Alcoholic Drinks in Latvia
Euromonitor International's Alcoholic Drinks in Latvia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 134 | Publication date: Jan 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Shift in preferences for alcoholic drinks
It has been noticed that Latvian alcohol drink consumers have started to change their consumption preferences. It appears that the Latvian population is switching from consuming drinks with high alcohol content towards drinks with low alcohol content. The total volume share of consumed alcoholic drinks for such segments as beer, cider and RTDs have gained several percentage points each, resulting in a declining share for other alcoholic drinks. The effects of the trend were noticed in 2007. Since then major players in the market have been actively investing in new production lines and development of new products and brands.
Difficult economic situation forces reduces premium brand consumption
A difficult economic situation is resulting in double-digit inflation rates and a drop in production and GDP growth in Latvia during 2008. Inflation is causing a decrease of consumer purchasing power and a general decrease in consumption. As a result, consumers are switching towards inexpensive products. Moreover, demand for premium products has been negatively affected; growth rates for premium brands have either decreased dramatically or turned negative. Moreover, high-margin on-trade consumption has also suffered for the same reasons.
Innovation seen in drink segments with low alcohol content
A shift in consumer preferences has initiated new product development in low alcohol content drinks. Following the introduction of new flavours for already established RTD brands such as SIN, FIZZ and Cesu Dzins, new foreign brands have entered the market, including Caribbean Twist. Moreover, malt-based RTD D-light introduced by Aldaris has experienced incredible growth rates and popularity. Cesu Alus AS is the second company that has entered malt-based RTDs, introducing Rosè. Competition is expected to increase even more in spirit-based and malt-based RTDs as new product introduction continues at the same pace.
Tourist outflow seen despite the border liberalisation
A significant increase in prices during the review period as well as salary increases amongst the population made on-trade prices relatively high. As a result, the large amounts of tourists that were coming to Latvia due to the inexpensiveness of its alcohol and food were forced to look in other directions. Since “party tourists” were major demand drivers in on-trade alcohol consumption, their loss, combined with a recent purchasing power decrease for local consumers, resulted in decreased on-trade alcohol consumption patterns towards the end of the review period.
Consumers become more educated about wine
Relatively low demand for wine in Latvia compared to that in other European countries could be explained by the low level of consumer education about wine. The majority of consumers find themselves lost amongst the variety of products from different countries as well as different kinds of wine. However, large alcohol distributors have been facilitating the education process by providing consultancy specialists for their clients at the point of sale. Moreover, the demand for wine is being enhanced by various discount campaigns that allow consumers to try wine at more affordable prices.
Alcohol consumption may decrease in future
Alcohol consumption in Latvia reached record high levels in 2007. At the end of the review period per capita consumption of pure alcohol equalled 9.96 litres a year, corresponding to growth of 0.16 litres per year. However, the indicator equals 11.7 litres per capita if only the population above 15 years old is taken into consideration. Moreover, it can be noted that Latvia takes the leading position in teenagers per capita consumption for alcoholic drinks amongst the Nordic countries surpassing Sweden, Finland, and Norway. The Latvian government admits the failure of its previous anti-alcoholism plan. It is expected that a new plan will be stricter and may involve such steps as increasing the legal drinking age from 18 to 20 and other restrictions for alcohol consumption. Such a development may force a decrease in alcohol consumption in the long term.
Table of contents
ALCOHOLIC DRINKS IN LATVIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Shift in preferences for alcoholic drinks
Difficult economic situation forces reduces premium brand consumption
Innovation seen in drink segments with low alcohol content
Tourist outflow seen despite the border liberalisation
Consumers become more educated about wine
Alcohol consumption may decrease in future
MARKET BACKGROUND
Legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
Taxation and Duty Levies
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 3 Selling Margin of a Typical Beer Brand 2008 – Aldara Pilzenes
Table 4 Selling Margin of a Typical Wine Brand 2008 – Castillo de Molina
Table 5 Selling Margin of a Typical Spirits Brand 2008 – Johnnie Walker Red Label
Operating Environment
Market Indicators
Table 6 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
Market Data
Table 7 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
Table 8 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 9 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 10 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 11 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 12 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 13 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 14 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 15 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 16 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 17 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 18 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 19 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 20 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Definitions
Summary 1 Summary - Research Sources
SPIRITS IN LATVIA
Headlines
Trends
Competitive Landscape
Prospects
Sector Background
Sector Data
Table 22 Tequila Production, Imports and Exports: Total Volume 2002-2007
Table 23 Liqueurs Production: Total Volume 2002-2007
Table 24 Company Shares of Spirits by National Brand Owner 2003-2007
Table 25 Company Shares of Spirits by Global Brand Owner 2003-2007
Table 26 Brand Shares of Spirits 2004-2007
Table 27 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013
Table 28 Forecast Sales of Spirits by Subsector: Total Value 2008-2013
Table 29 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013
Table 30 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013
Table 31 Sales of Spirits by Subsector: Total Value 2003-2008
Table 32 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008
Table 33 Sales of Spirits by Subsector: % Total Value Growth 2003-2008
Table 34 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008
Table 35 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008
