Poland
At the end of February, Heineken
issued another statement. An agree
ment has been reached in principle
with the Supervisory Board and Board
of Directors of the Polish brewing
company Zywiec, to the effect that
Heineken will take a 24.9% stake in
the company through a share issue by
Zywiec. Zywiec's general meeting of
shareholders gave the definite go-
ahead.
Zywiec has a 7% market share in
the Polish beer market and is in parti
cular a strong player in the premium
segment. Zywiec Full Light is its
strongest brand. The company com
prises three breweries, which produce
1.1 million hectolitres per year and
are located in Zywiec, Bielsko-Biala
and Cieszyn, respectively. Zywiec is a
city to the southwest of Cracow in
Southern Poland.
Segmentation
On average, the per capita beer
consumption in Poland is not high,
just 30 litres. Despite a slight drop in
beer consumption in 1993 as com
pared to 1992, Heineken is optimistic
about the future of Poland's brewing
industry. In Poland, the transition to a
market economy is taking definite
shape, and the spending power of the
population is on the increase.
Moreover, Poland has proven that it
can adapt to the principles of the mar
ket economy better and faster than
other countries. It is expected that the
beer market will grow in coming
years. As a dominant player in the
premium segment, Zywiec can take
full advantage of this development.
The brewing group therefore intends
to increase its production capacity
sharply and carry out a modernisation
programme. Possibilities for Zywiec's
involvement in other Heineken
activities are still being studied.
Alle Ypma, Business Development
Director of Heineken, is delighted
about the cooperation with Zywiec.
'We believe that Zywiec will be able
to develop a commanding position in
the Polish beer market in association
with Heineken. In Poland, the Zywiec
brands are already renowned for their
consistent quality and will continue to
form Zywiec's core business.'
As early as 1970, Heineken was
active in Poland, exporting beer
brewed in the Netherlands. The
import segment is still very small.
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