Odessa Cognac Factory and Hortiza Distillery to merge to become single holding

25 April 2007 (14:01)

Odessa Cognac Factory and Hortiza Distillery decided to merge to become a single holding. According to Hortiza’s Russian representation, the two companies have already cooperated successfully in the past: they merged their brand portfolio in October 2006.

Odessa Cognac Factory is one of Ukraine’s few enterprises with a full production cycle; it owns 1,000 hectares worth of vineyards, Europe’s largest distillation shop, 15,000 casks, and a blending and bottling shop. The company produces 23 kinds of ordinary and vintage cognacs, two kinds of vodka, and 4 kinds of champagne. Its share of the cognac market comes to 26%, МEМRB says. Quite naturally, such a huge production facility requires regular investments, so the financial synergy of two major strong drinks producers is bound to result in the largest holding in the CIS.

According to Svetlana Odintsova, PR Director of Hortiza’s Russian representation, the terms of the merger and the ownership scheme will be made clear in the third quarter of 2007; at the moment, the two parties are reported to be negotiating, so all the details will be clarified after they have agreed upon them.

Hortiza Distillery is Ukraine’s largest alcoholic beverage maker now producing 1.5 million deciliters of drinks a month and exporting them to 45 countries. Its share of the Ukrainian market comes to 27%.

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