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Spirited ‘vodka war’ erupts in Europe


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“We are looking at an attempt simply to drive these other producers out of the vodka market and to corner it,”  he said.

“The sales denomination of vodka is what's important and what is at stake here,”  said Alan Butler, external affairs director for Diageo PLC, which now owns Smirnoff and makes Ciroc, a vodka made with grapes.

He warned that if the EU moves to restrict vodka ingredients, a trade war could ensue, causing upheaval in the vodka market worldwide.

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“The risk is that we will be effectively expelling from the European market, American vodkas made from other raw materials,”  like maple syrup or corn, Butler said. “If you set up a technical barrier to the import of what is legitimate U.S. vodka, then I'm sure the United States would look at how it would protect its producers and retaliate in some way which would restrict the import of European vodkas to the U.S.”  Peeter Luksep, from Sweden's Vin & Sprit AB, a state-owned liquor distributor which makes Absolut, rejected that.

“Our traditions are mirrored in industry realities. ... In our countries vodka accounts for 70, 80, or even over 90 percent of all spirits produced. We do not wish to stop anyone from producing vodka,”  but he added, “we do not like to see just anything called vodka.”

Sweden, Poland and Finland also argue that they are home to many smaller distilleries, apart from the big companies like Absolut.

Luksep said the definition of vodka should be regulated alongside other notable and famous drinks like whiskey, rum, brandy or aquavit — which is similar to vodka, but is usually flavored after distillation with herbs such as dill or anise — listing the limited raw materials they should be made of.

The battle has put Finland's Agriculture Minister Juha Korkeaoja in a tough spot. Finland took over the EU presidency this month and he is responsible for chairing negotiations on the matter, so Korkeaoja will try to balance defense of his nation's traditions and remaining neutral as chair.

“This is especially difficult,”  Korkeaoja said. “We are in a group of countries around the Baltic sea, traditional vodka-producing countries and our position has been from the very beginning that the definition of the raw materials of vodka should include traditional ingredients.”

EU Agriculture Commissioner Mariann Fischer Boel has suggested a compromise where vodkas made in Poland or Finland be defined by their regional distinct ingredients, calling the product “Polish Vodka”  for example.

Korkeaoja hopes to have the issue resolved by December through negotiations. However, no one is optimistic it can be resolved quickly.

Such political battles are not new on a continent that has waged equally emotional decades-long wars over what constituted Feta cheese or Parma ham and has also endured a drawn-out 20 year battle with the U.S. on the labeling of champagne.

Back in Kotka, Heini Alaajaski has heard of the gathering vodka storm back in Brussels.

“I have heard of it, but it won't change what I drink, and what others drink, because they just want to get drunk.”

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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