The maker of iconic Stolichnaya vodka filed for bankruptcy following a
crippling cyber attack in September and an ongoing legal feud with
Russia over who owns the brand.
As [1]reported by the Post, the Stoli Group USA filed for Chapter 11 in
US Bankruptcy Court in Dallas last week after a “malicious
cyber-attack” forced the company to operate its global business
manually “while the systems are rebuilt,” chief executive Chris
Caldwell said in a statement.
Stolichnaya Vodka’s name was changed to “Stoli” in 2022 to distance
itself from Russia
Stoli Group said its “experiencing financial difficulties” according to
the filing, which lists between $50 and $100 million in liabilities.
Caldwell also cited ongoing legal battles with Russia, which named the
company and its owner – Russian-born and exiled billionaire Yuri
Shefler – “extremists groups working against Russia’s interests,”
earlier this year.
Shefler has been exiled since 2002 because of his opposition to
President Vladimir Putin.
After the Ukraine invasion in March 2022 Shefler changed the name of
the company to Stoli from Stolichnaya. That did not help, however,
because at the time propaganda-addled westerners began dumping Russian
vodka and spirits in protest, even when the vodka in question was owned
by an opponent of Putin.
“Today, we have made the decision to rebrand entirely as the name no
longer represents our organization,” Shefler said in a statement at the
time. “More than anything, I wish for ‘Stoli’ to represent peace in
Europe and solidarity with Ukraine.”
The brand has long been promoted as a Russian vodka even though it’s
made in Latvia. Stoli Group is a subsidiary of Luxembourg-based SPI
Group, which owns other spirts and wines, including Kentucky Owl
bourbon. Only Stoli Group USA and Kentucky Owl are in bankruptcy, the
company said.
Shefler has been at odds with Putin for decades, publicly denouncing a
number of draconian anti-gay laws in 2013. Russia and Stoli Group have
also clashed in courts.
The Russian government makes a state-owned version of the brand that is
sold in the country with a label that clearly says it’s Russian made,
according to reports. Ownership of the brand is disputed between
Shefler’s Stoli Group, and Sojuzplodoimport, a firm owned by the
Russian state.
The bankruptcy comes at a time when overall alcohol sales are slowing
this year as Ozempic-injecting consumers pull back on consumption to
save money and for health reasons.
Consumption of spirits in the U.S. was down 3% and beer down 3.5% for
the first seven months of 2024, according to IWSR, a global drinks data
and analytics firm.
Loading...
References
Visible links:
1.
https://nypost.com/2024/12/02/business/stoli-vodka-files-for-bankruptcy-after-cyberattack-legal-feud-with-russia/
Hidden links:
3.
https://www.zerohedge.com/s3/files/inline-images/stoli%20teaser.jpg?itok=0mUhb-XF
4.
https://www.zerohedge.com/s3/files/inline-images/stoli%202.jpg?itok=yUqB8i5n
