Diageo makes move for Zacapa rum

Diageo has signed a global distribution and joint marketing agreement with one of travel-retail's most exciting super-premium brands, Zacapa Centenario Rum.

Effective April 1, the three-year deal gives Diageo the global distribution rights to the Guatemalan brand, including duty-free and travel-retail, where it is listed across the Americas. The agreement excludes certain domestic Latin American markets, including Guatemala.

At the end of the contract Diageo has an option to buy a 50% equity stake in the brand if sales performance targets are met.

Commenting on the deal, Diageo Latin America and Caribbean managing director Randy Millan said: "Some of the most iconic drinks brands in the world are produced in Latin America and the Caribbean, from Don Julio tequila to Red Stripe lager, and we are delighted to be given the opportunity to distribute and market Zacapa, one of the most acclaimed rums in the world.

"The Zacapa brand will widen our brand range within the second largest and fastest growing spirits category in the world and diversify our reserve brand collection, which includes super-premium brands Johnnie Walker Blue Label and Buchanan’s Red Seal."

Owned by Industrias Licoreras de Guatemala, the award-winning Zacapa rum range includes Zacapa Centenario 15, Zacapa Centenario 23 and the ultra-premium Zacapa Centenario XO.