Alcoholic beverages in Poland by Nielsen

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 1
ALCOHOLIC
BEVERAGES
TODAY&TOMORROW

AGATALORENC
KAROLINAŻUKOWSKA-SOCHA EDYTAPROKOPIUK BARTŁOMIEJSKORUPA
MATEUSZKOWALADAMDUŻYŃSKI JOANNAGRZYWACZ
INTRODUCTION
Alcoholic beverages sales was worth 32,6 billion PLN in 2017 and accounted for
about a fifth of the entire FMCG market in the country.
In terms of value sales, half of the top 10 manufacturers and 7 out of top 10
brands on food FMCG market originated from the alcoholic beverages business.
While being a significant part of the Polish FMCG market landscape, alcoholic
beverage industry faces serious challenges. A number of legislative changes
have recently been introduced, or are planned for the upcoming months. Fierce
competition and growing costs require in-depth analytics and rational decision
making process. At the same time, Polish retail environment is changing rapidly,
moving to convenience and omnichannel solutions. Shoppers are smart and
seek for new tastes or higher-end value for a reasonable price.
INTHISREPORT
we will cover the current setting of the alcoholic beverages industry and point
out some of the industry’s responses to the trends that can be observed within
this demanding industry.

ALCOHOLICBEVERAGES
EXECUTIVESUMMARY
CURRENT LANDSCAPE
Alcoholic beverages accounted for 1/5 of the
total FMCG sales in 2017 and, similarly
to Cigarettes, achieved lower growths than
other FMCG industries.
Unlike most industries, Alcoholic Beverages are
predominantly located in Small Format at the
same time generating majority of sales of those
outlets, especially of the smallest stores.
Alcoholic Beverages sales are seasonal. The
analysis showed that Spirits sales value peaks
during Christmas time, while Light Alcoholic
Beverages in summer.
In 2017 premium segment overtook economy
as the second largest price segment, after
mainstream. Premium was the fastest-growing
segment in 9 out of 13 researched categories.
TRENDS OF TOMORROW
The alcoholic beverages industry in Poland
is under pressure that comes from all sides
– from consumers seeking extraordinary
experience to the retail landscape transforming
in face of the demanded convenience.
As a response to those challenges, new trends
emerge:
• Specialty and Non Alcoholic Beer sales keep
growing.
• Expanding portfolio of exceptional sparkling
wine variants boosts category sales.
• Whisky sales increase is driven by growing
sales of premium segment, especially in
Discounters, and summer peak of flavored
variants.
• Traditional flavored Vodka in small pack
sizes (<0.5l) is the key driver for the category
development.
• Dark Rum is an alluring alternative to light
as a major segment.

INTRODUCTION

160.2bn
PLN
20.8
82.424.4
32.6
TOTAL FMCG FOOD BASKET
EXCL. ALCOHOLIC
BEVERAGES
ALCOHOLIC
BEVERAGES
DRUG BASKET CIGARETTES
3.9% 5.6%
1.4% 1.2%
4.1%
BE
90.5%
49.
SPARKLING
WINE
0.7%
2.2%
1.2%
VOLU
FASTMOVINGCONSUMERGOODSINPOLAND
VALUESALES(INBNPLN),2017,POLAND
VALUE%CHANGE,2017VS.2016,POLAND
#
Report is dedicated to the off-trade market, excluding the situation of the HoReCa segment. For more
information on the trade structure please refer to the Appendix.
* Source: Nielsen Consumer Confidence Index, Q3 2017.
The retail value of the FMCG sold in Poland was worth 160.2 bn PLN in 2017 experienced a 3.9% growth versus
2016.#
The basket of Alcoholic Beverages has 20.3% value shares in the total FMCG market. It is the second biggest
category group, and owes its high position mainly to Beer and Vodka categories that are jointly worth almost
27 bn PLN. Interestingly, both Alcoholic Beverages and Cigarettes achieve lower growths than other FMCG
industries. It can partially be attributed to the number one concern for Polish consumers – health, with 26%
being currently concerned.*
ALCOHOLICBEVERAGES

32.6 bn
PLN
41.9%
9.2%
WINE&LIQUEURS
TABLEWINE
SPARKLINGWINE
VERMOUTH
DESSERTWINE
LIQUEUR
LIGHTALCOHOLICBEVERAGES
BEER
CIDER
MIXEDALCOHOLICDRINKS
ALCOHOLIC BEVERAGES
WINE & LIQUEUR
SPIRITS
SPIRITS
VODKA
WHISKY
BRANDY
GIN
RUM
3.7%
1.4%
6.7%
5.8%
4.6%
3.0%
48.9%
32.6 bn
PLN
41.9%
9.2%
TOTAL FMCG
3.9%
WINE&LIQUEURS
TABLEWINE
SPARKLINGWINE
VERMOUTH
DESSERTWINE
LIQUEUR
LIGHTALCOHOLICBEVERAGES
BEER
CIDER
ALCOHOLIC BEVERAGES
WINE & LIQUEUR
SPIRITS
LIGHT ALCOHOLIC BEVERAGES
SPIRITS
VODKA
WHISKY
BRANDY
GIN
RUM
3.7%
1.4%
6.7%
5.8%
4.6%
3.0%
2.1%
48.9%
2017 VS. 2016
2016 VS. 2015
-1.2%
INTRODUCTIONOFINDUSTRYGROUPS
Due to a great number of categories in Alcoholic Beverages, a notion of an Industry Group#
is introduced
to provide more insight into the differences without overburdening complexity coming with a fully granular
analysis. Three groups were introduced by arranging categories according to two main factors: alcohol content
and insights on general consumption mode and occasion: Spirits, Wine & Liqueur and Light Alcoholic Beverages.
Light Alcoholic Beverages is the largest Industry Group, though it lost shares in the entire Alcoholic Beverages.
Wine & Liqueur was the fastest growing industry group in the entire basket over the last two years.
INDUSTRYGROUPS,VALUESALES%SHARE,POLAND
INDUSTRYGROUPS,VALUESALES%CHANGE,POLAND
#
For more information on the Industry Groups and category definitions please refer to the Appendix.
ALCOHOLICBEVERAGES

BEER VODKA TABLE WINE WHISKY
90.5%
49.5%
31.4%
7.2%
36.0% 37.1%
6.4%2.9% 1.6% 4.6%
12.2% 13.1%
SPARKLING
WINE
VERMOUTH DESSERT
WINE
CIDER BRANDYMIXED
ALCOHOLIC
DRINKS
LIQUEUR GIN RUM
0.7%
2.2%
1.2%
0.3%
1.9%
1.6%
1.7%
0.7%
0.3%
0.3%
0.3%
0.6%
1.8%
0.2%
0.3%
0.1%
0.9%
1.8%
0.1%
0.6%
1.5%
0.1%
0.3%
0.9%
1.2%
0.3%
0.0%
VOLUME % SHARE VALUE % SHARE SHELF % SHARE
CATEGORIESINALCOHOLICBEVERAGES
%CATEGORYSHARESINALCOHOLICBEVERAGES,2017,POLAND
The basket of Alcoholic Beverages comprises of thirteen distinct categories. Their significance in the industry
depends on the analyzed parameter.
While Beer is the greatest category in terms of both volume and value, it is Vodka that enjoys the most space
on the average store shelf. #
For all categories outside the top four volume generators, the average shelf space share is at least three times
greater than their volume share in Alcoholic Beverages.
#
Throughout the report word ‘shelf’ is used as a synonym for average number of available product variants
(SKU). The number should be considered to be an attempt to quantify the product portfolio available on the
retail market and the changes it is undergoing. For more information on how the shelf analysis was conduc-
ted please refer to the Appendix.
ALCOHOLICBEVERAGES

ALCOHLIC
BEVERAGES
TODAY:
ANOVERVIEW

WHAT,
WHERE&
WHEN?

