Ep. 1231 Latvian Wine Market | wine2wine Business Forum 2021

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This hybrid edition of the business forum was jam packed with the most informed speakers discussing some of the hottest topics in the wine industry today. For more information, please visit wine to wine dot net and tune in every Thursday at two pm central European time for more episodes recorded during this latest edition of wine to wine business forum. My name, Andre. But killings, I'm a new Queen Italy, Italian wine ambassador from Latvia. The second one in Baltic States at the moment. And with me, while with Lucy, he's the owner of, wine importing company. He was focusing on fine brands. Buying wines. I'm, the owner and, educator in my own wine club. I also saw my wine writer in Russian. And, writing mainly about amazing diversity of Italian wine Italian wine variety, Italian region. And, I hope my job is help to understand our clients. To drink more wine and to buy more wine and help Italian wine producer. And also to sell wine in Latin. So, but for next thirty minutes, I will try to be, Latin ambassador, and Science Latry is a very small country. I think it needs a little bit small introduction because not too much people, visit us and just to know where is it. Okay. So Northern part of Europe, as you see on the map, we have a border to the North, Lithuania, to the south of Lithuania. Also, the east is Russia. It's Southeast, Bella Russia, and we are sharing maritime border with, Latvia covers almost sixty five thousand square kilometers, population less than two million. And, we are the member of, European from two thousand and four. Our capital is bigger. It's, one of the biggest, sitting at in the Latvia. That's for sure, but in whole Baltic States. And, let's say with the population of riga and surrounding area, it's almost half of population of flooding. And, of course, riga is our economic culture, business center. Territory of Latvia was really important in terms of trade routes, science, ancient time. And when in twelfth century, German crusading West sent to Latin local tribes to Christianity, some of them decided to stay and the German architect, Albert founded our seat. I told this story only because this is just a start to understand what the connection between Latvia, Latrian, customer, and not the situation what we have now in our market. Because as I understand from the beginning, a lot didn't have so much chance to be key to be wine country. Or wine drinking country way on the north. And, Bishop Albert was German, but from Breman, not from Muslim. After that, during a long period, Latin territory was under the Germans, then Polish Lithuania, then Swedish Empire, again German Empire, then for short period latvia became independent, and then became one of Soviet union as a fifteen Soviet Republic. And, Again, for fifty year, we lost our independent. And only in nineteen ninety one, when Latwep became again. Independent. Our market was very similar to all Soviet ex Soviet countries of the round. So a really small numbers of restaurant, bars, shops, Just for example, you could imagine that, Rico that had almost eight hundred thousand inhabitants just have around. Okay. Doesn't restart. During, that this period from 90s till these times, we make a really fast moment from ex Soviet country. Is it dozens bar, restaurant, no wine culture, no drinking culture, speaking about alcohol, to the country where the only the capital of Latin and riga, we have around six hundred restaurant bars. We have, bind bar that, continue continuously in the last several years always get the title of the best wine bar in Baltic States, calling Viata, of my good friend, Janice, obviously. As well, our proud, our young, Latrian Sommelier, Raymond Thompson, became, the best European familiar in two thousand seventeen. And in two thousand nineteen, he took the first the third place in world championship. So, vote summary championship. So now, we have revenue in one segment. Let's say, It's small in European sizes, but the moment, it's around one hundred million arrow, and it grows, and annually by fifteen percent, and the with the forecast of growing from two thousand twenty one to two thousand twenty five. Each year, forecast for growing at least fifteen percent. This is just a graphic to explain how we are started in nineteenth till these days and some forecast. So it's also explained that there is some good numbers that could help us to sell more and, to became real player small, but visual player in European market as a as a wine seller. Of course, This, the history explained that we have still on the market such proportion of consumption, alcohol. Still vodka and spirits have a forty percent beer, forty percent, and, wine grow it from twelve to sixteen percent. But, of course, you should understand that last, COVID time, make, not good things for us. And, numbers a little bit, but failed. We lost, sixty four percent of tourists. It's almost one point two million. Those previously people came to Latria bought and consume it a lot of alcohol. And second, Latria Latria's alcohol policy has so be, far been largely focusing on the border trade. When mobile come from Lithuania and Estonia and bought a lot of, especially from Estonia where the tax is very high. So, let me introduce a give, my colleague, Valdis to introduce his company, his portfolio, and his business, model, and also some numbers of Italian. No. Of course, he had almost one hundred percent Italian. Not not one hundred. Okay. So hello, ladies and gentlemen. My name is Walt Slus, and I'm love in