Diageo letting pension age in the wood

In what may be one of the more interesting moves in financial annals, Diageo PLC is seeking to erase its US$1.3 billion pension deficit by transferring 2.5 million barrels of aging whisky to its pension fund.

The move is part of a 10-year funding plan approved by the trustees of Diageo's U.K. plan. Some clever observer estimated the amount of whisky intended to support the pension plan is enough to fill about 180 Olympic-size swimming pools.

The international drinks giant is the maker of Johnnie Walker blended whisky and Talisker single-malt scotch.

The whisky held as collateral that produces annual income for the pension fund would come from Diageo's malt and grain distilleries in Scotland and represent about 30% of its total whisky stock.

[Go here for a more detailed report.]

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