Stoli responds to Russian legal threat

SPI Group, producer of Stolichnaya vodka, has accused the Russian government of engaging in a campaign of harassment following a legal ruling that could see the brand taken into state ownership.

Rob Cullins, CEO of Stoli Group (Photo: Stolichnaya)

Russian state entities are trying to “confiscate” the Stolichnaya brand across the world, the Luxembourg-based drinks group said, but it will “continue to defend its rights”.

The bold response comes a day after a US court ruled that Stoli Group, a subsidiary of SPI, was open to a trademark challenge over ownership of the Stolichnaya brand by a Russian quango in American courts.

Tuesday’s decision by the 2nd Circuit Appeals Court in Manhattan overturned a 2014 ruling by a lower court that said Stoli Group in the US was immune to the threat of legal action from Russian state-owned company Federal Treasury Enterprises.

FTE has claimed ownership of the Stolichnaya brand since 2000, when Russian judges deemed the post-Soviet privatisation of Stolichnaya – which means “from the capital” in Russian – as invalid.

“SPI Group, parent company of Stoli Group, is fully prepared to demonstrate our rightful and legal ownership of Stolichnaya and to put the dispute behind us,” it said in a statement.

“While SPI is disappointed with the Second Circuit’s decision regarding the jurisdiction of the US Federal Courts, it should be noted that several claims raised against SPI were dismissed.

“Still, SPI has full confidence in the United States court system and believes that SPI will prevail in proving its legitimate rights.”

Stolichnaya’s former US distributors Allied Domecq and William Grant could also face a legal challenge from FTE after the latest ruling.