Green Mark gets the Russian touch

CEDC sorts out its international portfolio and the sale of its Polish distribution arm underlines its ongoing commitment to its own brands.

It’s been a roller coaster year for the Central European Distribution Corporation – CEDC for short – but one that sees the company end on a high note. One, its quality flagship Zubrówka Bison Grass Vodka is now in the Rémy Cointreau distribution camp, Stateside; two, it has sold its Polish distribution arm; three, it has pulled out of the contest to acquire the Ukraine producer Nemiroff; and four, it has renamed its Green Mark Vodka.

Well it’s still Green Mark, but in Russian – that is Zelyonaya Marka. “Our research findings highlighted the fact that Green Mark had no Russian identity,” says CEDC’s Ian Grist. “It will still say Green Mark on the label, which now underlines the fact that it is ‘Imported from Russia’, and the medallion on the string is now two sided, with Russian on one and English on the other side.”

Apart from the company’s own research findings, the move has been prompted by the fact that Stolichnaya can no longer claim to be a Russian vodka.

“Stoli has had to relinquish its Russian origins so it was even more important for us to focus on our Russian origin,” Grist told The Spirits Business.

Green Mark is being primed as CEDC’s value-for-money brand. “It’s a quality voddy at a fair price even though it is perceived very much as a premium,” says Grist. This perception is certainly aided and abetted by Green Mark’s presentation, which has very premium cues including the fact that each bottle is numbered. “This makes it ideal for promotions,” says Grist. “The cap is also intriguing and along with the medallion all these elements combine to make Green Mark very, very different.”

CEDC also owns Parliament, the brand that carries the interesting USP that it is filtered through milk – which does the same thing to vodka as egg whites do for wine. “Parliament is also Russian, but it’s primarily a vodka from Moscow first and it’s more premium in terms of production,” says Grist. “Price-wise Green Mark sells for RUB140 [£2.82], whereas Parliament costs RUB200.”

That said CEDC is keen to point out that Zubrowka is its quality “mainstay” and the company has high hopes for the brand particularly since the tie-up with Rémy in the US. The Bison Vodka’s presentation is different Stateside – the two companies have been working closely on this – and it’s a market where the brand call is  for “Zu”. “We can trademark this,” says Grist. “And we already have the Zu facebook page.”

For the time being Zubrowka and Green Mark will front CEDC’s international business in both the US and the UK, while Parliament’s chief stamping ground is Germany, where it is distributed by Borco. “It’s developed very well – and we are now fielding Green Mark as well,” says Grist.

All CEDC’s Polish and Russian vodkas are marketed at 40% abv and the company is not that taken with flavoured vodkas per se. “Flavours are ‘interesting’ but in terms of success the US is the exception – we are not going to get involved in flavour variants,” says Grist. “We prefer the traditional flavours that come out naturally in production – like chestnut and birch et al – these are very subtle and add a nuance to the taste but do not overpower.”

Overall CEDC is the world’s largest vodka producer, with annual sales exceeding 270 million litres. It enjoys leading positions in all its prime stamping grounds, namely Poland, Russia and Hungary, while its vodka portfolio includes valuable and recognised brands like Bols, Zubrówka, Absolwent and Soplica in Poland; Green Mark and Parliament in Russia; and Royal Vodka in Hungary.

CEDC has long held the belief that there are three vodka markets – Poland, Russia and the US, which is how the company has skewed its operations. It has successfully shored up its base in Russia and certainly the acquisition of the Ukrainian vodka Nemiroff would have significantly increased its foot print in Eastern Europe. Another interested party was the Stock Spirits Group, which is a growing power house in central Europe and an erstwhile rival to CEDC, particularly in Poland where its Czysta de Luxe vodka has overhauled Absolwent and is now the number one.

Most recently CEDC announced the sale of its Polish distribution arm to wholesale distributor Eurocash for PLN400m [£85m]. As part of the deal, Eurocash will distribute CEDC-owned drinks brands and licensed brands in Poland for six years.

While the money raised from the sale will go towards paying off existing debt the move also underlines CEDC’s ongoing commitment to concentrate its efforts on its own brands as well as imported lines. SB