Diageo has disposed of its second rum brand in six months with the sale of Venezuelan brand Cacique to French spirits group La Martiniquaise-Bardinet.
The deal comes after Diageo offloaded Venezuelan rum brand Pampero to Italian drinks firm Gruppo Montenegro in July.
John Kennedy, Diageo’s Europe president, said the sale reflected the group’s strategy of “maintaining a sharp focus on effective portfolio management”.
He added: “We are confident Bardinet is the right owner for Cacique, maintaining the brand’s authenticity and prominent position in Spain and Venezuela, as well as building its position in Continental Europe.”
La Martiniquaise-Bardinet has an annual turnover of €1.5bn from a portfolio that includes scotch whiskies Cutty Sark, Label 5 and Glen Moray. The purchase of Cacique was made through the firm’s Spanish subsidiary Bardinet.
Bardinet CEO Jean-Paul Bouyat called Cacique “a uniquely positioned Venezuelan rum with a strong heritage”.
“This is a strategic addition to our portfolio which will help us to increase our rum market share in Spain and beyond,” he said.
Diageo’s rum brands – including Captain Morgan, Don Papa, and Bundaberg Rum – saw sales fall 6% in the last financial year. The group’s total sales across Latin American and the Caribbean saw a double-digit drop.
Earlier this week, Diageo sold its majority stake in Guinness Ghana Breweries for $81m, saying it would drive “greater efficiency and profitability” for the business in Africa.
But Diageo rejected speculation it was planning to offload Guinness after a news report claimed the brand could be sold as part of a review of the group’s portfolio.
La Martiniquaise-Bardinet were advised by Spayne Lindsay for the deal.
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