Polish Vodka Producer Grupa Sobieski Buys Vodka Plant In Ukraine

WARSAW, Poland -- Vodka producer and distributor Grupa Sobieski, which is part of the French Belvedere group, bought a vodka and liqueur production plant Cherkassky LWZ in Ukraine, the company announced in a statement.


"In February 2008 the group bought the Cherkassky LWZ plant in Ukraine," the statement reads. The company didn't disclose the acquisition price.

Grupa Sobieski's financial director Dariusz Jamiola said that the Ukrainian acquisition is of strategic importance to the group.

"The acquisition in Ukraine is strategic for us," he was quoted as saying. "Now our brands[...]will be available also in Ukraine."

The company plans to produce its flagship Sobieski vodka brand in the Ukrainian plant. The company will also sell other products in Ukraine like Danzka vodka, Gautier cognac and Bulgarian Therga wine.

The company also hopes that the Ukrainian market, which is two times larger than the Polish alcohol market, will help increase Sobieski's revenues and position.

According to the statement, Ukraine is the second largest alcohol market in the world, behind Russia.

The Ukrainian plant will be the Polish vodka producer's second foreign production unit as it already owns a plant in Lithuania.

Grupa Sobieski has a 28% market share in the Polish spirits market.

In 2007 its revenue in Poland came to PLN 2.2 billion ($914 million).

The group's owner Belvedere Group, listed in Paris, plans to debut on the Warsaw Stock Exchange. Press reports say the debut on the Warsaw bourse could take place even this quarter.

Source: Interfax