Amber Beverage Group has taken the “difficult but necessary decision” to place its Latvia-based production company in legal protection pending a “financial restructuring”.
In a filing to the Nasdaq Baltic stock exchange today (30 January), the company, which is majority held by Stoli Group owner – and Russian businessman – Yuri Shefler, said Amber Latvijas balzams will operate as normal while it “works with creditors to establish a sustainable financial structure”. The news comes two weeks after Stoli Group’s US division and Kentucky Owl American whiskey operations were declared bankrupt following 14 months in legal protection in the country.
In both cases, one of the reasons given for the moves by their respective parent companies was a cyber attack linked to Russia.
“Following Amber Beverage Group’s public support for Ukraine and European peace, Russian authorities designated its associated entities as ‘extremist’,” Amber said in the filing. “Shortly afterwards, the group was hit by a sophisticated large-scale cyber attack [in September 2024], which targeted its local and international operations.
“The impact of this, combined with the significant cost of ongoing legal battles with the Russian Federation, has substantially impacted operations and shut the company out of multiple international markets.”
Also highlighted was the wider trading environment for spirits. “Over the past year, major producers worldwide have reported declining volumes, with key export markets particularly affected,” the group added. “Industry analysts have documented changing consumer preferences, economic pressures on discretionary spending and inventory corrections throughout distribution channels.”
The protection, which is covered by Latvian law, is “designed to allow viable businesses breathing space to restructure their debts while continuing operations under court supervision”.
“This is not liquidation,” Amber said. “It is a reorganisation tool.”
Group CEO Normunds Stanevics called the decision “difficult but necessary”, with the management of Amber Latvijas balzams hoping to bring the business out of protection by late 2027. An extraordinary general meeting has been called in Riga on 24 February.
Amber and Stoli Group operate separately from each other, the latter handling the namesake (former Russian) vodka brand while Amber, which has annual sales in the region of US$390m, is responsible for brands including Moskovskaya vodka, Rooster Rojo tequila and Riga Black Balsam.
