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Business profile Distribution & Marketing Company LEVERSA “Your sales and marketing department in Latvia” OUR HISTORY: In the beginning there were 2 distribution companies – “Arlems” and “Vice Versa”. “Arlems” has started its business in 1993 when the company had imported the first truck with culinary oil Risso from Belgium. Today, every fourth bottle of table oil consumed in Latvia is called Risso. Arlems has contributed into Leversa its expertise in sales and marketing of FMCG. “Vice Versa” was established in 1993 as well and as a distribution company served for Latvian food producer “Kok Group”. Their success is expressed in leading positions of ketchup and mayonnaise under “Kok” brand name in respective categories on Latvian market. “Vice Versa” has contributed into Leversa business its expertise in logistics and sales. SIA “Leversa” has been registered in October 2002 by merger of “Arlems” and “Vice Versa”, being accumulated all the best from business of both predecessors. It’s reflected in our name as “LEVERSA” = “ArLEms” + “Vice VERSA”. The merger had resulted to expansion of Leversa business, its appearance among the topdistribution companies in Latvia and opened many opportunities for further development. Turnover in 2003 was 4,89 M Ls (7,8 M EUR). BUSINESS STRATEGY: Following to the marketing-oriented approach and providing value-adding services, we would like to be an inalienable part of brands & products conducting process from Suppliers, producing attractive qualitative FMCG, to Latvian consumers. Serving our Principals we provide them SALES services: Sales forces of 24 full time dedicated persons are covered whole country which is divided into Riga, North and South areas. Area sales managers supervise over 14 sales representatives whose call on retail outlets and collect orders in their districts. Key-account managers present brands and negotiate listings, prices, assortments, promotions and other conditions with national and regional retail chains. 3 sales persons deal with foodservice customers. To be cost efficient Leversa combines direct sales in relevant channels with indirect sales through subdistributors and wholesalers. Management set up for each sales person sales targets which are easily followed up thanks to the used information technology. TWO sales forces to strengthen quality TYPE OF SALES FORCE MASS-MARKET STRATEGY SALES CHANNELS 14 sales reps covering 2000 active customers directly Average income per person “not low” Different sales channels – retail stores, open markets, wholesale 3 key-accounts managers covering deliveries to all retail chains and independent super/hypermarkets PREMIUM STRATEGY CONSUMER’S TARGET Strong marketing-oriented approach to support and to develop premium brands Average income per person “average+” SALES STRUCTURE IN RIGA Sales Director Keyaccount manager MAXIMA Retail supervisor Riga Sales reps HoReCa Sales reps 500+ independent shops Sales reps LIDO, Nomeda, Deli, Vidzemes Maiznica,Lango, Anre Juniors, Eurofood, Elanders, Grinhols Open markets Wholesale depots SALES STRUCTURE OUTSIDE RIGA The market is completely covered by our sales forces. Serving our Principals we provide them MARKETING services: Following to strong marketing-oriented approach, Leversa in cooperation with external agencies offers to the Principals following marketing services: Market Research ( Consumer - Media - Trade ), qualitative /quantitative Control of legal information on labels Packaging design Communication and promotion plans Media - Production ( TV, Radio, Outdoor) - Media Airing In-store demonstrations and product tastings Trade-marketing activities (P.O.P. materials, lotteries, contests, e.t.c.) Serving our Principals we provide them LOGISTICS services: Logistics services include import, warehousing and distribution. Warehouse facilities: - Location in Riga next to the office premises - 1000 pallet places for dry groceries - 100 pallet places for chilled products Transport services are outsourced to third parties providing to Leversa flexibility and reducing related costs. All used trucks/vans are temperature controlled. Delivery time in Riga: 24 hours Delivery in the country: 48 hours DISTRIBUTION CENTER 1000 pallet places for dry groceries 100 pallet places refrigerator for chilled products LATVIA - 2 340 000 people. RIGA – 800 000 people. The market is fully covered by our logistics services We represent local and international brands BRAND CATEGORY PRINCIPAL BRIEFLY ABOUT … Culinary oil AOP b.v.b.a., Belgium Branding is well working even in that category. Risso=market leader Mayonnaise, ketchup, vegetable preserves KOK Group, Latvia Strong local brand Non-alcoholic drinks KOK Group, Latvia Special malt-based drinks of high quality Pasta Adriana s.r.o., Czech Republic Good ratio “price / quality” Tuna preserves Bolton Alimentary, Italy N1 in Italy and in many European countries! Convenient food AS Salvest, Estonia N1 in Estonia. A lot of innovation Cereals Wurzener GmbH, Germany Real German quality Healthy soya drinks and desserts Alpro n.v., Belgium European leader We continuosly work on brand portfolio extension and welcome brand holders interested in to cooperate. Philosophy of cooperation with Partners Leversa is always looking for Partners whose are able to bring innovation for the Latvian consumers. There are our main principles of cooperation: His majesty BRAND has to be the object of common care and attention Leversa is encouraged to invest into Brand development together with Partner Leversa keeps in mind long-lasting partnership Leversa follows its commitments and anticipates the same approach from our Partners Leversa contributes into cooperation hard work, creativity and passion of its personnel Leversa expects good understanding and teamwork with our Partners Please contact us if your company needs the professional partner to represent your brands on Latvian market. Our ADVANTAGES Following advantages should allow us to be the preferable outsourcing decision for FMCG suppliers in Latvia: - Strong marketing-oriented approach - Eagerness to work, to learn and to develop ourselves together with our Partners - Experience in packaged consumer goods and knowledge of the Latvian market since its early beginning - Complete coverage of Latvian market - Full range of services included sales, marketing and logistics - Reasonable cost of operations - Willingness to invest into brands development together with Principals - Membership in European Sales Marketing Association We would like to hope that above list of our advantages is not completed yet …. MEMBER OF ESMA ASSOCIATION A pan-European trade association of Europe's finest sales and marketing organizations, specializing in selling, marketing and distributing packaged consumer goods (PCG). ESMA exists to promote and safeguard the interests of its members, and to help PCG manufacturers find the best partners for expansion in Europe, both in home and export markets. Membership is drawn from the top level of agents, distributors and sales & marketing companies in Europe. Members are experts in their geographic markets and provide a range of first-class services for manufacturers. To know more about ESMA please visit www.esma.org. COMPOSITE WAY TO WIN THE MARKET We suppose that primarily distribution business is the business of proper and mutually profitable relationships that connected Supplier and Distributor, Distributor and Retailer, Distributor and Brand, Brand and Consumers. We believe that we know how to build and develop these relationships and how to manage the balance of common interests leading to long lasting cooperation. The key object of out attention is His majesty Brand because we consider the Brand as the most valuable business asset. Doing business, we set up the highest priority for all things related to Brand issues. We serve our Partners with the objective of creating benefits. Being in distribution business for many years, we think that the best values that Distribution Company could create are delivery of services done more effectively than Principal itself could do it. That is why we welcome Partners trust us to be “Your sales and marketing department in Latvia”. At a first sight, the distribution business looks as very simple and ordinary. However, our people try to think and do the things in a bit different way than others. All above are what we called as a “COMPOSITE WAY TO WIN THE MARKET”. Your first contact : • Bizan Viktor Marketing Director SIA “LEVERSA” 31m Ganibu Dambis str., Riga, LV-1005, Latvia Phone: +371-7517490…4 Fax: +371-7517495 Mob. phone: + 371-9208428 E-mail: [email protected] web-site: www.leversa.lv