REPORT CLAIMS PERNOD IS FAST APPROACHING STOLI DEADLINE

Russian newspaper “Kommersant International” is reporting that SPI Group (owners of Stoli) is negotiating with companies other than Pernod to purchase its Stoli brand. This latest development comes after SPI has been unable to reach an agreement with Pernod by an previously-established deadline. As you’ll recall, Pernod and SPI struck a deal in 2005 that gave Pernod the distribution rights to Stoli outside of Russia and most notably the US, with the exclusive rights to buy the trademark. Since then, the two companies have not come to terms with an agreement.

“SPI Group president Andrey Skurikhin said that the group is now negotiating with other companies, both Russian and international. Skurikhin declined to name those companies,” according to Kommersant.

Could it be a negotiation strategy from the Russians? Pernod has squashed speculation by claiming that talks with SPI have continued as usual. As a part of the deal, the French company retains the right of first refusal. However, it is unclear when Pernod’s “exclusivity period” to the Stoli trademark runs dry.

If there really is something to this rumor, then it looks like Pernod has even more incentive to acquire Absolut. So far, its competition comes from Diageo, Beam Global and Bacardi.

“I’ll be interested to see how this thing unfolds, that’s for sure. I’d say Pernod or Beam, but I wouldn’t really be that surprised if Bacardi ended up getting the brand,” an executive at a major spirits supplier told WSD. Keeping things vague. We like it.

But as Patrick Ricard eloquently put it in last week’s investors meeting: “The one I prefer is the one I buy.”