Vodka production on target for complete privatization by end of 2003

Vodka production in Poland stands a high chance of being completely in private hands by as early as the end of 2003, provided the government maintains the pace of the sector's restructuring. This will help those Polmos spirit distillers still awaiting an investor to stay afloat a little longer. By the end of October the State Treasury had privatized 11 out of 21 distillers in the Polmos group and is looking forward to further transactions later this year. This should be considered a significant result as the whole process, starting with the first investor coming in, was finally initiated only last year following a protracted period of turmoil and in-fighting between vodka producers over brand ownership. Once the brand disputes were finally settled, however, the Polmoses failed to attract much attention due to their poor financial state. Another setback to the process was the lack of a long-term fiscal policy, especially with respect to excessive excise duty. The next companies in line for privatization are Polmos Zielona Gora, to go to Swedish Vin&Spirit, and Polmos Warszawa, to be leased to its own workers. The Treasury Ministry is also counting on a swift conclusion of the contract for the sale of Polmos Konin. To date, three investors have expressed interest in the distiller. (Prawo i Gospodarka, p.6) J.K.