Grey Goose was created by Sidney Frank Importing Co (SFIC). Sidney Frank, founder/CEO of the company, developed the idea in the summer of 1996. The idea for Grey Goose was to develop a luxury vodka for the American marketplace, something Frank had been considering for a while when he came up with the name. The development of the product followed from this intent. After its launch in the American market, Grey Goose became very popular due to a "confluence of timing and trends" according to Seth Stevenson, in addition to guerrilla marketing techniques. Grey Goose was made more expensive than other premium vodka brands in order to produce a better product and to create a "superpremium" category in the American liquor market.

SFIC partnered with cognac producer François Thibault (a French Maître de Chai, or, Cellar Master) in France in order to transition his skills from cognac to vodka production. The company selected France due to the country's culinary history and to differentiate itself from other vodkas produced in Eastern Europe. The water used to produce the vodka came from natural springs in France filtered through Champagne limestone, and made with locally produced French wheat. The company also developed its distinctive smoked glass bottle featuring French geese in flight, and delivered its product in wooden crates similar to wine.

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