If you wish to make a ton of cash in life, there appears to be a easy, three-step course of:
step 1: Be an enormous superstar.
step 2: Launch an alcohol model.
step 3: Promote alcohol manufacturers for a ton of cash.
It’s this actual plan that allowed Sammy Hager, Conor McGregor, and George Clooney to make considerably more cash from their boozy facet careers than they did from their respective major careers general.
And if the most recent numbers being reported are true, then the subsequent superstar to hitch the wine mogul membership? Dwayne The Rock Johnson.
Based mostly on some information being reported this week, it’s doubtless that The Rock will turn out to be a billionaire within the close to future because of his alcohol model Teremana Tequila. In reality, he might already be a billionaire on paper.
(Photograph by Eamon M. McCormack/Getty Photographs)
Let me offer you a couple of fast anecdotes earlier than The Rock enters its billion-dollar tequila empire.
sammy hagrow
Within the late Nineteen Nineties, Sammy Hager started promoting his personal tequila model below the identify “Cabo Wabo” after he bought a bar in Cabo San Lucas. In 2007, Sammy bought 80% of the Cabo Wabo Tequila Firm to Gruppo Campari for $80 million. In 2009 he bought the remaining 20% for a further $15 million, for a complete cost of $95 million, excluding cash he had made in pre-sales.
To duplicate his success, Sammy lately launched a brand new tequila firm known as Santo Tequila with Man Fieri. Even with out Santo Tequila gross sales, Sammy has made much more cash from Cabo Wabo than he has ever constituted of his music profession.
Conor McGrego
In September 2019, Connor and some buddies launched Correct Quantity Twelve Whiskey. In April final yr, he bought most of his enterprise for $600 million. Between the proceeds from the sale and the cash allegedly earned from the model earlier than the sale, it earned about $250 million from Correct Quantity 12 inside three years.
In keeping with our monitoring, Connor earned about $215 million in whole preventing professionally (together with $100 million preventing Floyd Mayweather and $50 million preventing Khabib). So on this one deal, Connor elevated his profession earnings by $35 million.
George Clooney
In 2013 George and two buddies launched Casamigos Tequila. He bought Diageo in June 2017 for $1 billion – $700 million in money and $300 million in bonuses primarily based on continued promotion and efficiency milestones. Assuming the corporate has achieved all of its objectives, which I’m certain occurred as a result of I see Casamigos in every single place, George’s pre-tax whole could be about $333 million. This doesn’t embody any dividend acquired within the 4 years previous the sale. Assuming that Casamigos bought for a 20X revenue (the common trade multiplier for wine manufacturers), I estimate George’s web price from Casamigos was $400 million.
Right here’s a extremely essential statistic about Casamigos gross sales that I’m going to revisit in a second:
When Casamigos was acquired by Diageo for $1 billion, it was on tempo to promote 170,000 instances in 2017
Rock
The Rock launched its alcohol model Teremana Tequila in March 2020.
Maybe impressed by the truth that within the first 12 months of the model’s launch (March 2020 – March 2021), Teremana bought 300,000 instances, everybody was caught at residence to beat their COVID fears.
efficiency from March 2021 to the current, Teremana is on sell-off tempo, in line with information reported by The Rock this week. 600,000 instances yearly,
Keep in mind, George Clooney bought his tequila model for $1 billion when it was at a run-rate of 170,000 instances per yr. If we use it as a comp, one may argue that at the moment Teremana is price …
$3.5 billion
We don’t know the way a lot wealth Teremana the Rock personally has. We do know that he has a slew of companions, together with three co-founders (certainly one of whom is his ex-wife, Danny Garcia). As well as, the launch of the Teremna model partnered with the López household of Jalisco, Mexico, for manufacturing and Jgermeister’s dad or mum firm for world distribution. I believe shopping for into the authenticity of Lopez’s household and Jgermeister’s provide chain was not low-cost.
Let’s say that after its 5 companions, The Rock managed to retain a 30% fairness stake within the model. And let’s assume that the 600,000 case prediction is correct and subsequently the $3.5 billion comp is correct. Underneath this hypothetical situation, The Rock’s stake in Teremana could be price…
$1,050,000,000
If the above is true, The Rock’s pre-tax fairness stake in Teremana would exceed the overall quantity Sammy Hager, Conor McGregor, and George Clooney earned from their respective alcohol manufacturers… mixed! This may be considerably greater than what The Rock earned from movie salaries and promoting careers mixed.
Let me be clear although – the mathematics we’ve run by now could be fairly tough and isn’t primarily based on confirmed case gross sales or official evaluations. However why wouldn’t these numbers be right? Is there an even bigger determine on the planet than The Rock? I imply that bodily and metaphorically. Let’s say you drive certainly one of Diageo’s largest opponents. Why wouldn’t you shell out three to 4 billion {dollars} to purchase The Rock’s tequila model? Particularly in case you had been in a position to hold The Rock as a minority proprietor with the flexibility to faucet into that social media following?
Instagram: 291 million
Fb: 60 million
Twitter: 15 million
Tiktok: 48 million
YouTube: 6 million
That’s a complete of 420 million social media followers.
When Kylie Jenner bought half of her cosmetics firm in November 2019 at a valuation of $1.2 billion, a good portion of her justification for the sale’s worth was primarily based on her social media. He had 270 million social media followers at the moment.
It would positively be a enjoyable story to look at. Right here’s a prediction: The Rock sells Teremana for greater than $3 billion in 2022.