7.4%
-1.2%
9.2%
10.5%
11.7%
6.3%
7.2%
1.9%
5.6%
3.4%
2.3%
-0.8%
11.8%
1.1%
-3.4%
-11.0%
-8.2%
-2.8%
BEER
CIDER
LIGHT ALCOHOLIC BEVERAGES WINE & LIQUEUR SPIRITS
VODKA
WHISKY
BRANDY
RUM
GIN
SPARKLINGWINE
VERMOUTH
TABLEWINE
DESSERTWINE
LIQUEUR
-1.2% 6.5% 8.0% 5.8% 3.0% 6.6%
SHELF % CHANGE
VALUE % CHANGE
6.4%
9.3%
-3.2%
10.8%
2.4%
14.2%
2.8%
7.7%
DYNAMICSINALCOHOLICBEVERAGES
Most of the Alcoholic Beverages categories enjoyed both value and shelf growths, with the exceptions of Mixed
Alcoholic Drinks and Vermouth, which declined in both aspects. Cider clearly stands out as its value sales
declined – but its shelf expanded.
Wine & Liqueur is the most dynamically growing industry group in terms of value and shelf space. This is largely
due to an increased interest in sparkling and table wines.
Light Alcoholic Beverages and Spirits enjoy similar overall shelf dynamics. Beer is the major driver for the first
group, largely as a result of its significance in the segment.
In Spirits the growth is mostly driven by Vodka growth, particularly its flavored variants. Gin shelf remained
stable over the past two years, despite the category’s fast-developing sales.
DYNAMICS,2017VS.2016,POLAND
ALCOHOLICBEVERAGES

HYPERMARKETS
GROCERIES MEDIUM
SUPERMARKETS
GROCERIES SMALL
DISCOUNTERS PETROL STATIONS
GROCERIES LARGE
ALCOHOLIC
BEVERANGES
SPIRITS WINE & LIQUEUR LIGHT ALCOHOLIC
BEVERAGES
7.2%
11.4%
20.0%
9.9%
22.6%
17.5%
8.5%
2.9%
8.4%
11.9%
20.2%
9.6%
20.9%
15.6%
10.5%
2.9%
15.9%
18.2%
32.0%
8.1%
12.7%
4.7%
7.5%
4.6%
9.6%
17.4%
10.5%
26.0%
21.5%
7.0%
3.3%1.1%
SWEET ALCOHOL
SALESLOCATIONANALYSIS
While sales of FMCG food categories are typically located mainly in Large Format, Alcoholic Beverages are
an exception. This is driven primarily by two biggest categories, Beer and Vodka, which are sold predominantly
in Small Format outlets.
As the structure of trade in Poland changes, so does the sales location of Alcoholic Beverages. In that respect
two major trends can be spotted. Value sales shares of Large Groceries have been growing since 2015, while
value shares of Hypermarkets and Small Groceries were in decline during the same period. This trend can
be seen in other FMCG industries as shoppers’ behaviors are changing. People more often take care of their
everyday needs in more convenient store locations, visiting Hypermarkets mostly for a large restocking
on a bi-weekly, or even monthly basis.*
Among all Industry Groups, Wine & Liqueur group has the most distinct sales location. The group is located
mainly in Large Format with Discounters being the most important channel.
VALUE%SALESLOCATION,2017
ALCOHOLICBEVERAGES
*Source: Nielsen Shopper Trends 2016/2017.

37.8%
28.1%
34.1%
27.8%
34.6%
37.6%
35.9%
30.4%
33.7%
19.0%
43.0%
38.0%
15.6%
46.9%
37.5%
12.9%
50.8%
36.3%
19.3%
52.6%
28.1%
12.3%
45.9%
41.8%
2017 SIZE 2017 VS. 2016 DYNAMICS
LIGHT ALCOHOLIC BEVERAGES WINE & LIQUEUR SPIRITS
HYPERMARKETS
DISCOUNTERS
SUPERMARKETS
GROCERIES
LARGE
GROCERIES
MEDIUM
SWEET
ALCOHOL
GROCERIES
SMALL
PETROL
STATIONS
1542
20.3%
0.5%
521
307 288 205
421
-1.1%
7.4%
8.8%
3.6%
6.5%
142
2.5%
137
ALCOHOLICBEVERAGESSHELFACROSSCHANNELS
The structure of the Alcoholic Beverage shelf is similar to the structure of value sales. The dedicated space dif-
fers across channels and is typically more extensive in Large Format and specialist outlets. Shelf dynamics are
varied between channels, with an outstanding value for Discounters that is a result of in-out policy rather than
permanent listings.
Interestingly, space for Alcoholic Beverages is allocated differently in Small and Large Formats. In the first set
of channels Spirits constitute the majority of the Alcoholic Beverages shelf, while in the latter the situation is
reversed, with Light Alcoholic Beverages and Wine & Liqueur being the core.
ALCOHOLICBEVERAGESHELFSIZEANDDYNAMICS
INDUSTRYGROUPSHARESINALCOHOLICBEVERAGESHELF,2017
ALCOHOLICBEVERAGES

IMPACTOFSEASONALITY
All Alcoholic Beverages categories are seasonal in terms of both value and shelf exposition, with peak seasons
differing among industry groups. The entire basket notes enhanced sales during wintertime, similarly to Spirits.
On the contrary, Light Alcoholic Beverages sell better in summer, especially when the weather is good.
All Wine & Liqueur categories have a peak during winter, with Sparkling Wine being the most seasonal alcoholic
beverage.
Within the Alcoholic Beverage group there are some categories that enjoy an additional sales season different
from their Industry Group – those are Liqueur and Brandy that spike during Easter time. Other examples are
Rum and Dessert Wine that are weather-dependent, as both are ingredients of seasonal drinks. Rum is used
for summer cocktails, while Dessert Wine for mulled wine usually prepared in autumn.
SEASONALITYOFALCOHOLICBEVERAGES
LIGHT ALCOHOLIC
BEVERAGES
WINE
& LIQUEUR
PEAK
SEASON
DESSERT WINE RUM
LIQUEUR BRANDYCATEGORIES
WHITH
ADDITIONAL
SEASONALITY
SPIRITS
ALCOHOLICBEVERAGES

DOSIZE
ANDPRICE
MATTER?

