Creditor: Amber Latvijas Balzams Keeps Cutting Output as Tax Debt Hits €31.77 Million
Latvian spirits producer AS Amber Latvijas Balzams is continuing to scale back production, and its tax debt has reached €31.77 million, according to creditor SIA MBO Beverages. Shareholders on 3 November postponed a decision on the company's future, including on starting insolvency proceedings.
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Latvian alcoholic beverage producer AS Amber Latvijas Balzams, which also makes Riga Black Balsam, is continuing to reduce production, and its operations are shrinking rapidly. This was reported to the news agency LETA by representatives of the company's creditor, SIA MBO Beverages. The creditor warns that delaying decisions puts jobs and state tax revenue at risk. The company's shares are listed on the second list of the Nasdaq Riga exchange.
Indicators falling
According to MBO Beverages, the half-year report shows that in the first six months of 2026 sales volumes fell by 38% and turnover by 30%. The company's accounts held €1,612 on 30 June. Production of sparkling drinks has been moved to Lithuania, and production of some other products has been discontinued.
In 2024 the company was still the 11th-largest taxpayer in Latvia, paying €72 million into the state budget. According to the State Revenue Service, its tax debt stood at €31.77 million on 4 November.
Auditor declines to give an opinion
At a shareholders' meeting on 3 November, the 2025 annual report was approved, even though the independent auditor, SIA BDO Assurance, had refused to issue an opinion. The auditor pointed to problems in financial accounting and in the recoverability of related-party debts. Correcting an accounting error cut retained earnings by €91.61 million, and the balance sheet fell from about €187 million to €92 million. The auditor concluded that a significant part of related-party debts, whose gross value exceeded €76 million at the end of 2025, is not recoverable.
Legal process and group troubles
The Riga City Court opened legal protection proceedings on 5 February and terminated them on 9 October, because the majority of creditors did not support the plan. On 3 November shareholders postponed the question of what happens next, including launching insolvency proceedings.
Amber Latvijas Balzams belongs to the Amber Beverage Group, owned by Yuri Shefler. The creditor points to financial problems at other group companies in the United States, Britain and Luxembourg. MBO Beverages believes the company can still be saved if transparent governance and a debt restructuring plan are put in place.
