Poland: Kompania Piwowarska's reached best results ever

Kompania Piwowarska's sales in the first quarter of 2006 year (January 1st - March 31st) were up on the same quarter for the prior year by 10.5 %. With sales of 2.3 million hectolitres, Kompania Piwowarska reported on April 26 the largest volume of beer sold to domestic customers among all beer companies in Poland. The Polish brewing industry sales grew in the same period (1st quarter 2006 vs. 1st quarter 2005) by 2.3%.

The strong sales growth achieved by Kompania Piwowarska over the quarter equates to a market share of 39%. This represents an increase of market share of 1.8% (vs. the first quarter of 2005).

Sales performance in 12 months (April 1st, 2005 - March 31st, 2006)

KP's financial year begins on April 1st and ends on March 31st as it is synchronized with the accounting year of SABMiller. Over the financial year (i.e. April 1st, 2005 to March 31st, 2006) KP sales equaled 11.4 mln Hls, an increase of 11% over the prior year, the highest volume sold in Polish domestic market within a period of 12 months. KP's market share equaled 37.5% in that period (based on GUS producer sales data).

Please note: During past year the basis for market shares calculation has been changed and now it reflects corrected data based on Polish Central Statistical Office (GUS). KP's market share for the financial year 2004/2005 (ended on March 31st, 2005), based on Polish Brewers Association (ZPPP) data, was reported to be 37.5%, while the Association does not monitor the whole beer market. The corrected, recalculated KP's market share for that year was 36.0%. Therefore the market share of 37.5% achieved in the financial year 2005/2006 ended on March 31st, 2006 represents growth of 1.5%.

Company Comment

"Our outstanding sales results during the first quarter of 2006 - says Pawel Kwiatkowski, Kompania Piwowarska's Spokesman - were the direct result of continuous improvement achieved in all fields across the whole company. Effective brand portfolio management has been matched by excellent customer service and increased reach of our sales forces. We have demonstrated we can satisfy consumers' needs better and more effectively than other players of the beer industry."

2. BRAND PORTOFLIO MANAGEMENT

Tyskie honoured with "a beer Oscar Award".

On 15 March 2006 a ceremony of handing 'beer Oscars' took place in London. This most prestigious competition of the global beer industry, The Brewing Industry International Awards, has been held on a regular basis since 1886 year. The contest's latest edition was a stunning success for Polish brewers: a gold medal and an all round Champion award were awarded to Tyskie Gronie. During the London gala, representatives of the Tyskie Gronie brand received the gold medal and the all round Champion Beer award in the 'packaged lager' category.

No Polish beer had been awarded such a prestigious award before. And, Tyskie is the first beer brand in history to have won medals in three successive competitions: first time in 2002 (Gold Medal and Champion Beer), second time in 2004 (Silver Medal) and now a third time in 2005.

New brands within Kompania Piwowarska brand portfolio

The first quarter of 2006 year has been a busy period for Kompania Piwowarska as we have been preparing the launches of three brands: PERONI NASTRO AZZURO, a new Redd's variant, REDD's SUN and an alcohol-free extension of one of the biggest brands in Poland, LECH FREE.

Peroni Nastro Azzurro , SABMiller's international premium lager brand, has been launched in Poland as of April 2006. The value of the international premium lager beer segment is estimated as US $ 250 million .

The launch has been designed in quite an innovative way offering consumers a unique experience celebrating Italian style. Events will be rolling out across Poland's major cities, including Warsaw, Krakow, Poznan, Wroclaw and Gdansk-Sopot-Gdynia.

The introduction of Peroni Nastro Azzurro in Poland will reinforce SABMiller's position in the country's international premium beer segment, and breathe new life into the category. "We believe that Peroni Nastro Azzurro's unique, authentic offering - Italian style in a bottle - will bring a true meaning of 'premium' to the category, making it the premiere choice for consumers seeking quality, stylish products that look and taste great", said Chris Taylor, SABMiller's international brand director for Peroni Nastro Azzurro.

