Strategic Alliance Between CEDC and Russian Standard Corporation
Central European Distribution Corporation (CEDC) has agreed a strategic alliance with Russian Standard Corporation. CEDC is one of the world’s largest producers of vodka and Central andEastern Europe’s largest integrated spirit beverage company. CEDC produces the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and Soplica brands, among others. CEDC exports its products to many markets around the world, including the United States, England, France and Japan. CEDC also is a leading importer of alcoholic beverages in Poland, Russia andHungary
Russian Standard Corporation is one of Russia’s most successful private companies with business interests in premium vodka, spirits distribution, banking and insurance. Russian Standard Vodka is the global leader in authentic Russian premium vodka and the only Russian global brand with sales in over 75 markets around the world. Its 2011 sales exceeded 2.6 million 9-liter cases.
The alliance is expected to significantly strengthen CEDC’s balance sheet and create a powerful portfolio of brands with enhanced production, distribution and sales channels throughout Central and Eastern Europe.
Meanwhile, William Carey has resigned as CEDC’s chairman, president, chief executive but has agreed to serve as a consultant to the company during a transition period. David Bailey, the current lead director of CEDC’s board, has been appointed interim chief executive. Roustam Tariko, founder and chairman of Russian Standard Corporation, has been appointed to the SEDC board and as non-executive chairman.
David Bailey comments: “CEDC’s alliance with Russian Standard presents a tremendous opportunity to move forward as a company. With the investment by Russian Standard having secured our ability to retire our 2013 convertible notes, we can now focus all of our energies on growing and improving our business – both through internal efforts and through our new strategic alliance with Russian Standard. This combination has multiple benefits for all involved and we are very excited about the opportunities it provides.”
