“2017 has not been a particularly different year than previous years for ‘Latvijas balzams’ in terms of our product offer and our sales volumes,” says the company’s board chairman, Intars Geidans. “The most important event in the past year was the release of ‘Riga Black Balsam® Cherry’ flavour, which has become very popular. Initially we saw that as a short-term and limited edition product, but our customers convinced us otherwise. We reached our annual sales goal for the product in just two months’ time, and so now it is part of our basic offer.”
“2017 was also good for ‘Latvijas balzams’ in terms of raw materials, but we can expect a completely different situation next year, when the cost of such materials will increase substantially,” Geidans continues. “Our three main raw materials – raw alcohol, winemaking materials and apple juice – will be much more expensive because of poor harvests. We will have to work very hard to make sure that this price increase does not fall onto the shoulders of our consumers; we will have to look for a different solution.”
“Consumers in the countries where we sell our products are comparatively conservative, and so we don’t think that there will be any major experiments with brands next year,” Geidans concludes. “All alcohol manufacturers are experimenting with taste nuances, but these changes mostly relate to existing beverages.”