Actor Ryan Reynolds is the latest celebrity in Hollywood to make a deal with Diageo after selling his Aviation American Gin brand to the liquor giant for $ 610 million.
Diageo said Monday it paid an initial $ 335 million to Aviation American, in which Mr. Reynolds is a major shareholder, along with three other spirits, through the acquisition of Davos Brands.
The remaining $ 275 million will be paid out over 10 years to Davos shareholders and Mr. Reynolds depending on the performance of the markets.
Mr. Reynolds, who will retain an ownership interest in Aviation American, has also signed an agreement to work on gin marketing in the coming decades.
The deal is Diageo’s fourth major bond with an alcoholic company with famous fronts – part of a broader strategy at the UK-based liquor conglomerate of buying small, high-growth brands for premium spirits in various categories.
In 2017, actor George Clooney’s Casamigos bought tequila company for $ 700 million in a transaction involving a similar performance-related payout subject that Mr Clooney remained involved with the company.
The world’s largest liquor company in 2014 collaborated with P Diddy in a 50-50 joint venture to buy DeLeón tequila, after they had already struck a $ 100 million deal with the American rap star for Cîroc vodka in the To earn FS. It also has a partnership with footballer David Beckham for their Haig Club whiskey.
Although Mr Reynolds’ interest in Aviation American Gin, which he bought in 2018, is undisclosed, a source close to the company said it was “substantial”.
Mr. Reynolds said he bought the brand “because I like the taste of Aviation more than any other mind”, adding that working on the creative direction had been “one of the most pursuing projects I’ve ever worked on”. west bin. “
The deal has a recent successful run for the actor who earned $ 40 million from Netflix for his two most recent films 6 Underground en Red notice, according to Forbes, which this year placed itself among the highest paid players with a net worth of $ 71.5 million.
A typical bottle of Aviation American Gin costs $ 27 in the US, where the general gin market has remained relatively flat compared to the rapidly growing popularity of the drink in Europe.
So-called super premium gins like Aviation American have gained momentum following a trend of consumers seeking to drink less alcohol but trading to higher quality brands when they do.
The segment more than doubled its share in the general gin category between 2014 and 2019, according to the beverage industry analytics group IWSR, making it the fastest-growing spirit type in the US.
The acquisition will add to the gin brand’s portfolio of gin brands, which include Tanqueray, Gordon’s and Italian premium brand Villa Ascenti.
Diageo said that in the year to end-June, sales outlets, which account for 5 percent of its net revenue, fell 4 percent mainly due to the impact of lockdowns in Europe. Before coronavirus, sales of the mind had grown with a like-for-like increase in net sales of 7 percent in the six months to end-January.
Debra Crew, president of Diageo North America, said she expected “continuous momentum” for Aviation American in the US and that she “was confident that with Ryan’s global reach that Aviation Gin could expand internationally”.
The deal also includes Astral Tequila, Sombra Mezcal and TYKU Sake.
This article was modified to make it clear that Ryan Reynolds is a major shareholder in Aviation American, not Davos
