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In 2010 JSC “Cēsu alus” Has Managed to Increase its Turnover by 12%

In 2010 despite the stagnation in the beverage sector, Cēsu alus has increased its sales volume by 15% in the local market, providing the total turnover rise by 12%. The hold of beer has especially increased, stabilizing specifically the position of the Premium production on the total Latvian beer market and retaining long-term leader positions in other beverage segments as well.

The purchasing capacity of the consumers is adequate and a sustainable strategy of production sales has allowed the company to obtain increasing sales results – the total amount of beverages sold in 2010 is 69 million litres, which is 15% more than in 2009. Despite the comparatively small total increase of the beer market, which was provided due to the hot weather conditions in summer – 3%, in 2010 JSC “Cēsu alus” has managed to increase its beer sales volume on the local market by 17% in comparison to the previous year. The rising sales results are also reflected by the tendency of stable market share growth – in 2010 Cēsu alus occupied 30% of the total Latvian beer market.

In the beer segment, the same as in other sectors in Latvia, the effects of the tense economic situation on the consumer’s choice can be still felt. Purchasing power is one of the main factors which maintains a significant (50%) proportion of the 2 l PET packaging in the beer market. But, according to the data prepared by the SRS Administration of Excise Duty Goods, in 2010 Cēsu Premium has been the most favoured beer brand by the consumers, which proves a significant share of the loyal consumers whose choice is determined not only by the price factor, but also by the proportion of quality and price. Stable growth in the market is shown by canned beer production, last year in the total market it showed a 28% increase, but in the canned production segment Cēsu alus holds position No. 1 with a 38% market share.

Despite the negative development tendencies in the total market of non-alcoholic beverages, in 2010 Cēsu alus has expanded its activities in the market of non-alcoholic beverages, increasing the total sales volume by 49%. Basically the increase occurred due to successful implementation on the market and launching the production of the third most popular Cola brand – RC Cola (Royal Crown Cola) in Latvia, in Cēsis, as well as due to successful sales of Ulmaņlaiku kvass that has allowed not only to increase the proportion of Cēsu alus in the kvass segment, but already in 2010 to expand specifically the market of naturally fermented kvass – now it already owns 20% of the total kvass market.

Also, last year Cēsu alus retained stable leader positions in the markets of energy drinks, ciders and alcoholic cocktails, where the brands represented by Cēsu alusDynamit, Fizz and Cēsu Džons last year have been the most favoured products in their relevant beverage categories.

Chairman of JSC “Cēsu alus” Board Eva Sietiņsone Zatlere: “2010 has been a tough year in the beer and beverage production sector. At the same time it has been a challenge to the business and production environment in general – the problem emerged of how not only to retain, bu­t also to develop the company activities during the economically tough and unstable period. The successful sales results of Cēsu alus and market share growth were promoted by innovations implemented regarding new and existing products, where one of the major activities was the development of Cēsu Premium beer brand in a unique design green glass bottle. Of course, also the unpredicted heat during the summer provided its contribution to the development of the total beer segment. Cēsu alus made a significant investment in the development of the total beer culture in Latvia by creating a unique concept for the first beer restaurant in Latvia – Merlin.”

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