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10th anniversary of establishing Kompania Piwowarska – the largest Polish brewing company

5 June 2009

The doubled market share, four times bigger sales, nearly five times larger profits and 2 billion invested in the development of breweries - these are the results of 10 years of existence of the Kompania Piwowarska, the number one brewing company on the Polish beer market. The Company was created in 1999 through the merger of two breweries, in Tychy and in Poznań, and today it boasts of four modern production entities.

Until the year 1999, the breweries in Poznań and Tychy, respectively, were completely independent, strong players on the Polish beer market. Their combined market share was listed at ca. 19.7%. It was a very good indicator as the beer market then used to be much fragmented. The portfolio of brands offered by those two breweries was also totally independent. After the merger, we started building a common portfolio. Tyskie, which was then already a strong brand, was identified as our leading brand. And quite correctly, as the time proved," reminisces Paweł Sudoł, President of Kompania Piwowarska.

Today, the Kompania Piwowarska is the largest and most profitable company on the Polish beer market. In the financial year F09 (12 months, concluded on March 31, 2009), the domestic sales of KP surpassed the level of 15 M hectoliters. The market share reached today 42.9% and the production capacity nearly 19 M hl of beer annually. The portfolio of KP's brands includes the biggest beers in Poland, like Tyskie (17%), Żubr (13%) or LECH (8%). The success of the Company can be traced to the strength of the brands, the passion of people working for KP, and the professionalism of employees, which springs from their international experience...

The motor force of growth
Alan Clark, Managing Director of SABMiller Europe (owner of the Kompania Piwowarska), comments the 10th anniversary of the Company this way:
Kompania Piwowarska from the very outset exhibited the signs of success, which was groundbreaking in itself. What makes it special is the professionalism of the employees. The goals are clear and so is the ambition, and the people crave success. When one enters the Company, one can really observe that tremendous professionalism. Another important distinguishing factor is the strength of the major brands of the Company. Brands such as Tyskie, LECH or Żubr are characterized by strength and flexibility. They are visible particularly well on the market. Many brands are extremely popular but the brands of KP have established an extremely high position on the market, and that is a very important indicator. Kompania Piwowarska plays much diversified roles for SABMiller, but in short one could say that KP is a motor force for growth of the Europeann division of the group. One could even venture a step further and say that KP is a motor force of growth for SABMiller as a whole."

The magic of numbers
Only in 10 years, Kompania Piwowarska has managed to secure the position of a leader on the Polish beer market (the year 2005), double its market share (from 19.7% to 42.9%), increase sales nearly four times (from 4 M hl to 15.1 M hl), together with the production capacity (from 5 M hl to 19 M hl). The Company registered also the nearly five times bigger increase in profits (from 170 M PLN to 757 M PLN) and four times bigger sales profits (from 1294 M PLN to 4754 M PLN). Today, KP employs 700 more employees than 10 years ago and boasts of the portfolio as large as 10 strong brands. It brews beer in 4 most modern Polish breweries located in Tychy, Poznań, Białystok, and Kielce, whose joint capacity reaches 19 M hl of beer annually. In order to reach that production capacity, in the past 10 years KP spent the sum of 2,000,000,000 PLN on the development of its four breweries.
Owing to such a large investment, the Tychy Brewery has become the biggest SABMiller brewery in Europe, and its production capacity has grown from 2.9 M hl to 8 M hl of beer annually. The brewery in Poznań expanded from the capacity of 2.1 M hl to as much as 7.5 M, while the brewery in Białystok from 800 K. hl to 2.5 M hl. In addition, the brewery in Kielce, purchased last year, has the capacity of producing 1 M hl annually.

10th  anniversary of KOMPANIA PIWOWARSKA in numbers
Year


Category 1999 - birth of KP 2009 - 10th anniversary of KP
Portfolio of brands Lech, Tyskie, 10.5 Tyskie, Lech, Żubr, Dębowe Mocne, Wojak, Redd's, Gingers, Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft

Market share 19.7% 42.9%
Sales 4 M hl 15.1 M hl
Production capacity 5 M hl 19 M hl
Number of employees 2500  3200
Breweries comprising  KP Lech Browary Wielkopolski (Poznań), Tyskie Browary Książęce (Tychy) Lech Browary Wielkopolski (Poznań), Tyskie Browary Książęce (Tychy), Browar Dojlidy (Białystok), Browar Belgia (Kielce)
Net profit 170 M PLN 757 M PLN
Sales profits 1,294 M PLN 4, 754 M PLN

Table 1: List of most important facts in the years 1999 - 2009.

More information on the 10th anniversary of KP can be found at http://kp.pl/pl/10_lat_KP


Note for the editor:

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 rigorous 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, Redd's, Wojak, as well as international Premium brands like Pilsner Urquell, 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 15.1 M hectoliters of beer in the financial year concluded on March 31, 2009. .
SABMiller - one 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 produces or distributes beer on six continents, and its portfolio includes internationally known Premium brands (among others, Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro or Pilsner Urquell, as well as leading local brands like Aquilla, Castle Lager, Miller Lite, Snow, and Tyskie). 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 2009, concluded on March 31, SABMiller registered gross receipts of 25.3 B dollars and reached gross profits of 3.4 billion dollars. SABMiller plc is listed on London and Johannesburg Stock Exchanges.
Additional information can be obtained from:

Katarzyna Wilczewska
Public Affairs Manager
KOMPANIA PIWOWARSKA SA
katarzyna.wilczewska@kp.sabmiller.com
Fax: +48 61 87 87 850
Mobile: +48 601 887 966

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