Anchor bottler Coca-Cola HBC to expand spirits business with $220m acquisition of Finlandia vodka owner
- Finlandia was the first Nordic 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 the owner of Finlandia vodka for $220million (£172million).
The FTSE 100 bottling business 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 complete in the second half of 2023, will help enhance its relationship with customers in important channels like the food service sector and boost its premium spirits offering.
Takeover: Coca-Cola HBC has agreed to acquire the owner of Finlandia vodka for $220m
The firm has distributed Finlandia across multiple markets for 17 years, alongside other spirit brands, such as The Famous Grouse, Highland Park and Campari.
Zoran Bogdanovic, chief executive of Coca-Cola HBC, said: ‘We view this as an attractive investment and a natural evolution of our role as one of Finlandia’s distribution partners, further attesting to the strength of our time-tested and wide-ranging partnership with Brown-Forman.
‘We appreciate the trust placed in us and look forward to creating more value for our partners and customers by capturing new opportunities with our well-rounded beverage portfolio.’
Founded in 1970 by Finland’s alcohol retailer monopoly Alko, Finlandia is one of the most popular vodka makers from Central and Eastern Europe, with 2.7 million nine-litre cases made annually.
It is bottled by the Anora Group and available in pure and flavoured versions, including lime, blackcurrant and raspberry, and was the first Nordic vodka brand to be imported in the US.
Brown-Forman, the owner of iconic whiskey labels Jack Daniels and Woodford Reserve, bought a 45 per cent stake in Finlandia in 2000 in an arrangement that gave it distribution rights outside Scandinavia and parts of Eastern Europe.
Two years later, the Kentucky-based group acquired another 35 per cent stake before taking full ownership of the company in 2004.
Lawson Whiting, chief executive, said: ‘We believe Coca-Cola HBC is well-suited to support Finlandia’s future stages of development.
‘I am confident that Coca-Cola HBC’s growth ambitions and capabilities in premium spirits, its critical mass and executional excellence, coupled with its leading sales and distribution credentials in the markets where it operates, will accelerate Finlandia’s growth trajectory.’
Last month, Coca-Cola HBC published first-quarter results showing organic net sales revenue expanding by 16.2 per cent, thanks to price rises and healthy demand for its sparkling, energy and coffee drinks.
Following this performance, it said full-year earnings would hit the top end of guidance, increasing by 3 per cent, while turnover will grow by over 6 per cent.
Coca-Cola HBC shares were 1.8 per cent lower at £22.91 on Monday morning, more than 18 per cent higher than at the start of January.
