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Konrad Kiedrzyński: Will the takeover of Eckes & Stock open new markets abroad for Żołądkowa Gorzka? How do you expect such an expansion might take place?
Marek Malinowski: Żołądkowa Gorzka has an unquestioned position in Poland. With a 38-percent market share, Żołądkowa Gorzka is the leader in the market of colored vodkas. Now the acquisition of Eckes & Stock gives Polmos Lublin the possibility to promote and sell Żołądkowa Gorzka outside our country.
The company has strong presence in the Czech Republic, with 50 percent of the market. In Austria it is present with Stroh and in Italy with brands like Stock and Limonce. Eckes & Stock's experience, its distribution channels and strong position will give Polmos Lublin a huge advantage in launching new brands like Żołàdkowa Gorzka in the region.
Will Żołądkowa Gorzka target the same sector of less-expensive vodkas abroad as it does in Poland?
We sell Żołądkowa Gorzka in Poland to mainstream clients. This very wide group also has strong demands when it comes to pricing. This is why we offer a high-quality product for a good price. Our strategy both in the country and abroad would be based mostly on the same framework.
Will the takeover influence the position of other Polmos Lublin products?
This takeover gives us a chance to sell and promote other Polmos Lublin products. One of these is Kapitańska. This brand is popular in the United States, where it is known as Captain Vodka.
Will the branding and marketing strategy abroad change? For example, will the name be changed to one easier for foreigners to pronounce? Will the shape of the bottle change?
Both the shape of the bottle and the alcohol's name are the brand's strengths. We have to remember that the sound and pronunciation of Żołądkowa Gorzka points to its Polish origin, and thus its excellent quality. In our sales strategy we will not relinquish that. We will also address our strategy to the Polish community working abroad. These people not only miss the unique taste of Polish products, but also their "Polishness." Polmos Lublin - as a company with more than 100 years of tradition - can help to ease their homesickness.
How does the firm's export market look sat present? What countries are targeted? What percentage of the total sales goes abroad?
Last year most of our production - some 98 percent of sales - was in Poland. Export markets include the US, the EU and various countries in Asia. We exported 400,000 liters of alcohol in 2006.
Will the EU's decision to broadly define vodka affect the sales and position of Żołądkowa Gorzka?
In Poland, of course, this decision will not influence the sales volume now. Later on, both in Poland and in other countries, we will have to underline the Polish origin of our products - that is the reason to stay with the original name and bottle shape of Żołądkowa Gorzka while launching the process outside Poland. Our promotional activities will be based on education about the production process and the vodka's original ingredients.
What is the present condition of flavored-vodka sales in Poland and abroad?
There are really two premiere brands in the Polish flavored-vodka market, with Żołądkowa Gorzka holding the biggest share, according to the volume of liters sold. The Polish colored-vodka market is rather consolidated, with Polmos Lublin in the dominant position, but we will not stop fighting for a bigger share in countries in Asia, the Americas and Europe. The takeover of Eckes & Stock is a good example of this strategy.
