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“Latvijas balzams” beverage sales on the domestic market have
increased by 7%
Compared
to the first half-year of the last year, in the six months of this
year “Latvijas balzams” beverage sales on the domestic market have
increased by 7% reaching 529 thousand decalitres. The company has
preserved the leading position on the market and has raised the
market share by 2%, thus representing 24% of the Latvian alcohol
beverage market, excluding the bear segment.
The
JSC “Latvijas balzams” turnover on the domestic market increased by
10%; on the export market – by 10.6%. The export also increased by
6% after the “S.P.I. Group” order. The biggest sale markets were
the Baltic States, Russia, Germany, and the Nordic
countries.
The
company’s total unaudited turnover in the first half-year,
comprised of the domestic and export market, was 31.7 million lats,
but the unaudited profit reached 1.1 million
lats.
“The
production growth in the first half-year was mainly determined by
the demand on the export market and purposeful work of our
specialists promoting the products on foreign markets. If in
European Union countries sales remained at the level of previous
year, in Ukraine, for example, we increased exports by 53%, but in
Russia – by 45%,” says Chairman of the
company’s Board Guntis Aboltins – Abolins explaining the rise in
sales.
The
biggest increase in sales on the domestic market in the first
half-year was in the liqueur segment – 17%, followed by sparkling
wines – 14%, Riga Black Balsam – 13% and cocktails produced by
“Latvijas balzams” – 11%.
Also
the data published by the State Revenue Service on the beverage
consumption in the first half-year in Latvia show that the
sparkling wine “Rigas Sparkling Wine” became even more requested
and was the 3rd most popular in TOP20 of the most
popular beverages. In the strong beverage category, however, the
most favourite was the brandy “Bonaparte”, but the vodka
“3 Graudu” produced by “Latvijas balzams” was the most popular
vodka in the first half-year.
“Our
priorities in the second half-year will be exploring and
acquisition of new export markets at the same time working on the
optimization of production and logistics processes,”
admits
Head of the company G. Aboltins – Abolins.
The
management of company considers the reduction of the shadow economy
related to the circulation of illegal alcohol as one the most
serious problems of business environment in Latvia.
“Although
the process has been started - the government and law enforcement
institutions have made a number of steps this year, the sphere is
broad and we still feel the impact of the shadow economy on the
legal business. In particular it can be observed in the vodka
segment, where the legal demand decreased by approximately quarter
in the last three years. Being one of the biggest taxpayers in the
country we paid 16.1 million lats in taxes to the state budget in
the first half-year, and for us it is important to see more support
provided by the state to law enforcement institutions that will
strengthen their capacity to reduce the circulation of illegal
alcohol,” emphasises G. Abolins
– Aboltins.
Visual
materials for downloading are available here:
http://www.lb.lv/lv/uznemums/lejupieladejami-materiali/
Additional
information:
Dana
Hasana
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“Latvijas balzams” Communication Manager
Phone:
+371 67011711
Mob.
phone:+371 26355895
E-mail:
dana.hasana@lb.lv
www.lb.lv
About
JSC “Latvijas Balzams”
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“Latvijas
balsams” is a leading producer of alcohol beverages in the Baltics
with a history steeped in tradition since 1900. 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.
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“Latvijas
balsams” ensures workplace for more than 600 employees and it 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, in a number of them
being stable market leader in Latvia. Among the company’s products
are such worldwide known brands as “Stolichnaya”, “Moskovskaya”,
“Riga Black Balsam” and “Rigas Sparkling
Wine”.
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“Latvijas
balsams” is one of the most significant exporters in Latvia – its
products are available in more than 160 countries through SPI Group
and in 30 countries through direct export. The company’s quality
management system is certified in accordance with ISO standards.
Product quality is affirmed by hundreds of awards in various
international and domestic competitions and obtained quality
certificates and for decades obtained loyalty of consumers.
International quality standards are introduced in the daily
production practices and applied for the procurement of raw
materials, packaging and working culture. In May 2012 JSC
“Latvijas
balsams” got a silver medal in the Sustainability Index, proving
that the company is determined to make its internal processes more
effective and manage risks.
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