Amber Beverage Group issues €30 million bonds for new warehouse

Global spirits company Amber Beverage Group (ABG) has entered the bond market to fund its automated, high-bay warehouse development. ABG issued senior secured 4-year EUR 30 million bonds with investor demand exceeding EUR 45 million. Signet Bank (Latvia) acted as the arranger for the bond issue.

Amber Beverage Group has grown from its initial production business established in the Baltics to become a global player in the alcoholic beverages sector, employing over 2000 people. ABG’s core brands are Rooster Rojo Tequila, KAH Tequila, Moskovskaya Vodka, The Irishman Whiskey, Writers’ Tears Whiskey, Riga Black Balsam, Cross Keys Gin and Cosmopolitan Diva.

“Our entry into the bond market represents a significant step for Amber Beverage Group,” said Jekaterina Stuģe, CEO of Amber Beverage Group. “We handle 1,400 own- and third-party drinks products and our logistics and distribution operations worldwide are already impressive.

“The proceeds from the bond issue will be used to build a modern, 24,000 sq.m., fully automated logistics centre. It will be located in the Freeport of Riga, Latvia, the city from which the operational ABG head office team works. The new facility will increase warehouse capacity by around 30 per cent, from 25,000 pallets to 35,000 pallets and improve the efficiency of the Group. It will incorporate the latest equipment, managed by a powerful warehouse management system. The warehouse technology will be supplied by Jungheinrich at a cost of EUR 15 million.”

According to preliminary financials for the year 2022, Amber Beverage Group achieved sales of EUR 365.8 million and an EBITDA of EUR 42.3 million in 2022. The Group produces, bottles, markets, distributes, exports, and retails a comprehensive range of beverages spanning everything from premium vodka and sparkling wines to speciality Mexican tequilas and Irish Whiskey. Amber Beverage Group operates in 16 countries including Austria, Australia, the Baltic States, Germany, Ireland, Mexico, and the United Kingdom.