distribution rights to Stolichnaya vodka, seizing a key global brand from under its rivals' noses as they all jostle for a much bigger prize.

With the global drinks industry focused on the auction of the Seagrams wine and spirits business -- worth seven billion pounds ($9.98 billion) -- Allied made its move on the Russian brand, snatching the US rights away from its UK rival, Diageo.

Stolichnaya's brand owner and supplier, Soyuzplodimport (SPI), will hand over the US rights to Allied at the start of 2001 from its current holder Diageo.

Allied Domecq stock rose 0.59 percent to 427-1/2 pence at 1430 GMT. Allied has outperformed its sector by 18.9 percent so far this year.

Allied Domecq, whose brands include Ballantine's scotch, Sauza tequila, Beefeater gin and Kahlua liqueur, did not disclose the price of the deal.

Allied is also a bidder for Seagram's wines and spirits business. The rights to Absolut Vodka, the Swedish state-owned spirits brand, is one of the jewels in the Seagram crown.

But as Absolut has threatened to retake control of its vodka rights from Seagram when the Canadian drinks business is sold, Allied Domecq was more eager to grab Stolichnaya.

Stolichnaya is the US's second-largest imported premium vodka with sales of over one million 12-bottle cases a year, Allied Domecq said. Absolut, the biggest, sells three million cases a year.

"Stolichnaya is underdeveloped in the US market and has more potential whereas Absolut is overdeveloped and has less potential,'' Allied Domecq spokesman Anthony Cardew told Reuters.

The Financial Times said the likely winner of the Seagrams drinks auction may emerge before the end of the year, with three rival bidders -- Allied Domecq, Diageo/Pernod and Bermuda-based Bacardi/Brown-Forman -- expected to submit final proposals next month.

It was not the first time Allied has stolen a march on its rivals after last month agreeing a deal with the supplier of Captain Morgan dark rum brand, Destileria Serralles. Under the deal, the Puerto Rican distiller agreed to sell on the Captain Morgan brand, worth $1.5 billion, to Allied should a company other than Allied succeed in buying up Seagram's business.