Peak of new category flavored vodkas in the market

2006-05-04

In the beginning of this year significant changes in the Lithuanian strong alcoholic beverages market were observed. Lithuanian consumers more and more often choose flavored vodkas which increasingly take up larger part of the market and the market share of the traditional vodkas is decreasing. According to the data of company “AC Nielsen”, segment of flavored vodkas grew from 19,58 percent (December 2004 – end of January 2005) to 26,61 percent of total vodka market (December 2005 – end of January 2006) and market share of ordinary vodka during the same period decreased from 80,42 percent to 73,39 percent. 

“Sobieski” with cranberries produced by one of the largest alcoholic beverages producers in Lithuania company “Vilniaus degtinė” became the most popular flavored vodka. According to the data of company “AC Nielsen”, in the end of January this vodka took up 7,62 percent of the total vodka market. “These results were determined by our new flavored vodkas category (with natural juice, berries and fruits) that our company was the first to offer last year. “Sobieski” flavored vodkas in principle changed entire market. We can ascertain that the culture of consummation of vodka in Lithuania is changing – consumers appreciate more and more original products and choose flavored vodkas with natural juice, fruits and berries instead of ordinary vodka. According to the survey data, in the end of January “Sobieski” flavored vodkas family took up 13,67 percent of the total vodka market and 51,37 percent of flavored vodka market” – said Director of Commerce and Marketing of “Vilniaus degtinė” Laurynas Miškinis. 

New category flavored “Sobieski” vodkas family comprises of “Sobieski” with cranberries, “Sobieski” with pepper and honey and “Sobieski” with mandarins. The company invested more than 1,5 mln. litas into creation of this line of beverages and their introduction into the market.
During the first two months of 2006 income of “Vilniaus degtinė” reached 9,1 mln. litas – 135,8 percent more than during the same period in 2005 (3,8 mln. litas). 

In total “Vilniaus degtinė” gained 47,075 mln. litas of income in 2005 – 61,9 percent more than in 2004 (29,07 mln. litas). During the year the company sold 7,58 mln. liters of production – 59 percent more than in 2004 (4,75 mln. liters). 

Audited profit of the company in reached 3,857 mln. litas in 2005 – 3,8 times more than in 2004 when according to international accounting standards 1,007 mln. litas of profit was gained. By increasing operational efficiency the company also strengthened its positions in the market – according to the data of company “AC Nielsen”, during the year preceding end of January this year, the vodka market share of Vilnius company increased by 13,87 percent and reached 31,90 percent.