Brown-Forman acquires Venezuelan rum brand Diplomático to bridge gap in its portfolio

VENEZUELA – Jack Daniel’s owner, Brown‑Forman, has agreed to acquire the Diplomático Rum brand and related assets from Destillers United Group for an undisclosed amount.

The Diplomático Rum family of brands is ranked the number one super- and ultra-premium rum and the number two super-premium-plus rum worldwide, according to IWSR data cited by Brown-Forman.

Super-premium-plus rum has grown at an annual rate of 17% during the past five years, with Rum accounting for about 8% of global spirits, Brown-Forman noted.

Brown-Forman best known for its portfolio of whiskey, tequila, vodka, and other alcoholic beverages, had been missing rum, a void to be filled by Diplomático, the first brand it’s owned in that space.

Brown‑Forman’s CEO Lawson Whiting said Diplomático, known for its distinctive packaging, strong brand positioning, and taste, will give his company “a market-leading entry into the fast-growing super-premium rum category.”

He added that Diplomático has a broad global reach that Brown‑Forman could tap into to sell some of its other brands.

Diplomático is sold in more than 100 countries, with France, Germany, and the United States as its top markets.

The global premium spirits market is expected to surge to US$235.74 billion by 2027, a compound annual growth rate of 10.3% from 2020, according to Grand View Research.

The marketing data firm said that is led by the growing popularity of high-end drinks among millennials. Grand View noted growth in the high-end alcohol segment has been outpacing that of alcohol overall.

In addition, IWSR reports consumers have increasingly shown a fondness for premium brands and a willingness to pay more for them.

This insight has resulted in many big alcoholic companies expanding their portfolios in this category to capture a portion of that growth.

Diageo bought 21Seeds, a rapidly growing flavored tequila infused with fruit juice, earlier this year. The acquisition deepened Diageo’s exposure to tequila and the small but rapidly growing flavored segment.

Constellation Brands’ venture capital unit acquired a minority stake in Dos Hombres, the artisanal mezcal brand created by “Breaking Bad” stars Bryan Cranston and Aaron Paul, in 2021.

Sales of mezcal, a smoky, high-ABV spirit made from agave, have been growing in the United States, proof of a potential sales growth to the third-largest market shareholder of all major beer suppliers.

According to IWSR statistics cited by Constellation, the category grew 14% last year, and ultra-premium mezcal — costing more than $30 per bottle — is projected to be the largest and fastest-growing segment.

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