Table 36 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 37 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 38 Spirits Production, Imports and Exports: Total Volume 2002-2007
Table 39 Spirits Exports by Country of Destination: Total Volume 2002-2007
Table 40 Spirits Exports by Country of Destination: Total Value 2002-2007
Table 41 Spirits Imports by Country of Origin: Total Volume 2002-2007
Table 42 Spirits Imports by Country of Origin: Total Value 2002-2007
Table 43 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007
Table 44 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007
Table 45 Vodka Production, Imports and Exports: Total Volume 2002-2007
Table 46 Gin Production, Imports and Exports: Total Volume 2002-2007
Table 47 Rum Production, Imports and Exports: Total Volume 2002-2007
Table 48 Sales of Spirits by Subsector: Total Volume 2003-2008
LOCAL COMPANY PROFILES - LATVIA
ALDARIS AS - ALCOHOLIC DRINKS - LATVIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Summary - Aldaris AS: Key Facts
Summary 3 Summary - Aldaris AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Summary - Aldaris AS: Competitive Position 2007
CESU ALUS AS - ALCOHOLIC DRINKS - LATVIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Summary - Cesu Alus AS: Key Facts
Summary 6 Summary - Cesu Alus AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Summary - Cesu Alus AS: Competitive Position 2007
JAUNALKO SIA - ALCOHOLIC DRINKS - LATVIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Summary - Jaunalko SIA: Key Facts
Summary 9 Summary - Jaunalko SIA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Summary - SIA Jaunalko: Competitive Position 2007
LATVIJAS BALZAMS AS - ALCOHOLIC DRINKS - LATVIA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Summary - Latvijas Balzams AS: Key Facts
Summary 12 Summary - Latvijas Balzams AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Summary - Latvijas Balzams AS: Competitive Position 2007
BEER IN LATVIA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 14 Summary - Lager by Price Band 2008
Published data comparisons
SECTOR DATA
Table 49 Sales of Beer by Subsector: Total Volume 2003-2008
Table 50 Sales of Beer by Subsector: Total Value 2003-2008
Table 51 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 52 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 53 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 54 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 55 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 56 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 57 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 58 Beer Imports by Country of Origin: Total Value 2002-2007
Table 59 Company Shares of Beer by National Brand Owner 2003-2007
Table 60 Company Shares of Beer by Global Brand Owner 2003-2007
Table 61 Brand Shares of Beer 2004-2007
Table 62 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 63 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 64 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 65 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013
Table 66 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 67 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 68 Beer Exports by Country of Destination: Total Value 2002-2007
CIDER/PERRY IN LATVIA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published data comparisons
SECTOR DATA
Table 69 Sales of Cider/Perry: Total Volume 2003-2008
Table 70 Sales of Cider/Perry: Total Value 2003-2008
Table 71 Sales of Cider/Perry: % Total Volume Growth 2003-2008
Table 72 Sales of Cider/Perry: % Total Value Growth 2003-2008
Table 73 On-trade vs Off-trade Sales of Cider/Perry: Volume 2003-2008
Table 74 On-trade vs Off-trade Sales of Cider/Perry: Value 2003-2008
Table 75 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2003-2008
Table 76 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2003-2008
Table 77 Cider/Perry Production, Imports and Exports: Total Volume 2002-2007
Table 78 Cider/Perry Exports by Country of Destination: Total Volume 2002-2007
Table 79 Cider/Perry Exports by Country of Destination: Total Value 2002-2007
Table 80 Cider/Perry Imports by Country of Origin: Total Volume 2002-2007
Table 81 Cider/Perry Imports by Country of Origin: Total Value 2002-2007
Table 82 Company Shares of Cider/Perry by National Brand Owner 2003-2007
Table 83 Company Shares of Cider/Perry by Global Brand Owner 2003-2007
Table 84 Brand Shares of Cider/Perry 2004-2007
Table 85 Forecast Sales of Cider/Perry: Total Volume 2008-2013
Table 86 Forecast Sales of Cider/Perry: Total Value 2008-2013
Table 87 Forecast Sales of Cider/Perry: % Total Volume Growth 2008-2013
Table 88 Forecast Sales of Cider/Perry: % Total Value Growth 2008-2013
RTDS/HIGH-STRENGTH PREMIXES IN LATVIA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published data comparisons
SECTOR DATA
Table 89 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008
Table 90 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008
Table 91 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008
Table 92 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008
Table 93 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008
Table 94 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008
Table 95 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008
Table 96 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008
Table 97 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007
Table 98 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007
Table 99 Brand Shares of RTDS/High-strength Premixes 2004-2007
Table 100 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013
Table 101 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013
Table 102 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013
Table 103 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013
WINE IN LATVIA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published data comparisons
SECTOR DATA
Table 104 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 105 Sales of Wine by Subsector: Total Volume 2003-2008
Table 106 Sales of Wine by Subsector: Total Value 2003-2008
Table 107 Sales of Wine by Subsector: % Total Volume Growth 2003-2008
Table 108 Sales of Wine by Subsector: % Total Value Growth 2003-2008
Table 109 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008
Table 110 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008
Table 111 Forecast Sales of Wine by Subsector: Total Volume 2008-2013
Table 112 Forecast Sales of Wine by Subsector: Total Value 2008-2013
Table 113 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013
Table 114 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013
Table 115 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 116 Wine Production, Imports and Exports: Total Volume 2002-2007
Table 117 Wine Exports by Country of Destination: Total Volume 2002-2007
Table 118 Wine Exports by Country of Destination: Total Value 2002-2007
Table 119 Wine Imports by Country of Origin: Total Volume 2002-2007
Table 120 Wine Imports by Country of Origin: Total Value 2002-2007