Amber Latvijas Balzams Seeks Legal Protection Amidst Financial Pressures and Russian Fallout

Amber Latvijas Balzams, a prominent Latvian beverage producer, has initiated legal protection proceedings as it navigates significant financial challenges. The move, approved by the Riga City Court on February 5, 2026, aims to restructure debts and stabilize operations amidst a confluence of factors including a cyberattack, repercussions from supporting Ukraine, and broader economic headwinds impacting the spirits industry.

Financial Performance and Challenges

In 2025, Amber Latvijas Balzams reported a net turnover of €74.5 million, a decrease of 4.8% compared to the previous year. While total sales volumes saw a slight increase of 0.62%, the gross profit declined by 18.2% to €13.3 million. Profit before taxes also fell, decreasing from €4.1 million in 2024 to €2.5 million in 2025.

The company attributes these challenges to several key issues. A sophisticated cyberattack in September 2024, following the company’s public support for Ukraine and European peace, significantly disrupted operations and impacted international markets. Russian authorities designated associated entities as “extremist” in response to this support.

Further complicating matters, the State Revenue Service (SRS) seized the company’s current accounts in January 2026 due to a tax debt exceeding €28 million. This action created “insurmountable obstacles” to normal operations, prompting the application for legal protection.

Connection to Stoli Group and US Liquidation

Amber Latvijas Balzams is majority-owned by Stoli Group, which has recently faced its own financial difficulties. Just two weeks prior to Amber Latvijas Balzams’s legal protection filing, Stoli announced plans to liquidate two US units – Stoli Group USA and Kentucky Owl Bourbon. Both Stoli and Amber Beverage Group have cited the impact of cyberattacks as contributing factors to their financial woes.

The insolvency process of a key distributor in the USA is also expected to decrease sales volumes in the next six months.

Legal Protection Process and Future Outlook

The legal protection process, as defined by Latvian law, is designed to provide a framework for viable businesses to restructure their debts while continuing operations under court supervision. Amber Latvijas Balzams emphasizes that this is not a liquidation.

Despite the challenges, the company is working to maintain its competitiveness through cost optimization programs and efforts to improve production efficiency. Amber Latvijas Balzams is also continuing dialogue with the State Revenue Service regarding the excise duty compliance schedule.

Industry Context

The broader spirits industry has also been experiencing headwinds, with major producers reporting declining volumes and changing consumer preferences. Economic pressures on discretionary spending and inventory corrections throughout distribution channels are contributing to these challenges.