CEDC of the United States will buy out the Parliament vodka brand from the Parliament Group of Russia.
Photo: Sergey Mikheev
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U.S. CEDC Buys Out Russia’s Parliament
Central European Distribution Company (CEDC) of the United States will buy out the Parliament vodka brand from Parliament Group of Russia. The worth of the brand that covers roughly 2 percent of strong drink market in the country is estimated at $40 million.
Parliament Group announced yesterday “an intention to set up strategic alliance” with the U.S. CEDC, whereby the latter “will get access to the branchy distribution network” of the group. Parliament “will benefit from material financial resources invested in the brand’s promotion and development,” the group said in the news release.
The statement of CEDS released by NASDAQ specifies that the company agreed to buy out the Parliament vodka brand. Though neither of parties has given details, Parliament Group Sales Director Sergey Stolyarov confirmed the NASDAQ information.
The form of the deal is yet under discussion, said a source close to Parliament Group. One of the options is to transfer the brand via creating a venture.
In 2006, the brand covered roughly 2 percent of strong drink market in terms of value in the cities, according to Business Analitika. The worth of Parliament reaches $40 million, said Finam analyst Sergey Filchenko. But the Americans could be interested not only in the brand but also in production facilities of Parliament Group. Its two distilleries (in Moscow Region’s Balashikha and in Ryazan) cost $180 million, said Kristall Group CEO Sergey Zivenko.
So far, CEDC that is the biggest vodka producer in Poland and global distributor of 700 brands, including Remy Martin, Jagermaster, Metaxa, Corona, Foster`s, Jim Beam Guinness, hasn’t been represented in Russia.
Parliament Group Managing Co. emerged in 2003; 2006 turnover reached $150 million, of which Parliament covered 90 percent.
www.kommersant.com
All the Article in Russian as of July 18, 2007
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