Latvia: Latvia increased its imports of beer by 103% in the first 6 months of 2005

In the first half 2005, the amount of imported beer has grown by 103 % y-o-y, according to State Revenue Service. Imported beers are now taking 15 % of the beer market in Latvia.

“As long as imported beers take 5 to 10 % of the market there is no problem, but when it grows to 15 % it is bad news for the domestic industry,” stated Ivars Grislis, advisor of the Latvian Brewers’ Union.

“Of course, beer imports affect the market, but I do not see any reason to worry about it,” said Henrijs Fogels, president of brewery Aldaris. According to Fogelis, beer is a local product. “Imported beer will keep its market share as an exotic choice, and in the low price segment.”

The Russias Baltika Brewery during the first nine months of 2005 has increased sales in Latvia by 235 % y-o-y said Irena Drozdova from Baltika, with 34,2 % of beer imports into Latvia. Next year Baltika is planning to increase exports to Latvia by 20 % on top.

“In the eleven months of 2005 our sales of Heineken beer have doubled, but in total this beer makes up a small amount of our sales,” explained Sietinsone. Cesu Alus holding the agency of Heineken in Latvia.

One of the major beer importers is VP Market. “Imported beer is taking 28 % of the total beer sales in our shops, and it has not increased,” said Ivars Andins from VP Market. ”The brand name Maxima beer, selling at VP Market, many customers do not even recognize it as an imported beer.”

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