Milo to diversify as demand for cigarettes falls

Milo, the country's largest cigarette distributor, plans to further diversify its product portfolio with a significant alternative to selling tobacco products. Milo is forced to make the move as demand for its core product is steadily falling and the company has already decided to sell mineral water, soon to be followed by beer distribution. Milo's president said that he did not remember a year in which cigarette sales were lower in March than in January and February. At present, tobacco goods constitute roughly 70% of the firm's sales structure but are expected to drop to below 50% within five years. Milo's sales in 2002 stood at zł. 2 billion - zł. 230 million higher than the previous year. (Puls Biznesu, p. 12) M.M.