Anchor bottler Coca-Cola HBC to expand liquor business with $220 million acquisition of vodka owner Finlandia
- Finlandia was the first Scandinavian vodka brand to be imported into the United States
- It is one of the most popular vodka makers from Central and Eastern Europe
- Brown-Forman owns iconic whiskey labels Jack Daniels and Woodford Reserve
Coca-Cola Hellenic Bottling Company has agreed to acquire Finlandia vodka owner for $220m (£172m).
The FTSE 100 bottling company said its CC Beverages Holdings division would buy Brown-Forman Finland from the group’s Netherlands-based parent company.
It believes the deal, which is expected to close in the second half of 2023, will help improve relationships with customers in key channels such as the foodservice sector and strengthen its premium spirits offering.
Acquisition: Coca-Cola HBC has agreed to acquire Finlandia vodka owner for $220 million
The company has been distributing Finlandia across multiple markets for 17 years, along with other spirit brands such as The Famous Grouse, Highland Park and Campari.
Zoran Bogdanovic, chief executive of Coca-Cola HBC, said: ‘We see this as an attractive investment and a natural evolution of our role as one of Finlandia’s distribution partners, further demonstrating the strength of our proven and broad partnership. with Brown-Forman.
“We appreciate the trust placed in us and look forward to creating more value for our partners and customers by seizing new opportunities with our well-rounded beverage portfolio.”
Founded in 1970 by Alko, the Finnish alcohol retailer’s monopoly, Finlandia is one of the most popular vodka makers from Central and Eastern Europe, producing 2.7 million nine-litre cases annually.
Bottled by the Anora Group, it comes in plain and flavored versions, including lime, black currant and raspberry, and was the first Scandinavian vodka brand to be imported to the US.
Brown-Forman, the owner of iconic whiskey labels Jack Daniels and Woodford Reserve, bought a 45 percent stake in Finlandia in 2000 in a deal that gave it distribution rights outside Scandinavia and parts of Eastern Europe.
Two years later, the Kentucky-based group acquired another 35 percent stake before taking full ownership of the company in 2004.
Lawson Whiting, chief executive, said: ‘We believe that Coca-Cola HBC is well suited to support Finlandia’s future development phases.
“I am confident that Coca-Cola HBC’s growth ambitions and capabilities in premium spirits, its critical mass and execution excellence, combined with its leading sales and distribution credentials in the markets in which it operates, will support Finlandia’s growth trajectory. accelerate.’
Last month, Coca-Cola HBC released its first-quarter results showing that organic net sales increased 16.2 percent, driven by price increases and healthy demand for its sparkling, energy and coffee beverages.
Following the performance, it said full-year earnings would hit the top of expectations, rising 3 percent, while sales will grow more than 6 percent.
Coca-Cola HBC Stocks were 1.8 per cent lower at £22.91 on Monday morning, up more than 18 per cent from early January.