Brewing strong brands

Grupa Żywiec's sales volume has broken the 11-million hectolitre (hl) mark for the first time. In 2006 it sold 11.05 million hl - an eight-percent increase on 2005. This resulted in consolidated revenue growth of 11.2 percent, from zł.2.844 billion in 2005 to zł.3.164 billion last year.

"Owing to consistency in building a strong brand portfolio and constant improvement in distribution ... we took full advantage of last year's extremely favorable conditions," Grupa Żywiec's president Hans Van Zon said. Last year the group's market share rose to 33.5 percent.

Consolidated net profits of zł.331 million were at around the same level as in 2005. However, if restructuring costs are subtracted, the result would be zł.384 million, equaling 14-percent growth year-on-year. The company is implementing projects which aim to reduce fixed costs by zł.80 million annually until the end of 2008, starting with the closing of its brewery in Bydgoszcz last November.

The group's brands experienced strong growth in 2006. Backed by a potent advertising campaign, Warka achieved 25.5-percent growth - the highest among mainstream beer brands. The company's flagship brand, Żywiec, also saw its sales volume increase by 8.5 percent. Królewskie sales grew by 20 percent and Heineken by 16 percent.