Kompania Piwowarskaimbibes Browar Belgia

Kompania Piwowarska (KP), the producer of Poland's top two beers, has acquired 99.96 percent of Browar Belgia (BB), the country's fourth-largest brewer from Palm Breweries NV for an estimated zł.65 million. After the deal, which regulators are expected to approve by the end of the year, KP will boast a production capacity of some 16 million hectoliters of beer annually. The takeover gives KP the production capacity it needs to keep up with the growing demand for its leading Tyskie and Żubr brands.

"We are optimistic about our future growth prospects, and the acquisition of Browar Belgia is in line with our development strategy. Now we have increased production without having to develop a greenfield site," said Mark Bowman, KP's CEO.

Established in 1999, Browar Belgia produces over a million hectoliters of beer yearly, under brands such as Frater, Gingers, Lemon's and Wojak. BB employs some 350 people and last year earned revenues of E57.7 (zł.217.5) million.

Analysts say the takeover adds to KP's advantage over the competition, such as the famous Żywiec.

"From now on it will be even more difficult for Żywiec and Carlsberg to catch up with KP, which keeps increasing its production and will probably will be able to meet 50 percent of the domestic demand for beer by the end of 2008, in line with its development strategy," commented Patrycja Ciosek, a retail analyst at PMR Publications.

"The niche brands have great market potential and with the right promotion they can enjoy a very warm welcome on national level. That is why I believe KP will keep Belgia's Ginger and Frater brands," added Ciosek.