Stumbras AB - Notification on material event

Concerning Stumbras AB investments into the exports of “999” bitters

Stumbras AB, the largest producer and exporter of strong alcoholic beverages in
Lithuania, has invested LTL 4.8 mln into the renewal of its “999” bitters.
Investments of such scale are related to the export development strategy - the
company aims to position the “999's” among the most popular bitters in the
world as well as contribute to the positive image of Lithuania. 

Despite of continuously difficult economic situation in the country, “Stumbras”
is making necessary investments in order to move the leading position of the
brand from Lithuania to international markets in the long run. 

“We have a few reasons to strengthen our exports. First of all, the market
leaders are always expected to behave this way. We believe that stressing
Lithuania's name in our export strategies will strengthen our positions and
break the ice for other Lithuanian producers. On the other hand, the constant
change of legislation in our country and uncontrollable amounts of smuggling
make export a necessity to retain high positions in the market and stable
growth”, - said Mr. Algirdas Ciburys, marketing director at Stumbras AB. 

According to Mr. Ciburys, the renewal of “The Three Nines”, “The Green Nines”
and “The Red Nines” packaging's that lasted about a year is a part of the
ambitious export plans. 

At the moment the “999” products own 37% of the Lithuanian bitters' market.
Given Company's strong leadership and experience in the local market and strong
prospects for “999's” in international markets, Stumbras AB is allocating large
investments to it's export strategy. The leadership in international markets
will be pursued with totally new packaging that reflects the taste and values
of the drink. 

The company has a specific leadership goal - to enter the TOP 10 of the world's
most popular bitters and to contribute to the favorable image of Lithuania. 

“We are sure that the legend and Lithuanian origin of “999's” is the pride of
our country and that is why we are striving for these products to represent
Lithuania in international markets”, - says representative of “Stumbras”. 

In order to develop an internationally competitive product - a Lithuanian
beverage that would compete with most popular bitters - “Stumbras” entrusted
“999” packaging design to internationally known British agency „Claessens
International“. The agency is specializing in alcoholic and nonalcoholic
beverages industry for 25 years. Agency's clients are worldwide famous brands. 

“Stumbras” started manufacturing “999” bitter  in the first half of XX century.
The bitter is awarded with 8 international prizes that include the status of
culinary heritage. “The Green Nines” has won Lithuanian advertising festival
“Password 2007” award for best market entry campaign. The “junior” of the
“999's” 
family, “The Red Nines”, was acknowledged as the most successful new product in
the Lithuanian market of fast consumer goods. 

825 thousand liters of “999” bitter were sold in three quarters this year. “The
Nines”, “The Green Nines” and “The Red Nines” are exported to Latvia, Estonia,
Israel, Poland, USA and other countries. 


Marketing director
Algirdas Čiburys
tel. 8 685 31884
a.ciburys@stumbras.lt