Soft drinks giant Coca-Cola Hellenic Bottling Company (HBC) today announced an agreement to acquire Brown-Forman Finland Oy, owner of Finlandia vodka, from Brown-Forman Corporation’s wholly-owned subsidiary, Brown-Forman Netherlands BV.
The US$220 million deal is expected to close during the second half of the year, subject to regulatory approvals.
The acquisition is being made through Coca-Cola HBC’s wholly-owned subsidiary, CC Beverages Holdings II BV.
Finlandia was established in 1970 and is a leading vodka brand in Central and Eastern Europe with annual volumes of 2.7 million 9-litre cases globally, of which more than 60% is being generated within Coca-Cola HBC’s geographic footprint.
Finlandia is bottled by Anora Group in Finland based on a long-term production services agreement and is available in pure and in several flavoured versions.
Coca-Cola said: “The proposed transaction represents a unique opportunity for Coca-Cola HBC that enhances its journey towards becoming the leading 24/7 beverage partner.
“Coca-Cola HBC has been distributing Finlandia and other premium spirits brands for more than 17 years and this acquisition will further enrich and strengthen its portfolio across more of its markets.
“Ownership of the Finlandia brand will enhance Coca-Cola HBC’s premium spirits credentials; driving mixability opportunities with premium and super-premium Non-Alcoholic Ready-To-Drink (NARTD) products, helping capture more drinking occasions, and strengthening partnerships with customers in strategically important channels such as HoReCa [hotels, restaurants, catering].
Coca-Cola HBC CEO Zoran Bogdanovic said: “Having been associated with the distribution of Finlandia for 17 years in several markets, we are excited by this unique and regionally relevant opportunity that will support the acceleration of our on-premise business across more of our markets.
“The proven complementarity of our premium spirits business with our strong NARTD portfolio enables us to offer solutions for a broad range of 24/7 consumption occasions, particularly socialising moments.
“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.”
Brown-Forman CEO Lawson Whiting said, “We are pleased to pass on the ownership torch of Finlandia to Coca-Cola HBC, who has proven to be a strong and reliable partner to our brands for more than 17 years.
“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.”
In a separate statement, Anora commented: “The strategic long-term collaboration Anora has had with Brown-Forman will now continue between Anora and Coca-Cola HBC.
”Finlandia vodka, produced by Anora from the pure natural ingredients of Finnish barley and water, is an important part of Anora’s history and heritage, first as brand owner and later as the producer for global markets pursuant to a strategic partnership with Brown-Forman,” said Anora Group CEO Pekka Tennilä.
“We look forward to continuing and deepening the strategic partnership with Coca-Cola HBC.” ✈
