SIA Lango establishes a Subsidiary UAB Lango LT in Lithuania

Information prepared by the public relations specialist of SIA Lango, Jolanta Gaudieša.

Today, SIA Lango informed the media representatives and the society about the strategic plans of the company to expand in the Baltics, and the objective set forth for the first year of operations involved achieving a turnover of 2.5 million lits.

Upon having gained the leading position in the industry of ready-made and instant food products in Latvia, SIA Lango is making the next strategic step and enters the Lithuanian market by establishing a subsidiary UAB Lango LT, setting up headquarters, and developing distribution systems.

The manager of UAB Lango LT, Reinis Bērzkalns, told that the objectives of the company in Lithuania include achieving a turnover of 2.5 million lits (0.5 million lats) during the first year of operations by offering delicious, qualitative, safe, and competitive products. Over the upcoming three years, the company is aiming to master the whole Lithuanian market, and within 5 years – to become one of the leading companies in the field of ready-made and instant food products.

The chairperson of the Board of SIA Lango, Andrejs Fraimanis, explains: “Since the very beginnings we have contributed in long-term development of Lango, we have established a strong technical and technological base, we have created competitive, qualitative, and delicious products, and have become the leading company of this sphere in Latvia. By use of the existing advantages, experience, and knowledge, we are ready to make the next strategic step and enter the Lithuanian market, by establishing a subsidiary UAB Lango LT. We perceive Latvia, Lithuania, and Estonia as the Baltic market and our objective involves not just operating separately in Latvia and Lithuania, but rather in the united Baltic market, thus fostering mutual development of the company.”

The executive director of the Latvian Federation of Food Companies, Laura Krastiņa: “Lango is a company to be learned from by many. From a small company in 1992, it has grown to be the leader in the field of ready-made and instant food products in the local market and it is now ready to make a logic step forward – to conquer the neighbouring market – Lithuania. I am twice as happy for this dare because it will not only expand the volume of operations of Lango, but it will also be a good stimulus for the other operators of the field not to step away due to economic downfall but to plan their future activities strategically, in order to increase competitiveness.”

“The economic relationships between Latvia and Lithuania have been developing for many years, achieving a significant increase in the cross border trade volumes. However, the Latvian export balance in comparison with the import ratios still lags behind Lithuania to a serious extent. Therefore, it is great that SIA Lango, a company, which has achieved a solid leading position in the field of ready-made and instant food products in Latvia, regardless of the difficult economic situation in the Baltics and the world, is beginning to export products to Lithuania. It is delightful that the shelves of Lithuanian stores will be improved by high quality, safely packaged, delicious products available in a wide assortment. It will not only promote growth and increase in turnover of the company itself, but it will also promote development of this niche in Lithuania. As the pace of our lives becomes faster and we wish to spend more spare time with our families or just relax rather than stand in front of the oven the whole day, the demand for these products in Lithuania increases with every year,” maintains the director of the Latvian Chamber of Commerce in Lithuania – Zane Elksnīte Kociņa.

As per request by SIA Lango, a survey was conducted “Ready-made and instant food product consumption habits in Lithuania”, which ended today, on June 11. Upon summarising the preliminary study results, it can be observed that the Lithuanian consumer uses ready-made and instant food products, however, in comparison with Latvia, this sphere now is in the early development stage and the market segment is relatively available. From the product groups offered by Lango, the most popular are salads, which are purchased once or more times per month by every third Lithuanian consumer. The products of the sandwich and pancake group are not news to the consumer either, however due to the limited assortment and availability, these products are purchased by every eleventh consumer. The company will inform of the final survey results upon complete summary of the obtained data.

More about Lango:
Lango is the leading producer of ready-made and instant food products, which was established in the year 1992 by the local entrepreneurs. The company is operating according to the principle “Just in time”, which implies that the client can order a product today and receive it tomorrow for placing it on the shelf, therefore the consumer can be sure about the quality of the product. Owing thanks to investments in amount of 2.3 million lats, the company has built a new production unit, conformant with the legislation and the European Union standards, and has introduced innovative technologies, which allow for making products with a longer shelf-life, without adding harmful preservatives. In 2007, Lango has achieved a turnover exceeding the previous year by 63%, and has invested 290 000 LVL into improving effectiveness of operations and for purchasing technological lines. The company produces salads, pancakes, and sandwiches, which are positioned in the following groups – daily product group, classic product group, and fresh product group.

For additional information:
Jolanta Gaudieša
SIA “Lango”
Pubic relations specialist
Tel.: 7847262, mob.: 2 9219704
E-mail: jolanta.gaudiesa@lango.lv