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An Absolut Blockbuster

Maker of top-selling Smirnoff eyes second-place Swedish brand

By Kevin Spak,  Newser Staff

Posted Sep 20, 2007 11:35 AM CDT

(Newser) – British beverage conglomerate Diageo, maker of best-selling vodka Smirnoff, is “very interested” in acquiring Sweden’s Absolut, the world’s second-largest vodka. Diageo says it isn’t worried about anti-trust problems, although its CEO tells Reuters “complexity will vary from market to market.” One easy market would be the US, where analysts say Absolut’s higher price tag puts it in a different category.

Absolut, one of the fastest-growing spirit brands in the world, is part of Sweden’s state-owned Vin & Sprit. V&S is among the big assets the government is seeking to sell, and Diageo is among four companies—including Bacardi—interested in buying it. Diageo said it is awaiting full financial details, and doesn’t yet consider the $6 billion company a “must have.”

FOOD ALCOPOPS AK
FOOD ALCOPOPS AK   (KRT Photos)
Picture shows Absolut Vodka bottles in a stateowned Systembolaget...
Picture shows Absolut Vodka bottles in a stateowned Systembolaget...   (Getty Images (by Event))
Picture shows various flavoured Absolut
Picture shows various flavoured Absolut   (Getty Images)
(FILES) Picture taken 15 May 2003 shows
(FILES) Picture taken 15 May 2003 shows   (Getty Images)
The new Absolut New Orleans vodka is shown at the Carousel Lounge at the Monteleone hotel in New Orleans, Tuesday, July 17, 2007. The vodka, which has the flavor of mango with a black pepper kick, is a limited run of 35,000 cases- 3 1/2 times the company's total...
The new Absolut New Orleans vodka is shown at the Carousel Lounge at the Monteleone hotel in New Orleans, Tuesday, July 17, 2007. The vodka, which has the flavor of mango with a black pepper kick, is...   (Associated Press)
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