Vilniaus Degtine - Notification on material event

Vilniaus degtinė, AB to invest into the only distillery in Lithuania

The only Lithuanian Obeliai Distillery operating since 1907 and owned by
Vilniaus degtinė lived to see new 3.1 million euro investment. It will be used
to modernize the distillery, which will increase the output capacity of the
company by 1.5 times and enable producing up to 27 thousand liters of spirit a
day. Modernization works, which will take place for 12 months, will not only
ensure distillation, but will also enable rectification and use of renewable
energy. Investment into this project will buy off for one of the biggest
producers of spirits within 3 years. 



Vilniaus degtinė has divided the modernization works of Obeliai Distillery into
two stages. The first stage - installation of bioreactor for electricity
generation - has already been implemented. The second stage will involve the
installation of rectifying column and biomass boiler. 



“The first distillery modernization stage took place two years ago. At that
time we mounted a biogas power plant and started generating power. The present
stage could be called the second and the main stage of modernization, which
will reduce production costs and increase the output capacity by 50 percent.
Upon the implementation of our new project, we will abandon the fuel oil firing
for the generation of thermal energy: only the sources of renewable energy will
be used to meet the energy demand. Also, with the only private distillery in
Lithuania, we will be able to continue the Lithuanian vodka production
traditions - it will enable us controlling the entire production process from
grain to final product and not acting as botllers only”, - states Juozas
Daunys, CEO of Vilniaus degtinė. 



The company will modernize the distillation equipment and install a modern
rectifying equipment. The company will be able to adjust all production
parameters and automate processes on site. According to J. Daunys, the most
complicated distillery modernization process will be the installation of spirit
rectification line. Rectification, according to J. Daunys, is an important
vodka production process, during which spirit is purified - such impurities as
ester, higher alcohols, aldehydes, and methanol are removed from spirit. It is
an elaborate process, since all impurities are removed in different conditions
or at different temperatures; therefore, correct adjustment of this process
very important. 



Povilas Stumbrys, Director of Obeliai Distillery, emphasizes that new
investment will enable this Lithuanian distillery to distinguish by not only
being one of the oldest distilleries in the Baltic Region, but also by being
the distillery, which uses the sources of renewable energy. 



“Investment will enable us saving energy resources and using renewable energy,
which is of great advantage. We make every effort to preserve the only
operating distillery in Lithuania, we can keep ourselves true Lithuanian
vodka-making tradition successors. Also, Obeliai is one of the oldest
distilleries in the entire Baltic Region and now the main distinction of this
distillery will be that renewable energy will be used for the production of
spirit”, - says P. Stumbrys. 



About Vilniaus degtinė



Vilniaus degtinė, AB is one of the oldest and biggest companies of alcoholic
beverages in Lithuania. The company launched its activities in 1907, when
Obeliai Distillery started operating in Obeliai, Rokiškis District. 



In 1995 Vilniaus degtinė was reorganized into a special purpose stock company.
In 2003 controlling interest of the company was acquired by French concern
BELVEDERE S.A. with joint ventures or daughter enterprises in more than 25
foreign countries. Currently BELVEDERE SA owns 150 globally accepted trademarks
of alcoholic beverages. 



Vilniaus degtinė products, which have maintained deep Lithuanian production
traditions, have been on numerous occasions awarded for exclusive quality and
recipes. The production of Vilniaus degtinė is exported to Latvia, Estonia,
Poland, France, Denmark, China, Israel, Spain, Ukraine, Azerbaijan, and the
USA. 



For more information please contact:

Darius Šiaudinis

Marketing Manager

Vilniaus degtinė

+370 616 08 039