Diageo, the owner of Johnnie Walker whisky and Smirnoff vodka, on Wednesday said it would not bid for Sweden’s Absolut vodka brand because it had secured a foothold in the super premium vodka market by taking a 50 per cent equity stake in Ketel One vodka.

An auction process for Absolut is under way in Sweden, with Pernod Ricard, Fortune Brands and Bacardi all keen to acquire the brand.