Zywiec today has its own
distribution network
By the end of 2001, the Zywiec Group in Poland will have
completed its three-year restructuring programme. The Zywiec
Group was formed after Heineken acquired the four brewing
groups, Zywiec, Elbrewery, Warka and Lezajsk, in December 1998.
Immediately, an integration and restructuring plan was drawn up,
to be completed in three years.
In December 1998, Poland boasted one of the growing economies
in Eastern Europe and was heading towards an entry into the
European Union. Beer consumption grew and the prospects for
the Zywiec, EB en Warka brands in particular looked good: a leading
market position was within reach. However, the challenges facing
Zywiec's management team later on were sizeable: they included the
building of brands and the integration of four different distribution
systems, the set-up of new information systems, merging the
different cultures and a greater emphasis on training the workforce.
To cope with these tasks, a three-year action plan was developed.
The aim of the plan was to establish a world-class brewing group.
From the outside, the eye-catching development was Zywiec's
loss of market share. From the inside, it was the building of one
organisation out of four. Reorganisations are disruptive to business
and can lead to loss of focus. For instance, building a proprietary
distribution system inevitably means taking leave of the remaining
distributors volume. Nevertheless, Zywiec today has its own
distribution network, which is an advantage in a market where dis
tributor loyalty fluctuates with margins and sales volume.
A major challenge was posed by the EB brand. In 1997 EB -one of
Poland's best-selling beers- lost ground. Shortly before the
acquisitions by Heineken, Elbrewery tried to strengthen the position
of EB, aiming to give the brand a leading position in the main
stream segment. But it turned out that mistakes were made
ZYWIEC GROUP POLAND
