This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Diageo sells Pampero rum to Gruppo Montenegro
Captain Morgan owner Diageo has agreed to sell Pampero rum to Gruppo Montenegro for an undisclosed sum.
Diageo said Venezuelan brand Pampero was the number one rum in Italy by volume. It also has a strong presence across other continental European markets, the company noted.
John Kennedy, Diageo’s president, Europe, 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.”
The move comes just weeks after Diageo sold Safari liqueur to Portuguese firm Casa Redondo. The group has also lightened its portfolio with the sale of peach schnapps brand Archers to Dutch producer De Kuyper in 2022. It also offloaded its Windsor Global whisky subsidiary to a South Korean investment firm last year.
The decision to sell Pampero also follows a poor performance from Diageo in the first half of fiscal 2024 (July-December 2023) as spirits plummeted in Latin America and the Caribbean.
Founded in 1885, Bologna-based Gruppo Montenegro is a leading Italian food and spirits manufacturer.
Gruppo Montenegro’s portfolio includes Italian spirits brands Amaro Montenegro, Select Aperitivo, Vecchia Romagna Brandy and Rosso Antico Vermouth.
Kennedy added: “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.”
Paul Douek, Gruppo Montenegro’s executive board member, called Pampero “a rum that will significantly enhance our growth trajectory both within Italy and on the international stage”.
He continued: “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.”
The companies have agreed to a transition services agreement once the deal has been competed to enable a smooth takeover.
Diageo’s rum portfolio includes Philippine brand Don Papa (which it acquired for €260 million (US$281.5m) in 2023), Captain Morgan, Cacique and Bundaberg Rum.
It also partly owns Guatemalan rum Ron Zacapa and Cuban brand Ron Santiago de Cuba, the latter of which it distributes internationally.