- Combination Creates Diversified Spirits Portfolio that Spans Consumer Needs with Broad Geographic Reach and Distribution Platform
MOSCOW and WARSAW, Poland, June 5, 2013 /PRNewswire/ -- Russian Standard Corporation announced today that it has completed its acquisition of Central European Distribution Corporation (CEDC), adding more than a dozen brands to its portfolio and vaulting Russian Standard to the position of second-largest vodka producer by volume in the world. The consolidated company has significant scale and breadth on a global basis, with over 34mn 9L cases of products sold annually. Russian Standard is also now one of the world's leading integrated spirits beverage and sparkling wine businesses with distilleries, production facilities and distribution centers spanning Russia, Poland, Hungary and Italy.
Russian Standard's new brands include Russia's Green Mark, Parliament and Zhuravli, as well as Poland's Zubrowka, Absolwent and Soplica – all domestic market leaders in their price segments. These best-selling vodka brands complement Russian Standard Vodka, the company's flagship premium brand.
"We now have the most authentic and beloved vodka brands in the most important vodka homelands – Poland and Russia," said Roustam Tariko, Founder and Chairman of Russian Standard. "As the vodka category continues its global growth, our diverse portfolio will be able to satisfy the taste of consumers around the world, from price conscious to premium."
Building on its global production and distribution platform with sales in more than 75 countries, Russian Standard plans to significantly increase the export of its newly acquired brands, capitalizing on rising consumer demand for authentic spirits. At the same time, Russian Standard will benefit and learn from strong brands acquired in Poland, one of the world's most historic vodka markets.
"With this acquisition we have fully invested in CEDC's brands, in their history and in the people who make them," Roustam Tariko continued. "As we move forward, we expect to have many opportunities together. We have greater potential as one company, with complementary brands, segments, import portfolios and export markets."
The acquisition, which was completed through one of Russian Standard's affiliates, Roust Trading Ltd., also expands Russian Standard's footprint as a leading importer of alcoholic beverages. In Russia, Poland and Hungary, the company represents many of the well-known spirits brands, such as Remy Martin, Jagermeister, Grant's, Campari, Cinzano, Jim Beam, E&J Gallo, Carlo Rossi and Concha y Toro.
The Russian Standard portfolio also includes Gancia, the legendary Italian sparkling wine, in which the company acquired a majority stake in 2011.
About Russian Standard Corporation (www.russianstandard.com)
Russian Standard Corporation is Russia's most successful global consumer company with business interests in vodka, wine, spirits distribution, banking and insurance. Privately-owned and employing more than 24,000 people, Russian Standard is headquartered in Russia with operations in Europe, the United States and Asia.
Russian Standard's spirits beverage business is the second-largest vodka producer by volume in the world, with over 34mn 9l cases of products sold annually in over 80 markets. Russian Standard spirits brands include the company's flagship Russian Standard Vodka, Green Mark, Parliament and Zhuravli, as well as the legendary Polish vodka Zubrowka. The company is Central and Eastern Europe's largest integrated spirits beverage company, with distilleries, production facilities and distribution centers spanning Poland, Hungary, Russia and Italy. Russian Standard owns a majority interest in Gancia, the legendary Italian company that created the first Italian sparkling wine.
Russian Standard's financial services business is led by Russian Standard Bank, one of the largest consumer finance institutions in Russia and the pioneer of the Russian consumer lending market. Founded in 1999, Russian Standard Bank is the exclusive issuer and service provider for American Express and Diners Club International cards in Russia. Russian Standard Insurance is one of the country's largest credit life insurers.
The Russian Standard Foundation helps underprivileged children reach their full potential through grants and education.
Cautionary Statement about Forward-Looking Information
This press release contains forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 including, without limitation, statements about the expected effects of the acquisition of CEDC on Russian Standard, Russian Standard's export plans, the impact of CEDC's Polish brands, the potential of the combination of Russian Standard and CEDC and [Russian Standard's goals]. Forward looking statements are based on our knowledge of facts as of the date hereof and involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Russian Standard and its affiliates, including CEDC, to be materially different from any future results, performance or achievements expressed or implied by our forward looking statements. Such risks include, among others, our ability to effectively integrate CEDC into Russian Standard, general economic and business risks, shifts in consumer preferences, our ability to execute key strategies, our ability to realize cost savings and synergies, our ability to attract and retain key personnel, the legal and regulatory environment in which we operate, our level of capital expenditures and other costs and commitments, and pricing of raw materials for our products. Investors are cautioned that forward looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. Russian Standard undertakes no obligation to publicly update or revise any forward looking statements or to make any other forward looking statements, whether as a result of new information, future events or otherwise, unless required to do so by relevant securities laws.
SOURCE Russian Standard Corporation