The maker of Stolichnaya vodka has filed for chapter following a crippling cyber assault in September and an ongoing authorized feud with Russia over who owns the model.
The Stoli Group USA filed for Chapter 11 in US Bankruptcy Court in Dallas final week after a “malicious cyber-attack” pressured the corporate to function its world enterprise manually “whereas the techniques are rebuilt,” chief govt Chris Caldwell stated in a press release.
Caldwell additionally cited ongoing authorized battles with Russia, which named the corporate and its proprietor – Russian-born and exiled billionaire Yuri Shefler – “extremists teams working in opposition to Russia’s pursuits,” earlier this 12 months.
Shefler has been exiled since 2002 due to his opposition to President Vladimir Putin.
After the Ukraine invasion in March 2022 Shefler modified the title of the corporate to Stoli from Stolichnaya.
At the time individuals around the globe started dumping Russian vodka and spirits in protest.
“Today, we’ve got made the choice to rebrand completely because the title now not represents our group,” Shefler stated in a press release on the time. “More than something, I want for ‘Stoli’ to characterize peace in Europe and solidarity with Ukraine.”
The model has lengthy been promoted as a Russian vodka though it’s made in Latvia. Stoli Group is a subsidiary of Luxembourg-based SPI Group, which owns different spirts and wines, together with Kentucky Owl bourbon. Only Stoli Group USA and Kentucky Owl are in chapter, the corporate stated.
Shefler has been at odds with Putin for many years, publicly denouncing a lot of draconian anti-gay legal guidelines in 2013.
Russia and Stoli Group have additionally clashed in courts.
The Russian authorities makes a state-owned model of the model that’s bought within the nation with a label that clearly says it’s Russian made, in accordance with reviews.
Ownership of the model is disputed between Shefler’s Stoli Group, and Sojuzplodoimport, a agency owned by the Russian state.
Stoli Group stated its “experiencing monetary difficulties” in accordance with the submitting, which lists between $50 and $100 million in liabilities.
The chapter comes at a time when total alcohol gross sales are slowing this 12 months as shoppers pull again on consumption to save cash and for well being causes.
Consumption of spirits within the U.S. was down 3% and beer down 3.5% for the primary seven months of 2024, in accordance with IWSR, a worldwide drinks knowledge and analytics agency.
Younger individuals drink lower than earlier generations, in accordance with reviews, whereas non-alcoholic drinks are seen as a quick rising area of interest market.
The legalization of marijuana in lots of states has additionally contributed to decrease alcohol gross sales, specialists say.
