Diageo completes Ketel One deal

Diageo and The Nolet Group, the family-owned distiller of Ketel One vodka have completed the transaction to form a new 50/50 company that will own the global rights to sell, market and distribute super-premium Ketel One Vodka and Ketel One Citroen.

Diageo paid $900 million for its 50 percent equity stake in the new company, which will be based in the Netherlands. The Nolet family will continue to own the distillery in Schiedam, Holland, and will supply Ketel One Vodka and Ketel One Citroen to the new company.

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

"Ketel One Vodka is an outstanding high quality brand rich in heritage. 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 maximize its potential for global growth."

Carel Nolet, Sr. chairman of the Nolet Group, siad: "This alliance with Diageo is key for the Nolet Group and the Ketel One brand because we will now have sales, marketing and distribution expertise that will help us to build on our success and make Ketel One a truly global brand."

The deal will give Diageo a stronger hand in the American premium vodka category, with Ketel One being a very strong performer in that market.