Late on Thursday, Sky News published a news article linking Diageo to the divestment of Pampero rum, gin-based liqueur Pimm’s and the tropical fruit liqueur Safari. While reporting that the process is at “a very early stage”, Sky News cited an unnamed insider as its source for the claim that bankers have been hired to explore the possible sales.
When contacted by Global Drinks Intel, a Diageo spokesperson said: “We do not comment on market speculation.”
None of the three are considered to be ‘key brands’ for Diageo: Pimm’s for example, relies almost entirely on the UK and the summer selling season, while Pampero, which is distilled in Venezuela, sits in the group’s crowded rum stable, which is led by Captain Morgan. Diageo also holds a 50% stake in Guatemalan rum Zacapa with Licores de Guatemala .
Just over a year ago, the group added the Philippines’ Don Papa to its rum line-up at a cost of just over US$280m. Don Papa retails at just over $40 per bottle in its main markets in Western Europe, while Zacapa plays in rum’s super-premium segment.
Pampero’s price point is around $40.
Last year saw many of Diageo’s spirits peers make similar divestments: In June, Brown-Forman called time on its ownership of Finlandia vodka, while Pernod Ricard found a buyer for bitters brand Becherovka towards the end of December.
The biggest – and most surprising – sale came late in the year when Beam Suntory agreed to sell Courvoisier to Campari Group for $1,32bn. Speaking exclusively to Global Drinks Intel last week, Beam Suntory CEO Greg Hughes said: ” It may be counter to where the industry was 20 years ago, but the sale was part of our ongoing efforts to prioritise and align our portfolio against a strategic growth agenda.”
Diageo, meanwhile, has previous in this area, shipping the Picon aperitif to Campari Group in May 2022 as well as peach schnapps Archers – to De Kuyper Royal Distillers – four months later. Both transactions were described by the group at the time as being examples of its “active portfolio management”.
