Table of Contents
Alcoholic Drinks in Poland - Industry Overview
EXECUTIVE SUMMARY
The market slows down
Polarisation in action
CEDC experiences tough times
Discounters are on an upward trajectory
By 2016, sales will witness modest growth
KEY TRENDS AND DEVELOPMENTS
Expansion of discounters increasingly reshaping alcoholic drinks market
Alcoholic drinks players are increasingly exposed to channels of contagion
Competition between domestic companies and multinationals is becoming increasingly fierce
Key new product launches
Summary 1 Key New Product Developments 2010-2011
Specialist retailers
Summary 2 Leading Specialist Retailers 2011
Market merger and acquisition activity
Summary 3 Merger and Acquisition Activity 2010-2011
Summary 4 Speculated Merger and Acquisition Activity 2011-2012
MARKET BACKGROUND
Legislation
Table 1 Number of On-Trade Establishments by Type 2005-2010
TAXATION AND DUTY LEVIES
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2011
Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2011
Table 4 Selling Margin of a Typical Beer Brand 2011 (Tyskie Gronie)
Table 5 Selling Margin of a Typical Wine Brand 2011 (Cambras)
Table 6 Selling Margin of a Typical Spirits Brand 2011 (Beefeater)
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011
MARKET DATA
Table 8 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 15 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 18 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 22 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016
DEFINITIONS
PUBLISHED DATA COMPARISONS
SOURCES
Summary 5 Research Sources
Alcoholic Drinks in Poland - Company Profiles
Central European Distribution Corp (CEDC) in Alcoholic Drinks (Poland)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Central European Distribution Corp (CEDC): Competitive Position 2011
Grand Cru Sp zoo in Alcoholic Drinks (Poland)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Slaska Wytwórnia Wódek Gatunkowych POLMOS SA in Alcoholic Drinks (Poland)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Slaska Wytwórnia Wódek Gatunkowych POLMOS SA: Competitive Position 2011
Sobieski Sp zoo in Alcoholic Drinks (Poland)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Sobieski Sp zoo: Competitive Position 2011
Stock Polska in Alcoholic Drinks (Poland)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 19 Stock Polska: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 20 Stock Polska: Competitive Position 2011
Van Pur SA in Alcoholic Drinks (Poland)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 23 Van Pur SA: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 24 Van Pur SA: Competitive Position 2011
Beer in Poland - Category Analysis
HEADLINES
TRENDS
Sales of beer shift towards greater sophistication and heterogeneity. While per capita consumption approaches saturation point, the offer of beer is limited with lager playing the predominant role in sales. Consumers tired of the anonymous taste of lager are increasingly opting for beer from the portfolios of small, regional breweries. Consumers are attracted to regional products because of their authenticity and naturalness. Multinationals followed in regional breweries’ footsteps and extended their portfolios with new beers throughout 2011.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
The domestic division of SABMiller, Kompania Piwowarska, was the leading player in beer sales in 2011. The company benefits from the success of brands with a domestic heritage: standard Tyskie, lower standard Zubr, and premium Lech. Domestic beers Zywiec, Specjal, Tatra, and Warka are the strongest brands in the portfolio of the second biggest player, Grupa Zywiec, the Polish subsidiary of Heineken NV. The third-ranked player, Carlsberg Polska, owes its position to the Harnas brand, introduced in 2003, the Okocim umbrella brand and the international beer Carlsberg. The position of SABMiller, Heineken and Carlsberg is attributable to both organic growth and mergers and acquisitions. As beer is intensely local, domestic brands are leading products within the portfolios of leading beer players.
PROSPECTS
Sales of beer are expected to grow marginally in total volume terms over the next five years. Given this scenario, beer players are expected to focus on boosting sales value and revenue per bottle/can beer sold. The brewers are expected to develop new products in terms of new tastes of beer, new types and sizes of packaging in order to achieve this goal. Increasing competition is likely to be accompanied by the possibility of external shocks, such as an escalation of the sovereign debt crisis in the Eurozone, which would be very challenging for beer players.
