Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
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FYI A New Direction for Stoli B eginning this January, including Russia). Stoli Group USA took "We own wheat fields in Russia (and over complete responother places) and a $100 million state-of-the art production plant," Esposito said. sibility for the importation, However, a recent law that Putin pushed marketing and distribution of through states that for a vodka to be termed Stolichnaya Vodka. "Russian," it must be blended in Russia. And John Esposito, most because Stolichnaya is blended in Latvia, its recently the president and ceo label had to be changed. It is now termed of Bacardi USA, has signed on "Premium Vodka" on the label. as president of this new company in what he terms "an incredibly exciting opportuniAccenting Premium Positioning ty. It has given us a chance to Esposito emphasized that "Stoli has a organize a company from the great heritage, great distribution and is ground up, put passionate and viewed by leading mixologists as a great committed people in place, vodka." Still he noted that in recent years "the brand had been seeking volume; now, we will and establish a team which has focus on its premium positioning." Part of the one goal in mind: not individ- John Esposito, president of Stoli Group USA. new approach ual achievements, but building is to focus on the appeal of The company will be a winning premium brand." focusing on promotEsposito noted that Stolichnaya has had several brand the 80 proof core brand as ing the premium stewards in the U.S. over the past decade. For awhile, well as the company's super- positioning of its the brand was under the Pernod Ricard umbrella, but in premium expression, Elit by core 80 proof brand. 2008, when Pernod purchased Absolut, Pernod had to Stolichnaya, and "some new divest itself of Stoli. The brand then went to William things coming down the line," Esposito said. In Grant & Sons, which immediate doubled the size of addition, the company will reduce the number of Grant's U.S. business, Esposito said. Still, about 16 flavored expressions in its portfolio, to establish a months ago, brand owner Yuri Shefler and his company core group of flavors, which will remain an imporSPI, decided to establish its own company in the U.S. to tant element of the overall effort. The flavored handle the brand, creating Stoli Group USA. lineup currently represents about 30% of the brand's sales. A Little History "Lori Tieszen, senior vice president of For decades, Stolichnaya was owned by the Soviet marketing, and her team have built a solid state in conjunction with union collectives; however, marketing plan," Esposito said. All the supwhen the Soviet Union began breaking up in the early port materials have been re-done, and the 1990s, Russian entrepreneurs started buying up state brand's "Start With Stoli" campaign launches assets. That's when Yuri Shefler bought a percentage of the end of January. "There has been a tremenStolichnaya. By 1997, he had acquired complete owner- dous collaborative effort between marketing and ship of the brand. sales," Esposito pointed out, "as well as aligning the Still, politics continued to play a role in the brand's program with our distributors." fate. Around 2001, Russian President Putin nationalized There are currently 80 employees of Stoli Group the brand, instigating court cases in the U.S. and USA, and they are all "bringing an entrepreneurial eneraround the world. SPI has been legally defending its gy to the project," according to Esposito. "The key," he said, "is to be proud of your brand and rights to the brand successfully ever since, and SPI's Stoli is now distributed in 167 countries worldwide (not hold onto your price." 8 • Beverage Dynamics • www.beveragedynamics.com • January/February 2014