Diageo has warned it would consider legal action against other "misleading" lighter-strength vodka brands after winning a two-year dispute with Vodkat owner ICB.

It announced this week that it had reached a settlement with ICB, which has paid Diageo "a substantial sum" in damages.

"This was a test case for Diageo and the vodka industry," said Diageo GB MD Simon Litherland.

"It is now clear 'vodka' is a protectable category under the law of passing off, and that we can prevent people from selling products likely to confuse or mislead consumers into thinking they are vodka when they are not."

Diageo would assess the need for legal action against other brands on a case-by-case basis, he said.

Landmark Wholesale said it was already reviewing its 22% abv own-label brand Vodgrad, but added that it wanted to protect the "valuable brand".

"Landmark is aware of the case and is reviewing the ruling and assessing its impact," said MD Martin Williams. "Vodgrad is a valuable brand and we want to protect that."

ICB said it would launch a replacement in the new year that ditched the Vodkat name and packaging to make it clear to consumers it was not vodka.