Teksts
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The Company was established in 1900 as
the Riga`a first state alcohol warehouse and operates under the
current name since 1970. Due to SPI Group internal reorganization
the major shareholder of Latvijas balzams AS from October 2014 is
Amber Beverage Group SIA, which owns 89.99% of the Company’s equity
capital.
Nowadays Latvijas balzams operates two alcohol production
facilities in Riga – production plant for strong alcohol beverages
and a production plant for sparkling wines and light alcohol
beverages. We use ingredients from around the world and have
retained our traditional beverage production technologies. The
recipes for some of our signature products date back hundreds of
years, for example the the recipe o Riga Black Balsam is rooteted
back in 1752, but our renown Moskovskaya Vodka dates back to the
end of the 19th century.
The company keeps the leading presence in all key spirits segments,
as well as in sparkling wines, ciders, and RTDs, in the Baltic
region. The newest generation of spirits, including Riga Black
Vodka and Amber Gold Vodka, are produced using innovative
filtration technologies that results in particular character
profiles for beverage connoisseurs.
We are proud for our ability to produce high quality liquids
consistently, and develop new products driven by consumer insights.
On the same time we are able to maintain high-quality international
standards required by SPI Group, so that sales of Stolichnaya are
possible around the world, including sales to Japan.
Latvijas balzams AS is the largest producer of alcoholic beverages
in the Baltic States with a range of more than 100 different
brands. Our products are exported to more than 170 export
markets as mediated by SPI Group, and to 42 markets via the
Company`s direct export route.
The Company`s Activity in the
first quarter of 2017
The unaudited turnover of the Company in
the first quarter of 2017 reached 17.7 million euro, which is 5%
more than in the first quarter of 2016. The positive results are
achieved mainly due to increased level of warehouse and logistics
services provided to both 3rd part and Group companies. In addition
to mentioned, increase in turnover was effected by higher
orders of Lithuanian distributor before the planned rise of excise
tax, unfortunately, it will negatively effects orders in 2nd
quarter.
From beginning of 2016, the Company is providing a number of
warehouse and logistics services, mostly to beverage companies –
like transit assurance services, bonded warehouse services, 3-rd
party logistic services, value added services, picking, etc.
Actions taken, has allowed to use available resources and assets in
more efficient way. Latvijas balzams AS has been performing as
European hub for group distributed brands in Europe, including
Scandinavia and Russia (KAH, Bayou, Arinzano, Achaval Ferrer).
In the reporting period we have continued investing in our
manufacturing base, with a continuous focus on improvement of
efficiency and new product development:
- Following the latest trends of beverage industry and based
on order of Stoli Group, we have produced new
product for the USA market that will be introduced in retail
chains across USA in May – vodka with natural juice;
- The Company has performed export product filling
lines layout change with partial upgrade to rise the competiveness
and quality standard of beverages.
The Company continues to implement
LEAN in order to higher efficiency and productivity in
all core processes.
The unaudited profit for the reporting period reached 1.18 million
euro that represents 2% decrease versus the first quarter of 2016,
mainly due to product mix, based on changes in consumer
preferences.
Future prospects
In 2017 the Company will keep focusing on
investment opportunities in existing and new export markets with
strong growth potential and accelerating sales. We’ll keep the
strong focus on our core brands - Riga Black Balsam and
Cosmopolitan Diva - investing into international recognition, brand
equity and increasing market share.
The Company will also continue to improve the efficiency of
production with focus on purchasing, planning and infrastructure
improvements to support our goal - to deliver quality products with
a competitive cost advantage.
Also Company has developed large-scale plant modernization and
reconstruction project with aim to merge both production plants
into one territory. Project will allow to improve company`s
competitive positions among the region producers by decreasing
labour, logistics and production costs. Total costs of project are
estimated at amount of 23 million euro. Application for project CIT
discount has been submitted to Ministry of Economics and technical
project works are currently going on. After finalizing those two
phases shareholders will be introduced to Project in details to
obtain their final approval on investment.
Latvijas balsams AS is an active member of Latvian Alcohol Industry
Association and cooperates with core non-governmental
organizations, representing the interests of industry in any
dialogue with legislators and law enforcement institutions. The
Company supports development of well - considered industry policy
in Latvia and promotes responsible consumption and public education
on these issues, as well as continues to combat the illegal
production and distribution of non-commercial alcohol.
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