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D Distribution and the Smirnov Brand

2000 • Russia

About the Company

In 2000, А1 became the management company of the Trading House of the Descendants of P.A.Smirnov which had the rights to the Smirnov vodka brand. In 2006, D Distribution was established, a joint venture of А1 and Diageo, the largest world producer of alcoholic drinks. According to the terms of the thransaction, Diageo became the owner of 75% of the shares in the future company, and А1 obtained 25%. Diageo was given the opportunity to be engaged in selling Smirnov vodka, and it waived the selling of its own Smirnoff vodka in Russia. D Distribution is an exclusive distributor of the Diageo brands in Russia: Johnnie Walker, White Horse, Bushmills, Baileys, Captain Morgan, Jose Cuervo, a series of de luxe brands and a collection of single-malt whiskies.

Project Investment Concept

Establishment of a market leader in selling premium alcohol in Russia. Considerable increase in sales. A new development of the Smirnov brand thanks to the revised marketing strategy.