Local company signs memorandum of understanding to sell vodka in Russia

A Newfoundland and Labrador company has signed a memorandum of understanding with a Russian company for distribution of its unique vodka product in Russia.

Canadian ICEBERG Vodka Corp., headquartered in St. John�s, has signed a memorandum of understanding with Niagara Foods Ltd., which could lead to a three-year distribution contract valued at $7 million and create 10 full-time jobs in the province.

A signing ceremony took place today in Moscow during the Team Canada trade mission to Russia.

"Exporting vodka to a country renowned for its vodka products would be a significant accomplishment for Canadian ICEBERG Vodka Corp.," said Deputy Premier Beaton Tulk, who is leading the Newfoundland and Labrador delegation on behalf of Premier Roger Grimes. "I congratulate the company on achieving this important step toward reaching a contract that would result in economic and employment benefits."

Gary Pollack, President of Canadian ICEBERG Vodka Corp., said a three-year contract would result in the export of 75 containers of Canadian ICEBERG Vodka to Russia over three years, with each container holding about 15,000 bottles.

"Marketing our award-winning, premium vodka in Russia would be a significant and exciting step forward in our international marketing efforts," said Mr. Pollack. "It would strengthen our customer base and company presence internationally, and demonstrates that the quality of ICEBERG vodka is accepted in a major vodka producing country like Russia."

Signing on behalf of Niagara Foods Ltd. was Ekaterina Babryshevea, general manager. Niagara Foods Ltd. is a major distributor of high-end consumer products, mainly from Canada. "Through our large network of distribution centres, our company has an opportunity to successfully sell this product in Russia and other countries in the Commonwealth of Independent States," said Ms. Babryshevea.

Canadian ICEBERG Vodka is marketed through a network of sales agencies and distributors in Canada and the United States. Canadian ICEBERG Vodka Corp. has customers in Canada, the United States of America, Switzerland, Liechtenstein, Austria, the United Kingdom, Iceland, Japan and Hong Kong. Its ICEBERG vodka was awarded a 1998 Gold Medal and Best Buy designation by the World Spirits Championships, as well as a 2000 Silver Medal at the International Wine and Spirits Competition.

Media contact:

Josephine Cheeseman, Communications, (709) 729-4570.
Gary Pollack, President, Canadian ICEBERG Vodka Corp., (416) 443-6200.

2002 02 15                          2:00 p.m.