Diageo has agreed to sell its UDL and Ruski Lemon ready-to-drink brands to Australia-based Vok Beverages.
The divestment, which was announced earlier this week, is expected to be completed by the end of September. The transaction – financial details of which were not disclosed – will see the Australian brands join the likes of El Toro canned cocktails and Twenty Third Street Distillery’s gin and vodka mixed variants in Vok Beverages’ RTD portfolio.
Diageo’s Australia MD, Dan Hamilton, said the decision “was not made lightly, but we believe it is the best way to preserve the legacy of these iconic brands and unlock future growth and innovation across Diageo’s broader portfolio.”
Ruski Lemon is a vodka-based RTD, while UDL offers a range of premix cocktails in flavours including Blue Lagoon, Piña Colada and Mango Daiquiri. UDL debuted in 1965 under United Distillers Limited, Diageo’s predecessor, while Ruski was introduced in 1997, the same year that Diageo was formed.
The offloads come two weeks after Diageo revealed it has increased the target of its current cost-saving initiative by a further 25%, reaching US$625m.
