Spirits giant Diageo finalized a deal this past week to buy George Clooney’s Tequila brand Casamigos in an effort to increase their exposure in the tequila market. The deal is for $700 million up front with up to $300 million to be paid over 10 years based on performance of the brand.

Tequila is among the fastest growing spirits in the world today, with volumes increasing by over 5 percent last year alone. Those numbers are impressive compared to the overall spirits industry which recorded growth of only .04 percent globally, according to industry tracker IWSR.

Casamigos was founded in 2013 by actor George Clooney, Cindy Crawford’s husband Rande Gerber, and real-estate tycoon Mike Meldman. The brand sold 120,000 cases in 2016, primarily in the U.S. market. The deal will allow Diageo to expand its sales presence in the U.S. market and grow the brand internationally, particularly in Europe.

Source: WSJ, June 2017

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