ALCOHOLICBEVERAGES:PRICESEGMENTSTRUCTURE
In terms of product price segmentation,#
Mainstream is unquestionably the greatest segment in Alcoholic
Beverages with relatively stable shares.
Among other segments a substantial shift happened. Premium segment overtook Economy in terms of overall
shares. One of the reasons for that is the poor performance of the Economy segment that turned from stable
to decreasing over the last years. Sales of Premium segment, on the other hand, accelerated their growth
and were responsible for almost 60% of value growth of the entire Alcoholic Beverages basket between
2016 and 2017.
This trend echoes a recent study, which showed that 46% of Polish shoppers are willing to pay more
for premium products, when it comes to food FMCG.*
VALUESALES(INBNPLN)AND%SHARESINALCOHOLICBEVERAGES,POLAND
#
For information on how the price segmentation was established please refer to the Appendix.
* Source: Category Shopping Fundamentals research carried out in July 2017 across 27 FOOD FMCG categories.
64.9%
16.4%
18.7%
65.2%
17.0%
17.8%
64.9%
18.4%
16.7%
+7.6%
+4.1%
+0.9% -4.8%
PREMIUMMAINSTREAMECONOMY
+1.0%
+9.4%
2015 2016 2017
30.9
BNPLN
32.1
BNPLN
32.6
BNPLN
ALCOHOLICBEVERAGES

PRICESEGMENTBYCATEGORY
The picture on the category level is even more striking, as for nine out of thirteen analyzed categories
Premium segment was the fastest-growing. This includes five largest categories in terms of value sales
– Beer, Vodka, Whisky, and Table and Sparkling Wines. At the same time, in six categories the Economy
segment was in decline.
While we can witness a decline of premium segments in Mixed Alcoholic Drinks and Cider, but these
categories generally underperform.
Interestingly, for some categories we can observe a tie between dynamics of price segments and pack sizes,
thus constituting a hypothesis that in some cases pack size can partially form a premium perception
of a given product. For example, the combined Economy and Mainstream segments of Beer category small
packs accounted for only 1.1% of value sales in 2017, while in Premium segment small packs account
for about a third of sales.
VALUE%CHANGEINCATEGORIES&PRICESEGMENTS,2017VS.2016,POLAND
PREMIUM
MAINSTREAM
ECONOMY
CATEGORY LEVEL
10.3%
5.7%
21.8%
13.3%
18.9%
2.7%
3.0%
22.0%
16.1%
24.1%
-18.5%
-25.8%
-1.2% 1.9% 14.2% 6.4%
5.0%
9.3% 2.8% -3.2% 2.4% 10.8% 7.7% -2.8% 11.8% -11.0%
BEER
VERMOUTH
TABLEWINE
DESSERTWINE
SPARKLINGWINE
VODKA
WHISKY
CIDER
BRANDY
MIXEDALCOHOLIC
DRINKS
LIQUEURS
GIN
RUM
ALCOHOLICBEVERAGES

PACKSIZEROLEINALCOHOLICBEVERAGES
The biggest pack size#
in the Alcoholic Beverages is unquestionably 0.5. However, it lost its shares over the past
two years due to dynamics inferior to other pack sizes. Understandably, within Industry Groups there is a high
level of pack size differentiation.
Light Alcoholic Beverages group is dominated by 0.5 size, which is typical for Beer, constituting a vast majority
(over 99% value) of the Industry Group. In other categories within this Industry Group different pack size trends
are observed – <0.5 is the major pack size for Mixed Alcoholic Drinks, while >0.7 pack size is the most impor-
tant one in Ciders.
For Wines (Table, Sparkling and Dessert wines) 0.7 is the major pack size and has over 78% of value shares.
Situation of Vermouths is different, although >0.7 pack size is the most important one, it is 0.7 that grows the
fastest indicating that this category is slowly matching other wines. On the other hand, the major pack size for
Liqueurs is 0.5.
The Spirits Industry Group has the most complex pack size structure, and requires in-depth analysis.
PACKSIZEVALUE%SHARE,2017,POLAND
#
For information on how the pack sizes were defined please refer to the Appendix.
ALCOHOLIC
BEVERAGES
SPIRITS WINE & LIQUEUR LIGHT ALCOHOLIC
BEVERAGES
<0.5 0.5 0.7 >0.7
63.6%
18.6%
25.3%
78.3%
5.3% 15.2% 1.6%8.6%
12.6%
39.4%
1.5%
5.0%
95.4%
2.4%26.8%
0.6%
ALCOHOLICBEVERAGES

SPIRITINSIGHTSONPACKSIZEROLE
With an exception of Vodka, 0.7 is major pack size for other categories in the Spirits group. The greatest pack
size (> 0.7) has been growing in all Spirit categories over the past two years leading to share increase in the
Industry Group. Interestingly, this size in all categories grew faster since last year, than the categories
themselves.
An increased significance of the smallest pack size on the Industry Group level is present in major categories
such as Vodka, Whisky and Brandy, but it is the first of those that drives the impact for the entire category group.
As mentioned earlier, in some cases we can observe the connection between the pack size and price
segmentation. Vodka can serve as another example of that. Small bottles (< 0.5l) are the only pack size that
grows in combined Economy and Mainstream segments (6.2% 2017 vs. 2016), whereas regular and big packs
of Economy and Mainstream Vodka were in decline.
PACKSIZEVALUE%SHARE,2017,POLAND
<0.5
0.5
0.7
>0.7
CATEGORY
>0.7 PACK SIZE
26.8% 31.4% 1.2% 3.6% 6.6% 4.8%
39.4%
44.0%
10.5% 21.1% 27.3% 8.6%
25.3% 18.7%
58.2%
64.0%
63.5%
86.4%
8.6% 5.9%
30.1%
11.2% 2.6%
SPIRITS VODKA WHISKY BRANDY RUM GIN
1.9%
14.2%
2.8%
7.7%
11.4%
19.1%
25.2%
8.2%
VODKA
WHISKY
BRANDY
RUM
PACKSIZE,VALUE%SHARE,2017,TOTALPOLAND
VALUE%CHANGE,2017VS.2016,TOTALPOLAND
0.2% <0.5
0.5
0.7
>0.7
CATEGORY
>0.7 PACK SIZE
26.8% 31.4% 1.2% 3.6% 6.6% 4.8%
39.4%
44.0%
10.5% 21.1% 27.3% 8.6%
25.3% 18.7%
58.2%
64.0%
63.5%
86.4%
8.6% 5.9%
30.1%
11.2% 2.6%
SPIRITS VODKA WHISKY BRANDY RUM GIN
1.9%
14.2%
2.8%
7.7%
11.8%
11.4%
19.1%
25.2%
8.2%
17.5%
VODKA
WHISKY
BRANDY
RUM
GIN
PACKSIZE,VALUE%SHARE,2017,TOTALPOLAND
0.2%
ALCOHOLICBEVERAGES

JOANNAGRZYWACZ
Health is the greatest concern for Poles.* In attempt to address that many Poles
change their drinking habits, by e.g. choosing products with lower alcohol
content, such as light beers or flavored vodkas. As a way of responding to this
need manufacturers introduce non-alcoholic variants of beers or wines.
This opens up possibilities for people who, for various reasons, were not
been able to consume Alcoholic Beverages, to enjoy their favorite drink.
*Nielsen Consumer Confidence Index, Q3 2017
ADAMDUŻYŃSKI
Due to their size, Alcoholic Beverages are hugely important for the shops across
Poland, on average they are responsible for 47% of sales of food FMCG in over
35 thousand of smallest Polish shops. Recent legal changes in Poland – both
planned and already enforced – may cause changes in the landscape of Alcoholic
Beverages sales location. For example, a ban on Alcoholic Beverages sales during
the night can put a significant pressure on Sweet&Alcohol stores, as some
shoppers might plan ahead, and stock themselves in Discounters or Supermarkets.
COMMENTSFROMTHEEXPERTS
ALCOHOLICBEVERAGES
AGATALORENC
The landscape of the Small Format stores on Poland is changing rapidly,
as shoppers demand a diversified product mix and a convenient location
– both at the same time. We can observe three trends that shape the Small
Format market. Firstly, the smallest shops are shutting down while larger
ones – with selling area of 101-300m2
– are growing in number. Secondly,
stores are consolidating, in various forms - from centrally managed chains
to semi-independent stores under one franchisor. Lastly, more and more shops
introduce convenience segments and categories in their product portfolio.
All these changes will probably affect the Alcoholic Beverages in the future,
as they are by far the most important segment in their FMCG sales.

