Diageo has agreed to sell two of its Australian ready-to-drink brands, UDL and Ruski Lemon, to local drinks group Vok Beverages.
The financial details of the transaction were not disclosed.
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In a joint statement, Dan Hamilton, the managing director of Diageo’s Australia business, said: “The decision to sell UDL and Ruski 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.”
The sale to Vok Beverages is expected to be finalised by 1 October.
“Diageo Australia and Vok Beverages will work together to ensure a smooth transition for the continued supply of UDL and Ruski to their valued customer base,” the joint statement read.
Ruski Lemon is a vodka-based RTD beverage, while the UDL range contains pre-mixed cocktails in flavours such as Blue Lagoon, Piña Colada, and Mango Daiquiri.
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By GlobalDataThe brands were created by Diageo and its predecessor company United Distillers Limited. UDL was launched in 1965, while Ruski came onto the market in 1997, the year Diageo was founded.
UDL and Ruski are sold mostly in Australia but also have “limited sales” in New Zealand and some markets in the South Pacific region, Diageo told Just Drinks.
Vok Beverages, founded in 2002, is the alcoholic drinks subsidiary of local company Bickford’s Group of Companies.
The South Australia-based business specialises in the production, sales and marketing of beer, wine, spirits, cider and RTD beverages.
Its portfolio includes 23rd Street Distillery gins, Beenleigh Rum and Vok Liqueurs.
In the statement, Vok Beverages managing director Angelo Kotses said: “Since 2002, Vok Beverages has been proudly crafting exceptional spirits, RTDs, beer, and wine from our local manufacturing facility in South Australia, building trusted brands with a passionate consumer following.
“We’re thrilled to be giving UDL and Ruski a bold new chapter, with exciting plans already underway to surprise, inspire, and delight both customers and consumers alike.”
Diageo still produces a range of RTD brands in Australia under the brands Bundaberg rum, Smirnoff vodka, Johnnie Walker whisky, Captain Morgan rum and Gordon’s gin.
The sale comes as Diageo intensifies its cost-saving efforts. The company recently announced plans to achieve $625m in cost savings over the next three years, an increase of $125m from its initial $500m target outlined in its ‘Accelerate’ initiative in May.
