin and maybe Port Ellen Maltings, which they sadly own… ---
**Author:** ![MikeH](https://community.rumx.com/user_avatar/community.rumx.com/mikeh/32/8834_2.png) [@MikeH](https://community.rumx.com/u/MikeH)\ **Post date:** [January 17, 2023, 10:29am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/8 "2023-01-17T10:29:03Z")
What amazes me is the amount that they are willing to dish out for Don Papa. The sales figures of Don Papa “Rum” must be huge. I knew that Don Papa sells a lot, in Paris you can buy a bottle in every wine store in the city and there are hundreds of them but up to 473 million is out of this world. 😳 ---
**Author:** ![Mariano56](https://community.rumx.com/letter_avatar_proxy/v4/letter/m/bc8723/32.png) [@Mariano56](https://community.rumx.com/u/Mariano56)\ **Post date:** [January 17, 2023, 10:46am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/9 "2023-01-17T10:46:28Z")
When taking over Patron Tequila in 2020, they paid 7,5 times sales revenue. Assuming the same metric (questionable), we would get sales revenue of about 63 million for Don Papa. With an average price of 40 Euros, that would be roughly 1,5 million bottles a year. Just a thought experiment, not sure how close to reality that is. Edit: Bacardi was the one acquiring Patron, not Diageo. ---
**Author:** ![Serge](https://community.rumx.com/user_avatar/community.rumx.com/serge/32/27702_2.png) [@Serge](https://community.rumx.com/u/Serge)\ **Post date:** [January 17, 2023, 10:51am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/10 "2023-01-17T10:51:00Z")
To be honest … a full on Don Papa craze that takes the flippers and investors attention is the best that could happen 😂 ---
**Author:** ![Oliver](https://community.rumx.com/user_avatar/community.rumx.com/oliver/32/33024_2.png) [@Oliver](https://community.rumx.com/u/Oliver)\ **Post date:** [January 17, 2023, 10:59am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/11 "2023-01-17T10:59:30Z")
It is also interesting to note that another heavyweight was also recently acquired: > **[Brown-Forman Ăźbernimmt die Rum-Marke DiplomĂĄtico - about-drinks.com](https://www.about-drinks.com/brown-forman-uebernimmt-die-rum-marke-diplomatico/)** > > Brown-Forman Ăźbernimmt die Rum-Marke DiplomĂĄtico von der Destillers United Group S.L. (Spanien). Die Transaktion, die den Ăźblichen Abschlussbedingungen unterliegt, wird voraussichtlich innerhalb von 90 Tagen abgeschlossen sein. ---
**Author:** ![DomM](https://community.rumx.com/user_avatar/community.rumx.com/domm/32/206_2.png) [@DomM](https://community.rumx.com/u/DomM)\ **Post date:** [January 17, 2023, 11:05am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/12 "2023-01-17T11:05:10Z")
As Diageo is a listed company, they will publish more detail on their IR outlet eventually. > **[Investors](https://www.diageo.com/en/investors)** > > View our share price, financial results, annual reports and keep up to date with Diageo latest news and upcoming events for investors. They claim to provide more detail after their interim reporting on 26. Jan. At least after closing, their reporting should provide enough detail to guesstimate sales / earnings contribution to see ballpark multiples 🔍🤓 ---
**Author:** ![Kudzey](https://community.rumx.com/user_avatar/community.rumx.com/kudzey/32/4243_2.png) [@Kudzey](https://community.rumx.com/u/Kudzey)\ **Post date:** [January 17, 2023, 11:15am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/13 "2023-01-17T11:15:58Z")
Such takeovers are sometimes accompanied by quality deterioration of the product. My opinion on Don Papa rum quality is already not very high, it’s interesting if there will be further changes in the recipes. ---
