Riga Stock Exchange                                                                     05.11.2004



THE NINE MONTH TURNOVER OF A/S “LATVIJAS BALZAMS” INCREASES BY 

25% AS COMPARED WITH THE NINE MONTHS OF 2003



RIGA‚ November 4, 2004 - The nine month turnover of a/s “Latvijas balzams”, the largest alcohol 

manufacturer in the Baltics, has grown by 25 % and has reached Ls 41,4 million, which is a Ls 8,2 

million increase over the same period of 2003. The profit for three quarters of 2004 was Ls 658 

thousand.



The increase in a/s “Latvijas balzams” turnover and profit volumes reflects the strong effort 

to accomplish the marketing goals set in the beginning of the year. Following company’s strategy, 

a/s “Latvijas balzams” has made steps to enter the markets of EU member states and other countries as well. 

During 2004 serious effort and investment was made to increase the value of a/s “Latvijas balzams” brands 

in the foreign markets. 



“You need to invest quite a bit, if you want to make a profit in the future,” says Rolands 

Gulbis, CEO of a/s “Latvijas balzams”. “The situation in the EU markets is such, that we’ll have to keep 

investing in our development. The value of our inventory has gone up, since this was the first year of work 

after a massive renovation was completed. Right now we are enjoying the fruits of those investments and at 

the same investing in conquering new markets. All this creates excellent conditions for the future growth of a/s 

“Latvijas balzams”. Thus we plan to achieve increased numbers of production, 

growth of exports and a more substantial profit in the future.” 



The company expands its presence in EU markets 



A/s “Latvijas balzams” plans to achieve more than a market leader’s role just in the Latvian or 

Baltic alcohol markets. In the EU, the company has to grow, in order to withstand competition in 

local and international markets. 



This year, a/s “Latvijas balzams” has aggressively expanded its exports into a number of EU 

countries. Among the priority markets are not only the neighbouring Estonia and Lithuania, but 

Poland, Ukraine and Scandinavian countries as well. The sales leaders among a/s “Latvijas 

balzams” export brands are “Kaznachejskaja” vodka, “Lucky Dog” cider and “Aramis” brandy. 



The export to Lithuania has expanded by 415% in comparison to 9 months of the previous year. 

Now a/s “Latvijas balzams” controls 9% of the Lithuanian vodka market, with “Kaznachejskaja” 

vodka being consumers’ favourite.



A/s “Latvijas balzams” intends to actively develop new export markets and to invest in 

strengthening its product brands. “Because we plan to actively compete with large alcohol 

producers in EU markets, our marketing programs must be strong enough,” says Inese Eglite, 

marketing director of a/s “Latvijas balzams”.



-MORE-



About a/s “Latvijas balzams”



The main shareholder of “Latvijas balzams” is S.P.I. Distilleries.B.V., which owns 87,98% of 

company’s shares. As a result of almost Ls 8 million invested in the company over the last two 

years‚ a/s “Latvijas balzams” has significantly increased production of light alcohol drinks and 

fulfilment of S.P.I. Group export production orders. Despite popular belief, a/s “Latvijas 

balzams” produces not only hard liquors. Around 50% of the company’s product portfolio consists 

of beverages with lower alcohol content. In this segment, a/s “Latvijas balzams” is a market 

pioneer and holds about 75% of the local market. 



Rolands Gulbis,

CEO ‚a/s “Latvijas balzams”.





For additional information please contact:

Ingars Rudzitis, phone: 7814232, mobile: 6176688, E-mail: ingars.rudzitis@sab.lv