JSC “Latvijas balzams” beverage sales on the domestic market have increased by 7%
Compared to the first half-year of the last year, in the six months of this year “Latvijas balzams” beverage sales on the domestic market have increased by 7% reaching 529 thousand decalitres. The company has preserved the leading position on the market and has raised the market share by 2%, thus representing 24% of the Latvian alcohol beverage market, excluding the bear segment.
The JSC “Latvijas balzams” turnover on the domestic market increased by 10%; on the export market – by 10.6%. The export also increased by 6% after the “S.P.I. Group” order. The biggest sale markets were the Baltic States, Russia, Germany, and the Nordic countries.
The company’s total unaudited turnover in the first half-year, comprised of the domestic and export market, was 31.7 million lats, but the unaudited profit reached 1.1 million lats.
“The production growth in the first half-year was mainly determined by the demand on the export market and purposeful work of our specialists promoting the products on foreign markets. If in European Union countries sales remained at the level of previous year, in Ukraine, for example, we increased exports by 53%, but in Russia – by 45%,” says Chairman of the company’s Board Guntis Aboltins – Abolins explaining the rise in sales.
The biggest increase in sales on the domestic market in the first half-year was in the liqueur segment – 17%, followed by sparkling wines – 14%, Riga Black Balsam – 13% and cocktails produced by “Latvijas balzams” – 11%.
Also the data published by the State Revenue Service on the beverage consumption in the first half-year in Latvia show that the sparkling wine “Rigas Sparkling Wine” became even more requested and was the 3rd most popular in TOP20 of the most popular beverages. In the strong beverage category, however, the most favourite was the brandy “Bonaparte”, but the vodka “3 Graudu” produced by “Latvijas balzams” was the most popular vodka in the first half-year.
“Our priorities in the second half-year will be exploring and acquisition of new export markets at the same time working on the optimization of production and logistics processes,” admits Head of the company G. Aboltins – Abolins.
The management of company considers the reduction of the shadow economy related to the circulation of illegal alcohol as one the most serious problems of business environment in Latvia.
“Although the process has been started - the government and law enforcement institutions have made a number of steps this year, the sphere is broad and we still feel the impact of the shadow economy on the legal business. In particular it can be observed in the vodka segment, where the legal demand decreased by approximately quarter in the last three years. Being one of the biggest taxpayers in the country we paid 16.1 million lats in taxes to the state budget in the first half-year, and for us it is important to see more support provided by the state to law enforcement institutions that will strengthen their capacity to reduce the circulation of illegal alcohol,” emphasises G. Abolins – Aboltins.
Visual materials for downloading are available here: http://www.lb.lv/lv/uznemums/lejupieladejami-materiali/
Additional information:
Dana Hasana
JSC “Latvijas balzams” Communication Manager
Phone: +371 67011711
Mob. phone:+371 26355895
E-mail: dana.hasana@lb.lv
About JSC “Latvijas Balzams”
JSC “Latvijas balsams” is a leading producer of alcohol beverages in the Baltics with a history steeped in tradition since 1900. Its biggest pride, Riga Black Balsam, is one of the oldest alcohol beverage brands in Europe rooted in 1752. The company has a distillery of strong alcohol beverages and sparkling wines and light alcohol beverages production plant in Riga.
JSC “Latvijas balsams” ensures workplace for more than 600 employees and it is one of the biggest taxpayers in Latvia. JSC “Latvijas balsams” with more than 100 product names is represented in almost all segments of strong and light alcohol beverages, in a number of them being stable market leader in Latvia. Among the company’s products are such worldwide known brands as “Stolichnaya”, “Moskovskaya”, “Riga Black Balsam” and “Rigas Sparkling Wine”.
JSC “Latvijas balsams” is one of the most significant exporters in Latvia – its products are available in more than 160 countries through SPI Group and in 30 countries through direct export. The company’s quality management system is certified in accordance with ISO standards. Product quality is affirmed by hundreds of awards in various international and domestic competitions and obtained quality certificates and for decades obtained loyalty of consumers. International quality standards are introduced in the daily production practices and applied for the procurement of raw materials, packaging and working culture. In May 2012 JSC “Latvijas balsams” got a silver medal in the Sustainability Index, proving that the company is determined to make its internal processes more effective and manage risks.