E100m paid for Stolichnaya distribution
Pernod Ricard has announced details of its deal to secure the distribution rights to Stolichnaya vodka.
Pernod paid around E100m to Swiss owners SPI for the distribution rights to Stolichnaya in the US and the rest of the world. As well as securing the previous distribution rights held by Allied Domecq, the deal gives Pernod the right of first refusal if SPI decides to sell the brand.
Pernod director general Richard Burrows said that the price they would be willing to pay for the brand had not yet been determined. It will be decided by SPI itself and by "good old fashioned negotiation", he added.
The integration of Allied Domecq was meanwhile moving faster than predicted, according to Mr Burrows, with completion of the process likely within two years rather than three, as originally estimated. The 4,500 staff who joined Pernod from Allied will retain their jobs, although some will move to Fortune - its partners in the merger.
The transfer of brands to Diageo and Fortune, conditional upon the merger's success, was also well under way, he added.
The transfer of Courvoisier and Larios has already been realised and the rest (including the Montana wine business to Diageo, and Canadian Club, Maker's Mark and Sauza to Fortune) will follow by the deadline of January 26, 2006.
Speculating on Pernod Ricard overtaking Diageo to become the largest spirits and wine brand in the world, Mr Burrows said: "There's a certain resonance about saying you're number one, but our position within the individual markets is more important. Organic growth will move us in relation to the others."
