News Alert: Diageo To Acquire Aviation Gin, Davos Brands In Deal Worth Up To $610 MillionAugust 17, 2020
Diageo has announced a deal to acquire super-premium gin label Aviation and New York-based parent company Davos Brands for as much as $610 million. The sum includes an initial payment of $335 million and a further potential consideration of up to $275 million based on the performance of Aviation American Gin over a ten-year period.
Aviation nearly doubled in size to 53,000 cases in the U.S. last year, according to Impact Databank. The brand has been among the upscale labels driving renaissance in super-premium gin lately. Hollywood star Ryan Reynolds became co-owner and creative director of Aviation in 2018, helping to further expand the brand’s audience. Reynolds will retain an ongoing ownership interest moving forward.
“The acquisition of Aviation American Gin and the Davos Brands portfolio is in line with our strategy to acquire high growth brands with attractive margins that support premiumisation,” said Diageo CEO Ivan Menezes. “We are confident that Aviation American Gin will continue to shape and drive the growth of super premium gin in North America and we are looking forward to working with Ryan Reynolds and the Davos Brands team to accelerate future growth.”
In addition to Aviation, Diageo is also acquiring the other brands in the Davos Brands’ portfolio consisting of Astral Tequila, Sombra Mezcal and TyKu Sake.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.