Latvijas balzams                                          11.04.2005.



The 2004 turnover of JSC “Latvijas balzams” has increased



RIGA, April 11, 2005 – The 2004 turnover of the largest producer of 

alcoholic beverages in the Baltic States, JSC “Latvijas balzams” has 

increased by 17%, reaching LVL 61,1 million. 2003 was concluded with a 

turnover of LVL 52,4 million. The 2004 profit of “Latvijas balzams” was 

707 thousand. 



Last year “Latvijas balzams” paid LVL 27,4 million in taxes. 



Turnover and profit of the company reflect the strong work that has been 

put into achieving the marketing goals that were set for this year – 

developing new export markets. 



During 2004 the planned investments program was implemented. The amount of 

investments is LVL 1,5 million. In order to strengthen the competitiveness 

of the products, investments were made in production equipment of “Rīgas 

melnais balzams”, “Stolichnaya” and brandy. 



Large export increases

During 2004 the exports of “Latvijas balzams” have increased by 73%, and 

have reached LVL 16,2 million. It’s well known that company is fulfilling 

export orders for “S.P.I. Group” for the largest international markets. 

Vodka brands “Stolichnaya” and “Moskovskaya”. This production continues 

and the increase of export production amounts is expected in the future. 

That is attested by a long-term global cooperation treaty that was signed 

in November of 2004 in London between “S.P.I. Group” and British company 

“Allied Domecq”. It gives exclusive distribution rights of “Stolichnaya” 

vodka to “Allied Domecq” in EU, Latin America, Asia, Pacific Ocean region 

and African countries. “Stolichnaya”, the best known and best selling Russian 

vodka outside of Russia has achieved its popularity thanks to its high 

quality, which is maintained by the “S.P.I. Group” at the highest levels. 



It’s important, that the 2004 export increase is due not only to the fulfillment 

of export orders, but also the export of “Latvijas balzams” own products. 

The most exported products of “Latvijas balzams” were vodka “Kaznacheiskaya”,

“Rīgas melnais balzams” brandy “Grand Cavalier” and cider “Lucky Dog”. 



Besides already existing exports markets, in 2004 exports of “Latvijas balzams”

production begun to United Kingdom, Netherlands, Austria, Norway, Czech republic,

Cyprus, Malta. 

 

Sales in Lithuania grow by 245%. 

“Latvijas balzams” following the strategy for the Baltic States, has reached 

a notable sales volume increase in Lithuania. In 2004 it was LVL 1,9 million, 

in comparison, in 2003 it was LVL 555 thousand. 



During the last year the operations of the daughter company in Lithuania were 

successfully developed, and in order to support it in early 2005 the first 

“Latvijas balzams” store was opened in Vilnius. Especially popular among 

Lithuanians is “Latvijas balzams” vodka “Kaznacheiskaya”. 



Sales volume in Estonia is reaching one million LVL. In comparison with 2003 

it has increased by 54%. “Baltic markets also in the future will remain the 

strategic market of “Latvijas balzams” because our company has a long experience 

and has established competitiveness for operations in the whole Baltics. Beside 

this, we’re developing our exports to EU markets,” says Rolands Gulbis, chairman 

of the board of “Latvijas balzams”. 



Already before joining the EU, in order to strengthen the competitiveness of 

the production, about LVL 8 million were invested in the company. The product 

portfolio was organized according to the work in EU markets. Now an intensive 

work for entering new markets and developing new exports has begun. In order 

to achieve it, investments and professional marketing work was necessary. 

Also, during 2005 “Latvijas balzams” plans to actively develop new export 

markets and to invest in strengthening of its brands. 



About JSC “Latvijas balzams”

During the last two years “Latvijas balzams” has notably increased production 

of the light alcoholic drinks and fulfillment of the “S.P.I. Group” export 

orders. About 50% of the company’s product portfolio consists of light 

alcoholic beverages. “Latvijas balzams” has a 43% stake of Latvijas alcoholic 

market (except beer). 

The largest stockholder of the “Latvijas balzams” is “S.P.I. Distilleries B.V.”

that owns 87,98% of the company stocks. 



Rolands Gulbis, chairman of the board of “Latvijas balzams”. 



More information: 

Ingars Rudzitis, 

Ph: 7814232, 

Cell: 6176688, 

E-mail: ingars.rudzitis@sab.lv