SPI may sell its $3 billion Stolichnaya vodka brand

Mumbai: SPI, the owner of Russian vodka brand Stolichnaya, is considering a sale of either the brand or its international distribution rights, after French group Pernod Ricard gave up its distribution rights.

Pernod gave up its rights after it bought Swedish vodka brand Absolut in a €5.3 billion ($8.1billion) deal with Swedish government-owned Vin & Sprit, in April.

SPI has now set off a possible bidding war for the $3 billion business with the appointment of Lehman Brothers as advisers.

SPI, which had been licensing the distribution rights outside Russia to Pernod Ricard, may now have to find a new international distributor or sell the brand.

Alternatively, SPI may form a joint venture with a distributor or distribute the vodka itself.

Pernod, which was interested in acquiring the Russian rights to Stolichnaya had abandoned plans of owning both vodka brands for antitrust reasons.