Diageo to spend up to €438m on Philippines rum brand days after raising price of pint

Last week the firm said it could no longer absorb the cost of inflation for drinks such as Guinness

Diageo owns several popular drinks brands sold in Ireland, including Guinness. Picture: Getty

Diageo is to spend up to €438 million after agreeing to buy Don Papa Rum, a Philippines rum brand.

The London and Dublin-listed company said it would pay €260 million initially for Don Papa Rum, and could make additional payments of up to €177.5 million up to 2028 subject to performance.

Diageo said this reflected the brand's “current growth potential”, and added that the brand has outperformed its rivals growing by 29 per cent a ...