Diageo and Ketel One Vodka complete landmark sales, marketing and distribution deal – 17/06/08
Source: ©The Moodie Report
By Melody Ng and Dermot Davitt
INTERNATIONAL. Diageo and the Nolet Group have finalised the transaction to form a new 50/50 company that will own the perpetual exclusive global rights to sell, market and distribute super-premium Ketel One Vodka and Ketel One Citroen.
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As reported, Diageo paid US$900 million for its 50% equity stake in the new company, which will be based in The Netherlands.
The Nolet Group, the family-owned distiller of Ketel One vodka, will continue to own the distillery in Schiedam, Holland, and will supply Ketel One Vodka and Ketel One Citroen to the new company.
Due to its rights under the agreements, Diageo will fully consolidate the financial results of the new venture, accounting for the Nolet holding as a minority interest.
Travel retail will be a key channel for the brand's international development. Commenting on the transaction, Diageo Global Travel and Middle East Marketing Director Nick Robinson said: “We are delighted to introduce Ketel One to our brand portfolio in travel retail where the opportunity for growth is immense, both in terms of the vodka category itself and Ketel One’s position as an exceptional super-premium vodka.
“With this transaction we are pleased to join the Nolet family in sharing our marketing expertise and strong brand stewardship to build on the unique heritage and maximise global growth for Ketel One Vodka,” he added.
The Nolet Group Senior Chairman Carel Nolet said: “We are extremely proud of what we’ve achieved building the Ketel One brand. 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. It is sold primarily in North America in the super-premium vodka segment and will complement Diageo's premium Smirnoff and its super-premium Ciroc brands, according to the drinks giant. Similarly, outside the US Ketel One Vodka will expand Diageo's brand range in vodka.
Diageo, one of the world's leading premium drinks businesses, owns a portfolio of beverage alcohol brands across spirits, wines, and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys Irish Cream, Jose Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines. Visit www.diageo.com.
ABOUT THE NOLET GROUP
Since 1691 the Nolet family, through the Nolet Group, has managed the production, distribution, sales and marketing for a range of super-premium spirit brands including Ketel 1 Jenever and Ketel One Vodka at the Nolet Distillery. The business originated in Schiedam, Holland where it operates its distillery.
In 2007, the company produced 1.9 million cases, generating a turnover of approximately €165 million. The Nolet family is actively involved with the Nolet Group under the leadership of 10th generation Carel Nolet Sr. and his younger son Bob Nolet, both based in Schiedam, and his older son, Carel Nolet Jr, based in California, US. Visit www.ketelone.com.