Diageo’s Peligroso Tequila Acquisition Strengthens Portfolio and Offers Dangers to Patrón

Following on from Diageo’s joint-venture with Sean Combs for the DeLeón luxury tequila brand, it has further strengthened its portfolio with the super-premium brand Peligroso. It is no surprise that the British company has done this as it looks to fill the hole left by José Cuervo and by acquiring Peligroso it gains access to the most dynamic price segment in US tequila, the super-premium one.

In the medium to long term this will make it even tougher for the super-premium category’s dominant player Patrón as it will now have Diageo and all its distribution weight competing directly against it. Despite recent acquisitions of premium positioned products, it does not rule out Diageo making further acquisitions in tequila in lower priced segments, replicating strategies in vodka, gin and blended Scotch, where it looks to have brands at all price points.