The encyclopedia · Marketing & Brand · Marketing decision · 2013
Stolichnaya's Russian branding made it a target of the 2013 LGBT boycott
Gay bars across North America dumped Stoli to protest Russia's anti-gay laws. SPI Group spent months explaining that its vodka was made in Latvia.
SPI Group · Latvijas Balzams · 2013-07
What happened
After Russia passed a law banning 'propaganda of nontraditional sexual relations' in June 2013, LGBT activists in the United States called for a boycott of Russian vodka. Stolichnaya, one of the best-known premium vodka brands in North America, became the most visible target despite being owned by Luxembourg-based SPI Group and distilled in Latvia.
Gay bars in New York, Chicago, San Francisco, West Hollywood and Toronto pulled Stoli from their shelves and poured out existing stock. Queer Nation accused SPI of staying silent while the Russian government considered and passed the law, and only speaking up once the boycott began.
SPI Group and Latvijas Balzams responded by emphasizing that Stoli sold in the West was produced in Latvia, that owner Yuri Shefler had left Russia years earlier after falling out with the Kremlin, and that the company supported the global LGBT community. Latvian gay-rights group Mozaika also appealed to boycott organizers, arguing the campaign would harm Latvian workers rather than the Russian state.
Why it happened
- Decades of Russian heritage marketing made Stolichnaya read as Russian to consumers even after its ownership and production had moved west.
- SPI Group's public support for LGBT causes and opposition to the Kremlin had not been visible enough before the boycott to counter the brand's country-of-origin association.
- The boycott chose a symbolic consumer target rather than a Russian state asset, so the brand had to absorb a protest aimed at another government.
The lesson
Heritage branding tied to a state can become a liability overnight when that state acts against your customers' values.
Sources
- CBS News: Stolichnaya vodka distiller tries to defuse boycott over Russia's anti-gay laws
- Bay Area Reporter: Stoli Group USA on Harvey Milk bottle rollout
spotted an error? The club wants to know.
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