Stoli Group USA, famous for its vodka, filed for bankruptcy protection under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas.
Since 2023, the subsidiary of the international beverage company SPI Group, known for producing the famous Stoli vodka, has faced financial difficulties due to a reduction in liquor demand as well as rising costs.
The bankruptcy filing was made on November 27, following a cyberattack in August of this year that severely affected its operational systems, causing delays in functionality.
“Bankruptcy protection will allow a pause and a breather for the Chapter 11 plan process, which will allow the debtors to restructure their balances and emerge from bankruptcy as leaner and stronger entities,” said Chris Caldwell, Global CEO of Stoli Group.
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Stoli Vodka and the Russia-Ukraine War
Until 2022, Stoli vodka was known in the United States by its full name, Stolichnaya, which in Russian means “capital.” However, after the Russian invasion of Ukraine and the boycotts of Russian-origin products, the brand decided to simplify its name.
Although the liquor has long been identified as Russian-origin vodka, its production facilities have been located in Latvia for several decades.
In a statement, Stoli Group’s global CEO noted that the company has been under the Russian Federation’s scrutiny since it was formed nearly 25 years ago.
“Earlier this year, both the company and our owner were identified by the Russian state as ‘extremist groups working against Russia’s interests,'” he pointed out.
Who owns Stoli vodka?
The founder of Stoli Group is the Russian billionaire Yuri Shefler. Under the name SPI Group, the company produced and sold 380 alcohol brands in 170 countries.
Headquartered in Luxembourg, Stoli Group uses its own and affiliated production facilities in Argentina, Latvia, Spain, Mexico, the United Kingdom, and the United States.
In 2021, Yuri Shefler split the group into two companies: Stoli Group and Amber Beverage Group. Its most famous brand is Stoli vodka.
For years, Yuri Shefler has faced various conflicts in the Russian Federation, leading to his exile in 2000 due to his outspoken opposition to President Vladimir Putin.
How good is Stoli vodka?
Stoli vodka is an alcoholic beverage originally from Russia. It is a high-purity vodka with a fresh, smooth taste. It is traditionally made through a quadruple distillation of wheat and rye alcohol from Yambov and filtered through quartz sand, activated charcoal, and cloth.
These characteristics led it to be considered the best vodka in the world by the Beverage Testing Institute of Chicago, a recognition it received in 2006, 2007, 2009, and 2010.
What is the alcohol content of Stoli vodka?
According to the bottle label, Stoli vodka, in its different variants, contains 37.5 percent alcohol.
Alcohol Beverage Companies That Have Filed for Bankruptcy in the United States
In 2024, Stoli Group was not the only alcohol brand to file for bankruptcy in the United States.
Joining it was Vintage Wine Estates from California, which, in July, reported a decline in demand for its products, caused by factory closures during the COVID-19 pandemic.