Brewed in Italy for over forty years, Peroni Nastro Azzurro is imported to Poland directly from its brewery in Padua, in Northwestern Italy. Peroni Nastro Azzurro has seen strong adoption by upmarket consumers across all markets, thanks to targeted distribution at some of the most desirable style bars and restaurants.

Redd’s Sun is a new taste variant of a beer brand famous so far for its apple and raspberry flavours.

'The new citrus-flavoured beer is an offer for lovers of exotic fruits and ingenious taste sensations. This is a beer ideal for spring parties and hot summer days', says Pawel Kwiatkowski, KP's Corporate Affairs Director. This, however, is not the end of changes to the brand. Soon the market will witness new packaging for Redd's. Due to a vertical logo and an untypical label shape, Redd's new packaging is modern and innovative while a unique colour code makes it easy to be found on crowded shop shelves, explains Pawel Kwiatkowski.

In the past quarter Kompania Piwowarska has also launched Lech Free a new brand extension of one of the flagship brands. The launch of this product has been a response to social changes taking place in Poland. Currently alcohol-free beer segment is relatively small, but its role will increase together with consumer attitude changes - active life styles becoming more popular. Lech brand is consistent in building its image as a modern and innovative brand preferred by discerning, dynamic consumers who value a good time.

The new product alcohol contents is below 0,5%. It has an excellent taste, which differentiates the product among majority of other alcohol-free products.

3. CHANGES IN KOMPANIA PIWOWARSKA'S DISTRIBUTION SYSTEM

As of April 1st (beginning of the financial year), Kompania Piwowarska introduced changes to the former distribution system for the traditional market.

The new strategy focuses on the concept of the "Business Partner of Choice" through building long-term relations with strategic business partners of Kompania Piwowarska. The distribution model continues to be built upon working through wholesalers. This is an optimal solution for the Polish market from the point of view of the clients and also to assure product availability to customers.

The changes will contribute to improved profitability of both Kompania Piwowarska and its business partners by reinforcing the existing business model and aligning support of both parties. KP will support its business partners both technically and financially.

"The purpose of this activity is the continuing desire to adjust our offering to increase our competitive advantage on the market. With this change we can be more effective in building our common business using appropriate promotional and marketing activities. Better allocation of support will enable us to compete more effective and to better respond to consumer needs, said Tomasz Blawat, Kompania Piwowarska's Vice President for Sales and Distribution.


According to an independent study carried out by PENTOR, Kompania Piwowarska is considered the unquestionable leader in customer service quality among all beer companies in Poland. Our company is the leader in general customer satisfaction rankings which means that also distributors, retail chains, traditional stores and catering outlets consider us the best business partner in Poland.

Kompania Piwowarska - The industry leader in Poland Kompania Piwowarska is the biggest and the most profitable company in the brewing industry in Poland. Several hundred years of brewing experience, modern technology and rigorous adherence to World Class Manufacturing principles guarantee the uncompromising quality of its products. Its brand portfolio includes: TYSKIE, the biggest beer brand in Poland, ZUBR, LECH, Debowe Mocne, Pilsner Urquell, Redd's, Dog in the Fog and Miller Genuine Draft. Kompania Piwowarska was established in 1999 as a result of the merger of Tyskie Browary Ksiazece and Lech Browary Wielkopolski. In 2003, the company acquired Browar Dojlidy. In the financial year ended on 31 March 2005, Kompania Piwowarska achieved a net profit of PLN 481 million on sales revenue of more than PLN 3.3 billion.

Kompania Piwowarska is part of SABMiller plc. SABMiller plc is one of the world's largest brewers with brewing interests or distribution agreements in over 60 countries across five continents. The group's brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market leading local brands. Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world.

In the year ended 31 March 2005, the group reported US$2,194 million pre-tax profit and a turnover of US$14,543 million on a UK GAAP basis. SABMiller plc is listed on the London and Johannesburg stock exchanges.

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