BRISTOL, UK, Nov. 24, 2004 (PRIMEZONE) -- Allied Domecq PLC (Allied Domecq) and SPI Group (SPI) announce that they have today signed contracts for Allied Domecq to market and distribute the Stolichnaya vodka brand portfolio in markets within the European Union, Latin America, Asia Pacific and Africa.
Stolichnaya is the world's leading Russian vodka brand. It will now become one of Allied Domecq's core brands. Allied Domecq already markets and distributes Stolichnaya on behalf of SPI in the USA, Canada, Mexico and the Nordic region. The original US agreement runs until 31st December, 2010. The new agreement will expire on the same date. Allied Domecq has the right of first refusal for the renewal of both agreements.
Since Allied Domecq began US distribution in January, 2001, sales of Stolichnaya have grown from 1.2 million cases to 1.9 million cases.
The Stolichnaya range of authentic Russian vodkas will be added to the Allied Domecq brand portfolio on a phased market-by-market basis. This process will start almost immediately and will continue over the next three years with new markets being added as and when current distribution arrangements with third parties expire. Allied Domecq expects that the acquisition of new distribution markets for Stolichnaya will have a neutral effect on earnings for the financial year 2005.
ENDS
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