Diageo strengthens tequila portfolio with Peligroso buyMonday 27 January 2014 14.26
Diageo, the world's biggest spirits maker and the owner of Guinness, has added to its tequila offering with the acquisition of super-premium brand Peligroso, the company said today.
The deal comes three weeks after Diageo and rapper-turned-business man Sean "Diddy" Coombs teamed up to buy luxury UStequila brand DeLeon.
Last year the group lost sales and profit when it stopped selling Jose Cuervo, the world's best-selling tequila.
Diageo said Peligroso was popular in the action sports and surfing scene of southern California and would give the firm a foothold in super premium $20-$40 tequila, the fastest growing tequila segment in the US, according to Nielsen.
Financial terms of the deal were not disclosed.
Diageo, whose other spirit brands include Johnnie Walker whisky and Smirnoff vodka, let its distribution agreement with Cuervo's owner, the Beckmann family expire after failing to get an equity stake.
When announcing the joint acquisition of DeLeon on January 8 Diageo's North America President Larry Schwartz told Reuters the deal was not going to be the last in its tequila portfolio.