FDBusiness.com

Diageo to Acquire Super-premium Tequila Brand For $1 Billion

 Breaking News
  • Solid Revenue Growth at Froneri as Significant Investment Programme Continues Froneri, the international ice-cream manufacturer, has reported solid group revenue growth of 3.6% to €2.6 billion for year ended 31 December 2018. Created in 2016 as a joint-venture between PAI Partners and Nestlé, Froneri is the second largest manufacturer of ice cream in Europe, the third largest worldwide and the number one private label producer [...]...
  • Where the Food and Beverage World Tastes Success – Fi Europe & Ni Returns to Paris This year, Food ingredients Europe & Natural ingredients will once again be the food industry’s epicentre over the course of three days. The Parc des Expositions Paris Nord Villepinte will become the number 1 platform where leading ingredient manufacturers establish numerous high-quality business connections. Trade visitors can expect a broad spectrum of products, concepts and [...]...
  • A Gut Feeling About Body Fat Research shows that loss of body fat causes the growth of the intestine and increases its capacity to absorb nutrients. This presents new approaches for weight management. Researchers at Teagasc (Irish Agriculture and Food Development Authority) and the University of Aberdeen have found that the depletion of fat stores inside the body causes the growth of [...]...
  • First Milk Acquires Fonterra’s 51% Stake in Fast Forward Joint Venture First Milk, a wholly British farmer-owned dairy co-operative, has agreed to purchase Fonterra’s 51% share of its Fast Forward joint venture, established in 2011, and has entered a new strategic partnership with Havero Hoogwegt for global WPC80 sales and distribution. From July 2019, First Milk will be the sole owner of the whey protein concentrate [...]...
  • Leaders in Luxury Packaging Join London’s Most Exclusive Packaging Event Luxury Packaging London 2019 will celebrate its 10th anniversary when it returns to Olympia on 11 & 12 September, hosted alongside Packaging Innovations. As the UK’s leading luxury packaging event, it will bring together over 180 exhibitors and a dedicated audience of senior buyers, all looking to source the latest in luxury packaging solutions. With consumer concerns [...]...

Diageo to Acquire Super-premium Tequila Brand For $1 Billion

Diageo to Acquire Super-premium Tequila Brand For $1 Billion
June 23
10:20 2017

Diageo has agreed to acquire Casamigos, the fastest growing super-premium tequila brand in the US. The deal provides an opportunity for Diageo to strengthen its participation in the fast growing tequila category, as well as expand the brand internationally.

The transaction values Casamigos at up to $1 billion, with initial consideration set at $700 million and a further potential $300 million based on a performance linked earn-out over 10 years, reflecting the brand’s exceptional growth trajectory and upside potential.

Casamigos was created in 2013 by founders Rande Gerber, George Clooney and Mike Meldman. The essence of the brand, ‘made by friends for friends’, is reflected in the name, Casamigos or ‘house of friends’. Since inception Casamigos has received numerous awards and accolades from tequila experts, taste makers and influencers across the US. Casamigos has an authentic brand identity with a smooth and accessible taste profile. The brand’s quality and uniqueness has delivered impressive growth, reaching 120,000 cases in 2016, primarily in the US, and a CAGR of 54% in the last two years. The brand is on track to reach over 170,000 cases by the end of 2017.

The transaction is expected to close in the second half of calendar 2017, subject to regulatory clearances. Diageo expects the transaction will be EPS neutral for the first three years and accretive thereafter. The acquisition will be funded through existing cash resources and debt.

Ivan Menezes, chief executive of Diageo, comments: “We are delighted to announce this transaction to extend our participation in the tequila category. It supports our strategy to focus on the high growth super-premium and above segments of the category. With the global strength of Diageo we expect to expand the reach of Casamigos to markets beyond the US to capitalise on the significant international potential of the brand. We look forward to building on the remarkable success of Casamigos to date.”

“We are extremely excited to team up with one of the largest, most respected spirits companies in the world,” says Casamigos Tequila Co-founder, Rande Gerber. “What started from a friendship and an idea to create the best tasting, smoothest tequila as our own house tequila to drink and share with friends, has quickly turned into the fastest growing super-premium tequila. Casamigos has always been brought to you by those who drink it and we look forward to continuing that, working alongside the expertise and global reach of Diageo. Now even more people will be able to enjoy and experience our love and passion for Casamigos.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 17, 2019Future Food-Tech
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements