Required Report - public distribution

**Date:** 4/28/2006

**GAIN Report Number:** PL6026

PL6026

**Poland**

**Food Processing Ingredients Sector**

**Food Processing Sector - Poland**

**2006**

**Approved by:**

![](media/image1.wmf)Ed Porter, Agricultural Counselor

U S Embassy

**Prepared by:**

Jolanta Figurska

**Report Highlights:**

Poland\'s food processing sector developed rapidly over the last twenty
years, as Poland moved to a market oriented economy with nearly 40
million consumers. Foreign companies have substantially invested in
Poland\'s food processing industry. Poland\'s accession into the
European Union in May 2004 gave EU suppliers a competitive advantage, as
Poland became part of the EU internal market. U.S. companies will have
limited trade opportunities. These are outlined in the Best Product
Prospects chapter.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Warsaw \[PL1\]

\[PL\]

Table of Contents

[**SECTION I. MARKET SUMMARY 3**](#section-i.-market-summary)

[SECTION II. ROAD MAP FOR MARKET ENTRY
4](#section-ii.-road-map-for-market-entry)

[Market Structure 5](#market-structure)

[Company Profiles 8](#company-profiles)

[Sector Trends 14](#sector-trends)

[SECTION III. COMPETITION 15](#section-iii.-competition)

[SECTION IV. BEST PRODUCT PROSPECTS
15](#section-iv.-best-product-prospects)

[SECTION V. POST CONTACT AND FURTHER INFORMATION
17](#section-v.-post-contact-and-further-information)

# SECTION I. MARKET SUMMARY

Poland's economy underwent a radical transformation to a market oriented
economy between 1989 and 2001. This transition continues as the economy
expands and foreign direct investment continues. During this period, the
value of food consumption in Poland, in real terms, grew 25 percent. In
the meantime family expenditures on food and beverages declined from 48
percent in 1989 to 30 percent in 2004 due to an increase in personal
incomes.

Food consumption patterns also changed, resulting in decreased
consumption of milk and animal fats, sugar and potatoes. On the other
hand, consumption of fruit, vegetables, processed red meat, poultry,
vegetable fats, fish, cheese, yogurt, and highly processed food
significantly increased.

As a result environment for the development of the food processing
industry was created. During 2000-2004 the total value of processed food
sales increased from \$22.36 billion to an estimated \$30 billion.
According to food processing industry sources, domestic producers
deliver an estimated 85 percent of goods to the Polish market.

The food processing sector in many ways reflects the development of the
Polish economy since the fall of communism. The sector is varied with
both domestic and international companies represented on the market.
There are also a number of small companies operating in the fruit,
vegetables, meat processing, and bread sectors located throughout
Poland. The most important sub sectors of the food processing sector are
meat, dairy, and alcohol, followed by confectionery, food concentrates,
sugar, fruits and vegetables, juices and non-alcoholic beverages
production.

Imports of agricultural products in 2005 totaled about \$6.7 billion,
compared to \$4.4 billion in 2003. About 61 percent of total food
imports originated from the European Union. Since 2002 Poland has been a
net exporter of food products. In 2005 the surplus of exports over
imports amounted to \$1.313 million.

The Polish food processing industry uses primarily domestic raw material
inputs for processing. During 2004 the value of inputs was estimated at
PLN 45 billion (about \$14 billion). Imports of raw materials in 2005
totaled \$2.5 billion. These included products such as red and poultry
meat, oils, dairy products, seafood, fruit and vegetables, grain
products etc. [Raw materials for processing are imported primarily from
the EU and developing countries.]{.mark}

Polish producers also export significant amounts of agricultural raw
materials. In 2005 Polish exports of raw materials amounted to \$4.5
billion. These included products such as red meat, poultry meat, dairy
products, confectionary industry components, fruit and vegetables, grain
products, seafood, etc.

The food processing industry also uses significant quantities of
additives and packaging inputs. The annual value of these materials is
estimated at \$2-2.5 billion. These are mainly domestic products,
although often produced from imported materials.

In 2005 the overall value of agricultural products imported from the
United States amounted to \$97 million, which represented 7.5 percent of
all Polish agro-food imports. Imports from the United States were
dominated by tobacco, poultry (primarily transshipments to Moldova and
Ukraine) and red meat but also include raw materials and semi-processed
products, such as dairy protein isolates, tree nuts, hides and skins,
processed fruits and vegetables etc.

In early 1990s increasing local demand for high quality processed food
attracted foreign investments. Growing competition on the domestic
market forced food processing companies to increase productivity and
reduce costs. Direct foreign investments have played an important role
in the development of the food processing sector. Initially foreign
investors

were involved primarily in the beverages and beer, confectionery, food
concentrate, tobacco and poultry-meat processing sub sectors. During
1997-2001, foreign companies began to dominate the meat, fish, vegetable
fats and alcoholic beverages industries.

[Foreign companies have majority ownership in]{.mark} nearly all sectors
of the Polish food industry. State owned enterprises still operate only
in the sugar and alcoholic beverage sectors. The dairy sector is
dominated by cooperatives. The food processing sector is becoming more
concentrated as less efficient companies are closing, particularly in
the fruit and vegetable, red and poultry meat, and animal food
processing sectors.

Poland's EU accession boosted exports from the food processing industry
(meat and dairy sectors) mostly to EU countries as well as to new
markets located in the Far East. This trend is expected to continue in
the coming years.

Table 1. Advantages and challenges for American products in the Polish
market.

+----------------------------------+-----------------------------------+
| **Advantages**                   | **Challenges**                    |
+----------------------------------+-----------------------------------+
| 1.  Increasing personal income   | 1.  The US faces tough            |
|     and changes in the structure |     competition from food         |
|     of consumption lead to the   |     ingredients of Polish origin  |
|     development of high-end food |     and those imported from the   |
|     products of very good or     |     European Union.               |
|     high quality.                |                                   |
|                                  | 2.  With the EU accession Polish  |
| 2.  Increasingly the market      |     products are tariff free in   |
|     oriented nature of the       |     the EU market of 25 nations.  |
|     Polish economy and EU        |     This limits import            |
|     accession help to promote    |     opportunities for food        |
|     Western patterns of food     |     ingredients from the U.S.     |
|     consumption.                 |                                   |
|                                  | 3.  A high level of unemployment, |
| 3.  Foreign direct investments   |     a result of restructurizing   |
|     increase use of imported     |     of Polish enterprises, slows  |
|     additives and other          |     down the growth of demand for |
|     components.                  |     high quality products.        |
|                                  |                                   |
| 4.  Good location facilitates    |                                   |
|     exports of food products to  |                                   |
|     Eastern and Central Europe,  |                                   |
|     Russia and the Former Soviet |                                   |
|     Union.                       |                                   |
+----------------------------------+-----------------------------------+

# 

# SECTION II. ROAD MAP FOR MARKET ENTRY 

###### Entry Strategy

Entering the Polish market is a challenge for exporters of raw materials
intended for the food processing sector. The main obstacle is the use of
low cost Polish products. Imported products are used only when less
expensive domestic products are not available.

> I Some companies in the food processing sector purchase imported
> products directly from Polish importers but in general they buy from
> wholesalers or local suppliers.

II Some of the largest food processors have their own supply purchase
units. In such case at times direct imports are conducted.

> To be successful in Poland exporters must have a local representative
> or agent and personal contact with Polish businesses. To be
> competitive exporters must have a thorough knowledge of current laws,
> the local culture, tax and customs regulations, market structures,
> local exhibitions and trade fairs.

### 

### Market Structure

####### Distribution Flow

![](media/image2.wmf)

> Source: PAIZ report based on GUS report

+------------------------------+--------------------+-----+-----+----+
| **Production of select       |                    |     |     |    |
| Polish food industry         |                    |     |     |    |
| products 2002-2004**         |                    |     |     |    |
|                              |                    |     |     |    |
|                              |                    |     |     |    |
+------------------------------+--------------------+-----+-----+----+
| **Product**                  | **Unit of          | **  | **  | ** |
|                              | Measure**          | 200 | 200 | 20 |
|                              |                    | 2** | 3** | 04 |
|                              |                    |     |     | ** |
+------------------------------+--------------------+-----+-----+----+
| Pork                         | Thousand tones     | 83  | 1   | 10 |
|                              |                    | 5.4 | 033 | 17 |
+------------------------------+--------------------+-----+-----+----+
| Poultry                      | Thousand tones     | 822 | 965 | 10 |
|                              |                    |     |     | 35 |
+------------------------------+--------------------+-----+-----+----+
| Cured meat products          | Thousand tones     | 817 | 802 | 8  |
|                              |                    |     |     | 56 |
+------------------------------+--------------------+-----+-----+----+
| Frozen sea fish              | Thousand tones     | 74  | 54  | 66 |
+------------------------------+--------------------+-----+-----+----+
| Canned vegetables            | Thousand tones     | N/A | 119 | 1  |
|                              |                    |     |     | 44 |
+------------------------------+--------------------+-----+-----+----+
| Fruit and vegetable juices   | Thousand           | 8   | 8   | 85 |
|                              | hectoliters        | 279 | 930 | 91 |
+------------------------------+--------------------+-----+-----+----+
| Edible animal fats           | Thousand tones     | 44  | 55  | 60 |
+------------------------------+--------------------+-----+-----+----+
| Processed liquid milk        | Thousand           | 18  | 19  | 20 |
|                              | hectoliters        | 608 | 923 | 87 |
+------------------------------+--------------------+-----+-----+----+
| Butter                       | Thousand tones     | 158 | 167 | 1  |
|                              |                    |     |     | 77 |
+------------------------------+--------------------+-----+-----+----+
| Cheeses and cottage cheese   | Thousand tones     | 535 | 548 | 5  |
|                              |                    |     |     | 85 |
+------------------------------+--------------------+-----+-----+----+
| Fresh bakery products        | Thousand tones     | 1   | 1   | 15 |
|                              |                    | 547 | 556 | 32 |
+------------------------------+--------------------+-----+-----+----+
| Sugar (in terms of white     | Thousand tones     | 2   | 1   | 19 |
| sugar)                       |                    | 029 | 906 | 99 |
+------------------------------+--------------------+-----+-----+----+
| Pasta                        | Thousand tones     | 124 | 123 | 1  |
|                              |                    |     |     | 35 |
+------------------------------+--------------------+-----+-----+----+
| Pure vodka (100%)            | Thousand           | 607 | 796 | 8  |
|                              | hectoliters        |     |     | 69 |
+------------------------------+--------------------+-----+-----+----+
| Beer                         | Thousand           | 26  | 28  | 3  |
|                              | hectoliters        | 874 | 621 | 01 |
|                              |                    |     |     | 00 |
+------------------------------+--------------------+-----+-----+----+
| Mineral waters and           | Thousand           | 17  | 19  | 2  |
| carbonated waters            | hectoliters        | 245 | 671 | 00 |
|                              |                    |     |     | 00 |
+------------------------------+--------------------+-----+-----+----+
| Tobacco products             | Thousand tones     | 78  | 90  | 80 |
+------------------------------+--------------------+-----+-----+----+

# 

Source: PAIZ report based on GUS report

![](media/image3.wmf)

Source: PAIZ report based on GUS report

+--------------------------------------------------------+-------------+
| **Select Polish Agricultural Imports - 2005 (in        |             |
| thousand USD)**                                        |             |
+--------------------------------------------------------+-------------+
| Live animals                                           | 117,915     |
+--------------------------------------------------------+-------------+
| Fish and seafood products                              | 667,008     |
+--------------------------------------------------------+-------------+
| Grains                                                 | 143,788     |
+--------------------------------------------------------+-------------+
| Fresh fruit                                            | 782,440     |
+--------------------------------------------------------+-------------+
| Fresh vegetables                                       | 176,807     |
+--------------------------------------------------------+-------------+
| Oils and vegetable fats                                | 315,979     |
+--------------------------------------------------------+-------------+
| Processed fruit                                        | 312,334     |
+--------------------------------------------------------+-------------+
| Processed vegetables                                   | 129,781     |
+--------------------------------------------------------+-------------+
| Coffee, cocoa, tea, spices                             | 597,349     |
+--------------------------------------------------------+-------------+
| Alcoholic beverages                                    | 213,744     |
+--------------------------------------------------------+-------------+
| Tobacco                                                | 246,647     |
+--------------------------------------------------------+-------------+
| Red meat and products                                  | 366,936     |
+--------------------------------------------------------+-------------+
| Poultry meat                                           | 76,921      |
+--------------------------------------------------------+-------------+
| Milk, milk cream, ice cream                            | 53,559      |
+--------------------------------------------------------+-------------+
| Cheese                                                 | 55,940      |
+--------------------------------------------------------+-------------+
| Soups and sauces                                       | 64,580      |
+--------------------------------------------------------+-------------+
| Bakery products                                        | 389,503     |
+--------------------------------------------------------+-------------+
| Other agricultural products                            | 2,039,319   |
+--------------------------------------------------------+-------------+
| ####                                                   | 6,750,550   |
|                                                        |             |
| **Total Polish agricultural imports**                  |             |
+--------------------------------------------------------+-------------+

Source: PAIZ report based on GUS report

### Company Profiles

The Polish food industry consists of about 31,200 enterprises. Besides
from food processing facilities, 22 facilities operate in the tobacco
sector. As many as 22,500 food processing enterprises are small firms
that employ fewer than 9 workers.

  --------------- ----------------------------- ----------- ------- -------- -------
  **Number of                                                                
  enterprises                                                                
  operating in                                                               
  the Polish food                                                            
  industry and                                                               
  tobacco sector                                                             
  as of June                                                                 
  2004\***                                                                   

                                                **Number of                  
                                                employed                     
                                                persons**                    

  **Sector**      **Total number of             \<9         10 - 49 50-249   \>249
                  enterprises**                                              

  Food industry   31,197                        22,512      6,903   1,459    323

  Tobacco Sector  22                            6           6       2        8
  --------------- ----------------------------- ----------- ------- -------- -------

\*It is estimated that the actual number of operating enterprises may be
lower by as much as 30 percent because the REGON (company) register of
economic entities is not updated by the State Statistical Service (GUS).
Thus, this register contains the names of firms that no longer exist and
the names of firms that have never began business activities.

Source: PAIZ report based on GUS report -- REGON register of economic
entities.

  ------------------------------------- ------- ------- ------- -------- -------
  **Total number of enterprises                                          
  operating in the food processing                                       
  sector**                                                               

                                                                         

                                                                         

  **Number of employed persons**                                         

  **Sector**                            Total   \< 9    10 --   50 --    \>249
                                                        49      249      

  **Meat and meat products (15.1)**     6460    4529    1440    407      84

  **Fish and fish products (15.2)**     732     502     163     59       8

  **Processed fruit and vegetables      1958    1407    362     162      27
  (15.3)**                                                               

  **Oils, animal and vegetable fats     166     132     24      5        5
  (15.4)**                                                               

  **Dairy goods (15.5)**                1123    733     142     180      68

  **Milled grain products, starch       2080    1796    215     62       7
  (15.6)**                                                               

  **Animal feeds (15.7)**               947     684     209     46       8

  **The remaining food products (15.8** 16035   11581   3957    415      82

  **Beverages (15.9)**                  1696    1148    391     123      34

  **Total**                             31197   22512   6903    1459     323
  ------------------------------------- ------- ------- ------- -------- -------

Source: PAIZ report based on GUS -- REGON register of economic entities.

The largest foreign investors in the Polish food industry and tobacco
sector as of December 31, 2004 (USD millions)

+-----------+------+-------+------+--------------+--------------------+
| **I       | CAP  | *     | **   | **ACTIVITIES | **COMMENTS**       |
| NVESTOR** | ITAL | *REGI | ORIG | (PKD)**      |                    |
|           | INVE | STRAT | IN** |              |                    |
|           | STED | ION** |      |              |                    |
|           | (    |       |      |              |                    |
|           | mill |       |      |              |                    |
|           | ions |       |      |              |                    |
|           | of   |       |      |              |                    |
|           | USD) |       |      |              |                    |
|           |      |       |      |              |                    |
|           | as   |       |      |              |                    |
|           | of   |       |      |              |                    |
|           | 31   |       |      |              |                    |
|           | .12. |       |      |              |                    |
|           | 2004 |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| *         | 5    | The   | The  | manufacture  | Heineken Polska    |
| *Heineken | 90.0 | N     | Net  | of food      | Sp. z o. o.        |
| Inte      |      | ether | herl | products;    | (Warsaw), 61,78%   |
| rnational |      | lands | ands | beverages    | stake in Grupa     |
| B.V.**    |      |       |      | and tobacco  | Żywiec S.A.        |
+-----------+------+-------+------+--------------+--------------------+
| **CC HBC  | 5    | G     | USA  | manufacture  | Coca-Cola          |
| (         | 13.0 | reece |      | of food      | Beverages Polska   |
| Coca-Cola |      |       |      | products;    | Sp. z o. o.        |
| Hellenic  |      |       |      | beverages    | (Warsaw),          |
| Bottling  |      |       |      | and tobacco  | Coca-Cola Poland   |
| C         |      |       |      |              | Services Sp. z o.  |
| ompany)** |      |       |      |              | o. (Warsaw), 3     |
|           |      |       |      |              | plants in Łódź,    |
|           |      |       |      |              | Staniątki near     |
|           |      |       |      |              | Krakow and         |
|           |      |       |      |              | Radzymin.          |
+-----------+------+-------+------+--------------+--------------------+
| *         | 5    | U     | Un   | manufacture  | 96,4% stake in     |
| *Imperial | 00.0 | nited | ited | of food      | Imperial Tobacco   |
| Tobacco   |      | Ki    | Kin  | products;    | Polska S.A.        |
| Plc**     |      | ngdom | gdom | beverages    | (Jankowice near    |
|           |      |       |      | and tobacco  | Tarnowo Podgórne)  |
+-----------+------+-------+------+--------------+--------------------+
| **Nestle  | 3    | S     | Swi  | manufacture  | Nestle Polska S.A  |
| S.A.**    | 65.0 | witze | tzer | of food      | (Warsaw, Kalisz,   |
|           |      | rland | land | products;    | Poznań), 50% stake |
|           |      |       |      | beverages    | in Cereal Partners |
|           |      |       |      | and tobacco  | Poland             |
|           |      |       |      |              | Toruń-Pacific Sp.  |
|           |      |       |      |              | z o. o. (Toruń),   |
|           |      |       |      |              | 50% stake in       |
|           |      |       |      |              | Nałęczowianka Sp.  |
|           |      |       |      |              | z o. o. (Nałęczów) |
+-----------+------+-------+------+--------------+--------------------+
| **Philip  | 3    | The   | The  | manufacture  | 99,89% stake in    |
| Morris    | 64.0 | N     | Net  | of food      | Philip Morris      |
| Holland   |      | ether | herl | products;    | Polska S.A.        |
| B.V.**    |      | lands | ands | beverages    | (Kraków), Factory  |
|           |      |       |      | and tobacco  | in Kraków and      |
|           |      |       |      |              | Leżajsk            |
+-----------+------+-------+------+--------------+--------------------+
| **House   | 3    | De    | Den  | manufacture  | Scandinavian       |
| of Prince | 48.0 | nmark | mark | of food      | Tobacco S.A.       |
| Denmark   |      |       |      | products;    | (Myślenice)        |
| A/S**     |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Harbin  | 3    | The   | The  | manufacture  | 30,8% stake in     |
| B.V.**    | 25.9 | N     | Net  | of food      | Grupa Żywiec S.A.  |
|           |      | ether | herl | products;    | (Żywiec)           |
|           |      | lands | ands | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **British | 3    | Ge    | Un   | manufacture  | British-American   |
| American  | 00.0 | rmany | ited | of food      | Tobacco Polska     |
| Tobacco   |      |       | Kin  | products;    | S.A. (Augustów)    |
| GmbH**    |      |       | gdom | beverages    |                    |
|           |      |       | /USA | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 2    | USA   | USA  | manufacture  | bottling plants    |
| PepsiCo** | 75.0 |       |      | of food      | (Łódź, Białystok,  |
|           |      |       |      | products;    | Gdańsk, Kraków,    |
|           |      |       |      | beverages    | Poznań, Szczecin,  |
|           |      |       |      | and tobacco  | Wrocław, Żywiec,   |
|           |      |       |      |              | Leżajsk and        |
|           |      |       |      |              | Pniewy), salted    |
|           |      |       |      |              | snacks factory     |
|           |      |       |      |              | (Grodzisk          |
|           |      |       |      |              | Mazowiecki), sale  |
|           |      |       |      |              | of \"Delicja\"     |
|           |      |       |      |              | confectionery to   |
|           |      |       |      |              | Danone             |
+-----------+------+-------+------+--------------+--------------------+
| **Seita** | 1    | F     | Fr   | manufacture  | Altadis Polska     |
|           | 80.0 | rance | ance | of food      | S.A. (Radom)       |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Ferrero | 1    | Italy | I    | manufacture  | Ferrero Polska Sp. |
| Group**   | 70.0 |       | taly | of food      | z o. o. (Warsaw)   |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Mars    | 1    | USA   | USA  | manufacture  | Master Foods       |
| Inc.**    | 60.0 |       |      | of food      | Polska Sp. z o. o. |
|           |      |       |      | products;    | (Sochaczew)        |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Saint   | 1    | F     | Fr   | manufacture  | 95% stake in       |
| Louis     | 50.0 | rance | ance | of food      | Śląska Spółka      |
| Sucre     |      |       |      | products,    | Cukrowa S.A.       |
| Inte      |      |       |      | beverages    |                    |
| rnational |      |       |      | and tobacco  |                    |
| S.A.S.**  |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Wm.     | 1    | USA   | USA  | manufacture  | 99,96% stake in    |
| Wrigley   | 44.0 |       |      | of food      | Wrigley Poland Sp. |
| Jr.       |      |       |      | products,    | z o. o. (Poznań)   |
| Company** |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **BSN     | 1    | F     | Fr   | manufacture  | Danone Polska Sp.  |
| Gervais   | 35.5 | rance | ance | of food      | z o. o. (Warsaw),  |
| Danone**  |      |       |      | products;    | factory in Bieruń, |
|           |      |       |      | beverages    | Śląskie            |
|           |      |       |      | and tobacco  | Voivodship,        |
|           |      |       |      |              | purchase of        |
|           |      |       |      |              | \"Delicja\"        |
|           |      |       |      |              | confectionery from |
|           |      |       |      |              | PepsiCo, Bakoma    |
|           |      |       |      |              | S.A. (Warsaw),     |
|           |      |       |      |              | Bakoma Nova Sp.z   |
|           |      |       |      |              | o.o. (Kutno),      |
|           |      |       |      |              | Bakoma Serwis Sp.  |
|           |      |       |      |              | z o. o.            |
+-----------+------+-------+------+--------------+--------------------+
| **C       | 1    | U     | Un   | manufacture  | Cadbury Wedel Sp.  |
| adbury\'s | 26.5 | nited | ited | of food      | z o. o. (Bielany   |
| Schweppes |      | Ki    | Kin  | products,    | Wrocławskie),      |
| Plc**     |      | ngdom | gdom | beverages    | Cadbury Wedel      |
|           |      |       |      | and tobacco  | (Warsaw) -         |
|           |      |       |      |              | chocolate and      |
|           |      |       |      |              | sweets production  |
+-----------+------+-------+------+--------------+--------------------+
| **        | 1    | De    | Den  | manufacture  | 94,64% stake in    |
| Carlsberg | 10.0 | nmark | mark | of food      | Carlsberg Polska   |
| Breweries |      |       |      | products,    | S.A. (Warsaw)      |
| A/S**     |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **British | 90.0 | U     | Un   | manufacture  | BSO Polska Sp. z   |
| Sugar     |      | nited | ited | of food      | o. o. (Warsaw),    |
| Overseas  |      | Ki    | Kin  | products,    | 68% stake in       |
| (BSO)     |      | ngdom | gdom | beverages    | Sugarpol (Toruń),  |
| Ltd.**    |      |       |      | and tobacco  | 53,46% stake in    |
|           |      |       |      |              | Cukrownia          |
|           |      |       |      |              | Glinojeck S.A.,    |
|           |      |       |      |              | Cukrownia Pelplin  |
|           |      |       |      |              | S.A., Cukrownia    |
|           |      |       |      |              | Guzów S.A., Sugar  |
|           |      |       |      |              | Tor Sp. z o. o.    |
+-----------+------+-------+------+--------------+--------------------+
| **Pernod  | 80.4 | F     | Fr   | manufacture  | 80% stake in       |
| Ricard    |      | rance | ance | of food      | Wyborowa S.A.,     |
| S.A**     |      |       |      | products,    | 97,8% stake in     |
|           |      |       |      | beverages    | Agros Holding      |
|           |      |       |      | and tobacco  | S.A.(Warsaw)       |
+-----------+------+-------+------+--------------+--------------------+
| **Cargill | 77.0 | USA   | USA  | manufacture  | Cargill Poland Sp. |
| Inc.**    |      |       |      | of food      | z o. o. (Warsaw),  |
|           |      |       |      | products,    | factory in Bielany |
|           |      |       |      | beverages    | Wrocławskie        |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 70.0 | Be    | Bel  | manufacture  | 99,7% stake in     |
| Brouwerij |      | lgium | gium | of food      | Browar Belgia Sp.  |
| Palm NV** |      |       |      | products,    | z o. o. (Kielce)   |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Hoh     | 62.0 | Ge    | Ger  | manufacture  | McCain Poland Sp.  |
| enstaufen |      | rmany | many | of food      | z o. o. (Strzelin) |
| Neunundv  |      |       |      | products,    |                    |
| ierzigste |      |       |      | beverages    |                    |
| Ve        |      |       |      | and tobacco  |                    |
| rmogensve |      |       |      |              |                    |
| rwaltungs |      |       |      |              |                    |
| GmbH**    |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 57.2 | South | S    | manufacture  | 48,3% stake in     |
| SABMiller |      | A     | outh | of food      | Kompania           |
| Plc**     |      | frica | Af   | products,    | Piwowarska S.A.,   |
|           |      |       | rica | beverages    | 98,8% in Dojlidy   |
|           |      |       |      | and tobacco  | Brewery Sp. z o.   |
|           |      |       |      |              | o.                 |
+-----------+------+-------+------+--------------+--------------------+
| **Kraft   | 57.0 | S     | Swi  | manufacture  | Kraft Foods Polska |
| Jacobs    |      | witze | tzer | of food      | Sp. z o. o.        |
| Suchard   |      | rland | land | products,    | (Warsaw), 99%      |
| AG**      |      |       |      | beverages    | stake in Olza Sp.  |
|           |      |       |      | and tobacco  | z o. o. (Cieszyn), |
|           |      |       |      |              | Kraft Polska Sp. z |
|           |      |       |      |              | o. o. (Jankowice)  |
+-----------+------+-------+------+--------------+--------------------+
| **Bunge   | 53.8 | F     | Fr   | manufacture  | Zakłady Tłuszczowe |
| I         |      | rance | ance | of food      | Kruszwica S.A.     |
| nvestment |      |       |      | products,    |                    |
| France**  |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Gerber  | 50.0 | USA   | USA  | manufacture  | Alima Gerber S.A.  |
| Finance   |      |       |      | of food      | (Rzeszów, Warsaw)  |
| Company** |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Provimi | 48.0 | The   | The  | manufacture  | Provimi Polska     |
| Holding   |      | N     | Net  | of food      | Holding Sp. z o.   |
| BV**      |      | ether | herl | products,    | o. Osnowo - 6      |
|           |      | lands | ands | beverages    | companies in       |
|           |      |       |      | and tobacco  | Poland (Osnowo,    |
|           |      |       |      |              | Białystok,         |
|           |      |       |      |              | Dobrzelin,         |
|           |      |       |      |              | Jarosław,          |
|           |      |       |      |              | Olsztynek,         |
|           |      |       |      |              | Tworóg) - fodder   |
|           |      |       |      |              | production, 60% of |
|           |      |       |      |              | shares of Rolimpex |
|           |      |       |      |              | S.A                |
+-----------+------+-------+------+--------------+--------------------+
| **McLane  | 47.0 | USA   | USA  | manufacture  | McLane Polska Sp.  |
| Inte      |      |       |      | of food      | z o. o. (Błonie)   |
| rnational |      |       |      | products,    |                    |
| Inc.**    |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **CEPV**  | 47.0 | The   | The  | manufacture  | Farm Frites Poland |
|           |      | N     | Net  | of food      | S.A.(Lębork), Farm |
|           |      | ether | herl | products,    | Frites Poland Dwa  |
|           |      | lands | ands | beverages    | Sp. z o. o.        |
|           |      |       |      | and tobacco, | (Wielka Wieś)      |
|           |      |       |      | agriculture  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **S       | 46.0 | USA   | USA  | manufacture  | stake in Animex    |
| mithfield |      |       |      | of food      | S.A., SF Holding   |
| Foods**   |      |       |      | products,    | (Warsaw)           |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Sc      | 43.0 | Ge    | Ger  | manufacture  | Schoeller Polska   |
| hoeller** |      | rmany | many | of food      | Sp. z o. o.        |
|           |      |       |      | products,    | (Warsaw), plant in |
|           |      |       |      | beverages    | Namysłów           |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **H.J     | 40.8 | USA   | USA  | manufacture  | Pudliszki S.A.     |
| Heinz     |      |       |      | of food      |                    |
| Company** |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Pfeifer | 40.6 | Ge    | Ger  | manufacture  | Pfeifer und Langen |
| und       |      | rmany | many | of food      | Marketing Sp. z o. |
| Langen**  |      |       |      | products,    | o. - stake in      |
|           |      |       |      | beverages    | sugar plants       |
|           |      |       |      | and tobacco  | (Środa Wlkp.,      |
|           |      |       |      |              | Kościan, Gostyń    |
|           |      |       |      |              | and Miejska Górka) |
+-----------+------+-------+------+--------------+--------------------+
| *         | 37.0 | S     | Swi  | manufacture  | Hiestand Polska    |
| *Hiestand |      | witze | tzer | of food      | Sp. z o. o.        |
| Holding   |      | rland | land | products     | (Grodzisk          |
| AG**      |      |       |      |              | Mazowiecki),       |
|           |      |       |      |              | Hiestand Sp. z o.  |
|           |      |       |      |              | o. (Kraków)        |
+-----------+------+-------+------+--------------+--------------------+
| **Tchibo  | 35.0 | Ge    | Ger  | manufacture  | Tchibo Warszawa    |
| Frisch    |      | rmany | many | of food      | Sp. z o. o. -      |
| Rost      |      |       |      | products,    | coffee roasting    |
| Kaffee    |      |       |      | beverages    | plant (Marki)      |
| GmbH**    |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Vin &   | 33.7 | S     | Sw   | manufacture  | 85% stake in       |
| Spirit    |      | weden | eden | of food      | Lubuska Wytwórnia  |
| AB**      |      |       |      | products,    | Wódek Gatunkowych  |
|           |      |       |      | beverages    | Polmos ( Zielona   |
|           |      |       |      | and tobacco  | Góra)              |
+-----------+------+-------+------+--------------+--------------------+
| **        | 29.5 | USA   | USA  | manufacture  | Polmos Żyrardów    |
| Millenium |      |       |      | of food      | Sp. z o. o.        |
| Import    |      |       |      | products,    | (Żyrardów)         |
| LLC**     |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 28.0 | Be    | Bel  | manufacture  | Dossche Sp. z o.   |
| Dossche** |      | lgium | gium | of food      | o. (Kalisz)        |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Zott    | 27.5 | Ge    | Ger  | manufacture  | Zott Polska Sp. z  |
| GmbH&Co   |      | rmany | many | of food      | o. o. (Opole)      |
| KG**      |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **CSM     | 27.0 | The   | The  | manufacture  | Leaf Poland Sp. z  |
| NV**      |      | N     | Net  | of food      | o. o. (Warsaw)     |
|           |      | ether | herl | products,    | confectionery,     |
|           |      | lands | ands | beverages    | chewing gum        |
|           |      |       |      | and tobacco  | factory (Legionowo |
|           |      |       |      |              | near Warsaw)       |
+-----------+------+-------+------+--------------+--------------------+
| **        | 26.2 | Ge    | Ger  | manufacture  | Cukier Małopolski  |
| Sudzucker |      | rmany | many | of food      | S.A., Cukrownia    |
| AG**      |      |       |      | products,    | Strzyżów S.A.      |
|           |      |       |      | beverages    | (Lubelskie         |
|           |      |       |      | and tobacco  | Voivodship),       |
|           |      |       |      |              | Cukrownia Ropczyce |
|           |      |       |      |              | S.A. (Podkarpackie |
|           |      |       |      |              | Voivodship)        |
+-----------+------+-------+------+--------------+--------------------+
| **L.D.C.  | 25.0 | F     | Fr   | manufacture  | 98,9% stake in     |
| S.A.**    |      | rance | ance | of food      | Drosed S.A.        |
|           |      |       |      | products,    | (Siedlce)          |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| *         | 25.0 | Ge    | Ger  | manufacture  | Hochland Polska    |
| *Hochland |      | rmany | many | of food      | Sp. z o. o.        |
| AG**      |      |       |      | products,    | (Kazimierz         |
|           |      |       |      | beverages    | Wielkopolski)      |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **CPIG    | 24.0 | USA   | USA  | manufacture  | Browar Namysłów    |
| (Chicago  |      |       |      | of food      | Sp. z o. o.        |
| Poland    |      |       |      | products,    | (Namysłów)         |
| I         |      |       |      | beverages    |                    |
| nvestment |      |       |      | and tobacco  |                    |
| Group)    |      |       |      |              |                    |
| LLC**     |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Barry   | 23.1 | F     | Fr   | manufacture  | Barry Callebaut    |
| Callebaut |      | rance | ance | of food      | Sp. z o. o. (Łódź) |
| France    |      |       |      | products,    |                    |
| S.A.**    |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Ludwig  | 20.0 | Ge    | Ger  | manufacture  | Ludwig Czekolada   |
| Scho      |      | rmany | many | of food      | Sp. z o. o. -      |
| ckolade** |      |       |      | products,    | factory of         |
|           |      |       |      | beverages    | chocolate in       |
|           |      |       |      | and tobacco  | Tuczno,            |
|           |      |       |      |              | Wielkopolskie      |
|           |      |       |      |              | Voivodship         |
+-----------+------+-------+------+--------------+--------------------+
| **W       | 19.0 | The   | The  | manufacture  | \"LECH Browary     |
| indjammer |      | N     | Net  | of food      | Wielkopolski\"     |
| In        |      | ether | herl | products,    | S.A. - Kompania    |
| vestments |      | lands | ands | beverages    | Piwowarska         |
| B.V.**    |      |       |      | and tobacco  | (Poznań)           |
+-----------+------+-------+------+--------------+--------------------+
| *         | 19.0 | Cr    | Cro  | manufacture  | Podravka Polska    |
| *Podravka |      | oatia | atia | of food      | Sp. z o. o         |
| d.d.**    |      |       |      | products,    | (Kostrzyn),        |
|           |      |       |      | beverages    | Podravka           |
|           |      |       |      | and tobacco  | International      |
|           |      |       |      |              | Export-Import Sp.  |
|           |      |       |      |              | z o. o. (Warsaw)   |
+-----------+------+-------+------+--------------+--------------------+
| *         | 19.0 | U     | Un   | manufacture  | Gallaher Polska    |
| *Gallaher |      | nited | ited | of food      | Sp. z o. o.        |
| Group     |      | Ki    | Kin  | products,    | (Warsaw) - factory |
| Plc**     |      | ngdom | gdom | beverages    | in Gostkowice,     |
|           |      |       |      | and tobacco  | Lodzkie            |
|           |      |       |      |              | Voivodeship        |
+-----------+------+-------+------+--------------+--------------------+
| **        | 18.3 | F     | Fr   | manufacture  | 70% stake in       |
| Belvedere |      | rance | ance | of food      | Fabryka Wódek      |
| S.A.**    |      |       |      | products,    | Gdańskich w        |
|           |      |       |      | beverages    | Starogardzie       |
|           |      |       |      | and tobacco  | Gdańskim S.A.      |
|           |      |       |      |              | (Starogard         |
|           |      |       |      |              | Gdański), stake in |
|           |      |       |      |              | Krakowska          |
|           |      |       |      |              | Destylarnia Polmos |
|           |      |       |      |              | S.A.               |
+-----------+------+-------+------+--------------+--------------------+
| **        | 17.0 | Ge    | Ger  | manufacture  | 99% of shares of   |
| Bahlsen** |      | rmany | many | of food      | Lajkonik Snacks    |
|           |      |       |      | products,    | S.A. (formerly     |
|           |      |       |      | beverages    | Bahlsen            |
|           |      |       |      | and tobacco  | Koncentraty        |
|           |      |       |      |              | Spożywcze S.A.     |
|           |      |       |      |              | Skawina), Bahlsen  |
|           |      |       |      |              | Sp. z o. o.        |
|           |      |       |      |              | (Poznań), Bahlsen  |
|           |      |       |      |              | Sweet Sp. z o. o.  |
|           |      |       |      |              | , Lorenz Bahlsen   |
|           |      |       |      |              | Snack World Sp. z  |
|           |      |       |      |              | o. o. (Oława)      |
+-----------+------+-------+------+--------------+--------------------+
| **Dr      | 16.8 | Ge    | Ger  | manufacture  | Dr Oetker Środki   |
| August    |      | rmany | many | of food      | Odżywcze           |
| Oetker    |      |       |      | products,    | Gdańsk-Oliwa Sp. z |
| Nahr      |      |       |      | beverages    | o. o.              |
| unghittel |      |       |      | and tobacco  |                    |
| K. G.**   |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **United  | 16.4 | U     | Un   | manufacture  | Zakłady Przemysłu  |
| Biscuits  |      | nited | ited | of food      | Cukierniczego San  |
| Inve      |      | Ki    | Kin  | products,    | S.A. (Jarosław)    |
| stments** |      | ngdom | gdom | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **ABBA    | 15.9 | S     | Sw   | manufacture  | Superfish S.A.     |
| Seafood   |      | weden | eden | of food      | (Kołobrzeg)        |
| AB**      |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Societe | 15.4 | Italy | I    | manufacture  | Konserwa Polska    |
| E         |      |       | taly | of food      | Sp. z o. o. (Łódź) |
| uropeenne |      |       |      | products,    |                    |
| De        |      |       |      | beverages    |                    |
| Conserve  |      |       |      | and tobacco  |                    |
| S.A.**    |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **I       | 15.0 | Ge    | Ger  | manufacture  | Polsnack SP. z o.  |
| ntersnack |      | rmany | many | of food      | o. (Warsaw),       |
| Knabber   |      |       |      | products,    | factory in Nysa    |
| Gebaeck   |      |       |      | beverages    |                    |
| GmbH &    |      |       |      | and tobacco  |                    |
| Co.       |      |       |      |              |                    |
| K.G.**    |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Orkla   | 14.5 | N     | No   | manufacture  | Kotlin Sp. z o. o. |
| Foods     |      | orway | rway | of food      | (Kotlin)           |
| A.S.**    |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Kofola  | 13.7 | Czech | C    | food         | Kofola Sp. z o. o. |
| a.s.**    |      | Rep   | zech | procesing    | (Katowice) -       |
|           |      | ublic | Repu |              | factory in Kutno   |
