A case of two Stolichnaya vodka brands
The battle over who owns the Stolichnaya vodka brand name has shifted up a gear. The Russian government has started production of its own version of the world-famous brand, but private company SPI Group – recognised in most countries as the legal trademark owner – is threatening to have any shipments of “new” Stolichnaya impounded as counterfeit.
In return, the Russian government is planning to sue SPI across Europe in an attempt to have the latter’s rights to the name invalidated and returned to the state.
In Communist days, SPI was the state-run company responsible for all Russian vodka production and exports. It was privatised and bought all rights to Stolichnaya and 42 other vodka brands for $300,000 (£194,000) in 1992.
The Russian government later said the sale was fraudulent and renationalised the brands in 2000, setting up a new state-run company, Soyuzplodoimport, to own them (MW April 30). Production started last week, and Soyuzplodoimport says it will start exporting soon.
Vladimir Loginov, head of Soyuzplodoimport, says the state company will soon challenge SPI’s rights across Europe. But SPI claims it bought the rights legally, and that it has since invested $20m (£13.7m) in promoting the brand worldwide and $50m (£34m) in settling the debts of its state-run predecessor.
SPI, which expects turnover for this year to be about $700m (£450m), has already switched production of Stolichnaya from Russia to Latvia, to avoid Russian state interference. So far, UK distributor First Drinks and US distributor Allied Domecq say they have experienced no problems with supplies.
