FDBusiness.com

Diageo has completed the acquisition of full global ownership and control of Tequila Don Julio following the receipt of all regulatory approvals. The acquisition strengthens Diageo’s position in the growing super premium and above tequila segments globally and the important tequila market in Mexico with an already strong and well-positioned brand. Gaining full ownership and distribution rights for Tequila Don Julio and Tres Magueyes, alongside the ‘La Primavera’ distillery, inventory and agave supply, gives Diageo the ability to make investment decisions across supply, marketing, and innovation to support the continued growth of the brand, and become more competitive in the category.

Ivan Menezes, chief executive of Diageo, comments: “I am delighted to have completed this acquisition which delivers on our strategy to build our presence in the world’s fastest growing markets and to invest behind the biggest growth opportunities. Tequila is an important global category with tremendous growth potential and with the purchase of Tequila Don Julio we now have full ownership of a leading ultra-premium brand.”

Erik Seiersen, managing director of Diageo Mexico adds: “This transaction marks a significant milestone for Diageo in Mexico. It transforms our business as a leading local employer, producer, and exporter of one of Mexico’s most important products and reinforces our leading position within premium spirits with the return of Smirnoff and the addition of Tequila Don Julio in its entirety to our portfolio.”

Diageo acquired full global ownership and control of Tequila Don Julio from Casa Cuervo, the Mexican tequila and spirits group. The deal also entailed the early termination of Casa Cuervo’s production and distribution agreement for Smirnoff in Mexico. In return, Diageo sold its Bushmills Irish whiskey business to Jose Cuervo Overseas. The transaction involved a net payment of $408 million to Diageo upon completion.