Amber Beverage Group Seeks Legal Shield for Latvian Operations Amid Financial Strain
Amber Beverage Group (ABG), the international spirits conglomerate, has placed its Latvian production and warehousing operations under court-supervised legal protection, a move prompted by severe cash flow constraints linked to geopolitical tensions and broader market challenges.
In a filing to the Nasdaq Baltic exchange on Friday, the group clarified that its subsidiary, Amber Latvijas balzams, will continue daily operations while it negotiates with creditors to restructure its finances. The application is limited to the Latvian industrial assets; ABG's sales and distribution networks worldwide continue to trade normally.
"This was a difficult but necessary step to secure the future of our Latvian operations," stated Normunds Staņēvičs, CEO of ABG. "The legal protection process provides the stability required to negotiate with our creditors and build a sustainable path forward."
The decision follows a period of intense pressure. ABG cited "significant external challenges," including the fallout from its public stance supporting Ukraine following Russia's invasion. The group said Russian authorities designated associated entities as "extremist," leading to asset seizures and costly legal battles that cut off key markets.
Compounding these issues, ABG pointed to "significant headwinds" in global spirits markets and a "large-scale, sophisticated cyberattack" that disrupted operations. These factors, combined with delayed excise tax payments, led the Latvian State Revenue Service (VID) to freeze the company's bank accounts. "This action made it impossible to continue operations without seeking legal protection," the filing noted.
A court-appointed supervisor will now oversee the process. ABG will draft a restructuring plan with creditors for a vote, targeting final approval by mid-2026 and an exit from protection in late 2027. Liabilities incurred before January 30 are frozen, while obligations from that date onward will be paid with priority. Employee salaries will continue uninterrupted.
The group, which owns brands like Moskovskaya Vodka and Riga Black Balsam and distributes over 1,400 third-party labels, reported a 17.9% year-on-year net revenue decline to €142.8m in Q3 2025, though profitability metrics showed some improvement.
Industry Reaction:
Marta Lindström, Beverage Analyst at Baltic Capital: "This is a strategic isolation of liabilities. ABG is ring-fencing a distressed asset to protect its wider, healthier business. The timeline is long, but it shows a methodical approach to a complex situation stemming largely from geopolitical exposure."
Karlis Ozols, Riga-based Retail Consultant: "It's a relief that jobs and daily operations are protected for now. Latvia's production is crucial for brands like Riga Black Balsam. This process, while stark, may provide the breathing room needed for a turnaround, especially if global market conditions improve."
Dmitri Volkov, Former Distributor (Moscow): "This is the direct cost of taking a political stance. They chose a side, abandoned a major market, and now the bill has come due. It's a cautionary tale for any global business thinking it can navigate geopolitics without severe financial consequences."
Elina Valters, Supply Chain Specialist: "The cyberattack element is worrying but often underreported. Operational resilience is as critical as financial health. This filing highlights how multifaceted modern business threats have become—from state actions to digital sabotage."