Diageo dumps bid for Absolut, sets up vodka JV with Ketel One

Mumbai: Diageo Plc has abandoned plans to acquire Sweden's Absolut vodka and formed a $900 million joint venture with the owners of the Ketel One vodka brand.

Diageo will own 50 per cent in the joint venture with the Nolet family owning the other 50 per cent

The joint venture, to be based in the Netherlands, "will own the exclusive global rights to sell, market and distribute" the vodka brand, the UK-based alcohol beverages company said.

The Nolet family will continue to own the brand rights for Ketel One as well as the ownership of the Nolet distillery in Schiedam, Netherlands.

Diageo also said it was never serious about acquiring Abslut and that it was only an option.

"We didn't submit a bid for Absolut," a company spokeswoman said, adding, "We did register an interest late last year but after an internal review looking at what options there were we felt that the deal that we did last night was a better strategic fit for Diageo."