Diageo unites Smirno(ff/v) family

Diageo has opened up a new joint venture in Russia. Developed in conjunction with A1 Group Ltd, Diageo Distribution (DD) finally unites two brands that have had a rather strained relationship in recent years: Smirnoff and Smirnov.

The Russian premium spirits market is accelerating at an impressive rate and Diageo hopes to maximise the potential of this growth through the new structure. DD currently employs more than five times the number of staff that Diageo previously had in Russia, and the ultimate objective is to employ over 250 staff. Alison Forrestal, former general manager of Diageo Russia, has been appointed DD general director. The UK behemoth has a 75% stake in the venture. Andrew Moragn, president Europe Diageo, explains, “The opening of DD marks the beginning of a new era for Diageo.” Just two years ago Diageo was embroiled in a drawn-out legal battle to protect its Smirnoff brand. The brand name comes from Pyotr Smirnov, the Tsar’s official vodka supplier. One of his sons, Vladimir, travelled west and established the world’s leading vodka brand in the 1930s. Following the fall of communism, the original Smirnov brand returned to the market, prompting extensive legal wrangling over the copyright. Diageo was eventually obliged to remove the Cyrillic typeface and Russian coat of arms from the Smirnoff label. Henceforth, the two brands will be united as part of the DD portfolio.