The owner of the Glenlivet and Chivas Regal whisky brands has bought a £58million stake in one of the world’s top new tequila brands.
Pernod Ricard, the world’s second biggest drinks company behind Diageo, has taken a majority holding in New York-based Tequila Avion, the five-year-old spirits brand backed by big name investors including AOL’s Tim Armstrong and YouTube co-founder Chad Hurley.
Tequila Avion, which can cost up to £88 a bottle, was started in 2009 by former Marquis Jets executive Ken Austin.
It was given a huge publicity boost after Mr Austin, a longtime friend of “Entourage” creator Doug Ellin, convinced Mr Ellin to feature the brand on the popular HBO series.
Pernod said the transactions reflects their “confidence in Avion’s brand equity and growth potential”, as well the brand’s important role in Pernod Ricard’s growth ambitions in the United States, the largest market of the group.
Bryan Fry, chief executive Officer of Pernod Ricard in America, said: “Thanks to the close working relationship between Pernod Ricard and Ken Austin, founder and chairman of Tequila Avion and Jenna Fagnan, Avion Spirits president, Avion has delivered excellent results since the creation of the joint-venture in 2011.
“The ultra-premium brand has become a bartender and consumer favorite and today benefits from very strong brand equity and momentum.
“Avion is an important brand in Pernod Ricard USA’s portfolio and we have great confidence in its future.
“With our increase in ownership we are pleased to further strengthen this partnership to continue to build a successful brand in the years ahead.”
The sale to Pernod is a huge boost for Mr Austin, who set out to create the tequila after a conversation with Warren Buffett, who pointed out the absence of a top brand in the premium tequila world.
Mr Austin added “This has continued to be a dream come true story for me, Jenna and our team. Avion has become a player in one of the most competitive industries and categories in the drinks business.
“While there is much work to be done, we are well on our way to become an iconic brand of the future.
“We are very pleased to be delivering real value for Tequila Avion shareholders, who have supported us immensely and have been on this journey with us since day one.”