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 Chapter Court docket in Dallas final week after a “malicious cyber-attack” compelled the corporate to function its international enterprise manually “while the systems are rebuilt,” chief government 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 groups working against Russia’s interests,” earlier this yr.
Shefler has been exiled since 2002 due to his opposition to President Vladimir Putin.
After the Ukraine invasion in March 2022 Shefler modified the identify of the corporate to Stoli from Stolichnaya.
On the time individuals world wide started dumping Russian vodka and spirits in protest.
“Today, we have made the decision to rebrand entirely as the name no longer represents our organization,” Shefler stated in a press release on the time. “More than anything, I wish for ‘Stoli’ to represent peace in Europe and solidarity with Ukraine.”
The model has lengthy been promoted as a Russian vodka despite the fact that 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. Solely Stoli Group USA and Kentucky Owl are in chapter, the corporate stated.
Shefler has been at odds with Putin for many years, publicly denouncing plenty 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 response to studies.
Possession of the model is disputed between Shefler’s Stoli Group, and Sojuzplodoimport, a agency owned by the Russian state.
Stoli Group stated its “experiencing financial difficulties” in response to 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 yr as shoppers pull again on consumption to economize 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 response to IWSR, a worldwide drinks information and analytics agency.
Youthful individuals drink lower than earlier generations, in response to studies, 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.
