Diageo said it will pay $610 million over 10 years to acquire Davos Brands, the owner of the Aviation American Gin brand and Davos’s other brands, Astral Tequila, Sombra Mezcal and TYKU Sake.
Co-owner Ryan Reynolds, who has exercised creative direction over Aviation Gin, will retain an ongoing ownership interest in the brand.
The $610 million is split between an initial payment of $335 million and a potential payment of up to $275 million, based on performance of Aviation American Gin over the 10 years. “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.”
Aviation American Gin is the second largest and one of the fastest growing brands within the super premium gin segment in the United States. In 2019, it grew volumes at more than 100%, adding the highest number of cases and contributing
40% of super premium gin segment growth.
The super-premium segment of the gin category is gaining momentum in the United States. Having more than doubled its share of the gin category between 2014 and 2019, it grew at a compound annual growth rate of 18.5% – making it the fastest growing spirits segment in the United States, according to ISWR. A number of trends are supporting this growth, including consumer interest in quality ingredients like botanicals, in the variety of serves for gin and in craft spirits, Diageo said.