Announcement

            This is to inform that today (10.03.2009) in newspaper „Dienas bizness” – published information is true:

Currently market is very sensitive due to economical situation in the country and sales volumes are decreasing already. Rapid excise tax and VAT rates increase will lead to more rapid decrease in sales volumes. It does not mean that people will reduce consumption of alcoholic drinks. This situation will favour prosperity of illegal alcohol in the country and will encourage people to buy the same goods in the nearest foreign countries. As the result the losers will be all participants of  the market: producers of alcoholic beverages, importers, consumers and also state, that will get not only lower incomes from taxes, but also their  expenditures will increase that is connected with healthcare for people, who have  consumed illegal and low-quality alcoholic drinks as well as on unemployed people maintenance. As it is said before in management report, there has been export increase in year 2008 by 19% comparing with year 2007.

 Considering that excise tax has increased for more than 30% in February, now separate strong alcoholic beverages more than half of the price consists of excise tax. Future rise of excise tax shall guarantee future fall of LB volumes as well as promote trade of illegal alcohol in Latvia. In year 2009 LB plans decrease in volumes by 15% - 20%. In the field of export we have gained new clients and will try to develop new direction as order production for foreign chains, both wholesalers and supermarket chains. In year 2009 to the whole export country list will join Bulgaria and Hungary, as well as we will improve large projects in China and Great Britain.

Chairman of the Board                                                              Karlis Andersons

 10.03.2009

Inta Belova tel.: +371 7011715