Diageo Sells Off Another Brand to Focus On ‘Effective Portfolio Management’

Diageo sold Cacique Rum, a popular rum brand in Venezuela. (Photo: Diageo)
Diageo announced on Thursday that the spirits behemoth was selling off yet another brand, Cacique Rum, to the French spirits company, Bardinet. The latest move marks a slightly worrying trend for Diageo.
Many consider October, November and December to be a robust sales period for the spirits industry, with sales reps affectionately referring to the period as “O.N.D.” Yet the third quarter appeared to be a bit tumultuous for the spirits brand.
Diageo appeared to be looking to sell off its Pimm’s liqueur brand but ended up keeping Pimm’s within its portfolio in October. In November, Diageo paused construction on a $176 million facility for Crown Royal whisky in St. Clair, Canada. The following month, Diageo appeared to be courting potential buyers for Cîroc Vodka after the disgraced music mogul, Sean “Diddy” Combs sold his shares of the brand.
Yet as for its most recent sale of the 65-year-old Venezuelan rum brand, Diageo shared its reasons were strategic.
“The sale of Cacique reflects Diageo’s strategy of maintaining a sharp focus on effective portfolio management,” Diageo President of Europe John Kennedy said in a statement. “We are confident that Bardinet is the right owner for Cacique, maintaining the brand’s authenticity and prominent position in Spain and Venezuela, as well as building its position in Continental Europe.”
Cacique Rum has a fairly large market in Spain and Venezuela, according to Diageo. The terms of the deal were not provided by the company.
The Spirits Business reported that Diageo’s organic net sales were flat as of the fiscal year ending on June 30, 2024. The outlet shared that rum sales dropped by 6%, and the major rum brand, Captain Morgan, dropped by 5%.
In July, Diageo reported a decline of 22% in sales for its Casamigos Tequila brand and a 10% decline in Johnnie Walker Scotch Whisky. On a more positive note, Bulleit Bourbon experienced a 12% bump in sales, and Don Julio Tequila experienced a 12% increase in the United States.
As for the Cacique sale, it appears the rum brand will be welcomed into Bardinet S.A.’s portfolio with open arms.
“We are excited to announce the acquisition of Cacique, a uniquely positioned Venezuelan rum with a strong heritage,” said CEO of Bardinet S.A. Jean-Paul Bouyat in a statement. “This is a strategic addition to our portfolio which will help us increase our rum market share in Spain and beyond. We are looking forward to integrating this brand into our family, continuing to strengthen our offering, whilst always ensuring exceptional taste and quality.”