CATEGORY BACKGROUND
Lager price band methodology
Table 23 Number of Breweries 2006-2011
CATEGORY DATA
Table 24 Sales of Beer by Category: Total Volume 2006-2011
Table 25 Sales of Beer by Category: Total Value 2006-2011
Table 26 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 27 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 32 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 33 Beer Imports by Country of Origin: Total Volume 2005-2010
Table 34 Beer Imports by Country of Origin: Total Value 2005-2010
Table 35 Beer Exports by Country of Destination: Total Volume 2005-2010
Table 36 Beer Exports by Country of Destination: Total Value 2005-2010
Table 37 Company Shares of Beer by National Brand Owner 2007-2011
Table 38 Company Shares of Beer by Global Brand Owner 2007-2011
Table 39 Brand Shares of Beer 2008-2011
Table 40 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 41 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 42 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 43 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016
Cider/Perry in Poland - Category Analysis
HEADLINES
TRENDS
Sales of cider are negligible in Poland. Cider is too expensive for Polish consumers. During the review period, there were a number of trials to win over Polish consumers. In 2005, UpCider, from the portfolio of the UK player Scottish & Newcastle Plc, debuted in Poland. Earlier, in 2001, Strongbow had been launched in Poland. This brand is available in a small number of on-trade outlets. Moreover, draught cider first appeared in Poland in the mid-1990s in a few John Bull pubs.
PRODUCTION, IMPORTS AND EXPORTS
PROSPECTS
Mature sales of beer and the desire for new taste experiences are expected to open avenues to cider sales growth. On the other hand, product unfamiliarity and pricing not compatible with the purchasing power of the Poles will trim growth potential.
RTDs/High-Strength Premixes in Poland - Category Analysis
HEADLINES
TRENDS
RTDs continue to grow despite concerns attributable to the second wave of the financial crisis. A segment of the young generation prefers the light, delicate taste of RTDs to the strong taste of spirits. Some flavoured beer consumers have shifted towards the RTDs category as it offers a greater choice of flavours and a more distinctive taste. Poles are tired of beer with a bland taste and are seeking alternatives to this product. The westernisation of consumer habits is also beneficial to demand for RTDs. In general, RTDs are perceived as light, fashionable drinks.
COMPETITIVE LANDSCAPE
Sobieski’s leadership can be attributed to the wide availability of its products and changes to its offering during the review period. In 2007, Sobieski reduced the alcohol content of its RTDs from 5.5% to 4.5% and changed the basic ingredient from malt to vodka. This led to changes in production, with the Polmos Lancut distillery replacing the Brok brewery as the manufacturer of Sobieski Impress. The price of Sobieski Impress was also reduced to bring it closer to the price of beer. In 2010, Sobieski extended the range of flavours available under Sobieski Impress with four variants, Mojito, green tea, watermelon and green apple. The watermelon flavour is highly appreciated by consumers. According to company sources, the Sobieski Impress brand is one of the fastest-growing brands within the company’s portfolio.
PROSPECTS
RTDs will remain a niche alcoholic drink type in the short-to-medium term as no sudden jump in interest is likely. Over the forecast period, sales are expected to grow at a slower rate compared to the review period. RTDs will benefit from the growing sophistication and diversification of alcoholic drinks consumption among Polish consumers. Taking into consideration the fact that the on-trade is highly underdeveloped in Poland, the pace of growth of the on-trade channel will be quite dynamic. However, the introduction of RTDs in cans could prompt additional demand. Mature beer sales could also open opportunities for players in the RTDs category. Consumers are tiring of the bland taste of many lager products and they could seek new products to differentiate their tastes or simply to try something novel.
CATEGORY DATA
Table 44 Sales of RTDS/High-strength Premixes by Category: Total Volume 2006-2011
Table 45 Sales of RTDS/High-strength Premixes by Category: Total Value 2006-2011
Table 46 Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2006-2011
Table 47 Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2006-2011
Table 48 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2006-2011
Table 49 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2006-2011
Table 50 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2006-2011
Table 51 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2006-2011
Table 52 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2007-2011
Table 53 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2007-2011
Table 54 Brand Shares of RTDS/High-strength Premixes 2008-2011
Table 55 Forecast Sales of RTDS/High-strength Premixes by Category: Total Volume 2011-2016
Table 56 Forecast Sales of RTDS/High-strength Premixes by Category: Total Value 2011-2016
Table 57 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2011-2016
Table 58 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2011-2016
Spirits in Poland - Category Analysis
HEADLINES
TRENDS
In line with growing sophistication and diversification of spirits consumption, spirits sales are becoming increasingly heterogeneous. A considerable group of Polish consumers still strongly follows the westernisation trend. These consumers are strongly aspirational and typically enjoy demonstrating their status. The combination of these factors results in the growing popularity of brown spirits. For example, whiskies and cognac strongly benefit from this trend. The predominant vodka category has also witnessed change. Domestic specialities such as nalivkas and flavoured vodkas are gaining in popularity at the expense of pure vodka.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
Stock Spirits Group led sales of spirits in 2011. The company’s success has primarily been due to the rapid growth of its Czysta de Luxe Zoladkowa Gorzka, introduced in 2007, which was achieved through a combination of competitive pricing and strong marketing. The company also capitalised on the successful line of nalivkas, Lubelska, as well as vodka brands 1906 and Zubr Strong. In 2006, Stock Spirits Group acquired Polmos Lublin, the country’s third largest spirits producer. Stock Spirits Group gained a leading position at the expense of CEDC. The company was a leading distributor that became a large producer after the acquisition of Bols and Polmos Bialystok in 2005. The over one million 9-litre cases of Absolwent, Zubrowka and Soplica that were in the hands of Polmos Bialystok enriched the portfolio of Poland-based CEDC. 2011 brought recovery at Belvédère SA, the third biggest player. The fast-growing brand Krupnik vodka increased its share. Pernod Ricard Groupe is ranked fourth, mainly on the back of the domestic Wyborowa and Luksusowa brands. However, its share is in decline due to the decreasing sales of Wyborowa.
