Liviko received innovation awards during the year of the pandemic
Liviko Group’s consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) was 5.6 million euros, which is 8% more than in the previous year. The total consolidated audited sales revenue of Liviko AS in 2020 was 134.1 million euros, a decrease of two per cent compared to the previous year. In 2020, Liviko earned a net profit of 4.1 million euros, a 15% increase compared to the previous year. The Estonian Chamber of Commerce and Industry chose Liviko as the most competitive food industry company.
“In March and April 2020, there was a big hike in the sales of vodka, including strong spirits (80% vol) due to the new uses of these products. During the global pandemic, vodka was used to disinfect hands and surfaces. Last year’s springtime sales of vodka as a disinfectant substitute were so large that if the numbers were to be converted into 40% vodka, almost 400,000 litres of vodka were sold in March-April, not for consumption. Therefore, the sales volume of strong alcohol does not correspond to alcohol consumption in the extraordinary year that was 2020,” explains Janek Kalvi, CEO of Liviko AS.
Liviko AS and its subsidiaries paid a total of 66.6 million euros in alcohol excise duty to Estonia, Latvia and Lithuania in 2020, which is 5% more than in the previous year. In 2020, Liviko AS paid a total of 44.7 million euros in alcohol excise duty to Estonia, Liviko SIA paid 16.4 million euros to Latvia, and Liviko UAB paid 5.5 million euros in alcohol excise duty to Lithuania.
“Liviko’s business model is largely based on international trade, the free movement of people between countries, and the well-being of the entertainment, catering and hospitality sectors. All of these sectors were hit hard by the coronavirus pandemic, experiencing a sharp decline in the volume of customers and partially even business disruptions due to state restrictions. Despite very strict international travel restrictions, Liviko’s exports were able to maintain 62% of the previous year’s revenue. The important duty free and travel retail sectors in our portfolio practically stopped operating,” said Janek Kalvi, CEO of Liviko AS.
Last year, three new export markets were added: Armenia, Thailand and Turkey. Compared to 2019, sales volumes were significantly increased in Finland (growth: 37%), Russia (62%) and Ukraine (15%).
The sales revenue of Liviko’s import portfolio in the Baltics decreased by only 2%, as Liviko collaborates with the world’s leading alcohol producers as an importer of an extensive worldwide wine portfolio, and representing, for example, the Bacardi Martin and Rémy Cointreau brands in the Baltic countries. The year 2020 saw the successful closing of negotiations with Brown-Forman, whom Liviko is representing in Estonia and Latvia as of 1 January 2021.
The sales turnover for Liviko’s own products decreased by 2.5% last year. Regarding Liviko’s own products, cocktail drinks, vodka, rum and gin proved to be the most successful.
Liviko was awarded the first-ever title for the best innovative and environmentally-friendly non-alcoholic beverage in Estonia for the Re-crafted Crafter’s Junibeer product range, which is made using ingredients that have already been processed during the distillation of gin.
Crafter’s London Dry Gin was awarded the CSR gold medal for a sustainable initiative at the global travel retail competition Frontier Awards 2020. The award recognised the innovation of reusing juniper berries with a method devised by Liviko.
Liviko responded to the pandemic situation by launching the innovative Travel Safe Bio Vodka for its duty free and travel retail customers in its key export markets, for which it was awarded a silver medal for innovation in the beverage industry in the “Travel Retail Awards 2020” competition held by the global media channel Drinks International.
The Estonian Chamber of Commerce and Industry chose Liviko as the most competitive food industry company.
Founded in 1898, Liviko AS is a producer, exporter and importer of quality alcoholic and non-alcoholic beverages. Liviko AS has its production and head office in Tallinn along with distribution offices in Riga and Vilnius. Liviko AS is one of the three largest alcohol companies in the Baltics, also paying equal attention to the export and import of alcoholic beverages in addition to production. In 2020, the Liviko Group employed 264 people.
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