Tequila math.

Yesterday, Diageo announced they are purchasing Casamigos tequila brand for $700 million up front with the potential for an additional $300 million based on the tequila’s performance over 10 years.  Wowza! That’s a lot of wim-wams¹ for some might-tee fine liquor.

And snap!  George Clooney is one of the co-founders of Casamigos. He will gain many dollars US bigly.

And I like to dive into the numbers as much as I like to dive into a salty margarita² on a hot, languid, thirsty summer day.  So for the common good, consider a purchase price of $1B ($1,000,000,000) and a 2016 production line of 120K cases or a purchase price of $5.8M/case ($5,800,000/case).

And we wonder, how many bottles of tequila are in a case? From Binny’s Beverage Depot, some tequilas ship 12 bottles to a case, others ship 6 bottles to a case.³  It appears Casamigos ships 6 bottles to a case so $5.8M/case divided by 6 bottles/case is $980K/bottle ($980,000/bottle).

There are 750 ml per bottle which works out to $1307 per ml. A generous shot is 2 oz. (60 ml) which translates to $78.4K ($78,420)!

But, ha-ha! These are funny numbers.  George Clooney and his house friends enjoying smooth tequila are not looking to charge $78K for a shot of tequila in my margarita.²  Their tequila was, and is an investment in the future.

And it looks like a future of serious drinking.


¹Wim-wams: Generic term referring to a unit of currency regardless of country of origin. (Wim-wam comes to us via Mr. Viva. Thank you)

²Casamigos tequila in a salty margarita would be a waste of a fine tequila.  I state this with certainty based on the Casamigos advertising which includes Mr. Clooney who can be very convincing.

³I hope Diageo used 6 bottles/case in their cost/benefit analysis and not 12 bottles/case.  If they used 12 bottles/case but they’re sold 6 bottles/case, they could be half as enthusiastic or twice as disappointed — the shot glass is half full or half empty.  Or could it be that they’re really buying Mr. Clooney’s continued involvement with the brand? And Mr. Clooney can be very convincing.²  Drink up.

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