StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions
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D A T E L I N E A New Direction for Stoli B eginning this January, Stoli Group USA took over places) and a $100 million state-of-the art production complete responsibility for the importation, market- plant," Esposito said. However, a recent law that Putin ing and distribution of Stolichnaya Vodka. pushed through states that for a vodka to be termed John Esposito, most recently "Russian," it must be blended in the president and ceo of Bacardi Russia. And because Stolichnaya is blended in Latvia, its label had to USA, has signed on as president of be changed. It is now termed this new company in what he terms "Premium Vodka" on the label. "an incredibly exciting opportunity. It has given us a chance to orgaAccenting Premium nize a company from the ground Positioning up, put passionate and committed people in place, and establish a Esposito emphasized that team which has one goal in mind: "Stoli has a great heritage, great not individual achievements, but distribution and is viewed by building a winning premium leading mixologists as a great brand." vodka." Still he noted that in recent years "the brand had been Esposito noted that Stolichnaya seeking volume; now, we will has had several brand stewards in focus on its premium positionthe U.S. over the past decade. For ing." Part of the new approach is awhile, the brand was under the to focus on the appeal of the 80 Pernod Ricard umbrella, but in proof core brand as well as the 2008, when Pernod purchased company's superpremium Absolut, Pernod had to divest itself John Esposito, president of Stoli expression, Elit by Stolichnaya, of Stoli. The brand then went to Group USA and "some new things coming William Grant & Sons, which immediate doubled the size of Grant's U.S. business, down the line," Esposito said. In addition, the compaEsposito said. Still, about 16 months ago, brand owner ny will reduce the number of flavored expressions in Yuri Shefler and his company SPI, decided to establish its portfolio, to establish a core group of flavors, its own company in the U.S. to handle the brand, creat- which will remain an important element of the overing Stoli Group USA. all effort. The flavored The company will be lineup currently reprefocusing on promotA Little History sents about 30% of the ing the premium For decades, Stolichnaya was owned by the brand's sales. positioning of its core 80 proof brand. Soviet state in conjunction with union collectives; "Lori Tieszen, senior however, when the Soviet Union began breaking vice president of marketup in the early 1990s, Russian entrepreneurs ing, and her team have built a solid marketing started buying up state assets. That's when Yuri plan," Esposito said. All the support materials Shefler bought a percentage of Stolichnaya. By have been re-done, and the brand's "Start 1997, he had acquired complete ownership of the With Stoli" campaign launches the end of brand. January. "There has been a tremendous colStill, politics continued to play a role in the laborative effort between marketing and brand's fate. Around 2001, Russian President sales," Esposito pointed out, "as well as aligning the program with our distributors." Putin nationalized the brand, instigating court There are currently 80 employees of Stoli cases in the U.S. and around the world. SPI has Group USA, and they are all "bringing an entrebeen legally defending its rights to the brand preneurial energy to the project," according to successfully ever since, and SPI's Stoli is now Esposito. distributed in 167 countries worldwide (not "The key," he said, "is to be proud of your including Russia). brand and hold onto your price." "We own wheat fields in Russia (and other 10 StateWays I www.stateways.com I January/February 2014