Future In The Whiskey Business
Connor Mcgregor Bought Out: Connor McGregor who had recently fought in UFC #257 is making headlines once again, but this time in the whiskey business. This involves Proper No. Twelve Irish Whiskey, a company he helped to create. The former two-division champion started Proper No. 12 Irish Whiskey with his manager Audie Attar and an investor name Ken Austin.
Everything was done through Eire Born Spirits (EBS) and things might get a little interesting in regards to how much control McGregor will have, making his future in the business very uncertain.
Prop No.12 made a huge mark in the United States back in 2019 as it disrupted the sale of Jameson. Jameson did sell 7.3 million bottles in 2019;however Proper No.12 sold 200,000 bottles which equaled to $35-40 million dollars in sales.
The Call Options
A spirits company named Becle owns Jose Cuervo Tequila. Becle held a 20 percent stake in EBS since the beginning of Proper No.12. They helped produce the whiskey and slowly its stake in EBS. They increased their initial ownership stake in EBS and then increased its holding to 49 percent of the company last year in the month of May.
Now a Becle spokesman confirmed to Whisky Cast that the acquisition covers the remaining 51 percent equity in EBS. That would mean that Becle would own the majority of the company and have the keys moving forward.
“On February 23, 2021, Becle provided notice of the exercise of its call option to acquire 51% of the equity interests of EBS,” Becle announced in a financial disclosure first reported by Whisky Cast.
Becle wanted to take full ownership in EBS but EBS declined to add what their plan was with the UFC star moving forward. “We expect to announce further details upon the closing of the transaction.” It is unclear if McGregor will be brought on as representative or a spokesperson for the whiskey he helped create and build over the years.
Connor could still be remain a vital member of marketing and promotion aspect for Proper No. 12 because he is still the face of the brand. A lot of MMA fans associate the brand with McGregor which helped drive sales in the Irish whiskey market every year since entering the market.
In another scenario Becle can possibly take full ownership of the company that would give Conor and his partners a ton of money in the new future. It is currently unclear if McGregor cashed out and how much he would receive from the deal. Many fans speculate that the deal could make him a billionaire.
There are so many celebrities that have their own liquor line. For example, Cameron Diaz and entrepreneur Katherine Power launched a clean wine brand, sales bumped up sales due to the increase in demand.
George Clooney sold his stake in Casamigos tequila for a huge amount that came out to be around $700 million. Ryan Reynolds became a co-owner of Aviation Gin in 2018 with the same company that bought out Clooney’s tequila. The value hovers around $610 million.
Regardless of what happens to McGregor’s uncertain future in the whiskey business, Conorwill make a boat load of money. As for Becle losing McGregor’s presence could hurt them if they take full ownership.