A tight deadline for Belvedere
The Treasury Ministry has chosen Sobieski Dystrybucja (SD), owned by French group Belvedere and the number-one player on the Polish vodka market (with 32 percent), to conduct exclusive negotiations for the purchase of 61 percent of shares in Polmos Białystok (PB), which controls 20.6 of the domsestic market on the strength of such popular brands as Żubrówka and Absolwent. The tender was one of the most high-profile of the year, with several international alcohol powerhouses expressing interest in PB. In the end, American-owned Central European Distribution Corporation (CEDC), and the recently-floated Polmos Lublin joined SD in the tender. Unofficially, all three are said to have submitted bids of well over zł.700 million.
Interestingly, the Treasury Ministry gave Sobieski Dystrybucja just 96 hours for exclusive negotiations, during which SD must demonstrate it is financially capable of covering the amount it has offered. The typical period for such negotiations is usually around one month. If SD doesn't manage to meet the Treasury's expectations by the middle of this week, either Polmos Lublin or CEDC will be chosen to enter negotiations.
Indeed, SD may have another problem in that the combined market share of SD and PB equals approximately 53 percent of the vodka market, higher than the 40 percent threshold set by the Competition and Consumer Protection Office (UOKiK).
Last year Poland's vodka market, the fourth-biggest worldwide, grew by 15 percent and equaled zł.5.5 billion.
Interestingly, the Treasury Ministry gave Sobieski Dystrybucja just 96 hours for exclusive negotiations, during which SD must demonstrate it is financially capable of covering the amount it has offered. The typical period for such negotiations is usually around one month. If SD doesn't manage to meet the Treasury's expectations by the middle of this week, either Polmos Lublin or CEDC will be chosen to enter negotiations.
Indeed, SD may have another problem in that the combined market share of SD and PB equals approximately 53 percent of the vodka market, higher than the 40 percent threshold set by the Competition and Consumer Protection Office (UOKiK).
Last year Poland's vodka market, the fourth-biggest worldwide, grew by 15 percent and equaled zł.5.5 billion.