PROSPECTS
Spirits sales will experience growing diversification and sophistication. This general trend will be fuelled by divergent tendencies. The expected polarisation will translate into an intensification of the economising trend. This, in turn, will benefit discounters. The gap between the economy and standard segments will be very sensitive to price changes. On the other hand, higher-end offerings will be appealing for affluent shoppers. The “westernisation of demand” trend will prompt a gradual shift to imported spirits variants. In contrast, regional products will be on the growth track thanks to consumers’ growing ethnocentricity. External shocks associated with the debt crisis will create a turbulent environment for spirits players.
CATEGORY BACKGROUND
Vodka, gin and other blended Scotch whisky price band methodology
CATEGORY DATA
Table 59 Sales of Spirits by Category: Total Volume 2006-2011
Table 60 Sales of Spirits by Category: Total Value 2006-2011
Table 61 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 62 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 63 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 64 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 65 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 66 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 67 Sales of Gin by Price Platform 2006-2011
Table 68 Sales of Other Blended Scotch Whisky by Price Platform 2006-2011
Table 69 Sales of Vodka by Price Platform 2006-2011
Table 70 Sales of Flavoured vs Non-flavoured Vodka 2006-2011
Table 71 Spirits Production, Imports and Exports: Total Volume 2005-2010
Table 72 Spirits Imports by Country of Origin: Total Volume 2005-2010
Table 73 Spirits Imports by Country of Origin: Total Value 2005-2010
Table 74 Spirits Exports by Country of Destination: Total Volume 2005-2010
Table 75 Spirits Exports by Country of Destination: Total Value 2005-2010
Table 76 Brandy & Cognac Production, Imports and Exports: Total Volume 2005-2010
Table 77 Gin Production, Imports and Exports: Total Volume 2005-2010
Table 78 Rum Production, Imports and Exports: Total Volume 2005-2010
Table 79 Tequila Production, Imports and Exports: Total Volume 2005-2010
Table 80 Vodka Production, Imports and Exports: Total Volume 2005-2010
Table 81 Whiskies Production, Imports and Exports: Total Volume 2005-2010
Table 82 Company Shares of Spirits by National Brand Owner 2007-2011
Table 83 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 84 Brand Shares of Spirits 2008-2011
Table 85 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 86 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 87 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 88 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016
Wine in Poland - Category Analysis
HEADLINES
TRENDS
Although the problems associated with the sovereign debt crisis in the Eurozone have been widespread, Polish consumers remain relatively resilient. A large number of Poles are still strongly aspirational and thirsty for symbols of Western lifestyles. Poles are travelling more, and are increasingly aware of the benefits of a diversified diet and the advantages of grape wine. Furthermore, the strong expansion of discounters has made grape wine more available to consumers. The combination of these factors has benefited grape wine sales. On the other hand, grape wines sales are affected by the weakening domestic currency and uncertain economic environment. The US dollar and euro strengthened against the PLN, from 2.9 to 3.4, and from 3.9 to 4.4, respectively, while the inflation rate topped 4.8% in 2011.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
In sales of wine (excluding non-grape wine), Ambra SA is the key player. The leading position of Ambra SA is attributable to acquisitions and the wide availability of its products. The company holds the two leading brands, Dorato and Cin&Cin, which are strongly supported by advertising. Ambra’s Dorato and Fresco are domestically-manufactured, low-priced brands generating high total volume sales. The leading player has stakes in Tim SA, Centrum Wina, and Vinex Slaviantsi Poland Sp zoo. The combined total volume share of these companies is expected to reach 18% in 2011, a rise on the previous year. Ambra SA is followed by Bartex-Bartol Spj, a wine importer and producer, and Domain Menada Sp zoo, the wine arm of Belvédère SA in Poland, the leader in sales of Bulgarian wines. Tcherga, Moldawskaja Dolina, Mezzek and Damena are among the strongest brands from the portfolio of Domain Menada. Nalewka Babuni is the star in the portfolio of Torunskie Piwnice Win Vinpol Sp zoo. The group CEDC is also an important wine player in Poland, and is the distributor of the brand Carlo Rossi. Partner Center Sp zoo is among the leading players in sales of Chilean and Argentinean wines.
