Diageo Signs Distribution Pact For Zacapa Centenario

[Edward Hamilton]

DOW JONES NEWSWIRES February 7, 2008 11:12 a.m.


Diageo Thursday announced that it had been granted a three year distribution and joint marketing agreement by Industrias Licoreras de Guatemala group of companies for the Zacapa rum brand.


The agreement will run from Apr. 1, and will give Diageo global distribution rights although some countries in Central America including Guatemala will be excluded. At the end of the three years Diageo has an option to buy a 50% equity stake in the brand subject to performance criterion.


The Zacapa rum range includes Zacapa Centenario 15, Zacapa Centenario 23 and the ultra premium Zacapa Centenario XO.


The Zacapa brand has been recognised internationally as one of the best rums in the world receiving multiple, top-tier awards and accolades.


Randy Millian, Managing Director of Diageo's Latin America & Caribbean Hub said: 'Some of the most iconic drinks brands in the world are produced in Latin America & 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 major spirits category in the world and diversify our Reserve brand collection, which includes such super premium brands as Johnnie Walker Blue Label and Buchanan's Red Seal.'

[RumBarPhilly]

WOOWOO!!!

Let the countdown begin, only 52 days until we get Zacapa at the bar!!

Do you know if Botran is coming along for the ride at all?

[pcguy]

what long term impact will this have on the quality of the product, should diageo perform to contract and obtains an equity stake in the company?

[RobertBurr]

Botran is not staying with Dana Imports, but I cannot say if it's going to Diageo. I would assume so -- since both are sugar cane honey "cousins" made at the same distillery and both cover different sectors of the market with slight overlap.

This will be the second big ramp-up for Zacapa in recent years. Three years ago, the new bottle was introduced and the amount of product brought into the US was greatly increased. Diageo will take the product global at some pace known to them over the course of the next three years.

This product is not infinitely reproducible like Captain Morgan or Parrot Bay, so there's a question as to whether supply can match (potentially) greatly increased demand without changing the fundamentals of production... buy all you can this month, just in case!

[pcguy]

I will be deeply saddened if RZ 23 reduces in quality I would rather they kept it as is, and raised the price slightly

[Edward Hamilton]

Originally Posted by pcguy

I will be deeply saddened if RZ 23 reduces in quality I would rather they kept it as is, and raised the price slightly

As noticed by most who were drinking this rum before the new bottle, you are probably too late to find the rum that made this one an international favorite. The good news is that there are other rums ready coming to the international stage that haven't had a chance to be noticed until recently.

[RobertBurr]

I still have several bottles in the original full bottle weave of royal palm. Someday, I might open one and compare it to the newer bottle, or perhaps, a future bottle or new version of that product.