**Author:** ![MarcT](https://community.rumx.com/letter_avatar_proxy/v4/letter/m/c57346/32.png) [@MarcT](https://community.rumx.com/u/MarcT)\ **Post date:** [January 17, 2023, 12:57pm UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/14 "2023-01-17T12:57:44Z")
I don’t think it can get much lower, as it is quite artificial already. But this will certainly increase the price of those perceived-premiums and thus have a little effect on higher quality offerings as well. ---
**Author:** ![KevinDK](https://community.rumx.com/user_avatar/community.rumx.com/kevindk/32/27503_2.png) [@KevinDK](https://community.rumx.com/u/KevinDK)\ **Post date:** [January 17, 2023, 3:02pm UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/15 "2023-01-17T15:02:13Z")
Around 1.8 million liters in 2019 and it has grown significantly since then 🙂 ---
**Author:** ![mto75](https://community.rumx.com/user_avatar/community.rumx.com/mto75/32/16804_2.png) [@mto75](https://community.rumx.com/u/mto75)\ **Post date:** [January 18, 2023, 9:39am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/16 "2023-01-18T09:39:39Z")
Matt Pietrek also had some thoughts on the Diageo deal > **[Thoughts on Diageo's Don Papa Purchase](https://www.rumwonk.com/p/thoughts-on-diageos-don-papa-purchase)** > > Diageo announced today (Jan. 17th, 2023) that it has purchased Don Papa rum. Naturally, we might wonder what this means for the rum market, if anything. First, some basics. Diageo is the world’s largest spirits conglomerate. Despite its highly... ---
**Author:** ![Thunderbird](https://community.rumx.com/user_avatar/community.rumx.com/thunderbird/32/1630_2.png) [@Thunderbird](https://community.rumx.com/u/Thunderbird)\ **Post date:** [January 18, 2023, 9:55am UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/17 "2023-01-18T09:55:25Z")
I find the statement interesting that Don Papa is not allowed to declare the rum as rum! ---
**Author:** ![DevidedByZero](https://community.rumx.com/user_avatar/community.rumx.com/devidedbyzero/32/44040_2.png) [@DevidedByZero](https://community.rumx.com/u/DevidedByZero)\ **Post date:** [January 18, 2023, 12:33pm UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/18 "2023-01-18T12:33:50Z")
> [@Thunderbird](#): > > not allowed to declare the rum as rum! That certainly depends on on the “where” and “when” of the question. According to current EU regulations, a sugar content of \>20g/l is not allowed to be called rum. Don Papa still has the word “rum” on the label last time I checked. No idea if they reduced the sugar content or plainly ignore the the regulation. ---
**Author:** ![lukasdrinkinghabits](https://community.rumx.com/user_avatar/community.rumx.com/lukasdrinkinghabits/32/25_2.png) [@lukasdrinkinghabits](https://community.rumx.com/u/lukasdrinkinghabits)\ **Post date:** [January 18, 2023, 12:43pm UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/19 "2023-01-18T12:43:31Z")
> [@DevidedByZero](#): > > Don Papa still has the word “rum” on the label last time I checked. No idea if they reduced the sugar content or plainly ignore the the regulation. They did. They launched the Baroko as a Spirit Drink similar to the old Don Papa. The new Don Papa Rum has reduced sugar content to meet EU regulations. At least it is like this in Germany (and the EU). In other countries they might have a different portfolio. ---
**Author:** ![Thunderbird](https://community.rumx.com/user_avatar/community.rumx.com/thunderbird/32/1630_2.png) [@Thunderbird](https://community.rumx.com/u/Thunderbird)\ **Post date:** [January 18, 2023, 2:57pm UTC](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829/20 "2023-01-18T14:57:01Z")
I find the addition of glycerine (low-grade alcohol) and vanillin more serious and dubios than the added sugar! Sugar was still common in the past, but the other somehow reminds me of the wine scandal from the Mosel region at the time! [Next page](https://community.rumx.com/t/diageo-agrees-to-buy-don-papa-rum-for-up-to-473-mln/6829.md?page=2)