Diageo has sold its second spirits brand in as many weeks, with Pampero rum acquired by Gruppo Montenegro. It follows the sale of Safari, a fruit flavoured liqueur brand, to Portuguese company Casa Redondo.
Gruppo Montenegro’s portfolio that includes iconic Italian spirits brands such as Amaro Montenegro, Select Aperitivo, Vecchia Romagna Brandy and Rosso Antico Vermouth.
Pampero was the first Venezuelan rum to be aged for more than two years and has a rich 85-year history. Founded in 1938 by Alejandro Hernández and Luis Toro, it was bought by Diageo in the early 1990s.
It is the number one rum in Italy by volume and has a strong presence across other continental European markets. Its Pampero Aniversario Rum recently won World’s Best Rum at the New York World Wine & Spirits Competition.
According to Market Data Forecast the global rum market is projected to be worth $U16billion in 2023 and grow to $US21.5 billion by 2028.
Diageo President, Europe John Kennedy said: “The sale of Pampero demonstrates our disciplined and strategic approach to capital allocation. It will allow us to concentrate on our portfolio’s core areas of strength as we accelerate towards our ambition; to be one of the best performing, most trusted and respected consumer products companies in the world.”
“Looking forward, Pampero is well positioned for its next chapter of growth. We are confident that Gruppo Montenegro is the right owner to maintain and build on Pampero’s authenticity and its leading position in Italy and across continental Europe.”
Gruppo Montenegro Executive Board Member Paul Douek said: “We are delighted to announce the acquisition of Pampero, a rum that will significantly enhance our growth trajectory both within Italy and on the international stage. Pampero’s exceptional heritage and unique qualities will greatly enrich our spirits portfolio.
“We are particularly pleased that this milestone has been achieved following the appointment of Gruppo Montenegro’s new CEO, Sergio Fava. The acquisition of Pampero marks a new pivotal phase for Gruppo Montenegro as we fortify our global expansion with our new leadership team.”
Diageo said the sale of the Safari spirits brand was in line with its strategy of “maintaining a sharp focus on effective portfolio management”.
Safari is predominantly sold in Benelux, Portugal and Türkiye. Given its consumer base, Diageo said it believes Casa Redondo is the right owner to take Safari into its next chapter of growth across Europe and beyond.
Kennedy said said: “The sale of Safari reflects Diageo’s commitment to delivering consistent growth and value creation for shareholders. This transaction will allow us to further concentrate on our core areas of strength, including tequila and whisk(e)y, as we accelerate towards our ambition; to be one of the best performing, most trusted and respected consumer products companies in the world.”
Daniel and Ricardo Redondo, Chief Executive and Chief Financial Officer of Casa Redondo said: “We are thrilled to announce the acquisition of Safari from Diageo. This transaction underscores our commitment to expanding our portfolio with premium offerings that resonate with consumers globally. We look forward to integrating this brand into our family, continuing to innovate for our customers, whilst ensuring exceptional quality.”
Categories: Business
