LONDON (Brand Republic) – UK drinks giant Allied Domecq is hoping to secure the US distribution rights to Stolichnaya, the premium Russian vodka brand.
Allied Domecq wants to take over distributing the brand when its contract with Diageo runs out in the next few weeks. It is thought Diageo will focus its business on eight global brands, with Smirnoff being its key vodka brand.
Stolichnaya sells 1.2m cases each year in the US, with 55m cases sold worldwide. Allied’s move comes as it battles for ownership of Canadian group Seagram’s spirits portfolio.
The division, valued at about £4.8bn, includes brands such as Captain Morgan rum and Martell cognac, as well as the distribution rights to the Absolut vodka brand.
Competition is fierce, with Allied facing rival bids from an alliance between Diageo and French company Pernod Ricard as well as Bacardi, which has also put in a bid to distribute Stolichnaya.