Diageo Buys Stake in Ketel One

2/6/2008

Diageo and the Nolet family will form a new 50/50 company, which will own the perpetual exclusive global rights to sell, market and distribute the successful super-premium Ketel One vodka. Diageo has agreed to pay $900 million for its 50 percent equity interest in the newly formed company, which will be based in the Netherlands, with the Nolet family owning the other 50 percent. The Nolet family will continue to own the brand rights for Ketel One and Diageo will become the exclusive distributor of the brand globally. 'This transaction is strategically important for Diageo, giving us an interest in an outstanding high quality brand and fantastic potential for global growth in the super-premium vodka segment," says Paul Walsh, chief executive, Diageo. Currently, Ketel One vodka has an annual volume of 1.9 million cases. It is primarily a North American brand in the super-premium vodka segment and will complement Diageo's premium Smirnoff and its ultra-premium Ciroc brands. Similarly, outside the United States, Ketel One will expand Diageo's brand range in vodka. The Nolet family and Diageo believe that this new relationship will accelerate the growth of the brand in the USA and elsewhere in the world.