love is why. Sorry, but, that's fine. And I'm an owner, is there for I'm an owner, client, call sales company, and, my clients is Corica, restaurants, and, well, see private clients. And, Yes. And that is what I'm doing and what I love to do. And I would like to say is it it's not quite true according to others. There are no one making conditions in latvia. No. One of my most, I would say, we would, I would tell, but memories is that my father made me to climb to very big Rowan tree to pick up this Rowan berries from which he later made a roman wine. Okay. I understand it's not good to say it's a bit wine, but, we don't have wines in latvia. Great scenario. And, you understand that to say one is much easier for us, let me understand that to say this all big sentence and an alcoholic beverage brewed from fruits and berries. It's very hard to say. Mine is easier. And so we are using this also for fruit, wines and and so so so something like that. In addition, when I was a young guy, I read this book made by Americans, saint fiction writer, read Burberry, Dendolyn Wine, and it's really about Latvia. Because we are making one from Eversy, such very interesting instinct. Ours, these, drinks were very sweet, a little bit, not a little bit, quite alcoholic. And, we used to bring them before they get real wines from wine growing countries. And maybe that's his reason why the Latin's a little bit like sweetness in wine more than maybe people elsewhere in Europe and in the world. So if you are talking about, wine business, that I can say there is about three hundred fifty companies obtained, license of call sales. So they are allowed to import wine from other countries. Are you enjoying this podcast? There's so much more high quality wine content available for mama jumbo shrimp. Check out our new wine study maps, our books on Italian wine, including Italian wine unplugged, the jumbo shrimp guide to Italian wine, Sanjay Vazil, and other stories, and much much more. On our website, mama jumbo shrimp dot com. Now back to the show. Of course, big part of them is not active. Just only license. Some of them are dealing, you know, only are buying wines and importing only for their use in, small restaurants or small shops. And then there's some very big players, international players. And the biggest one is, of course, Amber, beverage group Holdings, previous SPA group. They are mostly famous with Kalichna, vodka, and, Muskoska, then we have also other big international players, Panard, Henkel, and smaller companies, which deals only with, Baltic, Altia, Baltic Excel, and some some other else. There's some middle range companies, which find some niche buying the different stuff from different countries. One of them is Arrow. It's having a lot of chain of of small shops, wine shops. And the third one is like my company. I am not very big, small, but, very straightforward to fine wines and dealing with, all the restaurants are mostly private wines. In my portfolio, I have very good names, and I'm trying to get them more and more. Like, a solo in a Tori. The Lematiol, Vivi Grades, Master Bernino, from from Sizzi Loci Pinti. I got Okey Pinto last year. I'm happy about that. And, suddenly Anardo from Centino, panic of Swabia, great big names. And, of course, I would like to little bit increase my portfolio because that is what I have to I find that this is way how to deal with such small market like Lately. I can't struggle with these big players, which can which have a lot of money for, advertising, marketing, and so and so. So that's approximately the situation, let's see. Okay. What we also would like to show you it's, situation how our Latin latvians love Italian wise. Last year, we had, came back. The decreasing in wine, in, you know, alcohol, actually. But, ex except ex only Roman Balzan. It's going up and branding on your exhibit, but wine rolled up at four let's say five percent. But look on the numbers. The blue one is Italy. It's growing every year. And even in last two thousand twenty, with a drop of haul, wine sales, even Italy. Go on. So, we want to say that, legends as a people, they like Italian lifestyle, they like Italian culture, they like Italian life, and wine. So this is what we see. As an opportunity to increase, our import in our sales. Right? And, also, the problem which we see And, exactly, it's my, aim and goal for future. It's to work more in education because, only with education you could show the diversity. You could show the different style even of one variety because, again, at the moment, we sell mainly, let's say prosaica is a sparkling number one probably. Yeah. And then primitivo can now narrow down a lot. But, you know, it's usually people things that even primitive or canal, it's something with one taste, but it's not true. And when we go to some wine that has more structure, more acidity, more tonnins like Nibyoga, Sanjayvez. Sometimes very difficult to sell in second time because, okay, it's a brand. So to sell Cianti may be Canti classic. It's easy because it's brand, but then people try to taste it, and they are not so satisfying. So I think I as a wine ambassador and wine educator together with wine importer and together with some Italian consortia producer, we could must work in one direction. And this will help to buy more and sell more. Maybe by better wine. And, of course, better wine. So what, let's say you see opportunity or maybe the problem that you would like to So problems. We always cut problems when we are doing something. We always cut problems. And our aim is to solve these problems in a proper way. So, if I'm looking if I'm