Diageo has sold Gruppo Montenegro the Pampero rum brand

The Venezuelan rum brand Pampero was ranked first in Italy for rum volume by Diageo. According to the business, it also has a solid foothold in other areas across continental Europe.

The sale of Pampero Rum shows our rigorous and strategic approach to capital allocation,” stated John Kennedy, Diageo’s president, Europe.

“By focusing on what we do best, we can move faster towards our goal of becoming one of the world’s most successful, trusted, and esteemed consumer products companies.”

This follows Diageo‘s recent sale of Safari liqueur to Casa Redondo, a Portuguese corporation, by only a few weeks. In 2022, the business sold the Archers peach schnapps brand to Dutch maker De Kuyper, thereby lightening its portfolio. It also acquired a South Korean investment company last year through the sale of its Windsor Global whiskey subsidiary.

In the first half of fiscal 2024 (July-December 2023), spirits sales in Latin America and the Caribbean dropped dramatically, which contributed to Diageo’s dismal performance and the subsequent decision to sell Pampero.

A prominent Italian producer of food and alcohol, Gruppo Montenegro was established in Bologna in 1885.

Among the spirits produced by Gruppo Montenegro are the Italian labels Amaro Montenegro, Rosso Antico Vermouth, Vecchia Romagna Brandy, and Select Aperitivo.

Gloria Pampero is “a rum that will considerably enhance our growth trajectory both within Italy and on the international stage,” according to Paul Douek, an executive board member of Gruppo Montenegro.

“Our spirits portfolio will be significantly enhanced by Pampero’s exceptional heritage and unique qualities,” he stated. We are especially happy that this milestone has been reached after Sergio Fava was appointed CEO of Gruppo Montenegro.

As Gruppo Montenegro strengthens its global development under the guidance of its new leadership team, the purchase of Pampero signifies a new critical juncture.

After the transaction closes, the firms have committed to a transition services agreement to facilitate a seamless acquisition.