Only two days after forking out up to $610 million to acquire Aviation American gin from a group of owners including Ryan Reynolds, the Hollywood actor, Diageo has made a small investment in a more modest German gin.
The world’s biggest spirits group, which owns Johnnie Walker Scotch whisky and Smirnoff vodka, is acquiring a stake in Rheinland Distillers, maker of the award-winning Siegfried Rheinland dry gin and an alcohol-free alternative, Siegfried Wonderleaf.
The investment is being made through Distill Ventures, the FTSE 100 drinks group’s “accelerator programme” for entrepreneurs creating and developing new spirits brands.
The Siegfried brand was created in 2014 when two gin-drinking friends — Raphael Vollmar and Gerald Koenen — cobbled together €4,000 with the intention of disrupting the gin category.
As well as gaining distribution through retailers, the friends put a strong focus on digital sales through their website and e-commerce platforms including Amazon. Siegfried Rheinland became Germany’s fastest growing gin brand last year.
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Distill Ventures, set up by Diageo in 2013, helps entrepreneurs to scale up their drink brands faster and more efficiently than they could independently. The founders retain majority control, with Diageo acquiring a minority stake.
Diageo has made investments in 15 brands through Distill, including Stauning, a Danish single malt and rye whisky, and Starward, an Australian malt whisky. It also invested in Seedlip, a non-alcoholic spirit, and Belsazar, a German range of vermouth aperitifs, both of which it went on to acquire.
Shares of Diageo, which also owns Captain Morgan rum and Don Julio tequila, rose by 0.5 per cent, or 12p, to £26.42.
