Grupa Zywiec starts consolidation of Warka and Elbrewery

Grupa Zywiec, the brewing concern that controls 31.4% of the Polish beer market, has announced plans for complete consolidation of its breweries Warka and Elbrewery. This is the latest step in the company's restructuring plan, which aims to limit production costs. According to earlier announcements, the restructuring program will result in staff cuts of 300 persons from the Warka, Hevelius and Lancut breweries. Grupa Handlowa Sp. z o.o., the company implementing a uniform marketing and promotion strategy for all Grupa Zywiec's brands, has begun its work this week. According to sector analysts, the fact that Grupa Zywiec continues to hold first place in the market indicates the efficiency of the restructuring program thus far. They warn however that this year may be very difficult for minor beer producers, since two excise tax increases are expected. Marek Jakubiak, the vice-president of Krotoszyn Brewery, predicts that the retail price of beer could increase as much as 20%, leading to a 10% decline in sales. Such a competitive environment could mean that only big players will survive on the market. (Prawo i Gospodarka, p.17; Puls Biznesu, p.5) A.D.