Saravanapavananthasivam Parthipan, who runs Veeno Wines in East Hill, Wandsworth, was fined £1,000 and ordered to pay more than £1,300 in court costs after he was caught selling the counterfeit spirit.
Parthipan admitted breaches of consumer protection law when he appeared before south west London magistrates on Nov 16.
Trading Standards officers said they began an investigation following a complaint from a customer.
Parthipan told the court his business partner had bought the spirit from a cash and carry in Croydon, unaware that it was fake.
But when officers visited the cash and carry they found only genuine Kirov vodka, the court heard. Chief Trading Standards officer Les Eames said the vodka had been poor quality rather than dangerous. The stock will be destroyed.
Wandsworth Council's environment and leisure spokesman
councillor Malcolm Grimston said: "If you are a licensee and you are offered a deal that looks too good to be true , then that should set the alarm bells ringing. It is not worth risking your liberty and your whole livelihood just to save a few pounds."
Revenue & Customs shut down an illegal vodka distillery in Hackney, east London, in July. It had been producing fake bottles of Kirov and Glen's vodka with dangerous levels of methanol. The Gin & Vodka
Association has warned of a growing number of illegal distilleries in the UK.