Brown-Forman completes sale of Finlandia to Coca-Cola

Brown-Forman Corporation successfully completed the sale of its iconic Finlandia vodka brand to Coca-Cola HBC AG on November 1, 2023, for 220 million.

This transaction represents a milestone in Brown-Forman's long-term strategic endeavours to elevate and refine its portfolio through brand innovation, acquisitions, and divestitures.

The agreement to sell the Finlandia vodka brand to Coca-Cola HBC AG was initially disclosed by Brown-Forman in June 2023, solidifying the exchange at a value of $220 million, with potential adjustments related to inventory and other working capital items. The consummation of this deal marks a step in the ongoing evolution of Brown-Forman's brand portfolio.

Lawson Whiting, the President and CEO of Brown-Forman, expressed his gratitude to the many dedicated individuals who have contributed to the brand's global success since it became a part of their portfolio in 2000.

Coca-Cola HBC AG, a Swiss-based corporation, operates in 28 countries spanning three continents. Zoran Bogdanovic, the CEO of Coca-Cola HBC AG, highlighted the strategic importance of this acquisition, emphasizing the substantial value it adds through the brand's distribution channels.

He said this transaction builds upon a 17-year history of collaboration in several markets and offers unique and regionally relevant opportunities to enhance their on-premise business across a broader spectrum of markets.

Bogdanovic said it aligns perfectly with their mixability strategy, particularly concerning their core non-alcoholic RTD portfolio, further enhancing their focus on the strategically vital on-premise channel. Bogdanovic said it is "an attractive investment and a natural evolution of our role as one of Finlandia's distribution partners."

Brown-Forman originally acquired the Finlandia brand from Altia Corp in 2004, the predecessor to the current production partner, Anora Group Plc.

Finlandia's rich history traces back to its establishment in 1970, and has annual production volumes reaching 2.7 million cases on a global scale. The vodka is still bottled in Finland and is available in pure and flavoured versions.