Diageo has agreed to acquire Davos Brands LLC for $610 million. The portfolio of brands includes Aviation Gin, which benefited from Ryan Reynolds' investment (2018) and marketing strategy. In 2019, one year after Reynolds' investment in the company, sales reportedly doubled from $20 million to $40 million. Analysts estimate that the company sold 96,000 cases last year.
The world’s largest liquor maker said it would make an initial payment of $335 million and a further potential consideration of as much as $275 million based on performance over 10 years. The deal is expected to close by the end of the year.
Source: Jennifer Maloney | “Diageo to Buy Ryan Reynolds’s Gin, Other Brands for Up to $610 Million” | The Wall Street Journal | 8/17/2020 | Visit
Exploring the cost of advertising during the Super Bowl was a light bulb moment for Mint Mobile investor (2019) Ryan Reynolds: why not use the same amount of capital to provide the service for free? Mint Mobile is a low-cost cellphone provider, and rather than pay $5 million for a 30-second spot on Super Bowl Sunday, Reynolds decided to take out a $100,000 full-page ad in the New York Times and give away over 300,000 months of free service.
“We could literally give away over 300,000 months of free service and still save money. And that’s exactly what we’re going to do.” As Reynolds explains it, “There’s something fascinating to me about creating a piece of content that’s shareable and acknowledges quite nakedly that it’s an ad. And it’s certainly more honest.”
Source: Jonathan Ringen | “Ryan Reynolds on ‘Deadpool,’ diversity, and the secrets of successful marketing” | Fast Company | 8/4/2020 | Visit
I have thoroughly enjoyed reading about Ryan Reynolds as a private equity investor. At the center of it all is a company he launched to help market Deadpool: Maximum Effort Productions (fantastic name). This venture was formalized in 2018 when Deadpool 2 raked in $785 million at the box office. He has since used Maximum Effort every time he makes an investment.
To avoid over-ornamentation and grandiosity of ideas and creativity, Reynolds and Dewey work on self-imposed stricter deadlines, break the advertising norms, and keep the ad budgets under $1 million. Two major clients of Maximum Effort Productions are Aviation American Gin and Mint Mobile, both of which Ryan Reynolds happens to hold ownership stakes in.
Source: Indrajeet Deshpande | “How Ryan Reynolds Took the Advertising World by Storm” | Martech Advisor | 2/11/2020 | Visit