Drink producers fight over brand name

One of Estonia’s largest beverage makers A. Le Coq that belongs to Finland’s Olvi Group is claiming six million kroons from large Swedish alcohol wholesale trader V&S Vin & Sprit AB, writes aripaev.ee

Back in 2007 the Swedish company filed in court  a claim against A Le Coq’s long drink brand CHILL, saying that it was similar by name to its wine brand CHILL OUT which it had been selling since 2003. First-instance court ruled in favour of V&S Vin & Spirit and ordered the Estonian company to stop selling the product and destroy the seized stocks of 47,000 cans of CHILL at the presence of a court bailiff.

However, the circuit court ruled in favour of the Estonian company. After the supreme court decided not to consider the dispute, A Le Coq filed a claim in the amount of 6 million kroons of which about half is lost sales.

Source: BBN

Estonian Energy IPO plans shelved

Estonia’s government decided against listing a minority stake of state power company Eesti Energia and will instead provide the financing for a capital increase at the biggest Baltic utility. Instead, the government will buy new shares issued by Eesti Energia,but has not yet decided on the exact capital increase.

“An initial public offering would require amending legislation to protect the state’s strategic interests and to further decrease administrative risks,” the government said in a statement quoted by Bloomberg.

Timing for an initial public offering of Eesti Energi would be “extremely bad given the mood on the financial markets,” Prime Minister Andrus Ansip told journalists yesterday. Using government borrowing to boost Eesti Energia’s capital would be “relatively easy and cheap for Estonia,” given its public- sector debt was only 7.2 percent of gross domestic product last year, the lowest in the European Union, he said last week.

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State sells Old Town building for 46 mEEK

State Real Estate Company announced today that it has sold a building at Pagari 1 in the Tallinn Old Town for 46 million kroons to Phoenix Asset Management that is member of the Singapore-owned Tolaram Group.

The full address of the building in question is Lai 44/Pagari 1/Pikk 59 and was the head office of the KGB during the Soviet times.

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Producer price indices increased in April

According to Statistics Estonia, in April 2010 the percentage change in the producer price index was 0.9% compared to March and 2.4% compared to April of the previous year.

In April compared to the previous month the producer price index was more than average influenced by the increase in prices in the manufacture of metal products and by the decrease in prices in the manufacture of beverages. Compared to April 2009 the prices increased most in production of wood and wood products.

Change in the producer price index by economic activity, April 2010
Economic activity March 2010 –
April 2010, %
April 2009 –
April 2010, %
TOTAL 0.9 2.4
Energy supply 0.5 3.1
Mining -0.1 -2.1
Manufacturing 0.9 2.6

In April 2010 the export price index increased 1.2% compared to March 2010 and 5.1% compared to April 2009.

In April compared to the previous month, the export price index was more than average influenced by the increase in prices in the manufacture of metal products, forestry and in the manufacture of food products and by the decrease in prices in the extraction of peat.

In April 2010 the import price index increased 2.5% compared to March 2010 and 9.7% compared to April 2009.

In April compared to the previous month, the import price index was more than average influenced by the increase in prices of mineral fuels, metals and agricultural products.

Source: Statistics Estonia