Vodka bidding war looms large

Jun 15 2008

Stolichnaya, one of the world’s most famous vodka brands, could be the subject of a 3 billion US dollar (£1.5bn) bidding war, it was reported today.

SPI, the Russian company which controls the brand and its distribution rights, has appointed investment bank Lehman Brothers to find a buyer for its stake, the Sunday Telegraph reports.

Possible bidders for the iconic “Stoli” brand are said to include Southern Comfort owner Brown Forman, Bacardi-Martini and Campari. Analysts are said to believe the business could fetch more than 3 billion US dollars (£1.5bn).

SPI, which also has major interests in agriculture and property development, is one of Russia’s largest drinks companies and the biggest exporter of Russian vodka in the world.

But the company has also endured a tense relationship with the Russian government, whose prime minister and former president Vladimir Putin attempted to bring Stolichnaya under state control in 2001, the Telegraph says.

Stolichnaya’s name means “of the capital city”, reflecting its Moscow heritage. Its red label depicts the Moskva Hotel in the capital built by Stalin in the 1930s, but demolished in 2004. The company also produces an ultra-premium “Elit” version as well as a range of flavoured vodkas.

SPI and Lehman Brothers were unavailable for comment.