The President of UOKiK has banned a merger between companies from the spirit branch. In the opinion of Cezary Banasinski, the take over of the company Jablonna by Carey Agri would restrict the competition on the market

On 23 January 2006, Carey Agri International Poland, a part of the Central European Distribution Corporation capital group, issued a notification to UOKiK for approval to take over of Jablonna company, that already controls Polmos Lublin, the biggest Polish vodka producer and the owner of Zoladkowa Gorzka brand. The CEDC group owns several alcohol wholesale facilities and two producing companies, i.e. Bols and Polmos Bialystok (owners of such brands as: Bols, Soplica, Absolwent and Zubrowka).

Since the total turnover of the transaction participants exceeded the amount of EUR 50 million, the concentration had to be reported to the President of the Office of Competition and Consumer Protection.
In the course of the antimonopoly proceeding, UOKiK stated that CEDC, being the leading distributor and producer of alcoholic beverages in Poland, could, by taking over the next company from the sector, gain a too strong position on the market. The analysis of concentration carried out by the Office showed, that the transaction would seriously restrict the competition on the national market of flavoured vodka. Taking over control by the CEDC group of the biggest producer of this beverage in Poland (i.e. Polmos Lublin that is a part of Jablonna Group) would lead to creation of the biggest entity on the flavoured vodka market, whose market share would considerably exceed 40%.

Significant concentration would also take place on the national wholesale market for spirits. In the opinion of the Office, consolidation of the biggest high quality vodka producer and alcoholic beverage distributor could seriously threaten the competition.

Furthermore, the concentration would result in taking over the next brand (Zoladkowa Gorzka) by the CEDC. Consequently, the group would own five out of ten of the most popular vodka brands in Poland.
The decision is not binding. It can be appealed against in the Court of Competition and Consumer Protection.

Additional information:
Elżbieta Anders, UOKiK Press Spokesperson
Department of International Relations and Communication
Office of Competition and Consumer Protection
Pl. Powstancow Warszawy 1, 00-950 Warszawa
Telephone: 22 827 28 92, 55 60 106, 55 60 314
E-mail: eanders@uokik.gov.pl