Diageo buys George Clooney's tequila brand for 620 million euro

British liquor group Diageo has paid 700 million dollars (about 620 million euro) for George Clooney’s premium tequila brand Casamigos and that could rise to 1 billion dollars.

50 % growth annually

At first, the company (which owns brands like Baileys, Smirnoff, Guinness and Johnny Walker) will pay 700 million dollars for Casamigos, a brand launched by movie star George Clooney and business partners Rande Gerber and Michael Mildman in 2013. The plan was to donate the liquor to friends, not to sell it commercially.

As demand continued to soar and the tequila won prizes from renowned tastings, the three owners grabbed the opportunity and the brand has grown, on average, 50 % annually. The result is that it is the fastest growing tequila brand in the United States.

Over the next ten years, the acquisition fee may rise to 1 billion dollars, depending on how turnover evolves. According to Diageo, Clooney and his associates will still remain involved in Casamigos’ future. The deal should be finalized in the second half of 2017.