Field of activity

The Company was founded in 1900, but received its current name in 1970. JSC “Latvijas balzams” is the leading producer of alcoholic beverages in the Baltic States, and produces more than 100 different kinds of alcoholic drinks. 75% of our products can be found in more than 160 countries via SPI Group exports and in more than 30 markets as the direct export of JSC “Latvijas balzams”. The major shareholder of JSC “Latvijas balzams” is “SPI Regional Business Unit BV” which owns 89.53% of the Company’s equity capital.

 
Company`s activity in 9 months of 2013

 JSC “Latvijas balzams” is the leading producer of alcoholic beverages in Latvia, as well as one of the largest local taxpayers. During the first nine months of 2013, JSC “Latvijas balzams” paid 30.2 millions lats to the state budget, including excise tax, amounting to 21.9 millions lats.

 The unaudited turnover of the Company in the first 9 months of 2013 was 50.4 million lats, which is 0.1% more than in the same period of 2012. The maintenance of the turnover is based on successful performance in core export markets and commencement of new business. The most significant increase in sales was achieved in such important markets as Russia (+7.3%), Travel Retail channel (15.5%) and Turkey (+28.6%). The main focus markets in the first 9 months of 2013 were the Baltic countries, Russia, Germany and Scandinavia. Meanwhile, new export markets, such as China, were actively acquired. Also the export by the orders of SPI Group has increased by 2.4%.

 Sales in domestic and Baltic market have faced some decline in the first 9 months of 2013 due to the amendments of beverage portfolio. The turnover in the other direct export markets has increased by 9.3%.

 The unaudited profit for the reporting period reached 2.6 million lats, which represents 2.7% growth versus the first 9 months of 2012. The result was achieved due to focused development of the beverage portfolio and progress in export markets.

 
JSC “Latvijas balzams” executes long - term Talents and New Heads Development Programs and implements Competency model as the base for employees’ individual development plans.

Outlook of future activities

 
JSC “Latvijas balzams” will continue to focus on production of competitive products for domestic and export markets and to enhance the growth in export markets by realizing already launched development strategy.

 As one of the leading enterprises in food industry and as an employer, JSC “Latvijas balzams” will continue to invest into training and managerial programs, increasing the level of professional competences and production efficiency, project management skills and sales proficiency.

 By focusing on long-term development, JSC “Latvijas balzams” will continue processes on improving production efficiency and further control of logistic costs. Our priorities for 2013 include environmental, safety and sustainability aspects. In the last quarter of 2013 JSC “Latvijas balzams” is planning to commence a collaboration with emerging food technologists and environmental specialists by announcing a grant competition.

 As the member of Association of Latvian alcoholic beverage industry JSC “Latvijas balzams” will continue the dialogue with legislators and law enforcement institutions to adjust processes of legal alcoholic beverages business and combat distribution of non-commercial alcoholic beverages in Latvia.

JSC „Latvijas balzams”

Chairman of the Board                                                           Guntis Āboltiņš - Āboliņš