saying, what what what's my? You I I know there is different companies. I as I told you, big ones, smaller ones, and, like, like mine. And all of us have different problems. I can more more more say about my pro problems, problems. My company is following and buying buying fine wine from very well known producers. And, these producers as you understand, these wines are not cheap. And, therefore, I can't buy a lot because I can't sell a lot. I can sell very small, portions, and then sometimes transportation costs for smaller amount is per unit. It's much higher than, when you are buying many pallets for one time. The other thing is that like when legislation in Latvia, predicts that we are not able to buy directly, and deliver this, wine to our warehouses. We have to use some intermodal companies license excise warehouses and pay for the, the service, which they are giving, making some duty stamps, excise stamps on on each bottle, and it's it's costing. Of course, if I'm buying, one big truck, it's, per unit is cheaper than if I'm buying some few hundred bottles, but, of course, that's problem. That therefore, I'm really interested in some service, in some company who would help me go find solution in this case and, merge some orders from different, producers here in Italy as a deliver, as, one said to let you know, it it would help to little bit decrease price and then, make these wines more easy affordable for our clients, because they're always struggling for price. So maybe you have a question just to that could explain something more. I would like to know what are the recent trends in Latvia in terms of the consumption of Italian wine and if they change the comparing to before and after COVID. It's really hard to say what will happen after, but, there's, one thing is I mean, we can use this comparison because of this as you see, from from from this graph, you see that the, sales of two thousand twenty one dropped quite big drop. You you can see here. And of course, there will be lower than, a year before. The, we are, and and and Andre is doing her job. His job, with wine studies, to increase, interest of our population for good wines, quality wines. Because right now, the situation is people is mostly in supermarkets outlets, wine outlets, they are buying, not wine. They are buying, where, yellow labels. They are looking on price labels with yellow color. And if color is yellow, it means it's discount, and then they are buying this white. Right? It's not It's not right. I got to buy wine, label, price label cheap ones, discounts. Of course, there is other people in Latvia, I would say, which are already a little bit educated. More, and they are looking for better ones. They're attending different, collections from the buying schools. And it's good. It's it's very good. It works well. And, but, but, of course, we are looking. If you're talking about Italian wines, it goes below bridgeo, some blanc from prosecco, from whites, and then then some primitivo some other little bit with some little sweetness wines, patterns like heavy wines, oke wines, which is quite a lot. Residential sugar. It might be not very long, but because that you as I can feel. And then it's there is top level, people who is, following opinion leaders, and we are proud to say about our about, we have really good opinion leaders who is teaching people to bring very good fine lines. And, yes, we have, every year, we have some bubble parade and, line of the year, special events. There are some sessions where people can go and try. The best wines in the market. And, yeah, it's etiquette. And people are looking. Big, current is from betting. Unfortunately, fanch Cortes some somewhere. I don't know why, but outside. I could tell you what numbers because, there was, global survey by global drug survey. Globally that, takes a, a reply from fifty five thousand risk content from one hundred seventy one countries. And, during the COVID, according to this theory, twenty nine percent drink less alcohol during the COVID because they didn't have this home to drink, but, Secondly, about forty percent of people use altercable mode because they have, more time because they were boring, stress, depression, and so in latvia, our, let's say, locals Baltic, pharmacy, Columbia, is a data company. Again, you have tried to explore this trend and make a survey and they published it in, January this year, and fourteen percent accordingly. So use it less alcohol and eighteen percent use it more. So, of course, I myself say that, in reality, the number should be, like, in global. Sorry. Because in latvia, we still not ready to speak about alcohol easily. From Soviet time, alcohol is was, you know, like if you drink, the alcoholic. It was a really big problem. It still has, so I'm very often see that people not ready to give the true answer or speak less about this subject. But anyhow, the numbers I told you, it's maybe showing the two, maybe not. It's really difficult to say. Actually, I can say that, of course, I I did last year. I sell, sold much less, through restaurants, but, this, sells, to person private persons, increase quite a lot. Back a lot. From one side, it's for me. It's okay. Maybe it's really good. Yeah. I can I find some new way of to deliver product to customer? Listen to the Italian one podcast wherever you get your podcasts. We're on SoundCloud, Apple Podcasts, Spotify, email ifm, and more. Don't forget to subscribe and rate the show. If you enjoy listening, please consider donate through Italian Mind Podcast dot com. Any amount helps cover equipment, production, and publication costs. Until next time.