FDBusiness.com

Diageo has reached agreement to acquire Aviation American Gin along with its owner Davos Brands. 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. The brand is well positioned to continue recruiting consumers into gin with its accessible flavour profile and American provenance.

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.

“We are delighted to announce this transaction, which supports our participation in the super premium gin segment in the United States. 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,” comments Ivan Menezes, chief executive of Diageo. “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.”