Roustam Tariko takes control of CEDC

3rd January, 2013 by Becky Paskin

Roustam Tariko, owner of Russian Standard, will take control of vodka producer Central European Distribution Corp’s (CEDC) operations in exchange for up to US$65m in funding.

Roustam Tariko

Roustam Tariko has assumed financial control of vodka producer CEDC

Tariko became chairman and interim president of CEDC last year after agreeing to take a 28% stake in the company through his companies Russian Standard and Roust Trading.

However in a letter to shareholders dated 13 November he claimed CEDC lacked the “trustworthy management” needed to reinvigorate declining sales, and had breached the terms of their agreement. He claimed that as such, Russian Standard was no longer obliged to continue the alliance.

CEDC initially rejected Tariko’s request to be given control of the company’s financial management in a second letter to shareholders on 16 November, in which Scott Fine, vice president of CEDC’s special committee, called Tariko’s intentions “destructive and destabilising” and “contrary to the interests of CEDC, its shareholders and the CEDC/ Russian Standard partnership.”

Under the new agreement, announced on 28 December, Tariko will head a new operational management committee to oversee the day-to-day business of CEDC. Joining him on the board will be Fine plus an additional nominee of Roust Trading.

He will also head a new restructuring committee responsible for the company’s financial operations, which will also consist of three non-Russian Standard directors.

In addition, interim chief executive officer David Bailey is to resign from his position on 10 January, and be permanently replaced by Grant Winterton, currently general manager of CEDC subsidiary, the Russian Alcohol Group.

In return, Tariko will release restrictions on US$50m of cash previously invested in CEDC, and commit to an additional US$15m revolving credit facility.

CEDC reported a net sales loss of 8.7% to US$191m during the third quarter of 2012.

Leave a Reply

If that's interesting, how about these?

Spirits shares fluctuate post-Brexit vote

Major drinks suppliers have experienced volatility in trading following the more...

Pimm’s appoints Murray ‘chief foliage officer’

After she sent a social media complaint to Pimm’s, the Diageo-owned brand has more...

Beluga intros Europe cocktail competition

Russia-based Beluga Vodka is to launch Beluga Signature, an on-trade more...

Knappogue Castle 'overhauls' brand design

Castle Brands-owned Irish whiskey Knappogue Castle has rolled out a new pack more...

Breakthru expands with Arizona acquisition

Newly formed US distributor Breakthru Beverage Group has become the full owner more...

Hennessy marks blender succession with release

LVMH-owned Cognac house Hennessy has marked the arrival of its more...

Glencairn sees full-year sales soar 20%

Scottish crystal-maker Glencairn has witnessed a 20% sales uplift in its more...

Channing Tatum to launch potato vodka brand

Hollywood actor Channing Tatum is set to launch the new potato-based Born and more...

The world’s best-selling vodka brands

2015 proved a mixed year for vodka, with a handful of brands flourishing while more...

Stock Spirits releases special dividend

Troubled drinks producer Stock Spirits has announced a special dividend of 10p more...

Diageo reiterates 'remain' ahead of referendum

Ivan Menezes, Diageo CEO, has written to the UK-based company’s 4,773 more...

Pernod relocates staff in Americas HQ division

Pernod Ricard has confirmed that a number of employees in its Americas HQ have more...

Walsh Whiskey opens distillery in Carlow

Walsh Whiskey has officially opened its new €25 million distillery in Royal more...

Ex-William Grant CEO elected to Bacardi board

Stella David, the former CEO of William Grant & Sons, has been elected to join more...

Maxxium UK eyes £900m spirits opportunity

Spirits distributor Maxxium UK is aiming to “unlock” a sales opportunity of more...

Kentucky Mist Moonshine lawsuit dismissed

A US judge has dismissed a trademark lawsuit brought by Kentucky Mist Moonshine more...

Spirit Cartel makes key appointments

London-based importer Spirit Cartel has expanded its sales team, appointing more...

The world's best-selling Indian whisky brands

From buoyant brands to troubled trademarks, the Indian whisky category saw it more...

GlenWyvis distillery secures £1.5m funding

Scotch start-up The GlenWyvis Distillery Community Benefit Society has more...

The Brand Champions 2016

The spirits industry is awash with brands selling more than one million cases more...