UOKiK cuts off takeover

The Office of Competition and Consumer Protection (UOKiK) blocked Central European Distribution Corporation's (CEDC) plan to take over a local vodka maker and strengthen its position in the Polish market.

Carey Agri International Poland, which is part of the CEDC capital group, planned to take control over Polish firm Jabłonna, which holds a controlling stake in vodka producer Polmos Lublin.

"As a leading spirits distributor and producer in Poland, CEDC could gain too strong a position in the local market on the back of this acquisition," the anti-monopoly office's statement said. CEDC already owns two vodka makers in Poland - Polmos Białystok and Bols. It also owns more than ten wholesale outlets of alcohol across Poland.

In the statement the office claimed that by taking over Polmos Lublin, which is the owner of the Żołądkowa Gorzka flavoured vodka brand, CEDC would see its Polish market share to rise to far above 40 percent, potentially "significantly threatening" competition in the industry.

Last year CEDC bought a majority stake in Polmos Białystok - Poland's second-largest vodka producer and the owner of the renowned Żubrówka (Bison Grass) vodka brand. Białystok controls about a fifth of the local market - which is the world's fourth-largest after Russia, the United States and Ukraine. Bols is estimated to have around around 11 percent of the market.

As the statement underlined, the acquisition of the Żołądkowa Gorzka brand would mean that CEDC group would have five out of the 10 most popular vodka brands in Poland.

UOKiK also thinks the consolidation will have adverse effects on the wholesale distribution market of potent alcohol.