Alcohol, Good for Business, Latvia, Markets and Companies, Mergers and take-overs

She said that the deal will allow the two companies to combine their competences in the wholesale of alcoholic beverages and that they will continue doing business on the domestic market.

It is planned that Interbaltija AG will carry on with its operations as an independent company under the leadership of its current CEO Laimonis Kravalis. Interbaltija AG will continue to focus on the development of premium brands in the HoReCa (hotels, restaurants, cafes) segment, using at the same time Amber Beverage Group’s support and expertise in logistics, IT and legal matters.

Both companies’ managers are confident that by uniting their experience and resources the two companies will be able to develop more successfully on Latvia’s fragmented beverages market.

In January 2017, the Competition Council gave Amber Beverage Group permission to acquire Interbaltija AG.

The Competition Council concluded that the acquisition deal will concern fourteen different wholesale markets: beer, cider, sparkling wine, Champagne, traditional grape wine, fortified wine, mulled wine, vodka, whiskey, brandy, cognac and Armagnac, rum, tequila, and liqueur.

Amber Beverage Group is a majority shareholder in three Latvia-registered companies: Latvijas Balzams, Amber Distribution Latvia, and Bravo.

Amber Beverage Group was established in October 2014 as the international beverage company SPI Group consolidated its companies in the Baltic countries.

Amber Beverage Group's turnover in the first financial year from October 24, 2014 to December 31, 2015 amounted to EUR 2.438 mln and profit to EUR 4.126 mln, according to Firmas.lv data.

Interbaltija AG posted EUR 6.712 mln in turnover in 2015, 9.6% down from 2014, while company's profit fell 42.4% to EUR 187,591. Interbaltija AG was founded in 1997, its share capital is EUR 568,800. Laimonis Kravalis and Daiga Grigale each own 38% stake in the company, and the Wine Holding company - 24% interest.