Celmar seeks to break dependence on Biedronka via brand development

Celmar, a company selling tea and coffee, is searching for an investor to help develop its brand name and to increase domestic and international sales. "If we do not reach an agreement with an investor, we will attempt a flotation on the Warsaw Stock Exchange," said Pawel Troczynski, a co-owner of Celmar. He was reluctant to name the companies which are interested in the offer, but Puls Biznesu unofficially learned that Julius Meinl, a coffee producer from Austria appears to be the leading potential investor. "Half of Celmar's sales (around zl. 30 million) are generated by a product which is sold through the discount chain store Biedronka. If the store refuses to prolong the contract, Celmar's sales would drop by 50%. Many coffee producers operate on the verge of profitability. This is why Celmar has to invest in the development of the brand," a food market researcher said. (Puls Biznesu, p. 12) K.Z.