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No. 6 (279)
June 2018

We want to grow faster than the industry
spis-2.jpgThe last year was exceptional, not only for Kompania Piwowarska, but the entire industry. The hot summer and the World Football Championships were the test of power and gave an opportunity to show in favourable, but at the same time difficult conditions. As you rightly pointed out here, the sale of KP grew faster than the market. This statement may serve as a summery of our last year’s achievements against the background of the competition. We anticipate that this year, the entire industry will increase by around 3 - 5%. We, however, want to gain a bit higher sale growth. 
CEDC signs a contract with PKN Orlen
spis-3.jpgCentral European Distribution Corporation (CEDC), a company quoted at the Warsaw Stock-Exchange and at Nasdaq in the United States, has signed a two-year contract with PKN Orlen SA. As a result, CEDC shall supply spirit products and wines to over 900 PKN Orlen petrol stations in Poland. The contract came into force on the 1st of June this year.
Beer Market in Poland
spis-4.jpgWhen looking at the two-month beer sale results, which cover the periods of December 2005 - January 2006 and December 2006 - January 2007, we see that the category is developing at the very dynamic pace. The sale volume (in litres) in retail trade in­creased over these periods by over 18%. The canned beer sale, which raised as much as by 30% in volume in comparison to the period a year ago, contributed to this change.

The ready-to-drink category is a relatively young category on the Polish market of alcoholic beverages. It emerged a bit over 3 years ago basing on the popularity of these products in the Western Europe to some extent, particularly among young consumers. The product character seems to be an ideal alternative for beer for instance and in case of catering, also for drinks based on vodka.

A good distributor is a true treasury

The present market of wholesalers of alcoholic products is centralized to a great degree. For years, the owners of small local wholesales have been perfectly aware that mergers and necessity to work in larger groups is the only chance to survive on a market. Another reason forcing to “tighten the ranks” was the perspective of large foreign alcohol concerns entering Poland. It was therefore more than obvious that a considerable part of small wholesalers shall not be able to withstand the competition. The constantly reducing licences issued by the Ministry of Economy for wholesale turnover of alcoholic beverages with 18% of alcohol content are a consequence of these processes. As far as there were over 1,500 wholesales operating in Poland at the beginning of the Nineties, then at the beginning of the present decade, there were already only 400. Nowadays (the state from March 2007), 272 entities are provided with current licenses for wholesale turnover of spirits, however it is estimated that the market really is divided into several main operators. The reasons for bankruptcy of most of the wholesalers over the last few years were usually the same: nearly none of them could withstand the price competition with other companies, the more soas the distributors have been operating on low margins for years.

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