Diageo buys another celebrity tipple
United Kingdom | Hollywood actor Ryan Reynolds has become the latest celebrity to cash in on the popularity of premium spirits. The UK drinks group Diageo has bought the gin brand he co-owns, Aviation American, along with three other spirits as part of a USD 610 million transaction, media reported on 17 August 2020.
Mr Reynolds has agreed to remain the face of Aviation American for the next ten years.
He follows actor George Clooney, rapper P Diddy and footballer David Beckham in striking deals with Diageo.
Mr Reynolds became a shareholder in Aviation American Gin in 2018. As reports the BBC, he not only stars in all of its adverts, but also has creative control of its marketing.
Pricey tipples
According to Diageo, Aviation American is now the second-largest brand in the “super premium gin” category in the US and one of the fastest-growing. A bottle typically retails for USD 27 in the United States.
Under the agreement, Mr Reynolds and other shareholders will receive an initial payment of USD 335 million and a further potential consideration of up to USD 275 million, based on the brand’s performance over the next ten years.
Aviation Gin is owned by Davos Brands, headquartered in New York. Its brands Astral Tequila, Sombra Mezcal and TYKU Sake are also being sold as part of the deal.
Diageo has gone after celebrity-fronted alcohol brands before. In 2017, it bought George Clooney's Casamigos tequila brand for reportedly USD 700 million, having already teamed up in 2014 with the rapper P Diddy to acquire the tequila brand DeLeón. The drinks group has also won over the former soccer player David Beckham to market its Haig Club whisky.
