UK drinks giant Diageo has agreed to sell Venezuelan rum brand Pampero to Italian food and spirits major Gruppo Montenegro.
The sum of the transaction was not revealed.
Pampero is the leading rum brand in the Italian market by volume, according to Diageo, and also has “a strong presence” across continental Europe.
In a statement, John Kennedy, Diageo Europe president, said the move would allow the company to focus on the “core areas of strength” in its portfolio, and that it “demonstrates our disciplined and strategic approach to capital allocation”.
Diageo told Just Drinks it expects the transaction to be complete in the next two months.
Based in the Zola Predosa commune in Italy, Gruppo Montenegro’s portfolio includes an array of spirits brands such as liqueurs Amaro Montenegro, Rabarbaro Bergia, Grappa Libarna and Edgar Sopper London Dry gin.
Kennedy added: “Looking forward, Pampero is well positioned for its next chapter of growth. We are confident that Gruppo Montenegro is the right owner to maintain and build on Pampero’s authenticity and its leading position in Italy and across continental Europe.”
It follows Diageo's sale of fruit-flavoured liqueur brand Safari to Portuguese drinks group Casa Redondo earlier this month.
Describing the sale rationale in a similar manner to its latest sale of Pampero, Kennedy said the move would enable the company to hone in on its top-performing areas “including Tequila and whisk(e)y”.
Speaking on its acquisition, Paul Douek, Gruppo Montenegro's executive board member, said Pampero would “significantly enhance our growth trajectory both within Italy and on the international stage”.
Douek added: “We are particularly pleased that this milestone has been achieved following the appointment of Gruppo Montenegro’s new CEO, Sergio Fava. The acquisition of Pampero marks a new pivotal phase for Gruppo Montenegro as we fortify our global expansion with our new leadership team.”
Fava was picked to lead the Select aperitif producer in July 2023, taking over from Marco Ferrari who left the position to become CEO at Ilva Saronno Group.
Earlier this year, reports suggested Diageo was allegedly on the hunt for a buyer for Safari, Pampero and its UK liqueur brand Pimm’s.
According to Sky News at the time, the London-headquartered company had allegedly hired advisers at investment bank Rothschild to assess the sale of the brands.
Industry sources told the news agency that the Pimm’s brand was “likely to draw interest from other drinks companies as well as financial investors”.
Just Drinks understood at the time that the Guinness owner had no intentions to hand off any beer brands.
