8/9/2001 11:00 

Carlsberg Breweries A/S achieves strong position in Poland

Through its Polish subsidiary Okocimskie Zaklady Piwowarskie S.A. (Okocim), which is listed on the Warsaw Stock Exchange, Carlsberg Breweries A/S has entered into an agreement to acquire two Polish breweries: Bosman Browar Szczecin S.A. (Bos-man) and Kasztelan Browar Sierpc S.A. (Kasztelan), both owned by the German Bit-burger beverage group. Furthermore, Carlsberg Breweries has acquired the majority shareholding in Browary Dolnoslaskie Piast S.A. (Piast) through the Dutch holding company Dyland. The Piast acquisition will enter into force as of 15 August 2001.

The plan is to merge the new acquisitions with Okocim. Marcin Piróg, the present CEO of Okocim, will become CEO of the new company which will change its name to Carlsberg Okocim to mark the start of a new strong Polish company. The annual value of synergies of the merger is expected to exceed PLN 60 million (approx. DKK 120 million). The aim is to achieve an EBIT margin of approx. 10 per cent in 2003.

Upon the conclusion of the acquisitions of Bosman, Kasztelan and Piast as well as the completion of the merger process, Carlsberg Okocim will have the following shareholding structure with Carlsberg Breweries continuing as majority shareholder:

Carlsberg Breweries: 67 per cent
Bitburger: 18 per cent
Minority shareholders: 15 per cent

The acquisitions and planned merger are subject to approval by Polish authorities and the new structure of Carlsberg Okocim is subject to approval by the general assemblies of Okocim and Piast.

 

Carlsberg Okocim no. 3 in Poland

Carlsberg Okocim becomes an undisputed number three brewery in the Polish market with a total production of nearly 4 million hl beer. The Polish market is among the fastest growing in Europe, with an annual growth rate of 9.3 per cent during the period 1993 - 2000. An annual beer consumption totalling 24 million hl makes Poland the 11th largest market in the world.

The Bosman and Kasztelan breweries have a combined market share of 5.4 per cent (first half-year 2001), Piast's share is 3.1 per cent which together with Okocim's present share of 7.2 per cent bring Carlsberg Okocim's total share of the Polish beer market to approx. 16 per cent.

The acquisitions give Carlsberg Okocim critical mass in the Polish market thus enabling it to establish an efficient national distribution and sales force and to introduce a new branding strategy positioning Carlsberg as the international premium beer and Okocim as the national brand supplemented by strong regional brands.

Further information:
Public Affairs Director
Margrethe Skov + 45 33 27 14 10

 

Facts Poland

The Polish Market

The Polish beer market is one of the fastest growing in Europe. A population of approx. 40 million and a total beer consumption of 24 million hl make Poland the 5th largest market in Europe and the 11th largest in the world. In year 2000, per capita consumption was 62 litres. In the next years, an annual growth of 3 per cent is ex-pected.

Polish beer consumption

1996 

1998 

2000

   

Million hl

16.6
20.3
24.0

Litres per capita

43
52
62


Bosman and Kasztelan

In year 2000, the Bosman brewery in Szczecin produced 840,000 hl beer and the brewery holds a strong position in the north-western part of Poland. The Kasztelan brewery in Sierpc 125 km north west of Warsaw produces 615,000 hl beer and holds a strong position in the central region. Furthermore, the Kasztelan brewery owns a malting plant.


Piast

The Piast Group which includes two breweries, a malting plant and two distribution companies, had a production of 980,000 hl in year 2000. Piast is located in the south-west Lower Silesia province which is a region with a traditional strong beer culture and a relatively high consumption.

The new acquisitions fit perfectly with Okocim's home market which is the south-east of Poland.

Key figures year 2000

Million PLN

Bosman and Kasztelan

Piast

Okocim

    

Net turnover

319
153
310

Profit before interest and tax

18
(6)
(29)

Exchange rate PLN 1 = DKK 2.0162 (8 August 2001)

Bosman and Kasztelan

Piast

Okocim

    

Sales volume '000 hl

1,460
980
1,430

Number of employees

704
500
948

Market share per cent

6.1
4.1
6.0

The strongest competitors in the Polish market are the Zywiec Group (Heineken), with a market share of 32 per cent last year and Kompania Piwowarska (South African Breweries) with a market share of 30 per cent last year.