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Sweden Puts Absolut On The Block

Absolut vodka -- the world's No. 3 premium spirit -- is about to be offered for sale by the Swedish government after 90 years in state hands. Absolut's parent company -- V&S Vin and Spirit -- is expected to have a price tag of $5.7 billion, following parliamentary approval for the sale Friday.

The sale of V&S is sensitive, since the company founded in 1917 has been closely linked with the state's efforts to control alcohol consumption in Sweden. Critics say rushing to find buyers for V&S could leave the liquor maker in the hands of a profit-hungry company with no sense of social responsibility.

Selling V&S, however, might help dilute allegations about double standards in Sweden's nanny-state attitude on drinking. The Social Democrats were often criticized for promoting a restrictive alcohol policy at home, while supporting multimillion-dollar campaigns to market Absolut internationally since 1979.

Potential buyers include market leader Diageo, Pernod Ricard and Fortune Brands, which already has a distribution deal with V&S.

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Read the whole story at USA Today/AP »

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