Poland's leading spirits producer, Polmos Bialystok, has said its profits this year will be lower than the ZL38m which it previously forecast. The company said sales were lower as retailers and distributors sought to reduce inventories in anticipation of the cut in spirits taxes.

However, the company said the reduction in alcohol taxes would have a positive influence on its results in 2003. Bialystok has around 25% of the Polish spirits market.