Acquisition activity boosts Amber Beverage revenue

Moskovskaya vodka maker Amber Beverage Group is on track to become a €1 billion (US$1.13bn) business after witnessing a 15% increase in reported net revenue for its 2018 fiscal period.

Moskovskaya is set to become a million-case brand

The group recorded net sales of €242.6m (US$274.3m) for the year. In organic terms, discounting the impact of acquisitions and currency movements, sales increased 10%. Reported operating profit increased 59% to €22m (a 58% organic increase).

Company CEO Seymour Ferreira recently told The Spirits Business that his firm would become a €1bn business in the next four years – a target the Luxembourg-headquartered group says it is on track to meet.

Amber Beverage has evolved from a Baltic-based distribution company set up by SPI Group in 2014 into an international spirits firm following the implementation of an “aggressive” growth strategy.

In 2018, the firm’s acquisition activity rapidly accelerated. Amber Beverage increased its ownership in UK distributor Cellar Trends, acquired a majority stake in Australia’s Think Spirits and took a majority controlling interest in Permalko, thought to be the oldest vodka distillery in Russia. The latter acquisition added 3m nine-litre cases of additional business to Amber Beverage Group’s (ABG) portfolio.

In total for 2018, merger and acquisition activity boosted the firm’s revenue by €10.4m (US$11.7m).

“This has been a year of extraordinary challenges, experiences and success stories,” Ferreira said following the announcement of the results. “We have added new production facilities, distribution channels and brands to our portfolio, transforming ABG from a pan-Baltic enterprise into leading beverage company able to offer a more direct service and experience to our customers and consumers worldwide.”

Amber Beverage Group’s Moskovskaya vodka is set to hit 1m case sales by 2022, while Riga Black Balsam is “growing its profitability base”.

Cross Keys Gin, launched in 2018, and Rooster Rojo Tequila, launched in 2017, are “launching in new markets every quarter”, and sparkling beverage Cosmopolitan Diva “keeps finding new partners to distribute the brand all over the world”.

Ferreira added: “Supporting our brand and route-to-market plans will be our continued efforts to improve our overall efficiency both in the Baltics and global markets. With this in mind, we plan to improve our production capabilities further, adding additional focus to purchasing, planning and infrastructure improvements.

“With that energy behind us, we are set to become a €1bn company over the next four years”.