January 27, 2014 / 1:15 PM / 4 years ago

Diageo strengthens tequila portfolio with Peligroso buy

LONDON, Jan 27 (Reuters) - Britain’s Diageo, the world’s biggest spirits maker, has added to its tequila offering with the acquisition of super-premium brand Peligroso, the company said on Monday.

The deal comes three weeks after Diageo and rapper-turned-business mogul Sean “Diddy” Coombs teamed up to buy luxury U.S tequila 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, founded by two avid surfers, 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 U.S., according to Nielsen.

Financial terms 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 Jan. 8 Diageo’s North America President Larry Schwartz told Reuters the deal was not going to be the last in its tequila portfolio.

Shares in Diageo were down 0.6 percent to 1934.5 pence at 1250 GMT.

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