Soft drink takeover

Soft-drinks producer Hoop confirmed its interest in taking over the assets of drinks manufacturer Hellena. "We will see what we can buy and then decide what to invest in," the president of Hoop, Marek Jutkiewicz, told Parkiet.

It is still uncertain whether Hoop will buy Hellena's brand name or if it will also take over its production and distribution. Hellena applied for bankruptcy in June 2005 after revealing debts of zł.30 million and rumors of Hoop taking over Hellena's assets have been circulating ever since.

Court documents show that Hellena was worth zł.252 million, with the brand valued at zł.70 million. The firm recorded a multi-million loss in 2004 due to a huge drop in sales as a result of the cold summer and an increase in the price of sugar after Poland's accession to the EU.

If the acquisition takes place, Hoop will join the top tier of domestic non-carbonated drinks and fruit-juice producers. When it applied for bankruptcy, Hellena was estimated to have a 17-percent market share. According to research company MEMRB in October 2005 both Hellena and Hoop had around seven percent market shares in the non-carbonated beverages and juices market. If the buyout takes place, Hoop could challenge third-placed Hortex (13-percent market share).