Posted June 22, 2017 10:20:21

Photo: Rande Gerber and George Clooney (pictured with Cindy Crawford) have cashed in on their tequila brand. (Reuters: Toby Melville)

Global liquor behemoth Diageo will pay up to $US1 billion ($1.32 billion) to buy a tequila brand co-founded by movie star George Clooney.

Diageo said it will pay $US700 million for Casamigos — which means "house of friends" — at first, and then pay another $US300 million over 10 years if the brand reaches certain performance milestones.

Clooney founded the Casamigos brand four years ago with nightlight entrepreneur Rande Gerber and real estate developer Mike Meldma.

London-based Diageo's other brands include Johnnie Walker, Guinness and Captain Morgan.

Clooney and Gerber, who is married to model Cindy Crawford, have appeared in adverts for the brand.

Diageo said the founders would continue to promote Casamigos and have a say in its future.

The deal is expected to close in the second half of this year.

"If you asked us four years ago if we had a billion-dollar company, I don't think we would have said yes. This reflects Diageo's belief in our company and our belief in Diageo," Clooney wrote in a statement.

"We'll still be very much a part of Casamigos. Starting with a shot tonight. Maybe two."

The deal comes two weeks after rival liquor company Pernod Ricard took a stake in mezcal maker Del Maguey and highlights the opportunity companies see in Mexico's native spirits.

A new spate of high-end tequilas has helped the drink transcend its traditional image as a party beverage for young drinkers.

Its sales rose 5.2 per cent globally last year, according to data tracker IWSR, outperforming a spirits industry that edged up only 0.3 per cent.

AP/Reuters

Topics: business-economics-and-finance, hospitality, film-movies, film, united-states