Actor George Clooney is removing a large payday from a tequila association he founded in 2013.
Spirits association Diageo is shopping Casamigos, a tequila association co-founded by George Clooney, in a understanding that values a association during adult to $1 billion. The actor founded a association in 2013 with longtime crony Rande Gerber.
Diageo will make an upfront remuneration of $700 million for Casamigos, with another $300 million to follow if it hits sales targets.
Casamigos “has delivered considerable growth,” Diageo says in a news release, “reaching 120,000 cases in 2016, essentially in a U.S.” The association says a tequila code is approaching to tip 170,000 cases by a finish of this year.
To maximize destiny growth, Diageo says it will build on what it calls “significant general intensity of a brand.”
Casamigos’ founders (Clooney, Gerber and Michael Meldman) will continue to foster and lead a tequila code they created, Diageo says.
The association began after Clooney and Gerber built adjacent vacation homes in Cabo San Lucas, Mexico.
“As we do when you’re in Mexico, we splash a lot of tequila,” Gerber told CNBC final year, explaining how he and Clooney came adult with a thought of conceptualizing a tequila to their possess tastes.
They worked with a distiller in Jalisco, Mexico, to emanate a tequila that became Casamigos — though did not have any goal of offered it. After a distiller told them they indispensable to get a permit to go along with a roughly 1,000 bottles they were creation any year, they reluctantly combined a company, Gerber said.
In 2013, a company’s initial bottles went on store shelves; today, 750-milliliter bottles of Casamigos sell for around $50.
The thought to make a well-spoken residence tequila, Gerber pronounced in Wednesday’s news recover from Diageo, “has fast incited into a fastest flourishing super-premium tequila.”
If a understanding closes by a finish of 2017 as expected, a tequila will join a spirits residence that includes Don Julio tequila, as good as princely brands such as Guinness beer, Johnnie Walker scotch, Tanqueray solitaire and Ketel One vodka.