POLAND: Polish vodka sales deteriorate as sector gears up for privatisation

By Chris Brook-Carter | 17 October 2000

The Polish spirits industry is experiencing a testing financial period, with only the larger Polmos distilleries showing decent financial gains, while the rest of the sector struggles with illegal imports falling sales and high taxes, according to a government minister.The statement, reported in the Polish press, has been made by Barbara Litak-Zarebska, undersecretary of state in the Treasury Ministry, and comes at a time when the Polish government is attempting to attract bids for all 18 Polmoses in a privatisation process.She said that only five of the 18 Polmoses are in a stable situation. These are Bialystok, Poznan, Zielona Gora, Torun and Konin.Litak-Zarebska blamed the industry's poor performance on a drop in domestic alcohol consumption, the high share of indirect taxes in production costs as well as growing illegal imports of alcoholic beverages.The polish press reported that within the sector performance varied greatly. Those distilleries that acquired the trademark rights to well-known popular brands such as Wyborowa, Luksusowa and Zubrowka have generated better sales. These traditional brands are also selling better than many of the newly launched brands on the market.

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The Polish spirits industry is experiencing a testing financial period, with only the larger Polmos distilleries showing decent financial gains, while the rest of the sector struggles with illegal imports falling sales and high taxes, according to a government minister.The statement, reported in the Polish press, has been made by Barbara Litak-Zarebska, undersecretary of state in the Treasury Ministry, and comes at a time when the Polish government is attempting to attract bids for all 18 Polmoses in a privatisation process.She said that only five of the 18 Polmoses are in a stable situation. These are Bialystok, Poznan, Zielona Gora, Torun and Konin.Litak-Zarebska blamed the industry's poor performance on a drop in domestic alcohol consumption, the high share of indirect taxes in production costs as well as growing illegal imports of alcoholic beverages.The polish press reported that within the sector performance varied greatly. Those distilleries that acquired the trademark rights to well-known popular brands such as Wyborowa, Luksusowa and Zubrowka have generated better sales. These traditional brands are also selling better than many of the newly launched brands on the market.

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