Declining alcohol consumption in Lithuania and across Europe is reshaping the entire beverages and distribution landscape. For some companies, this means growing pressure in traditional categories – for others, it is a push to accelerate development in areas that may become a stronger backbone of the business over time.

Operating in the Baltics and Poland, MV GROUP Distribution has been placing increasing focus on fast-moving non-alcoholic consumer goods (FMCG) in recent years. The company sees this direction as a consistent strategic step aligned with shifting consumer habits and the evolution of the distribution business.

“In Lithuania, as in many other countries, the alcohol market is shrinking – sales volumes are declining. This is driven by the growing popularity of healthier lifestyles, the emergence of new alternatives, excise policies, as well as shadow and cross-border trade. As a result, both here and across our home markets, we are placing increasing focus on the FMCG segment every year,” says Marijus Cilcius, CEO of MV GROUP.

FMCG segment strengthened through new partnerships

With over 30 years of experience in Lithuania and nearly two decades in Latvia and Estonia, MV GROUP Distribution has already built a significant non-alcoholic portfolio. In 2025, FMCG accounted for 53.6% of total sales across all markets, excluding excise – including tobacco products.

Currently, the MV GROUP Distribution portfolio – as well as the assortment of the company’s Bottlery network and the newly launched Alaus kronikos. Gubernija store chain – includes close to 100 FMCG brands. The portfolio continues to expand through both new additions and stronger existing partnerships.

“Following several years of successful cooperation in Poland, from April we expanded our sweets category portfolio in Lithuania with Cloetta brands – Tupla, Kex, Mynthon and Jelly Beans. This is one of Europe’s best-known confectionery manufacturers, with over 150 years of experience and strong recognition across Northern and Western Europe. Lithuanian consumers have been familiar with these products for more than 25 years,” says Aurinta Savickaitė, Marketing Director for the Baltics and Poland at MV GROUP Distribution.

In soft drinks, the company is strengthening its position with Franklin & Sons – a premium lemonade brand ranked among the world’s top sellers in its category by Drinks International. This partnership reinforces MV GROUP Distribution’s presence in both HoReCa and retail channels.

In snacks, Chick&Go and other new products are expanding consumer choice across Lithuania and the Baltic markets. In the pet food segment, brands by Ukrainian manufacturer Kormotech – Optimeal, Club 4 Paws and My Love – have been added.

At the same time, long-standing partnerships continue to grow. These include cooperation with Nespresso – a globally recognized coffee capsule, machine and accessories brand, for which the company has been the official distributor in the Baltics since 2017. The partnership with Red Bull also continues – long established in Lithuania and successfully expanded into Latvia since last year.

In Lithuania, the company also represents mineral water brands Vittel, Perrier and Maison Perrier, while in Estonia it continues to develop a successful partnership with Borjomi.

“When evaluating portfolio expansion, we look beyond whether a product performs well on the shelf today. We assess category size, growth potential, product uniqueness, brand strength, innovation and alignment with consumer trends. It is equally important whether the product can be effectively adapted to Baltic markets,” says A. Savickaitė.

One strategy – tailored locally

According to M. Cilcius, international manufacturers increasingly view Lithuania, Latvia and Estonia as a single regional market. Given their relatively small size, it is more efficient to coordinate operations through one partner capable of ensuring consistent representation across the region.

This model simplifies process management, accelerates decision-making, ensures a more unified strategy and enables more efficient collaboration with retail chains, which increasingly operate under joint Baltic agreements. Strong performance in Poland also adds value for partners.

However, a regional approach alone is not enough. Differences remain in regulation, tax environments, trade rules, brand loyalty, price sensitivity and the pace of innovation adoption. Success depends on the ability to adapt a unified model to each market individually – while growth increasingly relies not only on scale, but also on precision in meeting consumer needs.

“Our strategic goal is to expand partnerships with suppliers looking for a consistent distributor across the Baltics and Poland. We are also focusing on emerging categories – currently smaller, but with clear growth potential. In such cases, timing is critical – entering early and growing the category together with partners, or considering acquisition opportunities,” adds M. Cilcius.

Distribution today – more than logistics

Not only the portfolio is changing – the distribution business itself is evolving. A distributor is no longer just a link between producer and retailer – today, much more is expected.

“In distribution, logistics and marketing have always been closely connected, but partner expectations have expanded significantly. Some need only delivery and planogram compliance – others require a full-service model, from retail negotiations to marketing campaigns and sales analytics. That is why we invest in our team’s expertise, as well as IT and analytics systems, to better respond to market changes and ensure high-quality experiences for both partners and customers,” says M. Cilcius.

An increasingly important role is also played by the ability to manage brands in the market – building visibility, awareness and strong positioning across channels.

“MV GROUP Distribution’s marketing teams in the Baltics and Poland create additional value through experience, strong networks, local market expertise and active brand development. We organize and participate in events, championships and trainings, plan activations, and our team of professional ambassadors ensures that products are visible and valued by consumers,” says A. Savickaitė.