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Diageo closes Ketel One Vodka deal

Published:  23 July, 2008

World leading drinks producer, Diageo, has joined forces with The Notel Group forming a new company.

Diageo, which owns brands such as Johnnie Walker, Guinness and Smirnoff among others, paid 450m ($900) for its 50% equity stake in the business, which will be based in the Netherlands.

The Notel Group, a family-owned distiller of Ketel One Vodka, in Schiedam, Holland and will supply both its vodka and Ketel One Citroen to the new company.

Last year, the two Ketel drinks had a combined annual volume of 1.9m cases, being sold primarily in North America.

Due to its rights under the venture, Diageo will fully consolidate the financial results of the new company, accounting for the Nolet holding as a minority interest.

Paul Walsh, Diageo chief executive said: This transaction further enhances Diageo's platform in the fast-growing super-premium vodka segment.

"In joining with the Nolet family, we are eager to bring our outstanding marketing expertise and strong track record of brand stewardship to Ketel One Vodka to maximise its potential for global growth.'