Diageo, the world’s largest spirits maker, said on Monday it was buying Aviation American Gin, co-owned by Hollywood actor Ryan Reynolds, in a deal worth up to $610million.
The Deadpool actor became the face of Aviation Gin after purchasing an unspecified, but ‘significant’ stake in the company in February 2018.
Diageo acquired Aviation Gin and its majority owner Davos Brands, which owns three other spirit brands – Astral Tequila, Sombra Mezcal and Tyku Sake – for an initial payment of $335million.
The deal also includes an additional $275million if sales continue to impress over the next decade.
Cheers! Ryan Reynolds’ Aviation Gin has sold to the beverage giant Diageo for $335million and stands to make another $275million if their sales stay steady
Leading the industry: Diageo is a big player in the beer and liquor world, also behind Johnnie Walker, Smirnoff, Captain Morgan, and Tanqueray
The actor will retain his stake in Davos Brands, LLC but his role as a spokesperson remains unclear.
Aviation Gin reported 100 per cent growth in sales volumes in 2019 as demand for super-premium gin continues to surge in the US.
According to the Distilled Spirits Council, distillers sold nearly 10 million nine-liter cases of gin in the US in 2019, generating $918million in revenue, a 3 per cent rise over 2018.
Most of this growth was driven by the super-premium gin category where bottles cost $25 and upwards.
Aviation Gin, which retails for $27 per 750 millilitres, is the second-largest super-premium gin brand in the US and has contributed 40 per cent of super-premium gin category growth in the country.
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 premiumization.
‘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.’
In a statement Reynolds said: ‘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.
He’s a fan: Talking about Aviation’s new chapter in a statement, Reynolds said: ‘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.’ Ryan will retain his stake in Aviation’s old parent company Davos Brands, LLC
Taking a shot: Diageo picked up George Clooney, restaurateur Rande Gerber and business partner Mike Meldman’s Casamigos tequila for $700million in 2017. Clooney is seen with his tequila, in 2015 above
‘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,’ he went on.
Diageo is a big player in the beer and liquor world. The British company’s portfolio also includes Johnnie Walker, Smirnoff, Captain Morgan, and Tanqueray, among others.
Aviation was founded in 2006 and later purchased by Davos Brands, LLC, of New York in 2016.
Reynolds first connected with the American-style gin brand through WME and Endeavor’s Talent Ventures group to become the spokesperson and a partial owner.
Reynolds and Aviation appear to be following a similar playbook as other celebrity spirit brands.
Diageo picked up George Clooney’s Casamigos tequila, which he owns with restaurateur Rande Gerber and business partner Mike Meldman for $700million in 2017.
Sweetening that pot, the trio was promised an extra $300million based on subsequent sales numbers.
