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On Sale Soon: Food Fit for Putin

By appointment to ... His Majesty Vladimir Putin?

A tsarist-era institution is being reborn in the Kremlin that will allow domestic and foreign companies to trumpet their ties to the president and brandish the nation's heraldry on their wares.

The Guild of Purveyors to the Kremlin, an organization established last year, is accepting applications to its ranks and will officially bestow titles on new members at a glitzy awards ceremony in December.

"Membership guarantees our support in advertising, PR and media," said Mikhail Trunov, the guild's deputy general director.

In ascending order of exclusivity, companies will be permitted to refer to themselves as a "Member of the Guild of Purveyors to the Kremlin;" "Purveyor to the Moscow Kremlin;" or, for the cr?me de la cr?me -- "Official Purveyor to the Moscow Kremlin."

The guild falls under the auspices of the Kremlin property department.

The department already runs a grocery store selling surplus products from Kremlin suppliers.

But from the end of the year, an "official purveyor" will be able to claim that a product is "used in the official residence of the president of the Russian Federation" and affix on the packaging an emblem of the double-headed eagle superimposed on the federation tricolor.

While professional guilds have existed in Russia since the Middle Ages, a system of purveyors to the imperial court only emerged in the 18th century.

In much the same way that a business in Britain can become a "Royal Warrant Holder," the title "Purveyor to the Court of His Imperial Majesty" was granted to Russian tradesmen as recognition for services provided to the tsar.

Trunov warned that counterfeiters might try to cannibalize the prestige of belonging to the new guild.

"These are state symbols and the state will protect its symbols with all legal means available," he said.

But Trunov stressed that his Guild of Purveyors to the Kremlin makes no claim to be the legal successor of the purveyors to the tsar.

"In historical terms we are merely continuing the tradition," he said.

Trunov ruled out the possibility, for example, that the guild would intervene in the never-ending war between the Trading House of the Descendants of Pyotr Smirnov and U.S. drinks giant Diageo, the owners of the Smirnoff brand.

The Smirnov and Smirnoff vodka labels both make ample reference to the company's pre-Revolutionary status as a "Purveyor to the Court of His Imperial Majesty."

"There are many disputes that continue to this day. It is not clear whether they will ever be resolved," Trunov said.

The privilege of joining the present-day guild does not come free.

Members must pay a "reasonable" fee, Trunov said, but declined to elaborate.

More than 10 companies have already been approved by the guild and a further 15 applications are being processed, said a source close to the selection process.

Drinks giants Pernod Ricard, Hennessy and auto giant DaimlerChrysler have already been accepted, while PepsiCo is reportedly looking to join, the source said. Applications have also been submitted by some international "technology monsters."

Distilleries have dominated the applications from domestic companies.

"It's a bit of a headache," the source said. "An awful lot of hard liquor makers have applied. Competition is extremely fierce between them, but so far none have been accepted."

One market watcher suggested that the patriotism of vodka makers was suspect.

"It makes you wonder who came up with the idea of starting the guild in the first place," he said, speaking on condition of anonymity.

"It's like the old saying: 'Once again, by demand of the Soviet people, the price of sausage has been increased.'"

But Yakov Mastinsky, a lawyer for Kaluga-based vodka empire Kristall, insisted that the guild was a "good idea."

"I'm sure all our vodkas are fit for the Kremlin," he said.

The Mikoyan meat processing plant has already had some success thanks to its association with the Kremlin, said company spokeswoman Vera Yegorova.

The company tripled its brand recognition after it started advertising itself as a supplier to the Kremlin food department, she said, even though this status entails no special titles or eye-catching symbols.

Mikoyan is scheduled to hold talks with guild representatives on Friday.

Alexei Kedrin, spokesman for the country's largest brewer, Baltika, said that even without guild membership his company was a de facto supplier to the powers that be.

At the tercentenary celebrations in St. Petersburg last summer, Baltika was the official beer supplier to the Palace of Congresses, where visiting foreign dignitaries held their meetings, he said.

"The idea of returning to the tradition of having purveyors to the Kremlin is a good one," Kedrin said. "But it all depends on how it is executed."

He said he was unaware of any plans at Baltika to apply for guild membership.

Dmitry Gordinsky, head of the Russian division of the East European Merchandising Corporation, which sublicenses famous movie and cartoon trademarks to local manufacturers, said he doubted that being a "purveyor to the Kremlin" would boost a company's sales.

The monarchy may be well regarded in Scandinavia or England, where the tradition of purveyors is centuries-long, but in Russian there is little trust of the authorities, Gordinsky said.

"What's the point of being a supplier to the Kremlin or Duma if everyone thinks that bureaucrats are corrupt?"

The Kremlin seal may spark a positive association with older consumers, who remember the privileges and special services of the nomenklatura, Gordinsky said.

"Taking a bite of 'Kremlin' sausage or a sip of 'Kremlin' vodka may mean taking a peek at what 'authorities' are enjoying behind the Kremlin wall. That's very Soviet. The modern generation doesn't give a damn about that kind of nostalgia or motivation," he said.

"In short, it's good for corporate PR, but with the end consumer it always boils down to this: You've got to have a good product, no matter if Putin eats it or not."

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