The best of the Philippines and the best of UK unite
Last Thursday, Jan. 26, I had the honor of co-hosting the Philippine Economic Briefing in London and moderating the panel comprising Finance Secretary Benjamin Diokno, Budget Secretary Amenah Pangandaman, Bangko Sentral Governor Felipe Medalla and National Economic and Development Authority Undersecretary Rose Marie Edillon.
It was a successful pitch by our economic managers to investors in the United Kingdom and everyone was in bright spirits following the announcement that the country’s gross domestic product growth rate for 2022 hit 7.6 percent or higher than the target of 6.5 to 7.5 percent.
But what struck me most came from the UK Prime Minister’s trade envoy, Richard Graham, who gave the opening remarks and introduced Secretary Diokno. He gave the latest example of excellent UK-Philippine relations: Diageo Plc’s acquisition of Don Papa Rum.
Don Papa rum is a premium dry-aged, single-island rum. It is proudly made in Negros but even on my trip to Bordeaux, I saw it proudly being displayed in a wine shop. Europeans love Don Papa. The last time I wrote about it, they had just launched their latest expression, the Don Papa Sevillana Cask.
Don Papa is generally aged in American oak, in ex-bourbon barrels. For their rum innovations, they add another dimension to the aging process. For example, for the Don Papa Rare Cask, they transfer the rum from ex-bourbon barrels to specially “shaved, toasted and roasted” barrels” to bring out the flavor in a barrel. The innovations are wonderful, though I am partial to the original.
Meanwhile, Diageo is known for owning and further developing brands such as Johnnie Walker and Smirnoff.
Just this month, it was announced that Diageo is acquiring Don Papa Rum for an initial 260 million euros or around P15.3 billion. According to reports, Diageo will pay upfront 177.5 million euros or around P10.5 billion through 2028, which may even bring the total deal value to 437 million euros or around P26 billion.
Greg Garcia, the advertising guru who first introduced me to Don Papa Rum, had talked about “the value of a brand.” That may be true. From the intricate and powerful label to the stylish events to promote the brand, the Don has proven his power.
But I would argue that it’s not just the brand. The product itself is stellar. If it exhibited less character than it does in terms of flavor, fans around the world would know.
Nevertheless, this development is welcome news in that the label now joins some of the most memorable names: Johnnie Walker, Tanqueray, Ciroc and (my fave) Guinness. It will now be distributed in more than 180 countries.
Diageo’s strong track record in nurturing founder-led brands is well-respected. Member of Parliament Richard Graham is right. It’s an excellent coming together of the best of the United Kingdom and the best of the Philippines indeed!
