Top > Business > 2007 > March > 2007-03-08

Absolut Put on Sale

The Swedish manufacturer of Absolut is being sold. Absolut, which is headquartered in Ahus, in southern Sweden, has become increasingly successful due to an advertising campaign, which reached third place world-wide for premium spirit and one of the brands most identified with Sweden. After 90 years in which the company was government-owned it will be sold through the sale of its mother company Vin & Sprit, together with five other companies owned by the Swedish government.

The government will seek parliamentary approval of the sale for $5.7 billion. Among other potential buyers are Pernod Ricard SA, Diageo PLC and Fortune Brands. Financial Markets Minister Mats Odell said that the county will sell its holdings in companies such as the bank Nordea, the telecom company TeliaSonera, the real-estate company Vasakronan, as well as, other companies, in order to payback the national debt. This policy is brought on by the country`s center-right coalition, which replaced the social democratic government, last October. "The state needs to give private companies good prerequisites to compete on equal conditions," Odell said.

Building on a four century tradition of producing vodka at ?hus, Absolut was introduced in 1879 by the entrepreneur Lars Olsson Smith. Absolut is the third largest brand of alcoholic spirits in the world after Bacardi and Smirnoff, marketed in 126 countries. The largest export market is the United States where close to 73 million liters were sold in 2003. More than 40% of the imported vodka in the USA is Absolut.