VILNIUS — Stumbras, one of Lithuania’s largest alcohol producers will shorten its working week to four days starting Friday in an effort to save money despite reporting a solid profit last year.

The company has been hit with new alcohol taxes, a rising trend of people making and consuming homemade alcohol. The crisis has also hit the hip pocket of consumers who would normally buy alcohol from the company’s lines, and [private_supervisor]companies throughout Lithuania have cut wages to keep the balance sheet in the black.

“All workers will have a shorter week. Wages will be cut accordingly, so a 20 percent decrease,” company spokesman Algirdas Čiburys told Baltic Reports.

Čiburys said the measures would carry on indefinitely until profits began to rise. No one would be layed off in the company.

Preliminary unaudited Stumbras profit before taxes in 2009 came to 27.6 million litai (€8 million). Profit before taxes decreased by 18.3 percent 2008 because of the weakening demand and higher taxes on alcohol. Sales decreased in 2009 by 26.2 percent compared to 2008.

The biggest problem for the company is not taxes however, but the illegal alcohol trade, particularly around the border regions with Belarus and Russia, where smugglers carry goods of various kinds across the border to take advantage of the difference in price.

Stumbras believes that illegal alcohol producers make collectively more than any company in the country.

“This is the biggest alcohol trade in all of the strong alcohol trade in Lithunia. Around 30 percent of the strong alcohol market is the illegal market and we think its increasing,” Čiburys said. “Our numbers are dropping. The excise tax was increased and people are looking for cheap alcohol. Two or three years ago the illegal alcohol markets was 5 or 10 percent of the market.” [/private_supervisor] [private_subscription 1 month]companies throughout Lithuania have cut wages to keep the balance sheet in the black.

“All workers will have a shorter week. Wages will be cut accordingly, so a 20 percent decrease,” company spokesman Algirdas Čiburys told Baltic Reports.

Čiburys said the measures would carry on indefinitely until profits began to rise. No one would be layed off in the company.

Preliminary unaudited Stumbras profit before taxes in 2009 came to 27.6 million litai (€8 million). Profit before taxes decreased by 18.3 percent 2008 because of the weakening demand and higher taxes on alcohol. Sales decreased in 2009 by 26.2 percent compared to 2008.

The biggest problem for the company is not taxes however, but the illegal alcohol trade, particularly around the border regions with Belarus and Russia, where smugglers carry goods of various kinds across the border to take advantage of the difference in price.

Stumbras believes that illegal alcohol producers make collectively more than any company in the country.

“This is the biggest alcohol trade in all of the strong alcohol trade in Lithunia. Around 30 percent of the strong alcohol market is the illegal market and we think its increasing,” Čiburys said. “Our numbers are dropping. The excise tax was increased and people are looking for cheap alcohol. Two or three years ago the illegal alcohol markets was 5 or 10 percent of the market.” [/private_subscription 1 month] [private_subscription 4 months]companies throughout Lithuania have cut wages to keep the balance sheet in the black.

“All workers will have a shorter week. Wages will be cut accordingly, so a 20 percent decrease,” company spokesman Algirdas Čiburys told Baltic Reports.

Čiburys said the measures would carry on indefinitely until profits began to rise. No one would be layed off in the company.

Preliminary unaudited Stumbras profit before taxes in 2009 came to 27.6 million litai (€8 million). Profit before taxes decreased by 18.3 percent 2008 because of the weakening demand and higher taxes on alcohol. Sales decreased in 2009 by 26.2 percent compared to 2008.

The biggest problem for the company is not taxes however, but the illegal alcohol trade, particularly around the border regions with Belarus and Russia, where smugglers carry goods of various kinds across the border to take advantage of the difference in price.

Stumbras believes that illegal alcohol producers make collectively more than any company in the country.

“This is the biggest alcohol trade in all of the strong alcohol trade in Lithunia. Around 30 percent of the strong alcohol market is the illegal market and we think its increasing,” Čiburys said. “Our numbers are dropping. The excise tax was increased and people are looking for cheap alcohol. Two or three years ago the illegal alcohol markets was 5 or 10 percent of the market.” [/private_subscription 4 months] [private_subscription 1 year]companies throughout Lithuania have cut wages to keep the balance sheet in the black.

“All workers will have a shorter week. Wages will be cut accordingly, so a 20 percent decrease,” company spokesman Algirdas Čiburys told Baltic Reports.

Čiburys said the measures would carry on indefinitely until profits began to rise. No one would be layed off in the company.

Preliminary unaudited Stumbras profit before taxes in 2009 came to 27.6 million litai (€8 million). Profit before taxes decreased by 18.3 percent 2008 because of the weakening demand and higher taxes on alcohol. Sales decreased in 2009 by 26.2 percent compared to 2008.

The biggest problem for the company is not taxes however, but the illegal alcohol trade, particularly around the border regions with Belarus and Russia, where smugglers carry goods of various kinds across the border to take advantage of the difference in price.

Stumbras believes that illegal alcohol producers make collectively more than any company in the country.

“This is the biggest alcohol trade in all of the strong alcohol trade in Lithunia. Around 30 percent of the strong alcohol market is the illegal market and we think its increasing,” Čiburys said. “Our numbers are dropping. The excise tax was increased and people are looking for cheap alcohol. Two or three years ago the illegal alcohol markets was 5 or 10 percent of the market.” [/private_subscription 1 year]

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