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Cēsu alus has increased sales by 10 % in 2011

In 2011, under stable beer market conditions, which interchanged with temporary stagnation periods, Cēsu alus has increased sales by 10 %. Strengthened influence within the beer segment, by developing direct premium product positions in the total Latvian beer market and retaining long-term positions in other beverage segments.

The total Cēsu alus sales volume of beer, alcoholic and non-alcoholic beverages in 2011 reached 75.3 million litres, which is 10 % more than in 2010. Last year the total export volume of the company has set a record and increased by 63 %, while the sales in the local market increased by 4 %. The main export markets of the company in the last year were – Estonia, Lithuania, Great Britain­, Ireland and Israel.

The sales of beer in the local market in the last year increased by 4 %, sales of cider and kvass – by 20 %, whereas the sales of juices and juice drinks had been doubled. Recognised as the most successful novelty in the last year was Cēsu Nefiltrētais alus in glass bottles with an unusual realisation date for the Latvian beer market – 30 days, which during the last year has won 3 % of the Latvian beer market. The successful brand renovation of the beer cocktails Beershake promoted its growth by 3 times. The fastest growth in the category of packaging in the last year Cēsu alus reached for beer in cans – 32 %. The can market in Latvia already occupies 22 % of the total beer market, continuing stable growth. Cēsu alus still retains its leading positions in the beer can market, occupying 40 %.

A successful expansion in 2011 occurred in the market of naturally fermented kvass – the naturally fermented kvass brand of Ulmaņlaiku kvass representing Cēsu alusalready occupies 15 % of the market share in this segment. The development of this market has been greatly stimulated by the alignment of legislation, separating naturally fermented kvass from the kvass drink.

Despite the discriminating tax policy of local manufacturers in the cider segment, which provides for even 5 times higher excise tax if compared to neighbouring countries of the Baltic States, Cēsu alus, purposefully developing the product portfolio, maintains theleader positions in the cider market occupying 50 % of the market share. Also,in the alcoholic cocktail market with a 45 % market share and in energy drink segment with a 30 % market share, Cēsu alus represented brands are leaders and the most favoured in their category.

The Chairman of the JSC Cēsu alus Board Eva Sietiņsone-Zatlere: “In 2011 there have been no rapid changes in the beer and beverage industry. Our company, due to its long-term strategy, has been able to continue the growth. The influence of the overall European instable finance system can also be felt in Latvia, purchasing capacity is renewing very slowly, as well as the local market economy, nevertheless the entrepreneurs should be more enduring and should gradually develop market sales with their innovations in new technologies or products, by focusing their activity and increasing the total long-term value of business and industry.”

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