Diageo confirms Ketel One interest

Diageo has confirmed that it would be interested in the outright purchase of premium vodka brand Ketel One, if it came on the market.

In 2008 Diageo paid US$900 million to acquire half of Ketel One. The deal also included the formation of an exclusive marketing and distribution joint venture with the Nolet Group, the Dutch founders of Ketel One.

Speaking ahead of an investor presentation on Wednesday Diageo’s global brand director, Peter Fairbrother, said: If they (Nolet) did decide they wanted to sell, we’d be interested in looking at it.”

The Nolet family has been making vodka for generations before the 2008 deal with Diageo. Ketel One’s popularity is bartenders in the US caught the eye of the spirits giant.

Last month Diageo paid £1.2 billion for a majority stake in Vijay Mallya’s United Spirits, based in India, and the company is also in long-running talks to buy tequila maker Jose Cuervo.

Last month the Spirits Business reported that vodka’s strangehold on the Eastern bloc was loosening and Diageo reported “amazing success” for Bushmills Irish Whiskey in Bulgaria.