Lithuanian distillery Liviko's journey of transformative resurgence: from local strifes to international acclaim
After facing dire financial straits fifteen years ago, Lithuania's UAB Liviko has risen to become a distinguished player in the premium spirits industry. Once an ailing enterprise teetering on the edge of collapse, the Estonian-owned distributor now represents prestigious brands and boasts a lean, forward-thinking team. This remarkable transformation is a testament to visionary leadership, resilience, and the deft art of change management.
In a candid interview with The Baltic Times Magazine, Eiva Pociene, Liviko's director general in Lithuania, underscored the company's milestone journey. "We went from a company forecasted to fold with over a million in operational losses, to a distributor generating healthy returns for shareholders, representing prestigious brands," she revealed.
The road to recovery commenced with a profound revamp of the company's mission. Realizing that the future lay in offering value-added products, Liviko sought to innovate in delivery and scale up to attract the confidence of major global brands. This ambition necessitated raising operational standards across the board, from internal processes and team organization to service quality and overall competence.
As Pociene explained, "We were an importer of cheap products; we had to transform into a distributor that adds value for global brands. That called for changing services, assortment, sales channels, competencies, and processes."
The transformation was multifaceted, requiring difficult choices such as cutting nearly 50 positions from a workforce of 70 and rebuilding the team from the ground up. However, the restructuring brought agility, efficiency, and a sharper focus to the company. Liviko UAB, as it stands today, works with over 40 carefully selected partners and manages a portfolio of roughly 800 unique products.
This evolution extended beyond structure - it shaped culture. Liviko fostered an environment prioritizing accountability and learning. Rather than driving motivation through pressure or incentives, the leadership sought to foster self-motivation, balance empowerment with responsibility, and instill a culture of shared experience and learning from mistakes.
"I strive to create an environment that nurtures self-motivation, balances empowerment with responsibility, shares experience, and allows people to learn from their mistakes," said Pociene.
This approach, rooted in trust and maturity, has helped Liviko navigate industry shifts and evolving consumer expectations with grace. One of the notable shifts over the past two decades has been the shift in alcohol consumption, moving from mass-market habits towards more refined, responsible, and diverse preferences.
"The dictionary terms 'whisky', 'rum', 'gin', and 'tequila' barely existed; drinks were simply vodka with quince soda or orange juice. All sparkling wine was called 'champagne', and every brandy was 'cognac'. Getting drunk was standard practice in the 2000s," recalled Pociene.
Fast forward to the present day, and the market looks radically different. Consumers seek authenticity, provenance, and quality in their beverages. Concepts like terroir, usually associated with wine, have gained traction across spirits categories.
"The inspiration for our imported assortment echoes that of our own products, conceptualized and crafted in Tallinn. Drinks are made from local plants, pure water, and longstanding traditions, mirroring the terroir of our region - something you can't replicate anywhere else," said Pociene.
Liviko's regional identity serves as a unique selling point in a globalized industry. While standardization creates consistency, Liviko leverages its roots to offer something special in every bottle, appealing to the modern, experience-driven consumer seeking more than just a drink - they want a story.
Having climbed the ranks in an industry not traditionally welcoming to women in leadership, Pociene is shaping not just her company but the industry itself. She remains vigilant about the road ahead, particularly the rising excise taxes in Lithuania well above the European average, fearing they could fuel a black market and unwind years of progress in responsible consumption.
"The risk is that the illegal market will thrive, while officials rejoice at miraculous decreases in alcohol consumption. In reality, people will merely find alternative, untraceable ways to get it," cautioned Pociene.
Despite the challenges, Pociene remains grounded in purpose, viewing alcohol as a craft, a heritage, and a means of connection - not just a commodity or a means to excess consumption. In the fast-changing spirits sector, Liviko's Lithuania evolution stands out as a rare case study in thoughtful growth - a story of cultural awareness, strategic reinvention, and human-centered leadership. The company's resilience has not only resulted in profitability but also purpose.
- Lithuania's UAB Liviko, once on the brink of collapse, now generates healthy returns, marking a significant shift in their financial situation.
- The journey of Liviko is a testament to visionary leadership, resilience, and effective change management.
- To prevent operational losses and ensure growth, Liviko embarked on a mission revamp, seeking value-added products and attracting major global brands.
- The transformation required improvements across all operations, from internal processes to service quality and overall competence.
- In the process of restructuring, approximately 50 positions were cut from the workforce of 70, leading to increased agility and efficiency.
- Today, Liviko works with over 40 partners and manages a portfolio of around 800 unique products.
- Liviko's evolution extended beyond structure – it fostered a culture prioritizing accountability, learning, self-motivation, and sharing experiences.
- The company's approach to leadership has helped it adapt to industry shifts and evolving consumer preferences gracefully.
- Alcohol consumption trends have shifted from mass-market habits towards more refined, responsible, and diverse preferences.
- Consumers today demand authenticity, provenance, and quality in their beverages, concepts like terroir gaining traction across spirits categories.
- Liviko's regional identity offers a unique selling point in the globalized industry, providing a special touch in every bottle.
- As a woman leader in a male-dominated industry, Pociene is shaping not only her company but the industry itself.
- Pociene is concerned about the rising excise taxes in Lithuania, fearing they could fuel a black market and undermine years of progress in responsible consumption.
- Pociene views alcohol as a craft, heritage, and means of connection, not just a commodity or means of excess consumption.
- In the fast-changing spirits sector, Liviko's Lithuania evolution stands out as a rare case study in thoughtful growth – a story of cultural awareness, strategic reinvention, and human-centered leadership.
- The resilience shown by Liviko has not only resulted in profitability but also a sense of purpose in the industry.
