UOKiK examined the characteristics, relations and level of competition in the Polish beer and hop industry. The authors of the report calculated the average beer prices in Poland based on information provided by the examined breweries on the volume and value of domestic sales.
Beer prices in Poland. Big pressure from retail chains
Individual breweries recorded varying degrees of beer price increases in 2019-2022 – none of them lowered their prices. The varying price increases may indicate strong competition between breweries – in most cases, the scale of price changes was below the inflation rate, which for 2019-2022 was 24%, and also below the index of changes in the prices of industrial production sold, which for that period totalled 31%.
The Office of Competition and Consumer Protection (UOKiK) reports that the increase in beer prices was lower than the overall nationwide price increase indicators, which may confirm the pressure exerted by breweries on retail chains to limit the price movements of this beverage.
The directions of changes in beer sales prices by the surveyed breweries in general and domestic retail prices of this beverage were similar. Retail prices of beer in Poland in 2019-2022 increased by 12%, among others due to the increase in energy and transport costs, but also due to, for example, the increase in the rate
excise duties.
Source – UOKiK study based on questionnaires
The Office of Competition and Consumer Protection writes that when analysing the financial statements of beer companies filed with the National Court Register, one can observe a generally decreasing profitability, despite growing revenues resulting from inflationary phenomena.
Breweries have drawn attention to the increase in the costs of producing the drink, excise duty and, as a result, the shelf prices of the drink – in their opinion, this results in a reduction in demand. As a result, some breweries are closing factories or reducing capacity due to the lack of supply in demand. Due to high prices, the competitiveness of the export offer of Polish breweries is decreasing. At the same time, according to the respondents, the Polish market is attractive for offers from abroad.
Dumping beer prices
In the UOKiK report, we read that among the statements there was the issue of the use of "dumping prices" or "significantly lower prices" by some entities on the market. It was the subject of a separate analysis by
UOKiK websites.
– We would like to point out that different production recipes limit the possibilities of comparing the costs incurred and the selling prices of beer due to the wide range of raw materials used. Contrary to appearances, this is not a uniform group of products. Similarly, beer prices differ between individual industrial breweries, which may be influenced by, for example, the organization of obtaining raw materials or the scale of the business. Different prices of beer may therefore be the result of the way in which purchases are organized, the indicated differentiation of raw materials or the final product – the office explains.
Kompania Piwowarska is doing well
– The total revenues of the surveyed beer companies grew at a moderate pace, from PLN 12.1 billion to nearly PLN 12.6 billion in 2019-2021. A greater increase occurred in 2022, to nearly PLN 14 billion. Sales revenues were similar to total revenues throughout the analysed period – they were constantly around PLN 200 million lower. The total net profits of the companies increased significantly from PLN 947 million to over PLN 1.3 billion in 2019-2021. They fell sharply in 2022, to PLN 975 million – the office notes.
The highest level of net profit was achieved in the Kompania Piwowarska SA group – PLN 754 million and in Grupa Żywiec SA – PLN 111 million. On the other hand, losses were recorded in Browary Łódzkie SA (PLN 9.1 million), Browar Głubczyce SA (PLN 4.5 million), Browar Witnica (PLN 1.2 million), and Jako Sp. z oo (PLN 1.1 million).
zloty).
