The maker of Stolichnaya vodka has filed for chapter following a crippling cyber assault in September and an ongoing criminal feud with Russia over who owns the logo.
The Stoli Staff USA filed for Bankruptcy 11 in US Chapter Court docket in Dallas final week after a “malicious cyber-attack” compelled the corporate to perform its world industry manually “whilst the techniques are rebuilt,” leader government Chris Caldwell mentioned in a observation.
Stolichnaya Vodka’s identify was once modified to “Stoli” in 2022 to distance itself from Russia. Bloomberg by the use of Getty Photographs
Caldwell additionally cited ongoing criminal battles with Russia, which named the corporate and its proprietor – Russian-born and exiled billionaire Yuri Shefler – “extremists teams running towards Russia’s pursuits,” previous this yr.
Shefler has been exiled since 2002 on account of his opposition to President Vladimir Putin.
After the Ukraine invasion in March 2022 Shefler modified the identify of the corporate to Stoli from Stolichnaya.
On the time other folks around the globe started dumping Russian vodka and spirits in protest.
“These days, we’ve got made the verdict to rebrand completely because the identify now not represents our group,” Shefler mentioned in a observation on the time. “Greater than anything else, I want for ‘Stoli’ to constitute peace in Europe and harmony with Ukraine.”
Liquor retail outlets and customers boycotted manufacturers related to Russia after the Ukraine struggle. Getty Photographs
The logo has lengthy been promoted as a Russian vodka although it’s made in Latvia. Stoli Staff is a subsidiary of Luxembourg-based SPI Staff, which owns different spirts and wines, together with Kentucky Owl bourbon. Handiest Stoli Staff USA and Kentucky Owl are in chapter, the corporate mentioned.
Shefler has been at odds with Putin for many years, publicly denouncing quite a few draconian anti-gay regulations in 2013.
Russia and Stoli Staff have additionally clashed in courts.
The Russian govt makes a state-owned model of the logo this is offered within the nation with a label that obviously says it’s Russian made, in step with reviews.
Possession of the logo is disputed between Shefler’s Stoli Staff, and Sojuzplodoimport, a company owned by way of the Russian state.
Stoli Staff was once based and is owned by way of a Russian-born billionaire Yuri Shefler. Joni – inventory.adobe.com
Stoli Staff mentioned its “experiencing monetary difficulties” in step with the submitting, which lists between $50 and $100 million in liabilities.
The chapter comes at a time when total alcohol gross sales are slowing this yr as customers pull again on intake to economize and for well being causes.
Intake of spirits within the U.S. was once down 3% and beer down 3.5% for the primary seven months of 2024, in step with IWSR, a world beverages knowledge and analytics company.
Kentucky Owl, which is owned by way of Stoli Staff, additionally filed for chapter coverage. Kentucky Owl Bourbon
More youthful other folks drink not up to earlier generations, in step with reviews, whilst non-alcoholic drinks are observed as a quick rising area of interest marketplace.
The legalization of marijuana in lots of states has additionally contributed to decrease alcohol gross sales, professionals say.
