RUSSIA: CEDC eyes distillery sale
Central European Distribution Corp may sell distillery
Central European Distribution Corp is considering selling one of its distilleries in Russia, the group has confirmed.
The sale would be part of a consolidation process following the merger of Central European Distribution Corp's (CEDC) Russian subsidiaries, Russian Alcohol Group and Parliament vodka owner Whitehall Group. It is thought that the Tula distillery has been earmarked for sale, with Russian press reports quoting a price of around US$12m.
"We are thinking on sale of one of our production plants in Russia after completing the merger of our Russian businesses (RAG and Parliament)," CEDC's CEO, William Carey, told just-drinks today (8 June).
"We are right now at the early stage of this process, so it is too early to talk about potential buyers and price," he said in a prepared statement.
In February, CEDC completed the acquisition of 100% of Whitehall Group.
In the drinks group's first-quarter results, in which it reported a return to profit, Carey said that the firm "strongly believes in the growth potential of spirits and wines over the next five years [in Russia], as evidenced by the 19% growth of our import business in Russia in the first quarter."
CEDC also said that it would launch a marketing campaign for its flagship Green Mark vodka brand in Russia.
Central European Distribution Corp is facing a lawsuit in the US over the extent of its disclosures on performance in Eastern Europe, but the group is set to strongly deny allegations of wrongdoing....
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