Map of Latvia
Since gaining independence in 1991, Latvia started privatizing state owned companies and implementing market economy models with an emphasis on Western style banking, tax laws and global trade. The results were positive from the beginning, despite the loss of some industrial capacity that had been formerly integrated into the Soviet Union.
According to an estimate by Greol Engineering, emerging markets consulting company based in New Jersey, the packaging market for consumer goods had reached over $150 million in 2005.
In present day Latvia, where capitalism and national identity are taking root, there are numerous companies using old and new symbols and struggling to compete with the world brands on store shelves. However, only a few of them stand out with the trade names that are gaining recognition in the old markets like the countries of the former Soviet Union and mature markets of the Western Europe and USA.
Dzintars Cosmetics
Latvia is the largest producer of cosmetics in the Baltic region. The manufacture of perfumes and cosmetics in the country is such a significant part of its well developed chemical and pharmaceutical industry that according to ExIm (Latvian Export & Import Directory), it contributes nearly 6 % to the country's industrial output and employs as many as 6,500 people.
Dzintars contributes a lion's share to Latvia's cosmetics exports that reached over $10 million in 2005, according to ExIm. The company runs its own package design group and makes quality plastic packaging for cosmetics, including bottles, jars, tubes and lipstick cases. Boxes and glass fragrance flacons, on the other hand, are purchased from Western Europe. Part of Dzintars' success is its long term partnerships with leading packaging supplies from France, Germany and Austria. With the price range of its 350 products from $3 to $10 and attractive packaging design solutions, the company competes successfully in the low and middle price sector of the market.
Among Dzintars products are various perfumes and skin care cosmetics with the most recognized package design style dedicated to perfumes. In the economy price range Latvian perfume in the Eastern European market stand out when compared with similar price level imports from Asia. The packages for the Dzintars perfume products are designed by the company's art studio using modern technologies for glass, paperboard and plastic containers.
Laima Candy Products
A/S "Laima" (founded in 1870, when the German candy maker Theodore Rigert founded the first sweets factory in Riga) is the leader of the Latvian candy industry with the largest market share. Its brands "Laima" and "Staburadze" make around 65% of all candy product sales in the country. The brand name Laima for decades has become a household synonym for candy, cakes, chocolate and waffles. Also, the company's marshmallow division with the brand name "Zephyr" amounts to 98% of the Latvian market segment of this product.
Before World War II Latvian chocolates and candy were very popular in the Northern Europe and especially Baltic region. After the country's Soviet takeover in the early 1940s the residents of adjacent Russian territories were thrilled being introduced to Latvian candy with its rich taste and bright attractive packaging.
Laima is generally using paperboard packaging in the form of rectangular candy boxes with plastic thermoformed inserts , providing good product shipping and presentation properties in compliance with European Union standards. The company outsourced carton production to the leading European supplier with the latest state-of-the-art technologies including flexo- and gravure printing, foil lamination and hot stamping. In 1996 during the Christmas holiday season Laima has released a two-piece paperboard carton for assorted candy (see photo) with distinctive red indentations in the domed shape of the upper piece. The champagne color printed bottom part of the box serves as a presentation dish after opening.
Long Saga of Black Balsam from Riga
According to legends, Empress Catherine the Great of Russia was once cured by drinking Black Balsam brew after falling ill during her Baltic trip. The recipe was originated by Abraham Kunze of Riga, who, in the mid-18th century, blended it from the medicinal recipes of 16th- and 17th-century local pharmacies. The liquor has always been, and still is the best well-known Latvian product across the world gaining more than 30 awards in global contests.
Black Balsam includes 24 ingredients such as linden blossom, birch bud, valerian root, raspberry, bilberry, and ginger as well as traces of nutmeg and black peppercorn. The herbal essence infuses for 32 days and is kept in large double-bottomed oak tree barrels that have been made over 70 years ago. The unique bitterly-sweet taste of Black Balsam is obtained during the cooperage process when distilled sugar is added to the herbal essence.
The leader of the Latvia's liquor industry, A/S Latvijas Balzams, is the largest distillery in the country and makes about 60% country's output. The factory was founded in the beginning of 20th century and was producing variety of high quality liquor since commencement with the exception of World War I and World War II. The company was nationalized in 1940 after Soviet occupation and after collapse of the USSR became public corporation (1994) with over 23,000 shareholders. The present name "Latvijas Balzams" was given to the plant in 1969. Located in Riga, the 107 year old company produces a wide range of Black Balsam packages from 50 gram souvenir bottles to 3 liter jugs. In addition to Black Balsam the company turns outs vodkas, bitters, liqueurs, aperitifs, gins and brandies - in total 50 different titles.
Latvijas Balzams procured specialized ceramics manufacturer who mingle old practice and modern technology to produce over two dozen sizes of clay bottles. This proprietary process allows the fabrication of ceramic bottles impassable to liquid.
Latvia was one the poorest countries in the EU but retained its fastest growing economy which came with the free market. Currently the country's economy based on modern and traditional brands and services aims to join the eurozone in 2008, although there might be some flexibility over the target date.