If you want to make a ton of money in life, there seems to be a simple, three-step process:
step 1: Be a big celebrity.
step 2: Launch an alcohol brand.
step 3: Sell alcohol brands for a ton of money.
It’s this exact plan that allowed Sammy Hager, Conor McGregor, and George Clooney to make significantly more money from their boozy side careers than they did from their respective primary careers overall.
And if the latest numbers being reported are true, then the next celebrity to join the wine mogul club? Dwayne The Rock Johnson.
Based on some data being reported this week, it’s likely that The Rock will become a billionaire in the near future thanks to his alcohol brand Teremana Tequila. In fact, he may already be a billionaire on paper.
Let me give you a few quick anecdotes before The Rock enters its billion-dollar tequila empire.
In the late 1990s, Sammy Hager began selling his own tequila brand under the name “Cabo Wabo” after he purchased a bar in Cabo San Lucas. In 2007, Sammy sold 80% of the Cabo Wabo Tequila Company to Gruppo Campari for $80 million. In 2009 he sold the remaining 20% for an additional $15 million, for a total payment of $95 million, excluding money he had made in pre-sales.
To replicate his success, Sammy recently launched a new tequila company called Santo Tequila with Guy Fieri. Even without Santo Tequila sales, Sammy has made a lot more money from Cabo Wabo than he has ever made from his music career.
In September 2019, Connor and a few friends launched Proper Number Twelve Whiskey. In April last year, he sold most of his business for $600 million. Between the proceeds from the sale and the money allegedly earned from the brand before the sale, it earned about $250 million from Proper Number 12 within three years.
According to our tracking, Connor earned about $215 million in total fighting professionally (including $100 million fighting Floyd Mayweather and $50 million fighting Khabib). So in this one deal, Connor increased his career earnings by $35 million.
In 2013 George and two friends launched Casamigos Tequila. He sold Diageo in June 2017 for $1 billion – $700 million in cash and $300 million in bonuses based on continued promotion and performance milestones. Assuming the company has achieved all of its goals, which I’m sure happened because I see Casamigos everywhere, George’s pre-tax total would be about $333 million. This does not include any dividend received in the four years preceding the sale. Assuming that Casamigos sold for a 20X profit (the average industry multiplier for wine brands), I estimate George’s net worth from Casamigos was $400 million.
Here’s a really important statistic about Casamigos sales that I’m going to revisit in a moment:
When Casamigos was acquired by Diageo for $1 billion, it was on pace to sell 170,000 cases in 2017
The Rock launched its alcohol brand Teremana Tequila in March 2020.
Perhaps inspired by the fact that in the first 12 months of the brand’s launch (March 2020 – March 2021), Teremana sold 300,000 cases, everyone was stuck at home to overcome their COVID fears.
Looking at performance from March 2021 to the present, Teremana is on sell-off pace, according to data reported by The Rock this week. 600,000 cases annually,
Remember, George Clooney sold his tequila brand for $1 billion when it was at a run-rate of 170,000 cases per year. If we use it as a comp, one could argue that today Teremana is worth …
We don’t know how much wealth Teremana the Rock personally has. We do know that he has a slew of partners, including three co-founders (one of whom is his ex-wife, Danny Garcia). In addition, the launch of the Teremna brand partnered with the López family of Jalisco, Mexico, for production and Jgermeister’s parent company for global distribution. I suspect buying into the authenticity of Lopez’s family and Jgermeister’s supply chain was not cheap.
Let’s say that after its five partners, The Rock managed to retain a 30% equity stake in the brand. And let’s assume that the 600,000 case prediction is accurate and therefore the $3.5 billion comp is accurate. Under this hypothetical scenario, The Rock’s stake in Teremana would be worth…
If the above is true, The Rock’s pre-tax equity stake in Teremana would exceed the total amount Sammy Hager, Conor McGregor, and George Clooney earned from their respective alcohol brands… combined! This would be significantly more than what The Rock earned from film salaries and advertising careers combined.
Let me be clear though – the math we’ve run through now is pretty rough and isn’t based on confirmed case sales or official evaluations. But why wouldn’t these numbers be correct? Is there a bigger figure on the planet than The Rock? I mean that physically and metaphorically. Let’s say you drive one of Diageo’s biggest competitors. Why wouldn’t you shell out three to four billion dollars to buy The Rock’s tequila brand? Especially if you were able to keep The Rock as a minority owner with the ability to tap into that social media following?
Instagram: 291 million
Facebook: 60 million
Twitter: 15 million
Tiktok: 48 million
YouTube: 6 million
That’s a total of 420 million social media followers.
When Kylie Jenner sold half of her cosmetics company in November 2019 at a valuation of $1.2 billion, a significant portion of her justification for the sale’s value was based on her social media. He had 270 million social media followers at that time.
It will definitely be a fun story to watch. Here’s a prediction: The Rock sells Teremana for more than $3 billion in 2022.