The enterprise was founded in 1900, but the actual name it has got since 1970. AS “Latvijas balzams” is a leading producer of alcoholic beverages in the Baltic States that produces more than 130different kinds of alcoholic drinks. AS “Latvijas balzams” major shareholder is “SPI Regional Business Unit BV” which owns 89.52% of the company’s equity capital.

 

AS “Latvijas balzams” is the biggest producer of alcoholic beverages in the Baltic States as well as one of the largest taxpayers in Latvia. In 2009 AS “Latvijas balzams” paid 43 millions lats to the state budget, including excise tax amounting to 33 million lats. 

 

The unaudited turnover of the company in 2009 was 82.4 million lats, which is 20.4% less than in 2008. The decrease in turnover in comparison with 2008 at local market was 23.7%, export market 15.9%. In 2009, the sales to the EU countries decreased by 7.8% in comparison with previous year. Sales to Lithuania decreased by 25.2%, but sales to Estonia stayed at the same level as in 2008. Decrease of sales is related to the increase of excise tax in the region countries, illegal alcohol trade and decrease of economical activity in the main markets. In 2009 the top focus sales markets were Baltic States, Poland and Scandinavia; meanwhile new export markets such as Morocco and Slovakia are being acquired. 

 

The unaudited profit for the reporting period was 3 673 thousands lats, that is 37.8% less than in 2008.

 

Despite of hard economic situation and low consumption power in Latvia, company aims to hold existing market share as well as to continue with export development by improving its product portfolio.In 2010 AS “Latvijas balzams” priorities will be control of production costs and increase of production effectiveness.