GLOBAL: “We did our best" with Stolichnaya – Pernod Ricard
The French company confirmed earlier this week that it will buy the Swedish state-owned company, which produces the Absolut vodka brand, for US$8.9m. As part of the purchase, however, Pernod will cease talks to buy Stolichnaya from Russian company SPI.
Speaking to just-drinks today (3 April), Pernod's managing director, Pierre Pringuet, confirmed that discussions with SPI have ceased, although the company will continue to distribute Stolichnaya outside of Russia, until a buyer is found. The two companies had been in talks regarding the brand for over three years.
"I think we did our best to reach a conclusion," Pringuet said. "But let's be clear, we were absolutely convinced from the beginning that if we could win Absolut, then that would be a far better option for Pernod Ricard for a lot of reasons.
"Firstly, there is the size of the brand - 11m cases compared to (Stolichnaya's) 3m. Also, while Stolichnaya is a very well-known brand in the US, it is still a nascent brand in the rest of the world."
Pringet described the V&S acquisition as "clearly a transforming deal" for Pernod. "The acquisition of Stolichnaya would have been the acquisition of a very good brand, that's the difference between the two."
Pernod will continue to handle Stolichnaya's distribution in the interim, although Pringuet was unable to say how long this would continue for."It won't be too long," he said. "The anti-trust authorities would both prevent us from adding the two brands (together), but also will prevent us from quitting the distribution of Stolichnaya overnight - that would damage the brand."
Pernod Ricard's acquisition of Absolut has once again made the future of Stolichnaya a subject of intense speculation. Pernod had been in negotiations with Russian owner SPI Group about a possible acq...
Diageo appears to be making light of the economic downturn, turning in highly respectable year-end figures late last month, but some brands performed better than others. In the second part of this spe...
Pernod Ricard’s success in landing Absolut vodka has cast doubt over the future of Stolichnaya, currently marketed internationally by Pernod but which the French company will now be looking to offload...
Absolut vodka may have been eating up the column inches this year, but another privately-owned Russian producer has also been hitting the headlines. Last week, Chris Mercer visited the home of Russian...
Vodka is the drink of the moment in the Dominican Republic, growing 50% in 2007 according to recent research from the IWSR....
The economic downturn in the US has hit on-trade sales of some Pernod Ricard drinks brands, as more consumers drink at home, the French company has confirmed....
Chivas Brothers has appointed Publicis to handle the global advertising for The Glenlivet as part of an agency realignment for the company....
Scotch whisky group Whyte & Mackay has said its performance for the year looks "very healthy", offering more evidence that Scotch has bucked an economic downturn....
- Whatever happened to binge Britain? - comment
- The dangers of squaring up to your competitor
- The US beer market - A level playing field for all
- Remy Cointreau's Q2 and H1 - preview
- Constellation and Ballast Point's "sticker shock"
- Sidney Frank CEO to head Clooney's import co
- Diageo sells off United Spirits' Bouvet Ladubay
- Diageo Australia appoints commercial head
- Irish whiskey brands could fail without bulk
- A-B InBev to "kick the tyres" at Coca-Cola
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research
- Future growth opportunities for global spirits
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Wine Market to 2019 - Market Size, Development, and Forecasts
- Global Wine Market: News and Events September 2015