Diageo announced Monday that it plans to acquire Aviation American Gin, which is co-owned by actor Ryan Reynolds, among other spirits sold by Davos Brands.
The total consideration is up to $ 610 million, which includes an initial payment of $ 335 million and a potential additional consideration of up to $ 275 million, based on Aviation Gin’s performance over a 10-year period. Diageo said in a statement that this financial plan reflects the brand’s current growth trajectory and expected upside potential. The transaction is expected to close before the end of 2020. Reynolds will maintain an ownership interest in Aviation Gin.
Founded in Portland, Oregon, with inspiration for the company dating back to 2005, Aviation Gin has historically been described as an “American gin,” with a botanical blend that is touted as smoother and easier to drink compared to gins from London. Dry. Previously, the company had been wholly owned by artisanal spirits importer Davos Brands after being purchased in November 2016. Other spirits in Davos’s portfolio include TY KU Sake, Sombra Mezcal and Astral Tequila.
The Deadpool actor caused a sensation in February 2018 with the surprise announcement of his stake in the property. Also serving as the face of the brand on billboards and commercials, Reynolds told reporters a few months later that he planned to take an active role in the day-to-day business and creative direction of the company.
The acquisition marks Diageo’s second purchase in recent years in a spirit backed by Hollywood. In 2017, the spirits conglomerate acquired the Casamigos tequila brand, which had been co-founded four years earlier by George Clooney and Rande Gerber, in a deal estimated at $ 1 billion.
Reynolds and Clooney are just two of the many Hollywood personalities who have invested in liquor brands in recent years, although they are among the few who have made the most profits so far. Some of the other most successful collaborations to date include Sean “Diddy” Combs, who has served as an ambassador for the Cîroc vodka brand since 2007; Justin Timberlake’s Tequila Collaboration with Casa Sauza; and reality star Bethenny Frankel’s Skinnygirl line, which includes wine, vodka, margaritas and sangria in association with Beam Suntory. Matthew McConaughey also announced in 2018 that he was working on a collaboration to launch Wild Turkey Longbranch, a filtered bourbon with Texas mesquite and oak charcoal.
The well is also filled with celebrities from the wine industry, including the sprawling Napa Valley wine estates of Francis Ford Coppola and Miraval Rosé, hailing from France’s famous Provence region and a joint purchase in 2012 around the then couple. Angelina Jolie and Brad Pitt. On the other hand, not all celebrity-endorsed wines and spirits are popular with fans, and some have become sources of ridicule rather than income. Cameron Diaz’s recent debut in the wine market, the so-called Avaline clean wine, was greeted this summer with a lukewarm reception, as it does not actually meet the standards of natural wine.
However, Diageo’s multi-billion dollar (and billion dollar) purchases will likely attract more celebrities to lend their names to beer, wine, and spirits brands, perhaps providing a more secure cash flow, especially since TV and film productions remain in limbo in the US the pandemic continues.
For Diageo, the purchase of Aviation Gin completes the company’s extensive portfolio, expanding its presence in the super premium gin market, which has gained popularity in recent years, even if the definition of super premium remains debatable. In 2019, Aviation Gin increased volumes by more than 100%, adding the largest number of cases and contributing 40% of the growth of the super premium gin segment, according to IWSR data.
But it also helps to have another brand of gin in the mix; Gin sales have increased in recent years thanks to the growing popularity of certain cocktails, such as the Negroni. Aviation Gin will join Tanqueray, Gordon and Gilbey’s gin in Diageo’s liquor cabinet. The London-based corporation also owns Scotch whiskey maker Johnnie Walker, Captain Morgan rum, Baileys Irish Cream, Don Julio tequila, Guinness beer, and vodka makers Smirnoff, Cîroc and Ketel One.
