Latvijas Balzams wins lucrative Norwegian tender

  • 2005-10-26
  • From wire reports
RIGA - Latvijas Balzams announced that it has won a tender to supply vodka to Norway's Vinmonopolet, the country's state liquor monopoly. Over 40 liquor producers participated in the tender.

Latvijas Balzams said it has already begun deliveries to Vinmonopolet, which has 200 stores across Norway.

Company managers were set to release more detailed information about this contract and the company's exports at a news conference on Oct. 26.

Norway possesses some of the most expensive retail prices for alcohol in the world, compelling many Norwegians to travel to Sweden to pick up cheaper beverages.

For Latvijas Balzams, the victory will add momentum to the company's already stellar year. In the first half of 2005 the company earned a profit of 662,000 lats (942,000 euros), a stunning 62.7 percent rise year-on-year, while turnover increased 25.3 percent to 32.5 million lats.

In the meantime, Latvijas Balzams has said it was considering an appeal of the Vilnius Regional Court's decision to throw out its claims against the Lithuanian State Property Fund on a privatization bid that had been rejected.

Earlier this month the court dismissed two lawsuits filed by the Latvian distiller, in which the latter sought millions of litas in compensation from the Lithuanian Property Fund for having been barred from the sell-off of Stumbras, Lithuania's largest distillery.

Latvijas Balzams is seeking almost 3 million litas (870,000 euros) in compensation for the damage to its business reputation and also demanded that Lithuania cover more than a million litas in actual losses it allegedly incurred during the privatization process.