Last year, despite the economic recession in the country and the stagnation of the general beer market, JSC Cēsu alus sold 59 million litres of beverages. The company maintained the turnover it reached in 2008 – 27 million lats.

The efficiency and optim­isation programmes implemented in the company provided a decrease of total expenses, allowing JSC Cēsu alus beer brewery to end 2009 with LVL135 thousands of net profit.

The advised production implementation policy in 2009 allowed the company to retain the sales amount achieved before – 59 million litres of beverages were implemented in total. The stable sales results have also increased the JSC Cēsu alus market share in the common Latvian beer market, reaching the middle market share in 2009 – 29 %(in 2008 it was 26.5 %). The beer market share increase was simultaneously encouraged by the targeted Cēsu alus product development strategy. Within the last year, such successful brands as Cēsu Premium Pinte and Beershake were implemented in the Latvian beer market and the beer brand Garais was developed.

The economic situation in the country has significantly affected consumer purchasing capacity, resulting in changes in beer consumption habits. Demand for beer in the economic plastic (PET) packaging and its proportion in the beer market increased from 45 % in 2008 to 51 % in 2009. However, the group of the loyal consumers has remained in the Latvian beer market who, despite the economic circumstances, remain constant in their choices of favoured products. The main Cēsu alus beer brand Cēsu Premium managed to maintain stable positions, despite the increase of the economic segment. Slow, but stable growth was also seen for canned beer – its proportion in the market increased from 12.6 % in 2008 to 14 % in 2009.

A significant decrease of approximately 30 % can be observed in the market of cider and alcoholic cocktails. Unfortunately, the decrease in this market rapidly continues – the decrease tendency of 30 % continued during the first three months of 2010. This market segment was most severely affected by the application of excise duty. However, even in severe competition and under the load of taxes, Cēsu alustook stable positions in the cider segment, ensuring 42 % of the market share (1 % increase) and 40 % (4 % increase) in the alcoholic beverages market.

With the help of the successful results in the kvass segment, Cēsu alus was able to reach a 32 % increase in 2009 in the non-alcoholic beverages market. Within almost one year, significant results were achieved in this segment – Ulmaņlaiku kvassreceived the approval of the market research company Nielsen as the best newly implemented beverage in the market for non-alcoholic beverages of Latvia.The market for energy drinks in 2009 experienced a 30 % downfall, but energy drink brand Dynamit represented by Cēsu alus occupied one third of the market in Latvia (35 % market share) and Dynamit in 0.5l PET packaging was the best sold product in this segment.

In 2009, the amount of investments in Cēsu alus company development was 1 million lats. Last year, the largest investment objects were the installation of wine fermentation tanks, which allowed the company to launch cider production in Latvia, and the purchase of additional beer fermenting tanks. In 2010, large-scale investments will be made mainly in the development of packaging, related to the expansion of theCēsu alus total beverage portfolio. 100 thousand lats have been invested in the development of the new alcoholic beverage line Cēsu 14 %. 450 thousand lats will be implemented in the modernisation of the technical plant equipment, which will ensure a more powerful filling process and packaging variations in the company’s future.