JSC “LATVIJAS BALZAMS”: ACHIEVEMENTS 2012
Guntis Āboltiņš-Āboliņš, CEO
Valters Kaže, Brand Director
ABOUT US
#1
>120
>100
~70 m
LVL 67.7 m
>600
36
>160
24%
57%
alcohol producer in the Baltics
products and brands
international awards
Bottles annually
revenue in 2011
employees
direct export markets
export markets via SPI Group
market share in Latvia
market share among local producers
UNAUDITED BUSINESS RESULTS 9M 2012
Revenue
(LVL)
50,3 m
Volume
(litres)
32,4 m
Export growth
(% vs 9m 2011)
(+8% vs 9m 2011)
+1% volume
+8% revenue
Unaudited profit
(LVL)
2.5 m
Taxes paid
(LVL)
26.3 m
(+19% vs 9m 2011)
(including 18.3 m in excise tax)
UNAUDITED BUSINESS RESULTS 9M 2012
REVENUES 9M 2012 AND 2011
TOTAL, LVL m
VOLUME REVENUES 9M 2012 AND 2011 TOTAL, m litres
51.0
33.0
50.0
32.5
49.0
32.0
50.4
48.0
31.5
(+8%)
47.0
46.0
31.0
31.7
(+2%)
2011
2012
30.5
46.8
45.0
30.0
2011
2012
REVENUES 9M 2012 AND 2011
BY MARKET, LVL m
30.0
25.0
32.4
VOLUME REVENUES 9M 2012 AND 2011 BY MARKET, m litres
30.0
27.5 (+8%)
25.5
22.9 (+8%)
21.2
20.0
20.0
15.0
15.0
10.0
10.0
5.0
5.0
0.0
24.1 (+1%)
23.9
25.0
8.3 (+6%)
7.8
0.0
Latvia
Export
2011
Latvia
Export
2012
Latvia
Export
2011
Latvia
Export
2012
LB INVESTMENTS IN 2012
In 2012 Company has invested LVL 310,000 in development
Investment in
production and logistics
LVL 275,000
Investment in new
product development
LVL 35,000
• New equipment for production of Stolichnaya
• IT renovation and infrastructure
• Filter housings
• New equipment for packaging and corks
• Other improvements
• Design concepts
• New recipes and technologies
• Other improvements
KEY ACHIEVEMENTS IN 2012
MARKET LEADING GROWTH
• Sustainable market share in Latvia: 24%
share retained despite harsh competition
such as import growing by +28% year on
year (9m 2012)
• 18 new products and packaging
redesigns: focus on consumer insights
driven portfolio management
• Growing export volume: SPI Group
exports to >160 countries as main source
PUBLIC RECOGNITION
• Silver category in «Sustainability Index
2012»: a recognition to to our
sustainable
strategy
and
risk
management
• «Senior-Friendly Company“: awarded
by Ministry of Wellfare and EC
NEW PRODUCT DEVELOPMENT
VODKAS AND INFUSIONS
STRONG VODKA «LB VODKA 69%»: FOR HOME-MADE INFUSION FANS
«LB INFUSION»: 3 INNOVATIVE COMPLEX FLAVOURS
«BALTA»: CLASSIC VODKA FOR
LITHUANIAN MARKET
BRANDIES AND STRONG SPIRIT DRINKS
«BONAPARTE CINNAMON»: DELICATE BRANDY AND CINNAMON BLEND
«ARAMIS»: 5 YEARS AGED FRENCH BRANDY
«GRAND CAVALIER EXCLUSIVE»:
#1 BRAND IN LITHUANIA + INNOVATIVE TECHNOLOGY +
8 YEARS AGED FRENCH BRANDY
LIQUEURS AND BITTERS
«ŠARLOTE»: MARKET LEADER REBORN IN A NEW QUALITY
«ŽOLYNŲ»: 23 NATURE-BORN INGREDIENTS
TO RULE THEM ALL IN LITHUANIA
SPARKLING WINE AND FUSION
«RĪGAS DĪVA»: FUSION WINE DRINK FEATURING REAL FRUIT FRESHNESS
«RĪGAS JUBILEJAS» SPARKLING WINE: 60 YEARS OF
CLASSIC TECHNOLOGY WITHIN
CONTEMPORARY PACKAGING
CIDERS AND PREMIXES
«APPLE GARDEN»: DRY CIDER FOR A DEMANDING CONSUMER
NEW PREMIX FLAVOURS:
FROM CLASSIC VALUES TO HOT THINGS...
DESIGN RELAUNCH FOR MOST-LOVED BRANDS
AND FINALLY...
HERE COMES
THE MOST INNOVATIVE PRODUCT OF 2012...
High quality vodka
Combines centuries of Riga Black Balsam
craftmanship with advanced technologies
The most pure form of vodka – secret hidden in:
• Black Charcoal and Silver purification: unique
silver-ionized charcoal applied
• 7 times filtered for the most pure taste
• purest artesian well water (184m and 198m)
• no suggar added – the most pristine taste
Highly competitive to top-notch vodka brands
locally and globally
Widely available in stores from January, 2013
0.35
0.5
0.7
INDUSTRY IN 2012 AND CHALLENGES AHEAD
PRIORITIES FOR INDUSTRY 2012-2013
Pro-active and meaningful conversation with government started to
combat illicit alcohol market in Latvia
Alcohol excise tax unchanged – secures stability and
predictability of the licit business framework
More strict measures related to breach of alcohol regulation –
age verification for young adult (18-25) consumers introduced
Productive collaboration with State Revenue Service and law
enforcement bodies
2013: THE CHALLENGES AHEAD
Top priority: effectively combat illicit alcohol market in Latvia
More severe sentence for distribution of illicit alcohol
Pure alcohol contents based excise taxation legislative initiative
Real estate taxation incentives for the largest employers
Industry as a social partner in legislative decision making
Walk the talk: implementation of the National Development Plan
JSC “LATVIJAS BALZAMS” PRIORITIES IN 2013
Production
and logistics
New product
development
Export
Corporate
Social
Responsibility
• Further development of innovative and cost-effective technologies
• Retention of top quality despite the increase of raw material costs
• Growth of production volumes driven by economic recovery in world
markets
• Competitive and profitable new products
• Brand building for current brands
• Grow in core markets and selectively enter new
• Develop globally competitive product portfolio
• Responsible and moderate alcohol consumption education programs
• Combat illicit alcohol market to tackle its social and economic impact
• Reduce impact on environment by improving production processes