That may be an overly optimistic prediction, considering that fruit-flavored beers have been on the market in Poland for some time and there are already a few well-established brands in the sector.
"We are behind the competition," admits Żywiec's financial director, Marc Goumans. "But we have a strong distribution network and a good-quality product. The market is certainly there."
The company has tweaked the recipe to produce a light and fruity taste. Alcohol content has also been kept lower than your average Polish beer, at 4.5 percent.
The announcement comes along with the release of year-end reports showing Grupa Żywiec solidly in the black for 2004, posting net profits of zł.277 million on consolidated sales of zł.3.63 billion-increases of 34 percent and 13 percent respectively year-on-year. All of the company's brands showed a profit last year, but market forces have been pushing the brewer to find ways to extend its reach.
"Results this year have exceeded our plans," said Nico Nusmeier, president of the board at Grupa Żywiec, adding, however: "The good results do not mean there is no room for improvement."
Company officials are hoping that gains will come in the form of increased total market share, which remained stagnant yoy for 2004, at 36.6 percent. That's just a tick above competitor Kompania Piwowarska (KP), who, after gaining three percent of the market last year to reach 36.4 percent, is nipping at Żywiec's heels. After a strong final quarter of 2004, KP now also holds the country's two most popular beer brands: Tyskie (14.3 percent market share) and Żubr (8.3 percent).
The introduction of Freeq is Żywiec's latest attempt to stem the declining market-share tide. In another effort to extend its reach, the company has taken over former competitor Brau Union, makers of Królewskie, closing down the famous Królewskie brewery in Warsaw in favor of facilities in Warka. Despite this, Nusmeier doesn't think the move will affect the beer's image as a Varsovian specialty.
"Warka is only 50 kilometers away, and we've extended the sponsorship contract with Legia, so the brand will still have a Mazovian identity. We're still in the neighborhood."
Last month, Żywiec also began distribution in Poland of the famous American beer Budweiser, known in Europe as Bud. American beers are seen by many as watered-down and weak, which will present another marketing challenge for the company. Nusmeier, however, remains optimistic. "The American taste profile is light and crisp, very drinkable. I don't see a problem."
Last week, Dutch brewer Heineken, owner of Żywiec, announced 2004 profits one-third lower than 2003, at EUR537 (zł.2,128) million. Danish competitor Carlsberg, who claims 15 percent of the Polish market, also reported disappointing results, with net profits 50 percent lower than in 2003, at EUR64.1 (zł.254) million.
Andrew Kureth
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