Diageo announced in January it will purchase Don Papa Rum, a super-premium dark rum from the Philippines, for an initial $282 million, with a further potential consideration of up to $192 million through 2028 subject to performance. The deal is expected to close in the first half of this year. According to Diageo, the super-premium rum market is in “the early stages of premiumization,” showing a compound annual growth rate of 27% in the U.S. and 18% in Europe between 2016-2021. Don Papa has outpaced that growth in Europe, up 29% in the same time frame, with its strongest markets being France, Germany and Italy. The acquisition will be funded through existing cash reserves and is expected to close in the first half of 2023.