In another fantastic example of confidence growing in the rapidly expanding rum sector, the takeover includes Brown-Forman acquiring all brand assets including a production facility in Panama.
In a statement, Brown-Forman explained that the premium rum market has grown at an annual rate of 17% over the past five years, with rum now accounting for approximately 8% of spirits.
“Diplomático Rum will join our expanding portfolio, giving Brown-Forman a market-leading entry into the fast-growing super-premium rum category,” said Lawson Whiting, the president and CEO of Brown-Forman.
As part of the deal, Brown-Forman will recruit a further one hundred staff to the business with production also expected to increase. Sold in over one hundred territories worldwide, with the US and France as its biggest markets, Diplomático produces three main ranges including the ultra-premium “Distillery Collection”.
Karan Bhullar, partner at Whisky Investment Partners commented, “It’s fantastic to see one of the biggest names in the spirit world finally add rum to its offerings. We’ve seen the potential in premium rum and this move is another fantastic example of the overwhelming confidence the industry is now showing. With premium rum sales increasing 85% in the last quarter alone in the UK, we are expecting to see more deals just like this one within the sector.”
Whisky Investment Partners is proud to offer our clients the opportunity to invest in premium rum with our pre-aged casks. Distilled at one of the most prestigious distilleries in Panama and matured for up to twenty-five years, our casks provide investors with a head start in this rapidly growing sector. To learn more about our premium rum offerings, please click here.