Brown-Forman Corporation has announced it has reached an agreement to purchase the Diplomático Rum brand and related assets from Destillers United Group S.L. (Spain). Upon completion of the transaction, Brown-Forman will add the Diplomático Rum family of brands to its portfolio and acquire a production facility located in Panama.
The Diplomático Rum family of brands is the No. 1 super- and ultra-premium rum and the No. 2 super-premium+ rum worldwide (IWSR, 2021). Super-premium+ rum has grown at an annual rate of 17% over the past five years, with rum accounting for approximately 8% of global spirits.
“Diplomático Rum will join our expanding portfolio, giving Brown-Forman a market leading entry into the fast-growing super-premium rum category. This aged rum brand has distinctive packaging, strong brand positioning, and is a delicious tasting spirit,” said Lawson Whiting, President and CEO, Brown-Forman Corporation. “As part of this acquisition, we will welcome more than 100 new employees to Brown-Forman.”
The Diplomático Rum distillery is located at the foot of the Andes Mountains. Diplomático Rum’s distillery combines traditional methods with modern technology to produce the finest of rums. Diplomático rums are distilled using a rich variety of methods, including various continuous column stills for light rums, batch kettle for intermediate rums, and pot stills for more complex rums.
The production area boasts great conditions for sugar cane and rum production including fertile lands, abundant water, and a Caribbean climate.
Destillers United Group S.L. will continue to produce and age the unique, carefully-crafted, and complex Diplomático Rum in their original distillery at the foot of the Andes mountains.
“We are proud to have pioneered and been instrumental in developing the super-premium+ 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,” stated Destillers United Group S.L., current owner of the Diplomático Rum brand. “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.”
Diplomático Rum is sold in more than 100 countries. Top markets include France, Germany, and the United States.
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Diplomático Rum consists of three ranges of complex rums. The Traditional Range includes Planas, Mantuano, Reserva Exclusiva, and Selección de Familia. The Prestige Range includes Single Vintage and Diplomático Ambassador, both aged 12 years and finished in Spanish sherry casks. The Distillery Collection includes a range of three limited production bottlings that showcase the distillery’s unique distillation methods.
How Much Did Diplomático Rum Brand Sell For?
Terms of what Brown-Forman paid Destillers United Group S.L. for Diplomático Rum brand were not disclosed. The transaction, which is subject to customary closing conditions, is expected to close within 90 days.