JSC “Latvijas balzams” signed a cooperation agreement for the provision of the distribution right of its products to “Synergy Import”. The company belongs to “Synergy” Group, which is the largest player in the Russian market of spirits. The agreement provides rights for import and distribution of products of JSC “Latvijas balzams”, primarily “Riga Black Balsam”, which is among the Top three products in the category on the Russian market.

“Russia is and will remain a priority export market for “Latvijas balzams” (LB), where we see opportunities for development and growth. By signing this cooperation agreement, we set forward a rather ambitious objectives for ourselves and our partners from the “Synergy” – by the end of the year we ar  planing to sell more than 16 thousand decilitres of “Riga Black Balsam” with the help of  our experienced partners.  We are also considering the possibility of expanding the market through export of other alcoholic beverages, including our leading liqueur’s and vodka’s brands,” - informs Guntis Āboltiņš - Āboliņš the General Director of JSC “Latvijas balzams”.

Head of the Company commenting on expectations from the Russian partners emphasises that new agreement would not only increase the volume of exports, but will also mean a new quality approach to marketing and evaluation system of consumer demand.

““Riga Black Balsam", as one of the oldest trademarks in Europe, will remain our key brand in the Russian market. However, we see the potential and growth opportunities in vodka segment by actively selling our new vodka - “Riga Black Vodka”, as well as our liqueurs “Moka” and “Šarlote,” stressed the Head of LB Board G. Āboltiņš - Āboliņš.

In the 1st half of the year LB in Russia sold 18.5 thousand decilitres of alcoholic beverages, which is 56% more than in the first half of the previous year. In 2012, the turnover of LB direct exports reached 7.9 million euros (excluding exports by the order of SPI Group), including Russia with 1.2 million. Russia is the second largest export market, after Lithuania.

General Director of “Synergy Import” Michael Kashirin, signing a cooperation agreement, said that he sees significant potential to build a mutually fruitful cooperation between the industry's leading enterprises in Latvia and Russia. Thanks to the signed agreement, “Synergy” will start operations in another promising category of imported distilled spirits.

OJSC “Synergy” is the leading producer of distilled spirits in Russia with a 15% share of the legal vodka market in Russia. The Company`s strategic focus lays on production of alcoholic beverages. “Synergy” possesses its own distributional platform, ensuring the largest possible market coverage, and diversified portfolio of federal brands, addressing market demands across the full spectrum of price points, from the low-middle to the super-premium price segments.

The Company`s federal brand portfolio includes super-premium vodka “Beluga”, premium vodka “Veda”, sub-premuim vodkas “Myagkov”, middle vodka “Belenkaya”, low-middle vodka” Gosudarev Zakaz” and brandy “Zolotoy Reserv”. The Company operates seven spirits production plants and one of the largest distributional platforms in Russia.

“Synergy” is the exclusive distributor of one of the global premium spirits producer “William Grant & Sons” and of the products of  French house of “Camus” cognac. The Company representing in Russia such brands as Scottish whisky “Glenfiddich”, “Grant’s”, “The Balvenie”, gin “Hendrick’s” and Irish whisky “Tullamore Dew”,“Camus”, “Chatelle”, “Milagro tequila”. To these spirits now joins “Riga Black Balsam”.

Additional information:

Dana Hasana

JSC “Latvijas balzams” Communications Manager

Phone: +371 67011711

Mob. phone:+371 26355895

E-mail: dana.hasana@lb.lv

www.lb.lv

About JSC “Latvijas Balzams”

JSC “Latvijas balzams” is a leading producer of alcohol beverages in the Baltics with a history steeped in tradition. Company represents 24% of Baltics alcoholic beverages market.  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.

JSC “Latvijas balzams” employs 600 people and 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, with many market leaders in Latvia. Among the company’s products are such worldwide known brands as “Stolichnaya”, “Moskovskaya”, “Riga Black Balsam” and “Rigas Sparkling Wine”.

JSC “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 over 30 markets through direct export. The company’s quality management system is certified in accordance with ISO standards and has won hundreds of awards in various international and domestic competitions and has obtained numerous quality certificates. In May 2013 JSC “Latvijas balzams” was awarded a silver medal in the Sustainability Index , improving its overall performance compared to the previous year.