Diageo acquires gin brand in $610-M deal that requires Ryan Reynolds' services

Drinks giant Diageo has bought the gin brand Aviation American and three other spirits as part of a $610 million deal that requires co-owner and Hollywood actor Ryan Reynolds to remain the face of the brand.

Under the deal, Diageo's initial payment of $335 million would be shared by the Deadpool star and other shareholders, with a further potential of up to $275 million to be paid based on Aviation American Gin's performance over the next decade.

While Reynolds is not a controlling shareholder, he holds a large stake and would likely get a huge payout.

Astral Tequila, Sombra Mezcal, and TYKU Sake are the other brands that are being sold as part of the deal.

Reynolds, who became a shareholder in 2018, stars in Aviation American Gin's advertisements and has creative control of its marketing. He was among the highest-paid actors in 2020 after appearing in the Netflix films Red Notice and 6 Underground.

The actor swears he loves the taste of Aviation and the creative joy in learning a new industry.

According to Diageo boss Ivan Menezes, the strategy was to acquire high growth brands with attractive margins that support consumers willing to pay more for higher quality.

Aviation American, which costs $27 per bottle in the US, is now the second-largest brand in the "super-premium gin" category in the country and one of the fastest-growing.

The deal is Diageo's fourth with a celebrity-fronted alcohol brand.
It had bought George Clooney's Casamigos tequila for $700 million and teamed up with P Diddy to buy DeLeón tequila and market Cîroc vodka in the US.

The company also has a marketing partnership with David Beckham for the Haig Club whiskey.