OVER20%OFTHEENTIREFMCG
Alcoholic Beverages sales made over 20% of the entire FMCG industry in
Poland, with positive dynamics, yet inferior to other industries.
THREEMAJORCATEGORYGROUPS
The Alcoholic Beverage basket consists of three major category groups
determined according to alcohol content and insights on general
consumption mode: Spirits, Wine & Liqueur and Light Alcoholic
Beverages. Light Alcoholic Beverages is the greatest Industry Group, Wine
& Liqueur has been the fastest growing industry group while Spirit are the
most diverse.
SMALLFORMAT
Contrary to majority of FMCG food categories, key Alcoholic Beverage
categories are mainly located in Small Format. Alcoholic beverage
categories are highly seasonal. Spirits sales peaks during winter time, while
Light Alcoholic Beverages sales depend on warm weather and happen
mostly in in Summer.
PREMIUMLIQUORS
The role of premium liquors is increasing, while Mainstream is still the key
segment, Premium has the greatest growth dynamics.
OVERVIEWOFALCOHOLICBEVERAGESTODAY:
ALCOHOLICBEVERAGES
INDUSTRYISSEEMINGLY
CONSISTENT,YET
ACLOSERLOOKSHOWS
THATATAILOR-MADE
APPROACHTOEACH
CATEGORY
ISNEEDED.
SUMMARY
ALCOHOLICBEVERAGES

ALCOHOLIC
BEVERAGES:
TRENDS
OFTOMORROW

INDUSTRYCHALLENGES
The Alcoholic Beverages industry in Poland is under pressure that comes from all sides, ranging from
shoppers to subcontractors to regulators. Despite achieving a moderate growth rate between 2016
and 2017 – 1.4% – the industry faces multiple challenges, some of which include:
RISING COSTS OF RUNNING
THE BUSINESS
in form both raw materials and labor. At the
same time, pressure from retailers increases
and the industry taxation level is notoriously
burdensome. Expenditures must be kept under
control in order to stay afloat.
DEMANDING POLISH
SHOPPERS
who have changed over the past few years. They
expect innovations and new product variants.
Many look for new flavors or types of their favorite
alcoholic beverages that will still feel familiar and
appealto strong local sentiments.
FIERCE AND RUTHLESS
RIVALRY
keeps manufacturers from raising prices – if
they do, they risk that their market shares would
plummet. Additionally, the retail environment
becomes increasingly competitive with more
demand on retailer-exclusive assortment and
compelling pricings.
SATISFYING THE ASPIRATIONAL
SOCIETY
Poles aim high and aspire to drink higher-end
categories and segments within categories that
they know. Rising incomes bring about more
purchasing power that shifts the shoppers’
focus to more premium products.
These forces shape today’s alcoholic beverages market in Poland, and both manufacturers and retailers must
adapt quickly if they do not want to stay behind. This report will present some illustrations of the attempts
made in order to cope with the challenges on this difficult market.
ALCOHOLICBEVERAGES

SPARKLINGWINE:GROWINGPREMIUM
While the Sparkling Wine sales grew by 11.7% (2017 vs. 2016), its Premium segment grew by 18.9%
at the same time.
Growth is particularly visible in Small Format and Discounters Channel, largely as an effect of constantly
improving distribution.
Historically, premium Sparkling Wine has always had significantly higher distribution in Small Format
during winter period. Yet, for some time the segment’s distribution is on the rise also outside of the
Christmas season, indicating that shoppers reach for premium bubbles not only around New Year’s Eve,
but during other parts of the year.
PRICESEGMENTSINSPARKLINGWINE,VALUE%SHARE,2017
PREMIUMSEGMENTSOFSPARKLINGWINE,VALUE%CHANGE,2017VS.2016
22.6%
44.4%
33.0%
36.7%
30.5%
32.8%
47.1%
19.8% 33.2%
LARGE FORMAT EXCL.
DISC
LARGE FORMAT EXCL. DISC
DISCOUNTERS
DISCOUNTERS
SMALL FORMAT
SMALL FORMAT
MAINSTREAM
ECONOMY
26.8%
23.5%
12.1%
PREMIUM
22.6%
44.4%
33.0%
36.7%
30.5%
32.8%
47.1%
19.8% 33.2%
LARGE FORMAT EXCL.
DISC
DISCOUNTERS
DISCOUNTERS
SMALL FORMAT
SMALL FORMAT
MAINSTREAM
ECONOMY
26.8%
23.5%
12.1%
PREMIUM
ALCOHOLICBEVERAGES

SPARKLINGWINE:IMPORTANTROLEOFPROSECCO
Within Sparkling wines Prosecco, a white wine variety originating from Italy, witnessed double-digit
growth rates for two consecutive years, growing faster than the category as a whole. As a consequence,
Prosecco’s shares in the category have climbed from 13.3% in 2015 to 19.3% in 2017.
Prosecco is one of the very few sparkling wine products that have an additional sales peak outside
winter time, that is during summer. It is often used to prepare refreshing cocktails or drank as a chilled
aperitif, which makes it a very weather-dependent product. It can be illustrated with the example
of September 2017, which was colder than previous September, in consequence sales was stable
meanwhile in all other months was better than a year ago.
Growth of Prosecco is visible throughout majority of Small and Large Format channels, with
an exception of Discounters.
VALUE%CHANGE,POLAND
PROSECCO,VALUESALES,POLAND
22.6%
LARGE FORMAT EXCL.
DISC
DISCOUNTERS
DISCOUNTERS
SMALL FORMAT
SMALL FORMAT
PROSECCO
SPARKLING WINE EXCL. PROSECCO
26.8%
23.5%
12.1%
48.7%
16.5%
3.4%
7.7%
2016 vs.15
2017 vs.16
PROSECCO,VALUESALES,TOTALPOLAND
JAN'16
FEB'16
MAR'16
APR'16
MAY'16
JUN'16
JUL'16
AUG'16
SEP'16
OCT'16
NOV'16
DEC'16
JAN'17
FEB'17
MAR'17
APR'17
MAY'17
JUN'17
JUL'17
AUG'17
SEP'17
OCT'17
NOV'17
DEC'17
ALCOHOLICBEVERAGES

