Summed up

  • 1999-08-05
ESTONIANS PREFER SAKU: Saku Olletehas' share of retail beer sales has increased to 60 percent, the market research company Profindex states in its market study. Next to the Saku Originaal and Saku Sarvik brands, Saku on Ice has emerged among market leaders with a 10 percent market share, the company said. The market share of Saku Originaal and Saku Sarvik is equally 14 percent. The top five brands also include Saku Pilsner and Rock. As for breweries, A Le Coq has increased its share of the market from 7.5 percent to 13 percent. The top-ranking foreign beer is Koff from the Finnish Sinebrychoff brewery, which accounts for nearly half of the sales of imported beer in shops with a 5 percent share of total beer sales.

HANSABANKA TO USE HOLOGRAMS ON CHECKS: Hansabanka has signed a contract with the Dardedze Holografija company on the use of holograms to protect bank's checks from counterfeiting. Hansabanka is the first Latvian bank to use holograms on checks. Bank's board member Ugis Zemturis pointed out that the company Dardedze Holografija has been chosen because it offered the most favorable terms and good quality. Holography is globally considered one of the safest document protection methods because holograms cannot be counterfeited easily outside special laboratories, said the company.

ALCOHOL PRODUCTION IN DECLINE: The main alcoholic drinks manufacturers in Lithuania - Stumbras, Alita, Anyksciu Vynas, Vilniaus Degtine, and Sema - sold in the first half of 1999, 36.5 percent fewer products than they did in the first half of last year. With alcohol production down, these companies paid 80.7 million litas ($20.17 million) less in excise tax to the state budget than they did in 1998. "With the growth of excise tax by 80 percent, the price of vodka rose more than 50 percent and became much more expensive than neighboring countries' products," said Stanislovas Dulskas, president of the Lithuanian Food Industry Association. He claimed that high excise tax encouraged the growth of smuggled liquor sales in Lithuania as well as a shadow production industry. It is the association's opinion that sparkling wine and vodka excises should be reduced by 30 percent.

SILMET FREE ECONOMIC ZONE READY TO OPEN: All preparations for launching the Silmet Free Economic Zone have been completed, but permission is needed to implement the special customs regime, Silmet Group Chairman of the Board Tiit Vahi said. Vahi said the fence around the territory has been repaired, barriers and video surveillance systems installed, and customs officers have settled in newly refurbished offices. The free economic zone can start operation as soon as the relevant authorities give their permission, he said. Silmet Group is also negotiating with three potential consultants on a port development project whose task would be to raise capital for the scheme. Offers for this have come from the U.S. based ABB Global, PriceWaterhouseCoopers' Tallinn representation and a British firm.

KOMERCBANKA CLIENTS CAN STILL HELP THE BANK: Depositors in the insolvent Rigas Komercbanka still have time to decide whether they want to participate in the bank's revitalization, giving up 50 percent of their deposit for bank's shares. Komercbanka's spokesperson Valdis Jalinskis said depositors may restructure their deposits until the Parliament makes a decision on investing 1 million lats ($1.69 million) into the troubled bank. The Parliament is to review the proposition together with budget amendments Aug. 5. So far, 1,024 depositors have agreed to restructure their deposits. The bank needs to collect 6.3 million lats to reopen. Komercbanka was declared insolvent in March when its liabilities surpassed its assets.

FIVE INSURERS TO WORK TOGETHER: The Lithuanian State Insurance Inspection Commission has allowed five insurance companies to sell automobile accident liability insurance together. Preventa, Hermis Draudimas, Lietuvos Zemes Ukio Banko Draudimas, Baltijos Garantijas and Baltik Garant received the commission's permission. These insurance companies will share the burden of liability. Over the last year the five companies have signed insurance policies accounting for more than 20 percent of the country's civil liability auto insurance market. According to the commission's deputy director, Mindaugas Salcius, this union was made keeping in mind future requirements for mandatory civil liability automobile insurance. Legislation requiring civil liability insurance coverage has already been presented to the government, but it has not yet been considered.

DANES TO SET UP SHOPPING MALLS IN LATVIA: The Danish company Thorkild Kristensen Properties is planning to build up to eight trading centers in Latvia within the next five to eight years. Riga City Council Deputy Chairman Andris Argalis stressed that the company will only invest funds. Construction will be subcontracted to local companies.