PROSPECTS
Consumer trends will benefit grape wine sales. The model of alcoholic drinks consumption will be more sophisticated and diversified. Poles are travelling more widely, discovering new tastes and new cuisines, and want to replicate these experiences at home, thanks to enjoying wine drinking. In addition, the ageing population will show more interest in wine at the expense of beer or spirits. Growing health-consciousness will strengthen this tendency. The shift towards grape wine will be strongly dependent on the purchasing power of Polish consumers, however. The extension of the limited group of consumers and the rise in occasions associated with wine drinking will be crucial for increasing sales of wines.
CATEGORY DATA
Table 89 Sales of Wine by Category: Total Volume 2006-2011
Table 90 Sales of Wine by Category: Total Value 2006-2011
Table 91 Sales of Wine by Category: % Total Volume Growth 2006-2011
Table 92 Sales of Wine by Category: % Total Value Growth 2006-2011
Table 93 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011
Table 94 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011
Table 95 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 96 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 97 Volume Sales of Still Red Wine by Price Segment 2006-2011
Table 98 Volume Sales of Still White Wine by Price Segment 2006-2011
Table 99 Volume Sales of Still Rosé Wine by Price Segment 2006-2011
Table 100 Volume Sales of Other Sparkling Wine by Price Segment 2006-2011
Table 101 Sales of Still Red Wine by Grape/Varietal Type 2006-2011
Table 102 Sales of Still White Wine by Grape/Varietal Type 2006-2011
Table 103 Sales of Still Rosé Wine by Grape/Varietal Type 2006-2011
Table 104 Sales of Still Red Wine by Quality Classification 2006-2011
Table 105 Sales of Still White Wine by Quality Classification 2006-2011
Table 106 Sales of Still Rosé Wine by Quality Classification 2006-2011
Table 107 Wine Production, Imports and Exports: Total Volume 2005-2010
Table 108 Wine Imports by Country of Origin: Total Volume 2005-2010
Table 109 Wine Imports by Country of Origin: Total Value 2005-2010
Table 110 Wine Exports by Country of Destination: Total Volume 2005-2010
Table 111 Wine Exports by Country of Destination: Total Value 2005-2010
Table 112 Company Shares of Still Light Grape Wine by National Brand Owner 2007-2011
Table 113 Company Shares of Still Light Grape Wine by Global Brand Owner 2007-2011
Table 114 Brand Shares of Still Light Grape Wine 2008-2011
Table 115 Company Shares of Champagne by National Brand Owner 2007-2011
Table 116 Company Shares of Champagne by Global Brand Owner 2007-2011
Table 117 Brand Shares of Champagne 2008-2011
Table 118 Company Shares of Other Sparkling Wine by National Brand Owner 2007-2011
Table 119 Company Shares of Other Sparkling Wine by Global Brand Owner 2007-2011
Table 120 Brand Shares of Other Sparkling Wine 2008-2011
Table 121 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2007-2011
Table 122 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2007-2011
Table 123 Brand Shares of Fortified Wine and Vermouth 2008-2011
Table 124 Company Shares of Non-grape Wine by National Brand Owner 2007-2011
Table 125 Company Shares of Non-grape Wine by Global Brand Owner 2007-2011
Table 126 Brand Shares of Non-grape Wine 2008-2011
Table 127 Forecast Sales of Wine by Category: Total Volume 2011-2016
Table 128 Forecast Sales of Wine by Category: Total Value 2011-2016
Table 129 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016
Table 130 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016