Bankruptcies up 4% in 2002

According to research by Coface Intercredit Poland, last year the country saw a record number of bankruptcies. Courts declared the bankruptcy of 1,155 firms which means that more than three companies went to the wall everyday. In comparison with 2001, the number of bankruptcies and proceedings for settlements with creditors increased by 4%. The construction sector was among those most affected, losing 408 companies. The regions with the largest numbers of bankruptcies included Dolnoslaskie voivodship (192) and Mazowieckie voivoship (162). It is anticipated that this year bankruptcies will decrease following the amendment to the Bankruptcy Law recently passed by the Sejm. (Gazeta Finansowa, Feb. 1-7, p. 14) A.Z. The development of the juice, nectar and soft drink market in 2003 and beyond It is estimated that in 2003 this market will still be characterized by a slower growth rate, accompanied by strong competition between producers. Juice, nectar and soft drink market research indicates that it has almost reached saturation. In the next two to three years growth in the non-carbonated fruit drink segment and the pulp juice segment will probably remain constant but in the sector of traditional 100% pure juices the sales growth indicator will be close to the level of GDP. This market is expected to consolidate in the future. Falling incomes, as well as greater awareness of the benefits of leading a healthy lifestyle, will most probably result in a situation whereby only 3-5 of the biggest companies will remain on the market. The dynamic growth of private labels is forecast to continue, as these products reach those with low incomes. However, other consumer segments will be inclined to pay a much higher price for a high quality product. A study by PMR Ltd. indicates that the price differentials between private labels and branded products are on average in the 40%-50% range and vary by product category. SMG/KRC research shows that, in a relatively short time, private labels have managed to acquire control of 7% of the juice and fruit and vegetable soft drinks market (by value 4%), and their development potential is still considerable. (C/O Polish Market Review, www.polishmarket.com/non-alcoholic_beverage.php)