Coca-Cola HBC AG is pleased to announce that it has entered into agreements to acquire Brown-Forman Finland Oy, owner of the Finlandia Vodka brand. The company took over the business from Brown-Forman Netherlands BV, a wholly owned subsidiary of Brown-Forman Corporation. The agreed purchase price is USD 220 million, subject to the usual adjustments to the final price. The acquisition is being carried out through CC Beverages Holdings II BV, a wholly-owned subsidiary of Coca-Cola HBC. The proposed transaction is expected to close in the second half of 2023 and is subject to regulatory approvals.
Founded in 1970, Finlandia Vodka is the leading vodka brand in Central and Eastern Europe. The global annual production volume is 2.7 million 9-litre cases, 60% of which are produced within the geographical footprint of Coca-Cola HBC. Finlandia Vodka is bottled by Anora Group plc in Finland based on a long-term production services agreement and is available in classic unflavored and in several flavored variants.
Coca-Cola HBC strengthens its position in beverage market with the Finlandia Vodka brand
The acquisition of Brown-Forman Finland Oy represents a unique opportunity for Coca-Cola HBC, strengthening its path to becoming the leading beverage partner for every moment of the day and every occasion. Coca-Cola HBC has been a distributor of Finlandia Vodka and other spirits brands for more than 17 years and this acquisition will further strengthen its portfolio across more of its markets. Ownership of the Finlandia brand will enhance Coca-Cola HBC’s premium spirits credentials by expanding mixability options with premium and super-premium Non-Alcoholic Ready-To-Drink (NARTD) products, helping capture a greater part of drinking occasions, and strengthening partnerships with customers in strategically important channels such as catering.
Zoran Bogdanović, CEO of Coca-Cola HBC, said:
“Having been involved in the distribution of Finlandia Vodka for 17 years in a number of markets, we are excited about this unique and regionally significant opportunity to boost our business in several of our markets. The complementarity of our spirits business with our strong portfolio of Non-Alcoholic Ready-To-Drink (NARTD) beverages enables us to offer solutions for a broad range of 24/7 consumption occasions, particularly for socializing moments. We view this as an attractive investment and a natural evolution of our role as one of Finlandia’s distribution partners, further attesting to the strength of our trusted and wide-ranging partnership with Brown-Forman. We appreciate the confidence placed in us and look forward to creating more value for our partners and customers by capturing new opportunities with our well-rounded beverage portfolio.”
Lawson Whiting, CEO of Brown-Forman, said:
“We are pleased to be passing on the torch of ownership of Finlandia Vodka to Coca-Cola HBC, which has been proving to be a strong and reliable partner to our brands for 17 years. We believe Coca-Cola HBC is well suited to support the future stages of Finlandia Vodka’s brand development. I am confident that Coca-Cola HBC’s efforts and growth capabilities in the spirits sector, its critical mass and execution excellence, together with its leading sales and distribution credentials in the markets in which it operates, will boost the growth of the Finlandia Vodka brand.”
About Coca-Cola HBC
Coca-Cola HBC a strategic partner to The Coca-Cola Company, focusing on business development in the consumer category. We are a value creator for our stakeholders as we support socio-economic development in the communities where we operate, and we believe that creating a greater positive impact on the environment is key to our future growth. Together with our customers, we serve 740 million consumers in a wide geographic area covering 29 countries on three continents. Our portfolio is one of the strongest, broadest and most flexible in the beverage industry, offering what consumers consider to be the leading beverage brands in the categories of carbonated beverages, juices, water, sports drinks, energy drinks, plant-based beverages, ready-to-drink teas, coffee, adult carbonated beverages and spirits. Our beverage portfolio includes Coca-Cola, Coca-Cola Zero, Schweppes, Kinley, Costa, Valser, Romerquelle, Fanta, Sprite, Powerade, Aquarius, Vitamin Water, FuzeTea, Cappy, Monster, Burn, Caffè Vergnano and Adez. We employ 33,000 people, create an open and inclusive work environment, and are ranked among the leading companies in sustainability by ESG benchmarks such as the Dow Jones Sustainability Index, CDP, MSCI ESG and FTSE4Good.
Coca-Cola HBC ranks highly on the London Stock Exchange (LSE:CCH) and the Athens Stock Exchange (ATHEX:EEE). For more details, please visit https://www.coca-colahellenic.com.
About Brown-Forman
For more than 150 years, Brown-Forman has been enriching moments in life through the responsible creation of spirits brands, including Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Ready-to-Drinks, Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Tennessee Apple, Gentleman Jack, Jack Daniel’s Single Barrel, Woodford Reserve, Old Forester, Coopers’ Craft, The GlenDronach, Benriach, Glenglassaugh, Slane, Herradura, el Jimador, New Mix, Korbel, Sonoma-Cutrer, Finlandia, Chambord, Fords Gin, Gin Mare and Diplomático Rum. Brown-Forman brands are supported by approximately 5,600 employees worldwide and sold in more than 170 countries worldwide. For more information about the company, visit https://www.brown-forman.com. Follow us on LinkedIn, Instagram and Twitter.