News

US: CEDC lines up Parliament Vodka acquisition

Most popular

Heineken faces China distribution gap - comment

How US wholesalers view the next six months

Biden win focuses drinks on climate change

Why Aperol's crown is worth fighting over

Heineken faces tough battle in China - analysis

MORE

Central European Distribution Corporation is set to buy a majority stake in the owner of the top selling premium vodka brand in Russia.

The US-based company, which operates predominantly in Eastern Europe, confirmed yesterday (16 July) that it has signed a letter of intent to buy "a significant majority interest" in the parent company of Parliament Vodka. CEDC did not name the company in its statement.

The purchase is expected to close within the next six months, the spirits firm said, and will be financed through a combination of cash, debt and equity. The financial details of the purchase were also not disclosed.

"This is an excellent opportunity for CEDC to take its first step in the largest vodka market in the world, Russia," said William Carey, CEDC's president and CEO. "The Russian spirits market continues to experience a premiumisation effect, backed by the strong growth of the local economy, in which the consumer continues to trade up to premium brands."

The Parliament vodka brand is expected to see volume growth this year of over 25%, the company noted, with forecast sales of 2.6m nine-litre cases.

"The company has national sales reach with over 200 salesmen who cover almost all regions of Russia," Carey continued. "This strong local distribution platform gives us the opportunity to not only grow the existing business but also expand sales with new brands both local and imported. We would expect this acquisition, if completed, to be accretive to earnings on an annualised basis by US$0.10 to $0.20 per fully diluted share."

CEDC is the largest vodka producer in Poland and produces the Absolwent, Zubrowka, Bols and Soplica brands, among others. The company also produces and distributes Royal Vodka, the top selling vodka in Hungary.


Related Content

Fifth Generation switches Tito’s Handmade Vodka distribution in Austria - vodka in Austria data

Fifth Generation switches Tito’s Handmade Vodka distribution in Austria - vodka in Austria data...

How to win in vodka in the US - A history lesson - comment

How to win in vodka in the US - A history lesson - comment...

Where should vodka look for growth in the years to come? - Research in Focus

Where should vodka look for growth in the years to come? - Research in Focus...

Heineken links up with China Resources Enterprises in US$3.1bn deal

Heineken links up with China Resources Enterprises in US$3.1bn deal...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?