Diageo has added to its portfolio of celebrate brands, acquiring Ryan Reynolds' Aviation American Gin for $US610million.
It follows the drinks giant buying George Clooney's Casamigos tequila in 2017 in a deal worth up to $1billion.
Diageo reached agreement to acquire Aviation American Gin through the acquisition of Aviation Gin LLC and Davos Brands LLC (‘Davos Brands’).
Aviation is an American style gin crafted with a blend of botanicals with subtle juniper notes. Reynolds became co-owner of the brand in 2018 and will retain an ongoing ownership interest in the brand.
Aviation is the second largest and one of the fastest growing brands within the super premium gin segment in the United States. In 2019, it grew volumes at more than 100%, adding the highest number of cases and contributing 40% of super premium gin segment growth in the US.
The super-premium segment of the gin category is gaining momentum in the US. Having more than doubled its share of the gin category between 2014 and 2019, it grew at a compound annual growth rate of 18.5% - making it the fastest growing spirits segment.
The total consideration for the sale is up to $US610 million, which includes an initial payment of $US335 million and a further potential consideration of up to $US275 million based on the performance of the gin over a 10-year period.
Through this acquisition, Diageo is also acquiring the other brands in the Davos Brands’ portfolio consisting of Astral Tequila, Sombra Mezcal and TYKU Sake.
Ivan Menezes, Chief Executive of Diageo, said: “We are delighted to announce this transaction, which supports our participation in the super premium gin segment in the United States.
"The acquisition of Aviation American Gin and the Davos Brands portfolio is in line with our strategy to acquire high growth brands with attractive margins that support premiumisation. We are confident that Aviation American Gin will continue to shape and drive the growth of super premium gin in North America and we are looking forward to working with Ryan Reynolds and the Davos Brands team to accelerate future growth.”
Ryan Reynolds added: “A little over two years ago, I became an owner of Aviation Gin because I love the taste of Aviation more than any other spirit.
"What I didn’t expect was the sheer creative joy learning a new industry would bring. Growing the brand with my company, Maximum Effort Marketing, has been among the most fulfilling projects I’ve ever been involved with.
"I want to thank Diageo for their incredible team and passion. We’re so excited for the next chapter of Aviation Gin, which, I promise, will require just as little reading.”
Reynolds’ hilarious out-of-office email
According to Entertainment Tonight, Reynolds' has recorded a new bounceback on his emails that says: “Thanks for your email. I am currently out of the office but will still be very hard at work selling Aviation Gin. For quite a long time, it seems.”
He continues: “In related news, I just learned what an ‘earn out’ is … And I’d like to take this opportunity to apologise to everyone I told to go f**k themselves in the last 24 hours. My lawyers just explained how long it takes to achieve an ‘earn out’ … so … turns out I’m not as George Clooney as I thought. The point is, to those listed below, I’m sorry … and I’ll indeed be needing your help in the coming months and years. Thanks in advance!"
He then goes on to list several companies, notable names and loved ones including, “Mum, Blake, Peter, Diageo CEO, The Rock, George Clooney, Southern Glazer’s, Betty White, TGI Friday’s, Baxter, Calisthenics, AMC Theatres, Total Wine, the number 8, Don Saladino, Darden, the head of Alfredo Garcia, soothing lavender eye pillows.”
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