Trade House Smirnov

Project start: October 2000

About the Company:
It produces and sells the world famous "Smirnov" brand of vodka in Russia and CIS countries.

Investment Appeal / Investment Idea of the Project:
Creation of a large business dealing in the production and sale of a high-quality product based on the most famous Russian brand.

Role of the Investor:
Management of the asset (the Company's controlling stock), provision of financing for development of the business, and optimization of management.
Trading House Smirnov re-branded its Smirnov trademark and changed its advertising campaign to increase awareness of the brand among consumers. According to analysts, the re-vitalized Smirnov product and brand has good future prospects in the market. In 2005, it has shown a 4.5-fold increase in annual production and sales.

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Diageo Distribution

Project start: 2006

About the Company:
Exclusive supplier of the world’s best brands of premium alcoholic beverages to Russia. Joint venture between A1 Group and the world’s biggest producer and seller of alcoholic beverages, the Diageo Corporation.

Investment Idea of the Project:
The Company was created for the promotion and sale of alcoholic beverages in Russia.
It has exclusive rights to operate in the country with Diageo brands including – Smirnoff, Johnnie Walker, J&B, Baileys, Captain Morgan, Cuervo, Tanquarey, and Crown Royal.
A1 Group transfers the brand and business of Smirnov to the Company.

Role of the Investors:
The future of the joint venture is thought to be excellent. Russia has become a leader in the growth in sales of Diageo brands leaving many developing markets behind. Diageo now has 25% of the market for premium alcoholic beverages in the country; its share in the sale of whisky and liqueurs is around 50%, and of gin more than 30%. The single brand portfolio of the legendary brands Smirnoff and Smirnov makes it possible to draw up an optimum strategy for their promotion in Russia and global markets.