Diageo’s acquisition of Don Julio tequila from Jose Cuervo, a Mexican alcoholic beverage manufacturer, represents an enormous statement of intent by the British multinational company to gain a bigger market share of the fast-growing global tequila market (Bray, 2014). The acquisition comes hot on the heels of the takeover of two other tequila brands which were recently made by the corporation, namely DeLeón and Peligroso (Evans, 2014). However, it is worth stating that Diageo’s acquisition of Don Julio tequila was not a straightforward business buy due to the fact that it required the corporation giving up its ownership of the Bushmills Whiskey to Jose Cuervo. This paper seeks to build on this overview to extensively discuss the nature, terms …show more content…
Some of the company’s prominent alcoholic brands include Guinness, Johnnie Walker and Smirnoff (Bray, 2014). The corporation, which is listed in both the London Stock Exchange and the New York Stock Exchange, distributes its products to close to 200 countries across the globe. The company’s expansive distribution network and continued dominance of the global whisky industry has continued to position it as one of the world’s largest alcoholic beverage corporations (Bray, 2014). On the other hand, Jose Cuervo is a Mexican alcoholic beverage company that is owned by the famous Beckmann family (Lorenzetti, 2014). The family’s global reputation is secured on the important role it has played over the years in popularizing the commercialization of tequila production. Jose Cuervo’s flagship product is its eponymous tequila brand, Jose Cuervo, which is by far the best-selling and most popular brand of tequila in the world (Evans, 2014). The company mostly collaborates with other alcoholic beverage corporations such as Diageo Plc and Proximo Spirits …show more content…
As per this asset-swap arrangement, Diageo will assume full ownership of the tequila brand Don Julio, a move that merges with its long-held aspiration of venturing into the ultra-premium tequila sector (Lorenzetti, 2014). Diageo has traditionally held 50% of the Don Julio tequila and therefore, the corporation ended into this new agreement with a view of gaining the remaining 50% of the control the highly valued tequila brand. In return, Diageo was to transfer the ownership of the successful Bushmills Whiskey brand to the Beckmann family-owned Jose Cuervo Company (Evans, 2014). Bushmills Whiskey is currently one of the bestselling whisky brands in many markets, including North America and