Ryan Reynolds is set to cash in on his side with Aviation American Gin. Diageo PLC, the world’s largest alcohol scorer, has pledged to pay up to $ 610 million to acquire the brand, which Reynolds co-own and its fun-loving pitchman. Diageo plans to make an upfront payment of $ 335 million and up to $ 275 million more over the next decade, based on the performance of Aviation American Gin. The deal is expected to close by the end of 2020.
Diageo’s agreement is with New York-based Davos Brands, LLC, the distributor that produces Aviation Gym and other alcohol brands. Reynolds purchased an undisclosed stake in Aviation Gin in 2018 and will retain his interest in the brand once the deal is done. It’s a smart move on Diageo’s part, as Reynolds’ goofy personality is closely tied to aviation marketing. Reynolds, best known for the lead role in “Deadpool,” is married to actress Blake Lively. The couple have three children.
In 2018, when Reynolds bought Aviation Gin, sales were around $ 20 million. The following year, sales increased to $ 40 million. This represents about 1.3% of the gin market in the U.S. Aviation sold approximately 96,000 cases of gin in 2019.
Diageo also makes Smirnoff, Johnnie Walker Scotch vodka products, and in 2007 partnered with rapper Sean Combs to create Ciroc vodka. Then, just three years ago, Diageo committed $ 700 million to buy George Clooney and Rande Gerber’s premium tequila brand, Casamigos. Diageo also purchases other brands from Davos Brands as part of the Aviation deal including TYKU Sake, Sombra Mezcal and Astral Tequila.
In a statement released by Diageo, Reynolds said: “A little over two years ago, I became the owner of Aviation Gin because I love the taste of aviation more than any other mind. I didn’t expect it was the sheer creative joy of learning. a new industry would bring. Growing the brand with my business, Maximum Effort Marketing, has been one of the most rewarding projects I have ever done. participated. I want to thank Diageo for his incredible team and passion. the next chapter of Aviation Gin, which I promise will require just as little reading. “