DIAGEO COMPLETES ACQUISITION OF RYAN REYNOLDS' AVIATION GIN

Further to the announcement on 17 August 2020, Diageo announced that it has completed the acquisition of Aviation Gin and Davos Brands.

This acquisition supports our participation in the super premium gin segment in the United States and is in line with Diageo’s strategy to acquire high growth brands with attractive margins that support premiumization.

“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”, said Ivan Menezes, Chief Executive of Diageo.

Aviation American Gin is an American style gin crafted with a blend of botanicals, with subtle juniper notes, delivering a smooth balanced flavor profile. The brand has thrived under the leadership of its majority owner, Davos Brands, and the creative direction of co-owner Ryan Reynolds, who will retain an ongoing ownership interest in Aviation American Gin.

Through this acquisition, Diageo is also acquiring the other brands in the Davos Brands’ portfolio consisting of Astral Tequila, Sombra Mezcal and TYKU Sake.

The total consideration is up to $610 million, which 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.  This reflects the brand’s current growth trajectory and expected upside potential.

Aviation American Gin is the second largest and one of the fastest growing brands within the super premium gin segment in the United States, having disrupted the gin category with its modern craft credentials. In 2019, it grew volumes at over 100%, adding the highest number of cases and contributing 40% of super premium gin segment growth. The brand is well positioned to continue recruiting consumers into gin with its accessible flavor profile and American provenance.

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