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Export Implementation Plan. Latvia - Iria
|COMPANY „LATVIJAS BALZAMS”||3|
|GOALS OF COMPANY||4|
|CAP INFLUENCE OF THE “LATVIJAS BALZAMS” WINE EXPORT||4|
|MAIN POINTS OF THE REVISED WINE CMO REGARDING TO LB||5|
|TARGET MARKET – IRELAND||7|
|BASIC IMPORT REGULATIONS, TARIFFS AND QUOTAS||9|
|PACKAGING AND PREFERRED TRADING TERMS||10|
|SECTOR RESEARCH – WINE||11|
|PESTEL ANALYSIS OF IRELAND||11|
|DISTRIBUTION AND RETAILING IN IRELAND||13|
|MARKET ENTRY – IRELAND||15|
|THE EXPORT MARKETING MIX||15|
|LOGISTIC AND DISTRIBUTION||17|
Latvijas Balzams (LB) is the major producer of alcoholic beverages in the Baltic States and the most advanced and up to date alcohol production facility in Latvia. In 1999 LB received the international quality certificate ISO 9001.
Latvijas Balzams holds 43% of total alcohol sales in the Latvian market, it is the 21st largest Latvian company by turnover. The Company is a wide-spectrum distillery. Currently the company’s production ranges to around 100 various brands that are offered both in the local market and exported to Great Britain, Germany, Italy, Poland, the USA, Ukraine, Nordic countries, Lithuania, Russia, Denmark, Belarus, Estonia, Slovenia, Norway, Mexico and Japan.
LB regularly keeps introducing new drinks. The operations of the company are focused on the strengthening of its leading position, creating new product groups that meet the market demands. LB holds a stable leading position in a number of alcoholic beverages groups (cider, vodka, cocktails and sparkling wines).
Riga sparkling wine with its harmonious aroma and taste is the most favored sparkling wine in Latvia. Statistics show that every third bottle of sparkling wine consumed in Latvia is of Riga sparkling wine brand. Riga sparkling wine is made from selected European wine materials by the ongoing fermentation method. Sparkling wine is only one wine which is going for export. Riga is the place where the method was used in champagne production for the first time ever. Today this technology has gained an international recognition and is included in the International Code of Technologies. The method has been patented to such traditional wine-producer countries as France, Portugal and others. Riga sparkling wine has received 43 various international awards.
The biggest amount of Riga Sparkling wines export is going to Russia and France. The quality of Riga sparkling wine meets the most demanding international standards. LB produces four types of Riga Sparkling wine – medium dry, sweet, brut, rose.
To distribute its production “Latvijas Balzams” sells it to the wholesalers as well as in its own shops. Since 2000 the biggest distributor of the production of LB is wholesaler “AV&D” which delivers the alcoholic beverages to the retailers in the whole Latvia. LB also sells its production in 45 shops carrying its brand name all over Latvia. All shops have identical visual image using the logo of LB. Customers get discounts buying certain amounts of alcoholic beverages.
Being one of the oldest companies in Latvia for more than 100 years LB has managed to become a manufacturer that is known by every Latvian. Alcoholic beverage Riga Black Balsam is used as a souvenir and gifts that Latvians use for the foreign people to represent Latvia. To maintain its public image “Latvijas Balzams” spends a lot of money in different public activities as well as charity. In 2006 they spent 1.7 million LVL (2.4 million EUR, 2% of turnover) in advertisement.
In the beginning of 2007 LB announced that they were planning to build a new factory outside Riga and move existing production units from the centre of Riga to the new premises. In the previous years the investments to develop the production were funded mainly from the bank loans. On the 31st of September 2006 the total amount of unpaid loans was almost 22 million LVL (31 million EUR). It is expected that the financing of the new factories will increase the amount of loans of the Company.
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Export Implementation Plan. Latvia - Iria
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