UK: Edrington Group enters rum category with Brugal acquisition
The Edrington Group has acquired a majority shareholding in Brugal Co, in a move that expands the Scotch whisky company's offering into the rum category.
Speaking to just-drinks today (6 February), Edrington Group confirmed that it paid "several hundred million dollars" for "a shareholding of just over 60%" in Brugal.
The international rum brand Brugal, will continue to be produced in the Dominican Republic, but will become The Edrington Group's "fifth key brand" joining Famous Grouse, Cutty Sark, The Macallan and Highland Park, the company said.
The Brugal family will remain as shareholders, with George Arzeno Brugal as president of Brugal's board of directors and Franklin Baez Brugal becoming executive president of its board of administration.
A spokesperson for The Edrington Group said: "We've had a corporate strategy to expand the portfolio outside of Scotch whisky and we feel that rum is one of the most exciting sectors within the spirits industry. Furthermore, rum fits well within Edrington's existing core competencies within sales and marketing of international spirits and it does not compete directly with our premium Scotch whisky portfolio."
The spokesperson added: "We're always looking for other acquisitions to grow and expand the portfolio. We've always wanted to expand our portfolio outside of the Scotch whisky category. The growth markets for Scotch whisky are complementary to those for rum and we believe there are great synergies for growth between the two alcoholic beverages."
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