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A British company sued by an Armenian businessman
Diageo PLC, the largest drinks company in the world, is being sued by
a former Armenia Armenian distributor of a great Russian vodka now
owned by the British giant. In a case pending before a court in
Yerevan, Armenian FM Spirits firm asked nearly 3.5 million in damages
for the denial of Diageo PLC to honor the contractual obligations of
the previous Russian owner of the Smirnov brand .dropoff window
MF Spirits became the exclusive distributor of vodka in Armenia after
a supply contract for five years, which was signed in 2005 with the
Smirnov Trading House, then a subsidiary of the Russian Alfa Group
conglomerate. Less than a year later, Diageo paid $ 50 million to
settle a longstanding dispute over the rights to the Smirnoff and
Smirnov brands.
The settlement took the form of a joint venture in which Diageo won a
share of 75 percent. (The wine and spirits group purchased the
remaining 25 percent of Alfa Group in 2008). The company, called D
Distribution, has since sold the drinks brand Smirnov, Smirnoff and
other world famous drinks - including Johnnie Walker whiskey, gin
Gordon and Guinness beer - in the former Soviet Union.
The owner MF Spirits Georgi Lazarian says that executives of D
Distribution visited him in Yerevan in 2006 to assure him that Smirnov
distribution agreement remained in force and urging it to continue to
promote the brand in the local market .dropoff window He said he
received such assurances, in person and by correspondence via email,
within two years following although Diageo PLC stopped providing the
vodka.
According to Lazarian, D distribution notified him in early 2009 that
will not soon resume these supplies because of the small size of the
Armenian market and its main objective was Russia. "If I had known
before I would not have spent money on distribution Smirnov," said the
businessman based in Yerevan Armenian service RFE / RL (Azatutyun.am).
He claimed to have spent more than $ 260,000 on advertising and
salaries.
Armenia and Russia are signatories to the Convention of 1993, which
commits Minsk 12 ex-Soviet states to the recognition and enforcement
of other court decisions. MF Spirits lawyers say that any decision
against Armenian D Distribution should be applied by the Russian
authorities.
Sunday, December 14, 2014,
Stéphane © armenews.com
http://www.armenews.com/article.php3?id_article=105728
From: A. Papazian
A British company sued by an Armenian businessman
Diageo PLC, the largest drinks company in the world, is being sued by
a former Armenia Armenian distributor of a great Russian vodka now
owned by the British giant. In a case pending before a court in
Yerevan, Armenian FM Spirits firm asked nearly 3.5 million in damages
for the denial of Diageo PLC to honor the contractual obligations of
the previous Russian owner of the Smirnov brand .dropoff window
MF Spirits became the exclusive distributor of vodka in Armenia after
a supply contract for five years, which was signed in 2005 with the
Smirnov Trading House, then a subsidiary of the Russian Alfa Group
conglomerate. Less than a year later, Diageo paid $ 50 million to
settle a longstanding dispute over the rights to the Smirnoff and
Smirnov brands.
The settlement took the form of a joint venture in which Diageo won a
share of 75 percent. (The wine and spirits group purchased the
remaining 25 percent of Alfa Group in 2008). The company, called D
Distribution, has since sold the drinks brand Smirnov, Smirnoff and
other world famous drinks - including Johnnie Walker whiskey, gin
Gordon and Guinness beer - in the former Soviet Union.
The owner MF Spirits Georgi Lazarian says that executives of D
Distribution visited him in Yerevan in 2006 to assure him that Smirnov
distribution agreement remained in force and urging it to continue to
promote the brand in the local market .dropoff window He said he
received such assurances, in person and by correspondence via email,
within two years following although Diageo PLC stopped providing the
vodka.
According to Lazarian, D distribution notified him in early 2009 that
will not soon resume these supplies because of the small size of the
Armenian market and its main objective was Russia. "If I had known
before I would not have spent money on distribution Smirnov," said the
businessman based in Yerevan Armenian service RFE / RL (Azatutyun.am).
He claimed to have spent more than $ 260,000 on advertising and
salaries.
Armenia and Russia are signatories to the Convention of 1993, which
commits Minsk 12 ex-Soviet states to the recognition and enforcement
of other court decisions. MF Spirits lawyers say that any decision
against Armenian D Distribution should be applied by the Russian
authorities.
Sunday, December 14, 2014,
Stéphane © armenews.com
http://www.armenews.com/article.php3?id_article=105728
From: A. Papazian