UK: Allied signs major Stoli extension deal
Allied Domecq (AD) has extended its marketing and distribution agreemnt with SPI Group (SPI) for the Stolichnaya vodka brand.
AD will market and distribute the Stolichnaya vodka brand portfolio in markets within the European Union, Latin America, Asia Pacific and Africa, according to a press release.
Stolichnaya will now become one of AD's core brands, the company said.
AD already markets and distributes Stolichnaya on behalf of SPI in the USA, Canada, Mexico and the Nordic region. The original US agreement runs until 31 December, 2010. The new agreement will expire on the same date. AD has the right of first refusal for the renewal of both agreements.
Since AD began US distribution in January, 2001, sales of Stolichnaya have grown from 1.2m cases to 1.9 m cases.
The Stolichnaya range of vodkas will be added to the AD brand portfolio on a phased market-by-market basis. This process will start almost immediately and will continue over the next three years with new markets being added as and when current distribution arrangements with third parties expire.
AD expects that the acquisition of new distribution markets for Stolichnaya will have a neutral effect on earnings for the financial year 2005.
Conflicting reports circulated this weekend over whether Bacardi International is looking to form a counter-bid for Allied Domecq....
Todays press reports into Pernod and Fortune's hopes to buy Allied Domecq warn of possible conflicts and set a date for completion....
Allied Domecq has added a new flavour to its Malibu range. The company said yesterday that it would be launching Malibu Passion Fruit in the US from April 15....
Pernod Ricard and Fortune Brands are hoping to buy Allied Domecq for around 670p per share, according to press reports....
LVMH has said it is not looking to buy Mumm Champagne from Allied Domecq....
The US consumer goods group Fortune Brands has confirmed it is in talks about launching a joint bid with Pernod Ricard for Allied Domecq....
Diageo is to launch a new global advertising campaign for Smirnoff Ice. The first ad in the global campaign, 'Garden', launches in Great Britain on April 11th on terrestrial and satellite TV. ...
Fideuram Wargny has upgraded its rating of Pernod Ricard to 'buy' from 'hold'. Its analysts argue that the merger talks with Allied Domecq is a catalyst for share growth....
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