Don Papa Rum
2023
Why
Diageo bought the Philippine rum brand Don Papa to expand in super-premium rum.
Impact
The brand underperformed expectations.
Outcome
Diageo wrote down the Don Papa brand in fiscal 2026 as part of $1.5B of impairment charges.
Diageo plc
Global Premium Spirits and BeerFounded 1997- HQ today: London, United Kingdom
Reviewed by Swet Parvadiya
Company data updated: October 2026
Acquisitions
Diageo Acquisitions
3
Major Deals Covered
$1.0B
Disclosed Deal Value
What are Diageo's biggest acquisitions?
Diageo's largest disclosed acquisition here is Casamigos for $1B in 2017. This page covers 3 major deals from 2001 to 2023, each with its price where disclosed and the reason behind it.
- Major deals covered
- 3
- Largest deal
- Casamigos ($1B)
- First deal
- 2001
- Most recent
- 2023
| Company | Year | Price | Purpose |
|---|---|---|---|
| Seagram's Spirits and Wine Business | 2001 | Undisclosed | Diageo and Pernod Ricard jointly bought Seagram's spirits and wine business from Vivendi Universal for about $8.15B; Diageo's share brought Crown Royal and Captain Morgan. |
| Casamigos | 2017 | $1.0B | Diageo bought the tequila brand co-founded by George Clooney, Rande Gerber and Mike Meldman for $700M upfront plus up to $300M depending on performance. |
| Don Papa Rum | 2023 | Undisclosed | Diageo bought the Philippine rum brand Don Papa to expand in super-premium rum. |
- What companies has Diageo bought?
- Major acquisitions by Diageo documented here include Casamigos (2017), Don Papa Rum (2023) and Seagram's Spirits and Wine Business (2001).
- What is Diageo's most recent acquisition?
- The most recent Diageo acquisition documented here is Don Papa Rum, in 2023.
Casamigos
2017
$1.0B
Why
Diageo bought the tequila brand co-founded by George Clooney, Rande Gerber and Mike Meldman for $700M upfront plus up to $300M depending on performance.
Impact
Together with Don Julio, which Diageo fully acquired in 2014 by swapping Bushmills to Jose Cuervo, it made Diageo a leader in US premium tequila.
Outcome
Tequila was a major growth driver until US demand slowed in 2024-2026.
Seagram's Spirits and Wine Business
2001
Why
Diageo and Pernod Ricard jointly bought Seagram's spirits and wine business from Vivendi Universal for about $8.15B; Diageo's share brought Crown Royal and Captain Morgan.
Impact
The deal significantly strengthened Diageo in North America in rum and Canadian whisky.
Outcome
Captain Morgan and Crown Royal remain among Diageo's largest brands.
Diageo plc's Growth & Acquisition Strategy
Under Lewis, Diageo set three priorities in early 2026: relevant brands in competitive category strategies; 'Customer, Customer, Customer'; and a more agile, lower-cost operating framework. Savings are meant to fund marketing and price investment without reducing operating profit, while Guinness, which has grown strongly in Great Britain and Ireland, is getting more brewing capacity. Diageo is also selling non-core assets such as EABL to cut debt.
How Diageo plc Makes Money
Diageo makes money by producing, ageing and marketing branded spirits and beer and selling them to distributors, retailers, bars and travel retail. Most value comes from brand equity rather than the liquid: premium and super-premium labels such as Johnnie Walker Blue Label, Don Julio 1942 and Guinness carry high gross margins. In the US it sells through the three-tier distributor system; elsewhere it uses its own sales companies, joint ventures and distributors. Scale in marketing and route-to-market lets Diageo place newer or acquired brands alongside its category leaders.
Diageo Acquisitions FAQ
What were the most significant corporate acquisitions in Diageo's history?
Major deals include the Seagram spirits brands (2001, jointly with Pernod Ricard), control of United Spirits in India (2013-2014), full ownership of Don Julio (2014), Casamigos (2017) and Aviation American Gin (2020).
How did the 2001 Seagram acquisition expand Diageo's brand portfolio?
Diageo partnered with Pernod Ricard to acquire the assets of Canadian drinks conglomerate Seagram. Diageo acquired crown-jewel brands including Crown Royal Canadian whisky and Captain Morgan rum, cementing its leadership in North America.
Why was the 2017 acquisition of Casamigos tequila a major milestone for Diageo?
Diageo acquired Casamigos (co-founded by George Clooney, Rande Gerber, and Mike Meldman) for $700 million upfront plus up to $300 million in performance earn-outs. Under Diageo's distribution, Casamigos grew rapidly into a multi-million-case super-premium tequila leader.
How did Diageo gain control of United Spirits Limited (USL) in India?
Diageo built a majority stake in United Spirits Limited between 2013 and 2014, buying shares from Vijay Mallya's UB Group and through an open offer, giving it India's largest spirits business.
How did Diageo acquire full ownership of Don Julio tequila in 2014?
In November 2014, Diageo executed a strategic asset swap with Casa Cuervo: Diageo gained 100% full ownership of Don Julio super-premium tequila and received $408 million in cash, in exchange for transferring ownership of The Bushmills Irish Whiskey brand.
Why did Diageo acquire Aviation American Gin in 2020?
Diageo acquired Aviation American Gin (co-owned by actor Ryan Reynolds) and Davos Brands for up to $610 million to capture the rapid growth of super-premium American craft gin and leverage Reynolds' innovative digital marketing.
What flavored tequila brand did Diageo acquire in 2022?
In 2022, Diageo acquired 21Seeds, a fast-growing, female-founded ultra-premium infused tequila brand created with real fruit juices (valencia orange, grapefruit hibiscus, and cucumber jalapeño), targeting the premium cocktail consumer.
What is Diageo selling in 2026?
Diageo agreed to sell its 65% stake in East African Breweries to Asahi for about $2.3B, and United Spirits agreed to sell the Royal Challengers Bengaluru cricket franchise in March 2026.
Did Diageo buy George Clooney's tequila?
Yes. In 2017, Diageo executed a massive, highly publicized $1 billion acquisition of Casamigos, the tequila brand co-founded by George Clooney. Wall Street initially thought they massively overpaid, but the brand's explosive growth completely vindicated the deal.
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