Żywiec brewing up a sales storm
The consolidated net profit of the Żywiec group reached zł.142 million, which is a five percent growth compared to the zł.135 million recorded in the corresponding period last year. Consolidated operating profit increased by 15 percent, from zł.172 million to zł.197 million and consolidated net sales amounted to zł.1,350 million.
The success of Żywiec Group is a result of several factors. One of them is the development of the Polish brewery market in general. Although in the last five years only 2002 was a record one, with eight percent growth, beer production has displayed an increasing trend, mostly due to good weather conditions. In the first half of 2005 the growth was 4.2 percent, and "if the trend continues the sector might expect a three to four percent growth for the whole year," predicts the president of the management board of Grupa Żywiec SA, Hans van Zon.
The president attributes the Group's good results to the long-term building of a strong brand portfolio in all significant market segments. With a 44-percent market share, Heineken continues to be the most powerful brand in the international premium segment. The Żywiec brand has a major 57 percent share in the domestic premium segment. As to the mainstream in Poland, it is still dominated by Tyskie Gronie (71 percent), whereas Warka Jasne, despite an extensive rebranding process, takes only 24 percent of the segment.
Żywiec brands, including fairly new labels such as Królewskie and Kujawiak, hold very strong position on the market. Actually, three of the Group's brands, Tatra, Żywiec, and Specjal, are among the top-five brands in the country as far as sales volume is concerned.
Żywiec owes its established position to investments in marketing and innovation. It is now a permanaent fixture in consumers' minds, after a series of catchy slogans and advertisements launched last year. "Now you can touch the quality" is the current slogan promoting a new embossed can.
"Innovation distinguishes Żywiec Group from its competitors," says Hans van Zon. "Our investments will enable us to use the group's potential more efficiently."
