Diageo, a giant British liquor company, is buying Ryan Reynolds-owned gin.
British beverage company Diageo is purchasing Aviation American Gin, a brand of alcoholic drink that is co-owned by actor Ryan Reynolds. The price is reported to be about $610 million.
This merger will include an initial fee of $335 million. Diageo, which also owns renowned Scotch whisky Johnnie Walker, has acquired Aviation Gin with additional payment of $275 million depending on its sales for the next ten years. The brand that has an ownership from “Deadpool” star was previously sold to New York-based distributor Davos Brands in 2016.
Reynolds will remain as the face to represent the brand for a decade, according to Insider. He will still have an ownership stake even with the acquisition. Amid the deal, the celebrity has even changed his auto-reply ‘unavailable’ email to: “Thanks for your email. I am currently out of the office but will still be very hard at work selling Aviation Gin. For quite a long time, it seems.”
Diageo and Another Star’s Business
It is not the first time the British alcoholic beverage maker has acquired a brand owned by a famous personality. In 2017, it bought Casamigos, a tequila brand that was co-founded by multi award-winning actor George Clooney. Diageo paid $700 million for this deal.
Their 2020 Earnings
The pandemic has hurt restaurants and bars across the country. Consequently, it also affected sales of alcohol firms, including the multinational alcohol giant Diageo. Their annual sales concluding in June dropped by 8.4 percent.
CNN reported that Diageo sees Aviation Gin as among those fast-growing brands in the “super-premium” gin category in the US.
Reynolds said in a statement that he is excited for the “next chapter” of the brand. The “Red Notice” star was said to be this year’s second-highest-paid actor. The number one is Dwayne “The Rock” Johnson. This was according to the ranking of Forbes magazine.