Alcohol, Lithuania, Markets and Companies

The income of the enterprise from sales in January-June 2009 amounted to 23.9 million litas – 20.5% less than during the same period in 2008, writes ELTA/LETA.

During the first six months the company sold 2949.1 thousand liters of strong drinks – 30.4% less than during the same period in 2008.

During the second quarter of 2009 the company earned 569.9 thousand litas in profit before tax. The loss, recorded in the end of the first six months, was determined by the activities of the first quarter, where 848.2 thousand litas loss was incurred.

The biggest part thereof – even 828.7 thousand litas – was the redundancy pay and compensation for leave including the social insurance tax, paid to the employees, who left the company.

The main factor, which has determined the drop in sales and detrimental activities, is the second year in a row increased excise tax on strong drinks in Lithuania as well as illegal alcohol sales on the grey market increased as a result thereof.

The company expects to increase the sales after launching two brand new original products on the market: Sobieski with coffee and Sobieski with olives. The company only uses natural coffee and olive ratafia, moreover, only real coffee beans and olives are added to every single bottle. The managers of the company expect higher sales of Sobieski vodka, since the French company

Belvedere S.A., owning Vilniaus Degtine and Sobieski trademarks, has signed the contract with the actor Bruce Willis, under which the latter will appear in the advertisements of the new campaign all over the world.

During the first six months the sales on the export markets, the biggest part whereof has been sold to the European Union countries, have been increasing by over 15% as well as reached 1,58 million litas.