Captain Morgan owner Diageo has agreed to acquire Philippine rum brand Don Papa for an initial $281.5m. The deal would also see Diageo pay up to $192.2m through 2028, depending on the brand’s performance. The super-premium-plus rum segment increased by a compound annual growth rate (CAGR) of 18% in Europe and 27% in the US between 2016-2021, according to IWSR data cited by Diageo. During the five-year period, Don Papa outperformed the market in Europe, with a CAGR of 29%. Diageo’s rum portfolio includes spiced rum Captain Morgan, Guatemalan brand Ron Zacapa and Cuban brand Ron Santiago de Cuba, the latter of which it distributes internationally.