The UK-based drink giant Diageo announced today that it has established a 50/50 joint venture with the Tequila producer Jose Cuervo, relating to Don Julio and Tres Magueyes Tequilas.

Under the terms, Jose Cuervo will acquire a 50% ownership interest in Tequila Don Julio, S.A. de C.V. and its affiliates from Diageo.
   
Diageo will market and distribute Don Julio Tequila in the United States and expects to introduce it into several markets in the rest of the world.

Diageo CEO Paul Walsh said: "Don Julio is a 100% blue agave Tequila of exceptional quality. It has considerable potential for growth, both in Mexico and internationally. The new venture with Cuervo plays to the strengths of both partners within and outside of Mexico."