3 ms·
I have no idea about the economics but if we're doing napkin math, maybe the bottles cost 30-35 and are cheap enough to produce that they have 33% profit margin
by wand3r 9y ago
I have no idea about the economics but if we're doing napkin math, maybe the bottles cost 30-35 and are cheap enough to produce that they have 33% profit margins. That's about $10 a bottle or $240 a case.
2016: 28.8m profit
2017: 38.4m profit (projected)
Keep in mind tequila is a growth industry and there are likely assets involved including Goodwill, plant, bottling facility, machinery and real estate.
Diageo knows this business better than anyone so I assume they thought it through. Also, having George Clooney involved in Diageo can help offset marketing costs as I would imagine contractual promotions are tied to the sale