SPARKLINGWINE:WHENBUBBLESISNOTENOUGH
Prosecco is not the only segment which drives Sparkling Wine sales growth. There is a new wine style
which gained importance. Glittery wines contain glitter inside, which after shaking the bottle provides
an impressing visual effect.
So far there are only a few brands on the market. Value shares of Glittery in the Sparkling Wine category
grew from zero in 2015 to 2.5% in 2017. What is more, last year this particular segment had a noticeable
impact on the overall category value sales increase. This is largely a result of a higher item price
– Glittery Wines are over three times more expensive than an average sparking wine.
It is worth noticing that unlike most new trends, this particular one is driven largely by Small Format
outlets and had over 75% of value shares in segment sales. In comparison, the Large Format sales are
much smaller, while Discounters significance was marginal.
VALUESALESCHANGE(INMPLN),POLAND
GLITTERYWINE,VALUESALES
PROSECCO
OTHER SPARKLING
GLITTERY
JAN'16
FEB'16
MAR'16
APR'16
MAY'16
JUN'16
JUL'16
AUG'16
SEP'16
OCT'16
NOV'16
DEC'16
JAN'17
FEB'17
MAR'17
APR'17
MAY'17
JUN'17
JUL'17
AUG'17
SEP'17
OCT'17
NOV'17
DEC'17
7.9
14.0
20.5
10.4
1.5
7.8
2016 vs.15
2017 vs.16
JAN'16
FEB'16
MAR'16
APR'16
MAY'16
JUN'16
JUL'16
AUG'16
SEP'16
OCT'16
NOV'16
DEC'16
JAN'17
FEB'17
MAR'17
APR'17
MAY'17
JUN'17
JUL'17
AUG'17
SEP'17
OCT'17
NOV'17
DEC'17
LARGE FORMAT EXCL. DISC SMALL FORMATDISCOUNTERS
PROSECCO
OTHER SPARKLING
GLITTERY
JAN'16
FEB'16
MAR'16
APR'16
MAY'16
JUN'16
JUL'16
AUG'16
SEP'16
OCT'16
NOV'16
DEC'16
JAN'17
FEB'17
MAR'17
APR'17
MAY'17
JUN'17
JUL'17
AUG'17
SEP'17
OCT'17
NOV'17
DEC'17
7.9
14.0
20.5
10.4
1.5
7.8
2016 vs.15
2017 vs.16
JAN'16
FEB'16
MAR'16
APR'16
MAY'16
JUN'16
JUL'16
AUG'16
SEP'16
OCT'16
NOV'16
DEC'16
JAN'17
FEB'17
MAR'17
APR'17
MAY'17
JUN'17
JUL'17
AUG'17
SEP'17
OCT'17
NOV'17
DEC'17
LARGE FORMAT EXCL. DISC SMALL FORMATDISCOUNTERS
ALCOHOLICBEVERAGES

BEER:OVERVIEWOFDEVELOPINGPRODUCTTYPES
Beer value sales decreased by 1.2% in 2017 vs. 2016. However, there are dynamically growing segments
within this big category. Shoppers inevitably more often reach for beers other than lagers. It may
be a consequence of, so called, ‘Beer revolution’ that started in 2011. Consecutive players introduced
beer types previously not present in their portfolio.
One interesting example is the rapidly growing segment of non-alcoholic beer, particularly non-alcoholic
lager, which value sales grew by 55.8% since 2016. Another growing segment is Specialty beer, which
includes beer styles such as Ale, Stout, Porter, Wheat Beer etc. This segment grew by 16.9% (2017 vs.
2016), and had the biggest nominal value sales change. The average price of those beer types exceeds
that of lagers, indicating that shoppers are willing to spend more on beers that are different than the
standard they are used to.
VALUE%SHARETOBEER,POLAND
VALUE%CHANGE,2017VS.2016,POLANDVALUE%CHANGE,2017VS.2016,TOTALPOLAND
VALUE%SHARESTOBEERPRICESEGMENTS,2017,TOTALPOLAND
NON-ALCOSTRONG LAGER FLAVORED & RADLER SPECIALTY BEER
VALUE%SHARETOBEER,TOTALPOLAND
2017
-1.7%
-6.3%
1.0%
16.9%
22.0%
-1.2%
10.8%
10.2%
7.3%
7.4%
2.3%
2.7%
1.5%
1.8%
STRONG LAGER
LAGER
NON-ALCO
BEER
FLAVORED & RADLER
SPECIALTY BEER
NON-ALCOSTRONG LAGER FLAVORED & RADLER SPECIALTY BEER
VALUE%SHARETOBEER,TOTALPOLAND
2017
-1.7%
-6.3%
1.0%
16.9%
22.0%
-1.2%
10.8%
10.2%
7.3%
7.4%
2.3%
2.7%
1.5%
1.8%
STRONG LAGER
LAGER
NON-ALCO
BEER
FLAVORED & RADLER
SPECIALTY BEER
ALCOHOLICBEVERAGES

BEER:PRICEANALYSISOFGROWINGSEGMENTS
Premium beer sales grew by 10.2% (2016 vs. 2017), while in the same period value sales of Economy
and Mainstream segments declined by -6.2% and -1.4%, respectively.
This is not only a consequence of price positioning, but also product structure. The dynamically
growing Non-Alco and Specialties are mainly located in the premium section of Beer category.
Even lagers that are located throughout all price segments vary in terms of performance: in Economy
and Mainstream they drive the category’s decline, while in Premium their sales grew by 9.3%. This
shows that larger beer is not in full retreat and efforts to re-invent the segment are being made.
All manufacturers irrespective of their current market share in the category are contributing to the
‘Beer revolution’ by introducing novel variants and so far little signs of market saturation are visible.
VALUE%SHARESTOBEERPRICESEGMENTS,2017,POLAND
BEERTYPESINPREMIUMSEGMENT,VALUE%CHANGE,2017VS.2016,POLAND
-1.7%
-6.3%
1.0%
16.9%
22.0%
-1.2%
18.6%
8.9%
43.3%
98.8%
0.1%
1.1%
95.4%
1.1%
2.9%
0.7%
29.1%
ECONOMY MAINSTREAM PREMIUM
NON-ALCO
LAGER & STRONG LAGER
SPECIALTY
1.1%
FLAVORED & RADLER
STRONG LAGER
LAGER
NON-ALCO
BEER
FLAVORED & RADLER
SPECIALTY BEER
BEERTYPESINPREMIUMSEGMENT,VALUE%CHANGE,2017VS.2016,TOTALPOLAND
FLAVORSOTHERTHANAPPLE,VALUE%SHARETOCIDER,TOTALPOLAND
20.0%
7.5%
7.6%
9.3%
SPECIALTY
NON-ALCO
FLAVORED & RADLER
ALCOHOLICBEVERAGES

CIDER:INTRODUCINGFLAVORSASAWAYOUTOFDECLINE
Even though Cider sales were in decline since 2015, manufacturers keep experimenting with new
variants in order to further expand the category shelf. As a result, the market is witnessing
introduction of ciders made of a single apple variety, as well as flavored products.
Growth of flavored Cider is coherent with an increasing popularity of traditional and local flavors
across the entire alcoholic beverage industry, as the main flavors include pear and strawberry
– inherently Polish flavors. These products experienced sales growth over the past two years.
FLAVORSOTHERTHANAPPLE,VALUE%SHARETOCIDER,POLAND
CIDERFLAVORS,VALUE%CHANGE,POLAND
ALCOHOLICBEVERAGES
STRAWBERRY
OTHER
PEAR
2016VS.20152017VS.2016
CIDERFLAVORS,VALUE%CHANGE,TOTALPOLAND
20.0%
7.5%
7.6%
9.3%
SPECIALTY
NON-ALCO
FLAVORED & RADLER
5.5% 7.0%
9.6%
0.9%
1.1%
1.6%
5.0%
6.9%
5.8%
2015 2016 2017
-15.3%
12.0%
12.5%
20.1%
-11.7%
-13.1%
21.0%
29.4%
-24.9%
-11.0%
APPLE
PEAR
STRAWBERRY
OTHER
CIDER
STRAWBERRY
OTHER
PEAR
2016VS.20152017VS.2016
CIDERFLAVORS,VALUE%CHANGE,TOTALPOLAND
20.0%
7.5%
7.6%
9.3%
SPECIALTY
NON-ALCO
FLAVORED & RADLER
5.5% 7.0%
9.6%
0.9%
1.1%
1.6%
5.0%
6.9%
5.8%
2015 2016 2017
-15.3%
12.0%
12.5%
20.1%
-11.7%
-13.1%
21.0%
29.4%
-24.9%
-11.0%
APPLE
PEAR
STRAWBERRY
OTHER
CIDER

