Actor Ryan Reynolds has scored another hit with the sale of his Aviation Gin to Diageo for as much as $ 610 million.
Diageo said on Monday the deal includes an initial payment of $ 335 million, with a further payment of up to $ 275 million based on sales of the product over a period of 10 years. Aviation Gin is owned by Davos Brands and Reynolds, who told Diageo he will “maintain a lasting ownership interest.” The gin will be part of Diageo’s lineup of gin brands including Tanqueray, as well as other spirits such as Smirnoff vodka and Johnnie Walker Scotch whiskey.
Ghosts of the Ghosts generated online buzz last year after the “Deadpool” star tweeted an ad for the drink poking fun at a Peloton commercial much criticized as a promotion of negative body images and unusual marital dynamics. The Aviation promo describes the actress from the original Pelaton ad who looks low into the distance as she is comforted over martinis at a bar by a couple of friends. One friend says, “You’re safe here.” Reynolds tweeted the ad with the line, “Exercise bike not included.”
Emerging gin brands have grown in popularity, according to trade publication The Drinks Business, which noted last year that more than 400 new gins have hit the market since 2016. Most of these newcomers are premium gins such as Aviation, which consumers use in cocktails such as negronis, martinis and gin and tonics.
“A little over two years ago, I became the owner of Aviation Gin because I love the taste of Aviation more than any other spirit,” Reynolds said in a statement. “We are so excited for the next chapter of Aviation Gin, which I promised will require just as little reading.”
The super-premium gin segment doubled its share of gin sales from 2014 to 2019, growing at a compounded annual growth rate of 18.5%, Diageo said in another statement. Aviation is one of the fastest growing markets in what Diageo calls the “super premium” gin segment in the US, doubling its sales last year.
The purchase is expected to close by the end of 2020.
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