Zywiec posts zl.463 million losses due to restructuring

Grupa Zywiec, the nation's biggest domestic beer producer, recorded a loss of zl.463.2 million last year. This poor showing was mainly due to lower sales as well as high restructuring costs. These breweries belonging to Heineken produced only 7.5 million hectoliters, 0.9 million less than in 1999. Sales of EB, at 2 million hl., were particularly below expectations. Meanwhile payments connected with mass layoffs and other restructuring costs reached zl. 364 million. "Integration of four brewing companies in Poland [Zywiec, Elbrewery, Warka, Lezajsk] is more difficult then we expected. Such processes in Spain and Italy went much easier," said Heineken president Karel Vuursteen. He also suggested that the situation is complicated because of second-place competitor Kompania Piwowarska (producer of Lech and Tychy), which started its restructuring and integration earlier. So far, Zywiec Group has shut down two breweries in Gdansk and Lancut, created a new distribution network, and introduced new bottles and cases. Restructuring will be completed this year, according to Vuursteen. Zywiec Group holds a 31% share of the domestic market. (Rzeczpospolita, p.B8) M.K.