AS “Latvijas balzams” confirms that the budget fulfillment is strictly controlled and main indicators are in line with the forecasted.

 

In general last year the sales volume has decreased by an average of 4% in comparison with the previous year, which is related to the increased taxes, the increasing proportion of the prevalence of illegal alcohol, as well as the economic instability in the country.

 

Our largest sales market is the global alcohol market. The fluctuations of it last year were similar to those in 2009. In total export to “S.P.I.” group non-controlled markets of third countries – outside the Baltic States and Russia has increased by 7%, therefore there are a number of countries with positive trends last year.

 

With regard to the markets we control, the export of our production to Russia decreased by 24%, while in Kaliningrad district the sales volumes increased by 20%. Last year the largest decrease in LB export markets were observed in Lithuania (-24%), Estonia (-8%), sales to Scandinavian countries remained at the previous level, while sales to Ukraine increased by 8%.

 

LB started to acquire new export markets, such as Bulgaria, China, Australia and Kazakhstan, but for the time being volumes are not substantial.

 

Last year the sales volume of sparkling beverages, including sparkling wine, cider and alcoholic cocktails decreased by a total of 13%.

 

Last year we launched the production of three new products – a new cider within “Lucky Dog” series, “LB vodka” with the special cold technology, as well as vodka “Štopor”.

 

Currently the private label share among our total production is remarkably low - less than 5%.

 

AS “Latvijas balzams” forecasts the main indicators of 2011 to be close to the indicators of previous year. Increase in sales volume might reach up to 10%, but basically this increase will be provided by “S.P.I.” group orders and our sales within the global markets, that might have a positive effect on the company’s profit.