Spirited ‘vodka war’ erupts in Europe

updated 5:57 p.m. ET July 28, 2006

KOTKA, Finland - Heini Alajaaski doesn't understand what all the fuss is about. For her vodka, or viina in Finnish, is mostly about having a good time and not what it's made of. But battle lines have been drawn in a Europe wide “vodka war” as nations wrangle over the definition of the centuries-old spirit. The stakes are high as rival groups fight for dominance in a booming world vodka market worth around $12 billion in annual sales.

Finland is aligned with Poland, Sweden and other traditional vodka producers around the Baltic Sea, who want the European Union to insist that only spirits made with traditional ingredients — barley grain and potato — should be allowed to carry the vodka label.

Pitched against them is a group led by Britain, the Netherlands, France and Austria — and backed by London-based multinational drinks producer Diageo — which take a more relaxed view of what can go into vodka, for example grapes, beets or citrus fruit.

Alajaaski, 23, a bartender at a local watering hole in this industrial town close to the Russian border, says young drinkers who increasingly see vodka as a popular tipple mixed with fruit juice or sodas care little about what's in it.

“I prefer the Finnish vodka for the taste,”  she says while drinking a Smirnoff Ice vodka drink on her night off. “Of course some vodka tastes better than others.”

For the traditionalist camp that is the heart of the matter. They argue that vodka's reputation rests on a distinctive flavor and is being undermined by stuff masquerading as the real thing.

“Vodka is a Polish product ... it goes back to the 15th century, that's a fact,”  says Bugoslaw Sonik, a Polish conservative member of the European Parliament. “Let's not make false history.”

Sonik accuses the other camp of double standards — having backed complex rules on the makeup of wines and spirits cherished by older, more established members of the EU, but saying anything goes for the drink held dear by the new entrants from eastern Europe.

“I have heard a lot of hypocrisy,”  he told a recent hearing at the European Parliament in Brussels. “I heard people saying wine has to be made from grapes, but vodka can't be made from a certain product. Just the idea of vodka made of grapes or citrus juice would cause a major upset among Polish people.”

Opponents of changing the current definition — which states vodka is “a spirit drink produced from ethyl alcohol of agricultural origin”  — say using traditions and cultures as reason to impose a narrow vodka definition is just a ploy to shut out other vodka producers. They say that could cause turmoil for the global drinks industry.

“These member states only began to use the name vodka for their products in any significant volumes in the 1970s and they have no prior claim to determine the definition of the word internationally,”  said Chris Scott-Wilson, a lobbyist for the Vodka Alliance of Europe, which is campaigning to keep the wider definition.

He pointed to British-produced vodkas, like Smirnoff, which started production in England in 1952, long before the birth of Swedish rival Absolut or Finland's Finlandia.

MORE FROM WORLD BUSINESS

World business Section Front

Obama tops Forbes world’s most powerful list BA, Iberia say deal reached on basis for merger Mexican business groups call for U.N. troops Apple can see Microsoft on the horizon Russia’s leader urges modernization Chinese automaker aims to compete globally Cadbury rejects hostile bid from Kraft Foods Nokia will recall 14 million faulty chargers China promises billions in aid, loans to Africa Plans approved for Disneyland in Shanghai World business Section Front   Add World business headlines to your news reader: