SPI Group Yury Shefler attends the opening of the 4th Congress of All-Russia’s Association of Privatized and Private Enterprises.
Photo: Dmitry Azarov
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Shefler to Sell Stolichnaya Brands
French Pernod Ricard announced yesterday it has started negotiations to buy out Stolichnaya brands from Yury Shefler’s SPI Group and has paid up ˆ100 million to the effect. The difficulty is that the rights of SPI to the well-known vodka brand on the world market are currently challenged by the state-run Soyuzplodoimport, but it appears the French company is in talks with Russia to settle the dispute.
Pernod Ricard and SPI released a joint statement September 22, 2005, saying they have clinched a new distributor agreement, whereby the exclusive right to distributing the SPI-owned Stolichnaya brands (around ten derivatives) on the world market is transferred from the previous distributor Allied Domecq to Pernod Ricard. Pernod Ricard acquired Allied Domecq in summer for $14.2 billion.
But the mere transfer of exclusive right would have hardly sprung any surprise. Of interest is that the parties have agreed to commence negotiations concerning the possible acquisition of Stolichnaya brands by Pernod Ricard, should SPI decide to dispose of them in future. On the other hand, Pernod Ricard may waive the right of distributor and deny the brand purchase. Apparently, exactly these two provisions have cost around ˆ100 million to the French company.
The analysts say the talks are nearing the end, as no one would pay such amount for mere distribution. The overall worth of Stolichnaya brands is estimated at between ˆ400 million to ˆ500 million.
Though by no means attractive, Stolichnaya brands are the assets disputed. State-run Soyuzplodoimport that controls the sales of such vodka in Russia is challenging the world right to the trademark. At the yesterday’s conference call, Pernod Ricard actually confirmed the talks with Russia are underway, though they will hardly relate to domestic market, the analysts say, as the 40-ruble Stolichnaya is of no great interest to the company that sells vodka at $25.
www.kommersant.com
All the Article in Russian as of Sep. 23, 2005
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