Diageo buys Ryan Reynolds' Aviation American Gin in deal worth up to $610m
The drinks group Diageo has agreed to buy a gin brand co-owned by the Hollywood actor Ryan Reynolds in a deal worth up to $610m (£466m).
The FTSE 100 company, which owns Smirnoff vodka and Johnnie Walker whisky, will buy Aviation American Gin and its parent company Davos Brands.
Reynolds, the Canadian star of the Deadpool films, bought a stake in Aviation gin in February 2018 and will retain an interest in the business.
Diageo said Aviation was the second largest brand in the super-premium gin segment in the US and one of the fastest growing brands in the category. Aviation’s sales increased by more than 100%in 2019 as demand for premium gin soared in North America.
The deal with Diageo includes an initial payment of $335m, and could be worth an additional $275m, depending on the gin’s performance over the next 10 years.
Diageo will also acquire the Astral Tequila, Sombra Mezcal and TYKU Sake brands as part of the deal.
Ivan Menezes, Diageo’s chief executive, said the acquisition was part of the company’s strategy “to acquire highgrowth brands with attractive margins that support premiumisation.
“We are confident that Aviation American Gin will continue to shape and drive the growth of super-premium gin in North America,” he said.
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. Growing the brand with my company, Maximum Effort Marketing, has been among the most fulfilling projects I’ve ever been involved with.”
He is not the first Hollywood star to invest in the drinks market. George Clooney sold his Casamigos tequila brand to Diageo in 2017 in a deal worth up to $1bn.
Brad Pitt and Angelina Jolie started selling Miraval rosé wine in collaboration with the wine family Perrin in 2013.