NON-FLAVORED PREMIUM
NON-FLAVORED
ECONOMY & MAINSTREAM
TOTAL NON-FLAVORED
TOTAL FLAVORED
FLAVORED PREMIUM
FLAVORED ECONOMY
& MAINSTREAM
VALUE%SHARES,2017,TOTALPOLAND
VALUE%SHARETOFLAVOREDVODKA,TOTALPOLAND
54.5%
17.9%
25.1%
2.5%
2.9%
10.1%
6.1%
-2.8%
-0.7%
9.4%
VODKA:FLAVOREDPRODUCTSDRIVEGROWTH
Sales of Vodka category increased in 2017 by 1.9%, and reached more than 11.3 bn PLN, out of which
flavored Vodka stood for 3.1 bn PLN – more than the value of the entire Whisky category. What
is more, between 2015 and 2017, the nominal increase of flavored Vodka was 2.5 times greater
than value of non-flavored Vodka (0.46 bn PLN and 0.18 bn PLN respectively).
Interestingly, Premium performs differently than Economy & Mainstream segments when it comes
to flavored/non-flavored product mix. Flavored Economy & Mainstream Vodka experienced a 10.1%
growth, whereas non-flavored was in decline. On the contrary, premium non-flavored Vodka grew
two times faster than flavored one. It seems that while Economy & Mainstream price segments head
towards flavored products, Premium Vodka remains largely non-flavored.
VALUE%SHARE,2017,POLAND
ALCOHOLICBEVERAGES

VODKA:STRIVEFORFAMILIARNOVELTIESINFLAVORS
Although flavored products are the key for the development of Vodka category, not all perform well
on the market. It seems that exotic flavors* that were trendy a few years ago lost their importance
in favor of the local tastes.
Flavors subjectively considered to be local and traditionally associated with alcoholic beverages like
cherry, quince, plum, etc. are the biggest segment in flavored Vodka and contributed the most to the
category growth. Some manufacturers follow this trend even further and put on labels information
about Polish origin of raw materials e.g. juice from fruits harvested in Polish orchards.
The segment of other flavors contains uncommon single flavors or products with two or more mixed
aromas. While it is a fast-growing one, its current small size does not drive high impact on the
category level.
* For information on how the flavored groups were defined please refer to the appendix.
VALUE%SHARETOFLAVOREDVODKA,POLAND
ALCOHOLICBEVERAGES
EXOTIC
BITTER
OTHERFLAVORS
TRADITIONAL
NON-FLAVORED PREMIUM
NON-FLAVORED
ECONOMY & MAINSTREAM
TOTAL NON-FLAVORED
TOTAL FLAVORED
FLAVORED PREMIUM
FLAVORED ECONOMY
& MAINSTREAM
17.9%
2.9%
10.1%
6.1%
-2.8%
-0.7%
9.4%
53.6% 56.7% 58.5%
12.5% 9.9% 8.5%
28.6% 27.7% 25.8%
5.3% 5.7% 7.2%
2015 2016 2017
12.8%
-6.0%
2.0%
38.3%
TRADITIONAL
EXOTIC
BITTER
OTHER FLAVORS

VODKA:SMALLPACKSCRUCIALFORFLAVORINTRODUCTION
Vodka has a unique structure of pack size, with a very important role of small 0.2 and 0.1 packs.
The latter was the fastest growing pack size for two consecutive years and contributed the most
to the category growth.
This pack size grows not only due to increasing popularity of existing products, but also due
to introduction of new variants. In 2016, 26 new traditional-flavored SKUs were launched in this
segment and generated 16.7 million PLN. Throughout 2017 the rate of introducing novelties
accelerated with 46 new SKUs that generated above 114.7 million PLN. That translates into over 20%
of traditionally-flavored 0.1 pack sales and fits well with the observation that 29% of Polish shoppers
who buy alcoholic beverages stated that they constantly seek new products and brands.*
* Source: Nielsen Shopper Trends 2017/2018.
TRADITIONALFLAVORSOFVODKABYPACKSIZE,VALUE%CHANGE,2017VS.16,POLAND
VALUE%SHARETOTRADITIONALFLAVORSOFVODKABYPACKSIZE,POLAND
ALCOHOLICBEVERAGES
VALUE %CHANGE, 2017VS.2016, TOTALPOLAND
12.8%
-6.0%
2.0%
38.3%
TRADITIONAL
EXOTIC
BITTER
OTHER FLAVORS
26.6%
8.6% 6.8%
16.6%
-14.3%
0.1 0.2 0.5 0.7 OTHER
24.8%
27.6%
30.9%
30.5%
31.8%
30.6%
39.7%
36.7%
34.8%
3.7%
2.8%
2.8%
1.4%
1.2%
0.9%
2015
2016
2017
0.1 0.2 0.5 0.7 OTHER
VALUE %CHANGE, 2017VS.2016, TOTALPOLAND
12.8%
-6.0%
2.0%
TRADITIONAL
EXOTIC
BITTER
26.6%
8.6% 6.8%
16.6%
-14.3%
0.1 0.2 0.5 0.7 OTHER
24.8%
27.6%
30.9%
30.5%
31.8%
30.6%
39.7%
36.7%
34.8%
3.7%
2.8%
2.8%
1.4%
1.2%
0.9%
2015
2016
2017
0.1 0.2 0.5 0.7 OTHER

Whisky is one of the fastest developing categories in food FMCG (14.2% 2017 vs. 2016), with sales located
mainly in Large Format. Similarly to other Alcoholic Beverages, the growth rate of premium segment
is higher than the category’s average, and stands at the level of 21.8%.
In case of Premium Whisky growth, the dynamics varies across channels. Discounters that currently have
the smallest share of Premium Whisky in their product mix (17%, vs. 1/3 in Large and Small Formats)
rapidly close the gap, and were responsible for almost a quarter of the entire category growth since 2016.
The premium whisky sales in Discounters increase due to both portfolio extension and distribution
changes. In 2017 seven sub-brands appeared on Polish Discounters’ shelves while already available ones
increased their distribution in 2017, and simultaneously lowered prices.
It is worth pointing out that it is not entirely single malt whisky that stands behind the growth of the premium
whisky. The segment was worth 4.2% of the total whisky sales in 2017, and achieved a growth rate of 16.6%
since 2016 – higher than the category’s overall growth, but slower than the premium segment’s average.
Growth of the premium blended variants is more impactful, especially those originating from the United
States and Ireland, each experiencing almost 30% of sales growth rates 2017 vs. 2016.
WHISKY:ROUTETOPREMIUM
VIADISCOUNTERS
PREMIUMWHISKY,VALUE%CHANGE,2017VS.2016
NUMBEROFPREMIUMWHISKYSUB-BRANDS,DISCOUNTERS
ALCOHOLICBEVERAGES
9.3%
106.5%
13.7%
DISCOUNTERS
SMALL FORMAT
32
25
2017
2016
9.3%
106.5%
13.7%
DISCOUNTERS
SMALL FORMAT
32
25
2017
2016

