Diageo and Grand Marnier have announced that they have reached an exclusive agreement for Diageo to distribute and market Grand Marnier's liqueur range in 61 markets across Western and Eastern Europe, Russia and former CIS

countries, as well as duty free.

From July 1 Diageo will start distribution in 26 markets, including Germany and Spain. France, along with a further four markets, will transfer to Diageo in 2009. Pan-European distribution is expected upon the expiration of existing contracts over the next three years.

For the uninitiated, Grand Marnier is a premium Cognac and orange-based liqueur with a long history and heritage, produced in France since 1880 and available globally in 150 countries around the world. The range is led by Grand Marnier Cordon Rouge, and a further three premium unique higher qualities, blends of older and more refined Cognacs aged at the Chateau of Bourg Charente.

Gilbert Ghostine, Managing Director of Diageo Continental Europe, said: ‘The Grand Marnier range is renowned for its exceptional taste, quality and heritage. It will truly complement Diageo's range of brands across Europe. We are confident that through our superior route to market and premium brand marketing expertise, this can only enhance the success and unleash the potential of Grand Marnier across Europe.’

Phil Humphreys, Managing Director of Diageo GTME, comments: ‘Diageo GTME is proud and delighted at this agreement to distribute Grand Marnier in European Travel Retail, one of the world's iconic brands with almost one hundred and thirty years of heritage. This is a powerful addition to our luxury brands portfolio and is a highly effective strategic fit for our reserve brand strategy. It's a great brand with great potential for long term growth, particularly in driving the gifting sector.’

Tom van Lambaart, designated Chief Operating Officer of Marnier Lapostolle, said: ‘The agreement between Grand Marnier and Diageo enables Grand Marnier to benefit from Diageo's European distribution platform and its reputation in developing premium brands. We look forward to working closely with them in Europe.’