SWEDEN: V&S to sell Danzka vodka

Swedish spirits giant V&S Group is to sell its Danish vodka brand Danzka.

V&S, producer of Absolut vodka, said today (28 April), that it had already struck an agreement to sell the brand to an unnamed buyer. Under the terms of the agreement, V&S will continue to produce Danzka under licence in Denmark.

V&S said only that it had signed a deal with "a company from the same group from which the majority shareholding in Cruzan was acquired".

Last year, V&S bought a stake in US rum producer Cruzan from fellow rum distiller Angostura, part of drinks group CL World Brands, whose assets also include French vodka group Belvedere, Scotch whisky distiller Burn Stewart and Cognac producer Hine.

"We have decided we would like to further our focus on the premium brands in our portfolio like Absolut, Level and Cruzan," a V&S spokesperson told just-drinks. She refused to be drawn on the identity of the buyer but said a finalised deal would be announced "quite shortly".

Danzka vodka, sold at a lower price to V&S flagship Absolut, was aimed mainly at the travel retail sector with additional sales in the US and Europe, the spokesperson added.

Absolut, meanwhile, drove a 16% rise in net sales during the first quarter of the year, V&S said today. V&S posted net sales of SEK2.3bn (US$311.3m), which drove a 31% leap in operating profit to SEK417m.

"The group's strong results are due to several factors," said Bengt Baron, president and CEO of V&S.  "We have an improved product mix and better cost control, and are continuing to focus on our core business. The US dollar exchange rate has also had a positive impact on the figures."