Milan, June 19, 2023 – Coca-Cola HBC ("Coca-Cola HBC") is pleased to announce that it has reached an agreement to acquire the company Brown-Forman Finland ("the Company"), owner of the Finland ("Finland") vodka brand, from Brown-Forman Corporation's 100% subsidiary, Brown-Forman Netherlands BV. The agreed purchase price is $220 million and is subject to customary final price adjustments ("Proposed Transaction"). The acquisition is being made through Coca-Cola's 100% subsidiary HBC, CC Beverages Holdings II BV. The proposed transaction is expected to be completed in the second half of 2023 and is subject to regulatory approvals.
Finlandia was founded in 1970 and is a leading brand in the Vodka market in Central and Eastern Europe, with annual volumes of 2.7 million 9-liter cases globally, of which more than 60% are generated within the Coca-Cola HBC region. Finlandia is bottled by Anora Group plc in Finland under a long-term production services agreement and is available in both classic and flavoured options.
The proposed transaction represents a unique opportunity for Coca-Cola HBC, which strengthens its path to become the leading 24/7 partner in the beverage industry. Coca-Cola HBC has been distributing Finland and other premium spirits brands for more than 17 years, and this acquisition will further enrich and strengthen its product portfolio in more markets. The ownership of the Finland brand will strengthen Coca-Cola HBC's position in the premium spirits sector, creating opportunities for blending with premium and super-premium commercial soft drinks (NARTD), covering even more consumption occasions and strengthening partnerships with customers in strategically important channels such as HoReCa.
Zoran Bogdanovic, CEO of Coca-Cola HBC, commented:
"Having managed Finland's distribution for 17 years in different markets, we are excited to seize this unique opportunity with great regional potential, which will support our local growth in numerous markets. The proven complementarity between the premium spirits business and our strong NARTD portfolio allows us to offer our customers solutions that cover a wide range of drinking occasions, 24 hours a day and particularly in moments of socialising. This investment is, without a doubt, a natural evolution of our role as distributors in Finland, further confirming the strength of our historic and visionary partnership with Brown-Forman. We appreciate the trust we have been placed in and look forward to creating value for our partners and customers by seizing the new opportunities in our broad beverage portfolio."
Lawson Whiting, CEO of Brown-Forman, said:
"We are delighted to pass the baton of ownership of Finland to Coca-Cola HBC, which has proven to be a strong and reliable partner for our brands for over 17 years. Coca-Cola HBC is undoubtedly ready and prepared to support Finland's growth. I am confident that Coca-Cola HBC's growth ambitions and capabilities in the premium spirits sector, its commercial power and executive excellence, together with its credibility in sales and distribution in the markets in which it operates, will accelerate Finland's growth trajectory."