The original Don Papa Rum

Almost one year ago to the day, Diageo – arguably the spirits’ industry’s foremost global leader – acquired Don Papa Rum for €260 million ($284 million), with the potential bonus of a further €178 million ($194 million) added over the following five years.

It was an interesting move for Diageo – a company already profiting off its mass-market rum Captain Morgan – but not a surprising one. The company has become renowned for investing in high-growth brands over the last couple of years; premium and super-premium brands, in particular.

Back in August 2017, Diageo completed its acquisition of George Clooney-founded Casamigos in a deal that valued the tequila brand at roughly $1 billion. Another huge investment, yet one which has seen the brand’s volumes nearly double on an annual basis ever since.

Don Papa, in that sense, looks set to become the conglomerate’s Casamigos of the rum world. Albeit without the tequila brand’s celebrity draw.

In fact, at Don Papa, it’s all about the liquid.

Behind the scenes at Don Papa’s sugar mill

Before former Rémy Cointreau executive Stephen Carroll founded the brand in 2012, it was simply a beautiful idea. Carrol had taken a trip to Negros Occidental, an island in the Philippines’ Western Visayas region, in 2000, and found his mind racing with the promise of utilizing the region’s abundant sugarcane – and the world’s lack of premium rum.

In subsequent years, he and his crew, who are mostly based in Manila and have remained as dedicated stewards of the business, strove to create the most extraordinary rum the world had ever tasted. They successfully accomplished this using molasses from Mount Kanlaon’s base, the island’s active volcano.

Don Papa in the sugarcane field

The iconic rum, Don Papa, is a global favorite for rum enthusiasts. Distilled locally on the island, the rum is matured in ex-bourbon American oak barrels and mixed with Mount Kanlaon spring water. This procedure results in a robust and intricate flavor profile consisting of vanillin, citrus, honey, and candied fruit.

Don Papa Masskara, which takes inspiration from the colourful and whimsical Masskara Festival, is another tribute to the richness of the Philippines. Following pot-distillation, it is infused with calamansi, a economically significant “lime” citrus hybrid, and siling labuyo, a local chili, to add a little heat.

Don Papa Gayuma, which is aged in ex-bourbon American oak casks for three years before undergoing a double barrel finish of high toast ex-Rioja barrels and toasted oak Islay barrels, is a unique release that demonstrates risk-taking that is rarely seen in other rum companies. This daring approach is rewarded by consumer appreciation. Their limited-edition releases, which are finished in various casks including sherry, rye, and even Vino de Naranja, have proven incredibly popular, selling out quicker than the brand could replenish stocks. This is all before the investment from Diageo. The brand’s following has grown exponentially in countries like Germany, France, and Italy in a very short amount of time.

Therefore, the potential investment of approximately €400 million ($437 million) in Don Papa can be seen as a wise and worthwhile decision.