Diageo abandons Absolut for Ketel; signs deal for Zacapa rum

Source: Food and Drink Digital

Date :08/02/2008 11:14:26

Premium drinks giant Diageo has said it that it will not bid for Absolut as it has claimed a 50 per cent equity stake in the vodka brand, Ketel One.

Diageo has been keen to secure a foothold in the super-premium vodka market of late, and had been looking been looking at Absolut, which is in the process of being sold by the Swedish Government-owned V&S Group.

Instead, the company has said that it will pay $900 million in a deal with the Nolet family for "perpetual exclusive global rights to sell, market and distribute" Ketel One vodka.

The Nolet family will continue to own the brand rights for Ketel One and the Nolet distillery in Schiedam in the Netherlands.

Growing portfolio

Diageo has also announced that it has been granted a three year distribution and joint marketing agreement by Industrias Licoreras de Guatemala group of companies for the award-winning Zacapa premium rum brand.

Randy Millian, Managing Director of Diageo’s Latin America & Caribbean Hub said:

“Some of the most iconic drinks brands in the world are produced in Latin America & the Caribbean, from Don Julio tequila to Red Stripe lager, and we are delighted to be given the opportunity to distribute and market Zacapa, one of the most acclaimed rums in the world.

“The Zacapa brand will widen our brand range within the second largest and fastest growing major spirits category in the world and diversify our Reserve brand collection, which includes such super premium brands as Johnnie Walker Blue Label and Buchanan’s Red Seal.”

February 8, 2008