Poland: Royal Unibrew Polska streamlined for profitable growth
Scandinavia's second largest brewery business Danish based Royal Unibrew A/S announced on June 28 that it concentrates all Polish activities in Royal Unibrew Polska Sp. z o.o. The new company will headquarter in Krakow. – As a member of Royal Unibrew we are a part of a financially sound international company enabling us to invest and build a profitable business in Poland during the next three years, Robert Papla, CEO Royal Unibrew Polska said at today's press conference.
April 2005 Royal Unibrew subsidiary Faxe Polska S.A. situated in Poznan acquired all key assets and activities from Polish brewery business Browary Polskie Brok-Strzelec. In addition Royal Unibrew acquired 48% of the shares of Perla-Browary Lubelskie S.A. As the result of the transaction Royal Unibrew Polska was formed with Robert Papla as managing director.
The acquisition of assets and activities related to Brok-Strzelec and the establishment of regional brand positions in Poland are elements of the realisation of Royal Unibrew's Strategic Plan 2005 – 2007, in which Poland is one of the target areas for profitable growth in Northern Europe. Since 2000 the Royal Unibrew company have doubled the share price and optimised the business worldwide. Today Royal Unibrew is a financially very sound company geared for international expansion, Leo Blaabjerg S¸rensen, member of Royal Unibrew country supervisory boards said in his introduction of the company's strategies and international activities.
In order to meet the financial targets of two-digit return on investment and EBIT margin within three years as stated in MACH II the Polish activities will be streamlined and optimised. The new head office will be fully establish in Krakow end of July 2005, whereas the former Faxe Polska office in Poznan eventually will be closed. The two breweries in Jedrzejow (Strzelec) and Koszalin (Brok) respectively will be maintained. In total Royal Unibrew Polska will have some 340 employees of which approximately 90 in sales and marketing. - By centralising our key administrative functions such as finance, accounting, purchase, sales, marketing, logistics and distribution in Krakow we expect to gain significant synergies. In addition Royal Unibrew Polska plans a continuous growth strategy in the coming years with intensified activities concentrated in the regions where existing and newly acquired brands are well established, Mr. Papla emphasised.
The two Royal Unibrew Polska breweries in Jedrzejow (Strzelec) and Koszalin (Brok) respectively have a combined production capacity of some 1 million hectolitres per year. – The two breweries are equipped to high technological standard. This gives us the flexibility and quality needed to further develop our brand portfolio. We also have the advantage of proximity when supplying our regional customers. Our plans for the production facilities includes further development and investments as well as implementation of best practises and production excellence as seen in Royal Unibrew's other breweries in Denmark and the Baltic Countries, Mr. Papla said.
According to Mr. Papla all new brands will remain in Royal Unibrew Polska's portfolio and the emphasis will be put on high standard and top quality. Additionally, the company plan to introduce and develop new brands as well as the unification of all existing products. The key brands of Royal Unibrew Polska includes Faxe, Brok Sambor Export, Sokóù and Cooler distributed and sold nationwide as well as 4 regional beer brands (Brok Sambor, Strzelec, Rybnicki and Kanclerz) which create strength in the Krakow area, in Upper Silesia and on the Baltic seaboard based on breweries in Jedrzejow and Koszalin. The Royal Unibrew Polska brands are distributed in retail and catering markets through a total of 200 wholesalers. - The activities will be supported by significant marketing and PR investments emphasizing specific brands' positioning and image. Development plans by the end of 2005 comprise already completed consolidation of the sales department and development of logistics system as well as complete standardization of administrative systems, Mr. Papla concluded.
Royal Unibrew A/S is the second largest brewery group in Scandinavia. Its head office is located in Faxe, Denmark. The company comprises four Danish, two Lithuanian breweries, two Polish breweries, one Latvian brewery and one Latvian soft drinks producer. The Danish breweries are Albani Bryggerierne, Ceres Bryggerierne, Faxe Bryggeri and Maribo Bryghus. The Lithuanian breweries are Tauras and Kalnapilis; in Latvia, Royal Unibrew owns the brewery Lacplesa and the soft drinks producer Cido, and in Poland, the breweries Brok and Strzelec. In Norway, Royal Unibrew holds 25% of Hansa Borg Bryggerierne, which also produces some of the company's products under licence. Furthermore, Royal Unibrew's products are produced under licence in the Caribbean and Africa. Royal Unibrew has approx. 2,300 employees worldwide and exports to approx. 65 countries throughout the world.
In 2004 Royal Unibrew recorded revenue of almost EUR 400 million. Within 2007 as stated in MACH II the company's revenue target should be at least DKK 600 million.
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