WHISKY:FLAVORPOPULARITYINSUMMERSEASON
Besides the Premium segment, there are alternative sources of growth within the category, such
as introducing flavored variants. Its sales increased faster than of non-flavored Whisky between 2017
and 2016 (20.5%, and 14.0%, respectively). As a result, flavored Whisky was responsible for 3.7%
of sales in 2017, having gained 0.7 pp. of value shares since 2015.
The segment sales increased largely due to increase in Hypermarkets and Sweet Alcohol stores.
Discounters, on the other hand, contributed to decline, as the assortment policy was focused on the
non-flavored variants.
Interestingly, flavored variants of Whisky have been gaining popularity in the summer for the past two
years, on top of the regular sales peak associated with Christmas. So far this additional seasonality
does not translate onto sales of the non-flavored Whisky segment.
WHISKYSEGMENTS,VALUESALES,POLAND
ALCOHOLICBEVERAGES
VALUESALESOFWHISKYSEGMENTS,2017,TOTALPOLAND
VALUE%SHARETORUM,TOTALPOLAND
NON-FLAVORED
FLAVORED
JAN‘15
FEB‘15
MAR‘15
APR‘15
MAY‘15
JUN‘15
JUL‘15
AUG‘15
SEP‘15
OCT‘15
NOV‘15
DEC‘15
JAN‘16
FEB‘16
MAR‘16
APR‘16
MAY‘16
JUN‘16
JUL‘16
AUG‘16
SEP‘16
OCT‘16
NOV‘16
DEC‘16
JAN‘17
FEB‘17
MAR‘17
APR‘17
MAY‘17
JUN‘17
JUL‘17
AUG‘17
SEP‘17
OCT‘17
NOV‘17
DEC‘17
JAN‘15
FEB‘15
MAR‘15
APR‘15
MAY‘15
JUN‘15
JUL‘15
AUG‘15
SEP‘15
OCT‘15
NOV‘15
DEC‘15
JAN‘16
FEB‘16
MAR‘16
APR‘16
MAY‘16
JUN‘16
JUL‘16
AUG‘16
SEP‘16
OCT‘16
NOV‘16
DEC‘16
JAN‘17
FEB‘17
MAR‘17
APR‘17
MAY‘17
JUN‘17
JUL‘17
AUG‘17
SEP‘17
OCT‘17
NOV‘17
DEC‘17

RUM:DARKSEGMENTONTHERISE
The Rum category was worth 102.2 million PLN in 2017 and was one of the fastest developing categories
in the Alcoholic Beverages basket.
Usually, when most people think about rum, the famous mojito drink comes to mind. Indeed, light rum
used for that cocktail constitutes the largest segment in the category that is responsible for almost half
of rum value sales. However, between 2017 and 2016, dark rum grew faster than light rum and became
a strong contributor to growth, further supporting the shoppers in their strive for novelties.
VALUE%SHARETORUM,POLAND
VALUE%CHANGE,POLAND
ALCOHOLICBEVERAGES
VALUE%SHARETORUM,TOTALPOLAND
19.3% 18.5% 20.6%
32.5% 31.8% 28.9%
2015 2016 2017
LIGHT
GOLD
DARK
48.3% 49.8% 50.5%
JAN‘15
FEB‘15
MAR‘15
APR‘15
MAY‘15
JUN‘15
JUL‘15
AUG‘15
SEP‘15
OCT‘15
NOV‘15
DEC‘15
JAN‘16
FEB‘16
MAR‘16
APR‘16
MAY‘16
JUN‘16
JUL‘16
AUG‘16
SEP‘16
OCT‘16
NOV‘16
DEC‘16
JAN‘17
FEB‘17
MAR‘17
APR‘17
MAY‘17
JUN‘17
JUL‘17
AUG‘17
SEP‘17
OCT‘17
NOV‘17
DEC‘17
VALUE%CHANGE,TOTALPOLAND
1.0%
3.0%
8.5%
20.2%
-2.0%
9.3%
DARK
GOLD
LIGHT 2016 VS. 2015
2017 VS. 2016

BARTŁOMIEJSKORUPA
Premiumization in Alcoholic Beverages is a phenomenon that cannot
be associated only with buying more expensive products within certain categories.
Polish shoppers are willing to purchase aspirational categories that bring sense
of sophistication regardless of the price - such as Whisky, Rum or Gin, purchased
instead of Vodka.
KAROLINAŻUKOWSKA-SOCHA
Gin in Poland is becoming a considerably aspirational category. Exploration
by curious shoppers led to great acceleration of value growth over the past years.
Interestingly, growing demand for Gin has not been yet met by boom
of novelties. As we witness increasing interest from manufacturers in the category,
we anticipate an investment towards developing novel products.
EDYTAPROKOPIUK
Table wine was largely popularized by Discounters. However, as Table Wine
becomes more and more popular, its sales boom in Small Format shops noting
a 35% value increase between 2015 and 2017. Poles are getting more familiar
with wine, and retailers respond by boosting the category’s product rage.
COMMENTSFROMTHEEXPERTS
ALCOHOLICBEVERAGES

SUMMARY
SPECIALTYANDNON-ALCOBEERS
In the Light Alcoholic Beverages group two main trends can be observed:
• rising demand for specialty and non-alco beers that support growth
of the category Premium segment
• introduction of flavors in Cider as an attempt to revive the declining
category.
SPARKLINGWINE
Sparkling wine dominated in terms of trends in its Industry Group. Increas-
ing significance of Prosecco and introduction of Glittery Wines drive the
average price increase in the category.
FLAVORSANDVARIANTS
are the key topics for Spirits:
• LOCAL FLAVORS in small packs are driving growth in Vodka
• FLAVORED WHISKY paves the way for new sales peak in the category
• DARK RUM attracts adventurous shoppers to the category
TRENDSOFTOMORROWINALCOHOLICBEVERAGES:
STAYINGONESTEP
AHEADOFCOMPETITORS
BYINTRODUCING
INNOVATIONS
ISIMPERATIVETOGAIN
ASTRATEGICADVANTAGE
ONTHEDEMANDING
MARKET.
ALCOHOLICBEVERAGES

APPENDIX
NIELSENUNIVERSE 38
MARKETDEFINITIONS 39
INDUSTRYGROUPSCATEGORYDEFINITIONS 40
SHELFDEFINITIONDEFINITIONSOFPRICESEGMENTS 41
PACKSIZE–DEFINITIONS 42
DEFINITIONSOFPRODUCTSEGMENTATION:VODKA,WHISKY,BEER 43

NIELSEN
UNIVERSE
WHOLESALERS
DISTRIBUTORS
DIRECTSALES
REPRESENTATIVES
MANUFACTURER
CHANNELS
NOTINCLUDED
INRETAILPANEL:
• Institutional Sales
• CashCarry
• Vending
Machines
• Seasonal Stores
• HoReCa (Hotels,
Restaurants,
Catering)
• Online
IMPORT
EXPORT
CONSUMERRETAILSTORES
NIELSENUNIVERSE

POLAND(OFF-TRADE)*
HYPERMARKETS – stores with selling area
greater than 2500 m2
with minimum 10 cash
registers. It must sell food as well as chemical
and cosmetics products. At least 50% of the
area is self-servicewith some sections
of counter service.
SUPERMARKETS – stores with selling area
between 301m2
and 2500m2
and minimum
2 cash registers. It must sell food as well as
chemical and cosmetics products. At least 50%
of the area is self-service with some sections
of counter service.
DISCOUNTERS – stores belong to closed list of
discounter chains: Biedronka, Netto, Lidl, Aldi.
GROCERIES – stores with maximum sales area
of 300 m2
regardless of type of service. It sells
both food and chemical and cosmetics pro-
ducts. Food Stores are divided by selling area
into:
• Large Groceries**- minimum 101 m2
• Medium Groceries- from 41 m2
to 100 m2
• Small Groceries- maximum 40 m2
SWEET ALCOHOL STORES – outlets with at
least 51% of the assortment (estimated visually)
consisted of alcoholic beverages and/or sweets.
It can also handle other food articles of long
term validity such as: coffee, tea, soft drinks,
cigarettes, as well as small amount of fresh
food and drug or cosmetics products. This type
of stores includes both liquor storesand shops
with packed sweets not selling alcoholic beve-
rages.
PETROL STATIONS – outlets selling fuels and
very often car accessories. It can handle food
and chemical/cosmetic products (and must sell
at least one of Nielsen’s categories).
DEFINITIONS
MARKET
*All on-trade channels are excluded from the report.
As a result trends affecting HoReCa are not disclosed.
**Chemical Chains included in all categories excl. Beer
(Rossmann, Superpharm, Drogerie Natura, Hebe)
LARGEFORMAT
SMALLFORMAT

