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Russian Billionaire Launches Vodka in France

Source: Reuters
04/10/2007

Paris, Oct 3 - Russian billionaire Roustam Tariko launched his "Russian Standard" vodka brand in France on Wednesday and said he aimed to become the market's leading player "as quickly as possible."

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Speaking on the margins of the launch at the George V hotel in Paris, Tariko said he was prepared to invest 4 million euros ($5.6 million) by the end of the year to get the brand known.

"We will definitely be spending much more than our competitors," he told Reuters.

Russian Standard launched also in Britain this week, taking its challenge directly to the world's Number 1 and 2 spirits groups, Britain's Diageo, owner of Smirnoff vodka, and France's Pernod Ricard, owner outside Russia of Stolichnaya.

According to Russian Standard officials, France's vodka market is currently dominated by Eristoff, owned by privately-held Bacardi, Diageo's Smirnoff and Absolut, made by Swedish state-owned drinks group Vin & Sprit.

Both Pernod and Diageo have expressed interest in buying V&S, which is due to be privatised.

Tariko said he had no interest in buying another brand and was focused on building up Russian Standard.

He said he had long term plans to acquire or build a new vodka plant, complete with its own grain fields to keep control over quality and provide a hedge against rising grain prices.

"Many other spirits are declining or not growing... There are not really any alternative categories to be in," Tariko said. "It's better to invest in your own brands, in your own category," he said.

He said he had no plans for a stock market listing to fund the company's development.

"I don't believe in public companies... I would prefer to risk my own money, make any necessary changes fast and grow as quickly as possible. A lot of people offered me to go public but I have always rejected it," he said.

Russian Standard sold 1.4 million cases of vodka in 2006 compared with 1 million in 2005.

Russian Standard Marketing Director Christophe Lucas said this year it expected to sell more than 2 million cases.



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