Olvi plc will become even stronger in Latvia through acquisition
Olvi plc Stock Exchange Release 8 MAR 2021 at 10:00 am
Olvi plc will become even stronger in Latvia through acquisitionOlvi’s Latvian subsidiary AS Cesu Alus is a leading player in the Latvian beverage market. Cesu Alus is acquiring the entire stock of Piebalgas Alus, a widely known and appreciated microbrewery in the Vidzeme province of Latvia. The acquisition brings more strength to our product portfolio in premium craft beers and kvass in the retail and HoReCa markets.
The Piebalga brewery was established in 1989. It is devoted to traditional manufacturing methods and high-quality raw materials.
“We are very happy to get the renowned Piebalga beers and kvasses to supplement our product offering. The Piebalga acquisition is an important part of our corporate strategy into premium products. We want to offer consumers new, trendy tastes and to strengthen our market position, keeping profitability in mind. Cesu Alus has efficient logistics and a sales, marketing, and distribution organisation all around the country. Thus, the market and sales outlook for Piebalga products looks good,” says Eva Sietiņsone, Managing Director of Cesu Alus, Olvi’s subsidiary in Latvia.
Cesu Alus had a sales volume of 70.9 million litres in 2020, and the company made 37.4 million euro in net sales. The Piebalga brewery produced 2.7 million litres and made 4.2 million euro in net sales. The company has production capacity for almost 6 million litres.
”Olvi still has a good outlook to profitable development in the Latvian market. The Piebalga brewery is extremely well suited to our growth strategy in the Latvian market,” says Lasse Aho, Managing Director of Olvi Group.
The final sales price will be determined on the basis of Piebalga Alus’s near-term performance.
The acquisition is subject to acceptance by the Competition Council of Latvia.
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