Posted on 02/27/2006 1:21:31 PM PST by x5452
27/02/2006 - 2:45:55 PM
Smirnoff back in the family
The story of Smirnoff vodka took a new twist today when it was re-united with the name of the legendary Smirnov family after a gap of nearly 90 years.
Drinks giant Diageo has signed a joint venture with the maker of Smirnov, which uses original recipes created by imperial vodka supplier Pyotr Smirnov, who died in 1898.
The split happened when one of Pyotr’s sons – Vladimir Smirnov – fled Russia following the Soviet revolution. He established Smirnoff in Paris using the Francophone spelling of his name and the business developed to become a global brand.
Production of the original vodka ceased in Russia when the Communists took power and put an end to private enterprise, but was restarted in 2002 by the Smirnov Trading House.
Today’s deal will see Diageo – the world’s biggest alcoholic drinks maker - acquire a 75% stake in the Smirnov brand. It forms the basis of a new operation in Russia to market, sell and distribute spirits.
London-based Diageo, which also owns Guinness, Johnnie Walker whisky, Captain Morgan rum and Jose Cuervo tequila, will pay £28.7m (€42,2m) to A1 Group of Russia for its interest in the venture, which is expected to be operational from July.
The new company’s distribution arm, Diageo Distribution ZAO, will be the exclusive distributor of Diageo spirit brands and the Smirnov vodka brand in Russia.
The new business is expected to employ between 250 and 300 people. Diageo currently employs around 30 people in Russia.
Andrew Morgan, president of European operations at Diageo, said the venture created the foundation for a joint ambition “to become the leading spirits business in this market”.
Igor Baranovsky, managing director of A 1, said: “Legendary Smirnoff and Smirnov, with their unique Russian heritage are uniting in an outstanding portfolio. This opens new horizons for their future growth.”
Andy Blain, an analyst at Shore Capital, said: “Although Russia is renowned as the birthplace of vodka, the premium and super-premium categories are not displaying the strong growth seen in other markets such as the USA.
“We consider the joint venture a strategic move by Diageo in order to strengthen the presence of its other main spirits brands, such as Johnnie Walker, which are displaying strong growth within Russia.”
Earlier this month, Diageo reported better-than-expected profits after strong sales of spirits worldwide.
The firm said operating profits rose 7% in the six months to New Year’s Eve to £1.26bn (€1.9m).
Those bottles that say Smirnov in Russian (the official ones not the bootlegs) could be ebay-able soon. :)
Excellent :)
I love smirnoff/smirnov vodka. And absolut.
OK, now this thread is making me thirsty.
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