Poland drinks: InBev bringing Beck's to Poland
FROM DATAMONITOR
InBev and Pepsi have announced a partnership to sell and
distribute Beck's beer in Poland.
In teaming up to bring Beck's to Poland, InBev and
PepsiAmericas have formed an alliance that will benefit from the combined
strengths of the Beck's brand and PepsiAmericas' distribution power.
Furthermore, the move should safely position InBev to make its overdue entry
into the emerging Polish market.
Through the partnership, Beck's will be available in Poland
from July
4, 2005. InBev, the world's largest beer brewer by volume, has three
major international brands in its portfolio: Beck's, Stella
Artois and Brahma. PepsiAmericas,
meanwhile claims to serve more than 40,000 retail accounts in Poland, with a
sales and distribution network that the company believes is one of the strongest
in the country.
Four key qualities distinguish Poland as an attractive market
for beer manufacturers: its beer market is growing; Polish consumers are showing
an increasing affinity for premium beers; the country expects an economic boost
from its May 2004 EU accession; and it has a growing population.
The Polish beer market is expected to see a 3.3% five-year
average annual growth rate through to 2009, making it the third fastest growing
in Europe after
Russia and
Spain. This
compares favorably to the overall European growth rate for this five year period
of just 1.5%. As such, InBev competitors SABMiller, Heineken and Carlsberg have
already been pursuing Poland, recognizing it as a hotspot for beer market
penetration. So far, InBev has fallen behind in this trend, maintaining only a
small presence in the country with its German beer Franziskaner.
Polish consumers' beer choices reflect the trading-up trend
seen in western beer markets of late. In many western markets, young adult
consumers (those from the legal drinking age up to 24 years) are increasingly
trading up to higher quality premium beers as a way to exude connoisseurship. In
Poland a similar pattern is set to emerge, and Beck's will benefit from the 2.5%
CAGR expected through 2009 in the country's premium lager category.
Overnight stock gains for InBev reflected investors' positive
reaction to the PepsiAmericas partnership. InBev has shown that is finally ready
to compete in Poland, and all without investment in a costly acquisition or
localized brewery. Furthermore, if the Beck's launch is successful, InBev would
also be well positioned to benefit from expected growth in the Polish specialty
beer market, given its Hoegaarden and Leffe brands.
SOURCE: Datamonitor
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