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Ryan Reynolds sells Aviation Gin To Diageo for $610 Million

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Ryan Reynolds sells Aviation Gin To Diageo for $610 Million

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Ryan Reynolds has secured another victory by selling his Aviation Gin to Diageo for up to $610 million.

While the big actor paydays are now coming from film and series auction agreements won by streaming services, hitting the bottle has become a rather excellent method for stars to enhance their earnings. Ryan Reynolds is at the core of a deal in which Diageo purchased Aviation American Gin today. The total value of the transaction is expected to be $610 million, including a $335 million down payment.

Labels such as Astral Tequila, Sombra Mezcal, and TYKU Sake are among the brands being exchanged. However, Aviation American Gin will be the most well-known to the general public. The Hollywood A-lister bought an undisclosed share in the company in 2018, after which the label gained significant recognition. He will maintain a continuing ownership stake under the provisions of the new agreement. Although the exact details remain unknown.

Last year, the “Deadpool” star tweeted an ad for the drink that poked fun at a Peloton advertisement that was widely condemned for promoting negative body images and bad marital relationships. The actress from the original Pelaton commercial appears in the Aviation advertisement looking blankly into the horizon while being consoled by a pair of pals over martinis at a bar. “You’re safe here.” one buddy says.

According to Bloomberg, Reynolds will continue to be the brand’s public face for the next ten years, getting a small upfront payment for the sale now and all additional payments based on the brand’s future performance.

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. I want to thank Diageo for their incredible team and passion. We’re so excited for the next chapter of Aviation Gin, which, I promise, will require just as little reading.”

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The deal falls short of one made in 2017 by Diageo, which paid $700 million plus a potential $300 million bonus dependent on performance to George Clooney, Rande Gerber, and Mike Meldman for their Casamigos tequila brand.

This is serious business. Aviation, for its part, is the second greatest driver in the very premium gin market in the United States. And Reynolds’ star power has played a significant role in the company’s fast rise. According to Diageo estimates, aviation grew volumes by more than 100% in 2019, adding the most cases and accounting for 40% of ultra premium gin sector growth.

According to trade newspaper The Drinks Business, which reported last year that more than 400 new gins have reached the market since 2016, emerging gin brands have surged in popularity. The majority of these newcomers are premium gins that consumers are utilizing in cocktails such as negronis, martinis, and gin and tonics.

Tanqueray and Gordon’s are two of the category’s best-selling brands, which the company already owns. However, they are very standard London Dry bottlings. Diageo is clearly attempting to attract a wider audience with this recent addition. Millennials, in particular, are drawn to the more approachable tonalities of so-called ‘New World Gin.’ For the uninitiated, this essentially means less juniper-forward.

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