EsDrinks maker Diageo is set to spend as much as $610 million to acquire Davos Brands, owner of the Aviation Gin as Astral Tequila brands among others. The company is looking to expand its range of premium, high profile drinks according to Industry Dive – for example Aviation is partly owned by, and affiliated with, the actor Ryan Reynolds. That’s come as Diageo has faced disruptions to its business from COVID-19 and U.S.-EU trade tensions as discussed in Panjiva’s research of Aug. 5.
The U.S. gin export market has yet to take off, with total sales in the 12 months to June 31 reaching just $1.6 million, Panjiva’s data shows. Instead gin has primarily been an imported commodity with shipments worth $356 million after a decline of 11.1% year over year caused in part by disruptions demand during the COVID-19 pandemic. There’s also been a decline in the average value of a liter of imports of 6.8% to reach $10.9 per liter in the 12 months to June 31 versus the same period a year earlier.
Source: Panjiva
The purchase may help Diageo restore the prior growth in its gin supplies to the U.S. Panjiva’s data shows that U.S. seaborne imports of gin linked to Diageo were unchanged in the 12 months to June 30 after rising 57.9% in the same period ending June 30, 2019. Shipments have also dipped by 39.2% in July compared to as year earlier, potentially reflecting ongoing disruptions caused by COVID-19.
Bacardi, owner of the Bombay Sapphire brand, has been in a worse position with a drop of 18.5% in the 12 months to June 30 compared to a year earlier, albeit with a rebound of 81.3% in July. Pernod Ricard meanwhile, owner of the classic Beef Eater brand, saw modest growth of 1.6% in the past 12 months to June 30 including a 35.0% surge in Q2 and growth of 33.3% in July.
Source: Panjiva
