British distillers toasted victory over counterparts in the northern “vodka belt” yesterday after the European Parliament agreed that their brands could be labelled as vodka.

Manufacturers in Poland and Scandinavia have tried to limit the use of the name to drinks distilled only from potatoes or grain. They had hoped to see drinks made from molasses or grapes labelled “pure white sprit”.

Britain is the second largest vodka producer in Europe and about one third of it is made from molasses and often sold as supermarket own-brand vodka.

Under a classic Brussels compromise, vodkas made from molasses or grapes will be allowed to keep the name but must print the origin on the bottle, while potato and grain vodkas will not have to list the source.

Chris Scott-Wilson, spokesman for the European Vodka Alliance, welcomed the vote. He said: “The Alliance has supported this compromise from the start. We hope now that EU Governments will endorse the European Parliament vote and that this issue can be resolved for once and for all.”

But the traditional vodka-producing countries were furious that they had not been able to limit use of the name. Alexander Stubb, a Finnish MEP, said: “We have made vodka out of potato and grain for over 500 years. When we became EU members in 1995 we were told that vodka would have a tight definition, just like rum, just like whisky, just like grappa. We don’t want vodka to be some kind of alcoholic wastebasket.”

The deal marked the latest shots in a bitter war over the ¤nine<NO>billion (£6 billion) a year global market in the increasingly popular drink. The Gin and Vodka Association says that vodka has overtaken whisky as the biggest-selling spirit in Britain.

The British drinks giant Diageo helped to trigger the row when it introduced Ciroc vodka in 2003 and described it as the world’s only vodka made exclusively from grapes.

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