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Kompania Piwowarska: Significant growth in sales and market share in 2008

13 February 2009

Results for 12 months, untill December 31, 2008

MOST IMPORTANT RESULTS

  • Sales 15.0 M hl, growth of 6.2% compared to 2007
  • Market shares 42.1%, growth of 1.7% compared to 2007
  • Export 444 K hl, growth of 46% compared to 2007
  • Market share of Tyskie brand 17%
  • Market share of Żuber brand 12,8%

• Market share of Lech brand 7,6%


Comments by the Managing Director

Dieter Schulze, Managing Director of the Brewing Company [Kompania Piwowarska (KP)] said:
"In spite of the difficult conditions, Kompania Piwowarska registered very good results - mainly owing to a balanced portfolio of favorite consumer brands as well as splendid sales, which spell good prospects for further growth. The results obtained in the previous year also mirror the influence of unfavorable macroeconomic in Poland and abroad, inclement weather, increase in prices of raw materials and, what is equally important, the general slowing down in brewing industry which is taking place after many years of dynamic growth. A significant increase of taxes to be introduced at the beginning of March together with the attempts at further limitations imposed on advertizing will challenge the whole brewing industry at a worst possible time, in view of the fact that the industry employs over 700 K. people and generates ca. 2 % of tax revenue for the state."


Sales results and market share

Throughout the 12 months, January through December 2008, domestic sales of Kompania Piwowarska SA, owned by SABMiller Group, reached 15 M hl which registers growth of 6.2% in comparison to the results of the year before. The organic growth (without inclusion of the sale results by Browar Belgia) reached 4.7 %,hence it was nearly three times higher than the growth registered in the brewing industry (1.7%). The exports grew by over 46% and reached 444 K hectoliters.
 
The market share of KP on the domestic beer market (ca. 35.6 M hl) reached 42.1% (growth of 40.4% in 2007).

All the major brands of KP increased sales and the market share. Tyskie was the best selling Polish brew and its market share grew to 17%. Żubr remains the second best brand in Poland (market share of 12.8%). Lech is in the third place in the KP portfolio, with the market share of 7.6%. Redd's - the brand made especially for women - retained its role as a leader in flavored beers and increased the market share to 1.4%.


Investments

Kompania Piwowarska has completed its investment program and increased the production capacity of the Lech Brewery in Poznan. Currently, the capacity stands at 7.5 M hl annually and this brewery is one of the biggest and most modern in Europe. Last year, several dozen new fermentation tanks were constructed together with a new brew-house, new filtration line was installed as well as a state-of-the-art bottling line which fills up cans at the rate of 100 K per hour, and a new storage facility was built. 250 M zloty were allocated for the investments. Today, the production capacity of Kompania Piwowarska  is at over 18 M hl annually.

***
Kompania Piwowarska [the Brewing Company] - the leader of the brewing industry in Poland
Kompania Piwowarska is the biggest brewing enterprise in Poland. Several centuries of experience in the brewing industry, state-of-the-art technology and the rigorist observance of the norms of production categorized as World Class Manufacturing guarantee the highest quality of the product. The company offers the following brands: TYSKIE (the favorite beer of Poles), ŻUBR (number two in volume sold in Poland), LECH, Dębowe Mocne, Pilsner Urquell, Redd's, Dog in the Fog, Miller Genuine Draft and Peroni Nastro Azzurro. The Brewing Company was established in 1999 through a merger of Tyskie Browary Książęce [Tychy Duke's Brewery] and Lech Browary Wielkopolski [Lech Great Poland Brewery]. Browar Dojlidy [Dojlidy Brewery] in Białystok joined the Company in 2003 and the Brewery of Kielce in 2008. The volume of sales by the KP reached 14.5 million hectoliters of beer in the financial year concluded on March 31, 2008. .
SABMiller - on the biggest world manufacturers of beer
Kompania Piwowarska is a part of one of the biggest manufacturers of beer in the world - SABMiller plc. The group is present in over 60 countries on six continents, and its portfolio includes over 150 well-known brands (among others, Pilsner Urquell, Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro, and Castle Lager). SABMiller plc is among the biggest companies in the world (outside of the US) bottling the products of Coca-Cola. In the financial year of 2008, concluded on March 31, SABMiller registered gross receipts of 21.4 billion dollars and reached gross profits of 3.2 billion dollars. The sales of beer reached 239 million hl.


Additional information can be obtained from:

Paweł Kwiatkowski
Director for Corporate Affairs and Company Spokesman
KOMPANIA PIWOWARSKA SA
ul. Szwajcarska 11, 61-285 Poznań
Telephone +48 61 8787 881
Fax +48 61 8787 850
Mobile +48 601 599 198
pawel.kwiatkowski@kp.sabmiller.com
www.kp.pl

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