Brown-Forman finalizes sale of Finlandia Vodka to Coca-Cola HBC for $220m
In a strategic move aimed at enhancing its premium brand portfolio, Brown-Forman Corporation (NYSE: BFA, BFB) has completed the sale of its renowned Finlandia vodka brand to Coca-Cola HBC AG for a deal valued at $220 million. This sale aligns with Brown-Forman’s vision for brand innovation and portfolio premiumization.
Brown-Forman Advances Strategic Portfolio Optimization with Finlandia Divestiture
Initiated in June 2023, the agreement with Coca-Cola HBC AG comes to fruition as both companies have agreed upon the final terms, including inventory and working capital adjustments. This acquisition by Coca-Cola HBC’s subsidiary, CC Beverages Holdings II BV, is anticipated to conclude in the latter half of 2023, pending regulatory green lights.
Coca-Cola HBC Enhances Spirits Range with Finlandia Vodka Acquisition
Finlandia, a vodka brand with a distinguished history since 1970, enjoys a strong market presence, particularly in Central and Eastern Europe, with annual sales of 2.7 million 9L cases. The brand’s significant volume within Coca-Cola HBC’s geographic scope reinforces the strategic nature of this acquisition. Bottled by Anora Group plc under a long-term agreement, Finlandia offers a range of products including pure and flavored vodkas.
Coca-Cola HBC expands portfolio with acquisition of iconic Finlandia vodka brand from Brown-Forman. Photo courtesy of Coca-Cola HBC.
Finlandia Vodka Joins Coca-Cola HBC’s Premium Portfolio Amid Beverage Sector Evolutions
For Coca-Cola HBC, the acquisition of Finlandia signifies a major leap towards becoming a premier round-the-clock beverage partner. Having distributed Finlandia for over 17 years, Coca-Cola HBC is set to bolster its premium offerings, leveraging the brand to foster mixability with non-alcoholic beverages and expanding its reach across strategic market segments and channels, including hospitality and retail.
Brown-Forman Corporation, with over 150 years of heritage, has a rich history of developing quality beverage alcohol brands. The sale of Finlandia allows it to focus on its diverse portfolio, which includes a variety of distinguished labels like Jack Daniel’s and Woodford Reserve. This deal not only reflects a reshaping of Brown-Forman’s brand architecture but also signifies Coca-Cola HBC’s intensified commitment to expanding its alcoholic beverage lineup, showcasing a dynamic and evolving beverage industry landscape.