VODKA The category is comprised of
vodka and non-diary liqueurs
based on vodka - e.g.
cranberry-flavored, vodka-ba-
sed liqueur with 30% alcohol
content.
WHISKY The category is comprised of
whisky and non-diary liqueurs
based on whisky - e.g. cherry-
-flavored, whisky-based liqueur
with 32% alcohol content.
BRANDY The category is comprised of
brandy and non-diary liqueurs
based on brandy - e.g. honey-
-flavored, brandy-based liqueur.
RUM The category is comprised of
rum and non-diary liqueurs
based on rum - e.g. mojito
-flavored, rum-based liqueur.
GIN The category is comprised of gin
and non-diary liqueurs based on
gin - e.g. lime-flavored,
gin-based liqueur.
TABLEWINE There are no additional criteria.
SPARKLING
WINE
There are no additional criteria.
LISTOFCATEGORIESININDUSTRYGROUPS: Spirits group includes categories: Vodka,
Whisky, Brandy, Rum, Gin
Wine Liqueur group includes categories:
Dessert Wine, Sparkling Wine, Vermouth, Table
Wine, Liqueur
Light Alcoholic Beverages group includes
categories: Beer, Mix Alcoholic Drinks, Cider
DEFINITIONS
INDUSTRYGROUPS
Categories analyzed in the report are defined according to the Polish law. When classifying products to
specific categories, Nielsen implements additional criteria. Those exceptional criteria, which diverge from
widely available knowledge on each category, are listed below.
DESSERTWINE There are no additional
criteria.
VERMOUTH The category includes
vermouth, bitters and
aperitifs.
LIQUEUR The category is comprised
of diary liqueurs exclusively
(milk- or cream-based).
All products are included,
irrespectively of the type
of alcohol used.
BEER The category is comprised
of beer and beers mixed with
juices or other beverages,
typically with lower alcohol
content (commonly called
radlers and shandy).
MIXED Ready-to-drink alcoholic
beverages mixed with
non-alcoholic beverages,
often carbonated soft drinks,
with low alcohol content
- e.g. gin and tonic or whisky
and coke.
CIDER There are no additional
criteria.

Price ranges
in pln
Pack
size per
which
price was
taken
Economy Mainstream Premium
Vodka 0,7L 24.99
25.00 −
29.99
30.00
Whisky 0,7L 44.99
45.00 −
59.99
60.00
Brandy 0,7L 34.99
35.00 −
49.99
50.00
Rum 0,7L 34.99
35.00 −
54.99
55.00
Gin 0,7L 29.99
30.00 −
44.99
45.00
Wines** 0,75L 11.99
12.00 −
19.99
20.00
Liqueur 0,5L 17.99
18.00 −
29.99
30.00
Beer 0,5L 2.24
2.25 −
3.24
3.25
Cider 0,5L 3.99
4.00 −
4.99
5.00
Mixed 0,5L 5.99
6.00 −
8.99
9.00
For the purpose of this report we estimated the average number of sold SKU for
variety of Categories / Segments. For sake of brevity within the report the average
number of sold SKU is referred to as ‘shelf’.
The number should be considered to be an attempt to quantify the product port-
folio available on the retail market and the changes it is undergoing.
Following equation was used to calculate the numeric values:

DEFINITIONS
SHELFPRICESEGMENTS
* Excluding Private Labels defined as products or entire brand lines that are manufactured by a contractor and sold under retailer’s brand name.
** Dessert wine, Sparkling wine, Table wine, Vermouth
Shelf =
Sum of Numeric Selling Distribution of all Category SKU*
Numeric Selling Distribution of Total Category

Category/pack size (in L) 0.5 0.5 0.7 0.7
Vodka 0.5 0.5 0.7 0.7
Whisky 0.5 0.5 0.7 - 0.75 0.75
Brandy 0.5 0.5 0.7 - 0.75 0.75
Rum 0.5 0.5 0.7 - 0.75 0.75
Gin 0.5 0.5 0.7 - 0.75 0.75
Dessert wine 0.5 0.5 0.7 - 0.75 0.75
Sparkling wine 0.5 0.5 0.7 - 0.75 0.75
Table wine 0.5 0.5 0.7 - 0.75 0.75
Vermouth 0.5 0.5 0.7 - 0.75 0.75
Liqueur 0.5 0.5 0.7 - 0.75 0.75
Beer 0.15 - 0.35 0.35 - 0.58 0.58 - 0.75 0.75
Mixed 0.5 0.5 0.7 - 0.75 0.75
Cider 0.275 - 0.33 0.4 - 0.568 0.568 - 0.75 0.75
DEFINITIONS
PACKSIZE

Traditional flavors Exotic Bitter Other
Lemon / citron Grapefruit Bitter Other
Honey lemon Apple mint Bitter mint Espresso
Pear Lime Bison grass Cinnamon
Cherry Lime mint Bitter-sweet Mulled
Black cherry Fig Herbal Spiced
Redcurrant Orange
Quince Pineapple
Strawberry Mandarin
Blackberry Coconut
Hazelnut Peach
Blueberry
Berry
Plum
Mirabelle plum
Black lilac
Cranberry
Nut
Walnut
Blackcurrant
Honey
Elderflower
Raspberry
Apple
Sweet cherry
VODKA
DEFINITIONS
PRODUCTSEGMENTATION
Whisky flavors
Lime Cinnamon
Black cherry Honey
Apple Coffee
Apple cinnamon cloves Honey caramel
Peach orange Almond
Coconut Honey herbs
Cherry Maple
WHISKY

LAGER Lager-type beer, incl. non-pasteurized lagers, with 0.5%-6.3% alcohol
content.
STRONGLAGER Lager-type beer with alcohol content above 6.3%.
NON-ALCOHOLICBEER Beer with alcohol content below 0.5%.
FLAVOREDBEERRADLER Flavored (e.g. fruit, honey) beer, as well as mixture of beer and lemonade,
with alcohol content between 0.5%-6.3%.
SPECIALTYBEER Beer made of top-fermenting yeast, wheat beer, as well as beer made
of low-fermenting yeast which does not fit any of the above segments.
BEER
DEFINITIONS
PRODUCTSEGMENTATION

THE SCIENCE BEHIND WHAT’S NEXT ™
Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the
most complete and trusted view available of consumers and markets worldwide. Our approach marries
proprietary Nielsen data with other data sources to help clients around the world understand what’s
happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years
Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing
new ways to answer the most important questions facing the media, advertising, retail and fast-moving
consumer goods industries. An SP 500 company, Nielsen has operations in over 100 countries, covering
more than 90% of the world’s population. For more information, visit www.nielsen.com.
ABOUTNIELSEN

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