Direct export turnover of the JSC “Latvijas balzams” (LB) in H1 of 2013 amounted to EUR 3.4 million retaining growth in the strategic markets such as Russia, Germany, Scandinavia, Ukraine and the Latvian Travel Retail Zone. In addition the company has commenced export to several new markets – China, Taiwan and Turkey.
The most significant sales growth comparing to the first 6 month of previous year was reached in Russia amounting to + 41%, and the Latvian Travel Retail Zone by +19%. Export challenge of “Latvijas balzams” for the next six months is to significantly increase sales in Russia.
Export by the order of SPI Group, that mainly consists of vodka “Stolichnaya” and “Moskovskaya”, during the first 6 months has increased by 10.7% comparing to the same period of last year. Sales in the Baltic States during the accounting period decreased, and that can be explained by review of the partners’ beverage portfolio. However, export sales amounts outside the Baltic States in H1 of 2013 raised by 9.4% reaching EUR 1.9 million.
The main brands of the “Latvijas balzams” export portfolio in the first 6 months of 2013 were the “Riga Black Balsam” products and “Riga Black vodka”, as well as a range of strong private brands for the Norwegian market and Great Britain. “House of Riga Black Balsam” products are popularity leaders also in the tax free zone. The Latvian tax free zone is one of the largest LB product markets, where the sales amounts during the H1 of 2013 increased by 19%.
“The tax free zone is a specific and dynamic market with increasing number of travellers and giving a reason to think about development of an offer especially for this segment. It is a global practice – to concentrate on an increasing client group and to offer special packing and design of beverages. Only on this market LB products are available in PET bottles and offered in special gift sets upon the clients’ request. Tax free zone is the first where we introduce our new products,” explains “Latvijas balzams” Sales Director Justs Dzedons.
“Latvijas balzams” Sales Director noted that the company has changed its policy regarding participation in international exhibitions and trade missions focusing on more specific events. This year within framework of the LIAA (Investment and Development Agency of Latvia) and ERDF Export support program LB has participated in the leading industry exhibitions in Russia and Great Britain. Several new clients are a direct result of participation in these exhibitions.
“We intend to grow on the export markets also in the future on basis of implementation of profit increasing portfolio management principles. The company continues the commenced export business restructuring and one of the main steps is change of the business partner in one of the main markets – Russia, allowing us planning a rapid increase of sales volumes to this country, as well as expanding the offered range of products,” underlines Justs Dzedons.
“Latvijas balzams” has set a target to strengthen its positions also on the world’s biggest markets – Great Britain, China and the USA. The company actively negotiates with potential clients in these countries; plans trade missions and purposefully prepares for future activities.
Special attention is paid to development of the leading brands on the export market - “Riga Black Balsam” and the related products already now are LB “locomotive”. In the future this brand will gain even stronger effect of presence by becoming more available on the foreign markets and more noticeable in its communication.
JSC “Latvijas balzams” Communications Manager
Phone: +371 67011711
Mob. phone:+371 26355895
About JSC “Latvijas balzams”
JSC “Latvijas balzams” is a leading producer of alcohol beverages in the Baltics with a history steeped in tradition since 1900. Company represents 24% of Baltics alcoholic beverages market. 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 balzams” employs 600 people and 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, with many market leaders in Latvia. Among the company’s products are such worldwide known brands as “Stolichnaya”, “Moskovskaya”, “Riga Black Balsam” and “Rīgas Sparkling Wine”.
JSC “Latvijas balzams” is one of the most significant exporters in Latvia – its products are available in more than 160 countries through SPI Group and in over 30 markets through direct export. The company’s quality management system is certified in accordance with ISO standards and has won hundreds of awards in various international and domestic competitions and has obtained numerous quality certificates.