Tapping up the vodka market
Eight companies have already submitted offers to the government for a controlling stake in Poland's second-largest vodka producer. The list of contenders includes players in the international alcohol market, such as France's Pernod Ricard, U.S. firm Central European Distribution Corporation (the largest vodka distributor in Poland), Sweden's Vin and Spirit (the owner of the Absolut vodka brand), and Russian-Cypriate firm SPI Group.
Polmos Białystock (PB) claims one-fifth of the vodka market in Poland on the back of its hugely popular Żubrówka and Absolwent brands, and its sales exceeded zł.1 billion. The Treasury Ministry expects to make zł.800 million from the sale.
"Our firm is big and successful," said president of PB's board, Jan Małachowski. "That's why so many companies are interested in us-it's worth it to have such a company."
It doesn't hurt that the Polish vodka market is estimated to have a total value of zł.7 billion, with the CEE region representing some 80 percent of vodka sales worldwide. With such huge opportunities, it's no wonder so many international alcohol producers and distributors are interested in getting a piece of the action.
Although they haven't submitted an offer yet, even British alcohol giant Diageo (owner of such famous brands as Smirnoff, Johnnie Walker, Guinness and Capitan Morgan's) has stepped into the fray. They plan to cooperate in the takeover with the fifth-largest vodka producer in Poland, Polmos Lublin (PL). "PL and Diageo have signed an initial agreement," an anonymous source close to the deal told Puls Biznesu last week. "The British concern may become the Polish company's partner in the PB privatization tender."
PL has long expressed its interest in its competitor from Białystok, but until now has been looking for a strategic partner to complete the deal. PL will debut on the WSE later this month-making it the first company in the sector to enter the bourse.
For its part, the government has said that it plans to sell between 20-30 percent in PB to individual investors sometime in the first quarter, and a majority stake to a strategic investor later this year.
"The prospectus is being analyzed at the moment," said Małachowski. "We are expecting a decision soon."
Other companies that have lodged bids with the Treasury Ministry are Polmos Siedlce, Bols, Sobieski Dystrybucja and Alti Plus.
Polmos Białystock (PB) claims one-fifth of the vodka market in Poland on the back of its hugely popular Żubrówka and Absolwent brands, and its sales exceeded zł.1 billion. The Treasury Ministry expects to make zł.800 million from the sale.
"Our firm is big and successful," said president of PB's board, Jan Małachowski. "That's why so many companies are interested in us-it's worth it to have such a company."
It doesn't hurt that the Polish vodka market is estimated to have a total value of zł.7 billion, with the CEE region representing some 80 percent of vodka sales worldwide. With such huge opportunities, it's no wonder so many international alcohol producers and distributors are interested in getting a piece of the action.
Although they haven't submitted an offer yet, even British alcohol giant Diageo (owner of such famous brands as Smirnoff, Johnnie Walker, Guinness and Capitan Morgan's) has stepped into the fray. They plan to cooperate in the takeover with the fifth-largest vodka producer in Poland, Polmos Lublin (PL). "PL and Diageo have signed an initial agreement," an anonymous source close to the deal told Puls Biznesu last week. "The British concern may become the Polish company's partner in the PB privatization tender."
PL has long expressed its interest in its competitor from Białystok, but until now has been looking for a strategic partner to complete the deal. PL will debut on the WSE later this month-making it the first company in the sector to enter the bourse.
For its part, the government has said that it plans to sell between 20-30 percent in PB to individual investors sometime in the first quarter, and a majority stake to a strategic investor later this year.
"The prospectus is being analyzed at the moment," said Małachowski. "We are expecting a decision soon."
Other companies that have lodged bids with the Treasury Ministry are Polmos Siedlce, Bols, Sobieski Dystrybucja and Alti Plus.
