Ukrainian alcohol holding Global Spirits AMG-77 Limited, one of the largest alcohol producers in the CIS, has finalized a deal to buy the Vagron liquor and vodka plant in Russia, the holding's press service has told Interfax-Ukraine.
The holding said that the acquired company was renamed Russian North, and it plans to start vodka production under the Russian North trademark in August 2011.
It is expected that the Vologda plant would resume operations in June after the completion of the re-licensing procedure.
The press service also said that the total investment in the acquisition and upgrade of the liquor and vodka plant, the capacity of which is to be increased to six million decaliters per year, would be $20-25 million.
It is expected that Russian North would be the key trademark of the acquired plant, along with two local trademarks that would be launched at the first stage.
"We plan to start [Russian North vodka] sales from August – the retail price of a half-liter bottle would be RUR 170-180 [UAH 47.60-47.50] in Russia and around UAH 30 in Ukraine," the press service said, citing the director general Khortytsa Trade House in Russia, Sergey Velichko.
The holding expects that in the next two years Russian North would occupy around 10% of the Russian market.
Global Spirits plans to spend $10-15 million per year on promoting the new trademark.
As reported, Global Spirits AMG-77 Limited incorporates Khortytsa distillery, CJSC Odesa Cognac Plant, the Crimean Wine House, the Megapolis Trade House and Russia’s Khortytsa Trade House.
