Does tequila smell fishy? Please.
Diageo (UK) is the owner of Johnnie Walker, Smirnoff and Cîroc. Diageo sells 400 different products. It pays Clooney and his three partnes $ 700 million now and promises up to $ 300 million depending om the performance during the following 10 years. The transaction is expected to close during the second half of 2017.
Why would Diageo pay this much? The alternative is to buy a small unknown tequila brand and hire a worldfamous star, like George Clooney or Richard Gere, for marketing activities in the 10 years that follow. How much did Nespresso pay?
- Alcohol in general is not an online market.
- Most offline sales locations of Casamigos are in the USA and retail.
- Stronger drinks are mainly bought in bars and a bit in retail.
- Scaling-up production (the product depends on natural ingredients) isnot easy.
- Casamigos so far didnot mass produce tequila. I can’t believe it.
Casamigos focusses on a limited market so far. They have not yet convinced the USA horeca market to switch to Casamigos tequila. Perhaps they will be able to do so in the following years. But is that worth $ 700 million?
They basically paid this amount for Rande Gerber and George Clooney to help do marketing the next 10 years? Really? Sorry, but I am not convinced. What is this?
This is the official press release. Can someone please convince me?