Diageo and Ketel One join forces - Westfair Communications

Diageo of Norwalk and The Nolet Group, the family-owned distiller of Ketel One Vodka, have completed a transaction to form a new 50/50 company.

“This transaction further enhances Diageo”™s platform in the fast-growing super-premium vodka segment,” said Paul Walsh, CEO of Diageo. “Ketel One Vodka is an outstanding high quality brand rich in heritage.Â 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.”

The formed company will own the perpetual exclusive global rights to sell, market and distribute 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, as yet unnamed.

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

“We are extremely proud of what we”™ve achieved building the Ketel One brand,” said Carel Nolet, senior chairman of the Nolet Group. “It”™s a testament to the power of our unique approach and the appeal of our brand”™s heritage. 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.”

In 2007 Ketel One Vodka and Ketel One Citroen had a combined annual volume of 1.9 million cases.

The vodka is sold primarily in North America and, with Smirnoff and Ciroc, is Diageo”™s third vodka brand.

“The Nolet family has built Ketel One Vodka into an iconic brand and we are very pleased to embark on this journey with them and continue to build on this success,” said Ivan Menezes, president and CEO of Diageo North America.