Diageo, the maker of Smirnoff, Guinness and Baileys has found a unique way of closing its £862m deficit - by using core assets that will grow in value.

The drinks group, announcing today a fifteen year deal, said that it would siphon off 'young' whiskey into the 'Diageo pension fund' increasing its value over the course of time by 'nature'.

This commitment by Diageo means that a 'tangiable' resource now underpins the pension scheme and will hopefully increase the performance of the fund over time.

It also keeps the £862m deficit from increasing after Diageo announced £25m cash injection per year to decrease it, with the under-matured whiskey adding a total value of £197m into the fund, with another £338m over the next 10 years if needed.

Diageo also said it would buy the stocks back in 15 years for up to £430m if the deficit had not been eliminated by then.

"Our hope is that the performance of the assets in the pension fund will yield a much better return in the years ahead and close the gap." explains the Diageo spokesman.

Shares in the group fell 14 pence, 1.32 pct on the announcement today.

FTSE