|           |      |       | blic |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **East    | 12.9 | The   | The  | manufacture  | 50% stake in       |
| Springs   |      | N     | Net  | of food      | Nałęczowianka Sp.  |
| Inte      |      | ether | herl | products,    | z o. o.            |
| rnational |      | lands | ands | beverages    | (Nałęczów), 85%    |
| NV**      |      |       |      | and tobacco  | stake in Zakład    |
|           |      |       |      |              | Leczniczy          |
|           |      |       |      |              | Uzdrowisko         |
|           |      |       |      |              | Nałęczów Sp. z o.  |
|           |      |       |      |              | o.                 |
+-----------+------+-------+------+--------------+--------------------+
| **Union   | 12.7 | The   | The  | manufacture  | coffee roasting    |
| Caffe     |      | N     | Net  | of food      | plant Elite Poland |
| Conf      |      | ether | herl | products,    | Sp. z o. o.        |
| ectionary |      | lands | ands | beverages    | (Tarnowo Podgórne  |
| Group     |      |       |      | and tobacco  | near Poznań)       |
| BV**      |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 12.5 | F     | Fr   | manufacture  | Słodownia Soufflet |
| Malteries |      | rance | ance | of food      | Polska Sp. z o. o. |
| Soufflet  |      |       |      | products,    | (Poznań)           |
| S.A.**    |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 12.3 | De    | Den  | manufacture  | Schulstad Sp. z o. |
| Schulstad |      | nmark | mark | of food      | o. (Poznań)        |
| Brod      |      |       |      | products,    |                    |
| A/S**     |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Franz   | 12.0 | Ge    | Ger  | manufacture  | Zentis Polska Sp.  |
| Zentis    |      | rmany | many | of food      | z o. o. - factory  |
| GmbH      |      |       |      |              | in Żelków near     |
| Co.KO**   |      |       |      |              | Siedlce            |
+-----------+------+-------+------+--------------+--------------------+
| **Lant    | 11.6 | S     | Sw   | manufacture  | 19,43% stake in    |
| brukarnas |      | weden | eden | of food      | \"Sokołów S.A.\"   |
| Ekonomi   |      |       |      | products,    | (Sokołów Podlaski) |
| Akt       |      |       |      | beverages    |                    |
| iebolag** |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Indafin | 11.5 | Italy | I    | manufacture  | Inda Polska Sp. z  |
| Srl**     |      |       | taly | of food      | o. o. (Warsaw)     |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Ecke    | 11.4 | Ge    | Ger  | manufacture  | stake in Aronia    |
| s-Granini |      | rmany | many | of food      | S.A. (Łęczyca,     |
| Int.**    |      |       |      | products,    | Łódzkie            |
|           |      |       |      | beverages    | Voivodship)        |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Kruger  | 11.2 | Ge    | Ger  | manufacture  | Kruger Polska Sp.  |
| GmbH**    |      | rmany | many | of food      | z o. o. (Ostrów    |
|           |      |       |      | products,    | Mazowiecka) -      |
|           |      |       |      | beverages    | instant food       |
|           |      |       |      | and tobacco  | concentrates       |
|           |      |       |      |              | manufacture,       |
|           |      |       |      |              | Kruger Polska      |
|           |      |       |      |              | Handel i Eksport   |
|           |      |       |      |              | Sp. z o. o.        |
|           |      |       |      |              | (Warsaw)           |
+-----------+------+-------+------+--------------+--------------------+
| **Nutreco | 11.0 | The   | The  | manufacture  | Trouw Nutrition    |
| Inte      |      | N     | Net  | of food      | Polska Sp. z o. o. |
| rnational |      | ether | herl | products,    | (Grodzisk          |
| B.V.**    |      | lands | ands | beverages    | Mazowiecki)        |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Michel  | 10.0 | F     | Fr   | manufacture  | Danuta S.A.        |
| Marbot**  |      | rance | ance | of food      | (Malbork)          |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Hero**  | 10.0 | Int   | I    | manufacture  | Hero Polska Sp. z  |
|           |      | ernat | nter | of food      | o. o. ( Płock)     |
|           |      | ional | nati | products,    |                    |
|           |      |       | onal | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Cloetta | 10.0 | S     | Sw   | manufacture  | Cloetta Fazer      |
| Fazer     |      | weden | eden | of food      | Polska Sp. z o. o. |
| AB**      |      |       |      | products,    | (Gdańsk)           |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Polish  | 9.9  | The   | The  | manufacture  | 70% of shares of   |
| Bakery    |      | N     | Net  | of food      | Elite Polska Sp. z |
| I         |      | ether | herl | products,    | o. o. (Szczecin),  |
| nvestment |      | lands | ands | beverages    | remaining 30%      |
| BV**      |      |       |      | and tobacco  | owned by           |
|           |      |       |      |              | Spółdzielnia       |
|           |      |       |      |              | Produkcji          |
|           |      |       |      |              | Spożywczej         |
|           |      |       |      |              | Społem -           |
|           |      |       |      |              | confectionery,     |
|           |      |       |      |              | Polish Bakery      |
|           |      |       |      |              | Investment is      |
|           |      |       |      |              | connected with     |
|           |      |       |      |              | Elite Industries   |
|           |      |       |      |              | Ltd from Israel    |
+-----------+------+-------+------+--------------+--------------------+
| **Nordic  | 9.9  | Fi    | Fin  | pulp and     | Intercell S.A.     |
| En        |      | nland | land | paper,       | (Ostrołęka),       |
| vironment |      |       |      | publishing   | Foster Wheeler     |
| Finance   |      |       |      | and          | Energy Fakop Sp. z |
| Co        |      |       |      | printing;    | o. o. (Warsaw),    |
| rporation |      |       |      | manufacture  | 25% stake in Prime |
| (NEFCO)** |      |       |      | of food      | Food Sp. z o. o.   |
|           |      |       |      |              | (Przechlewo)       |
+-----------+------+-------+------+--------------+--------------------+
| **Raisio  | 9.8  | Fi    | Fin  | manufacture  | Raisio Polska      |
| Group**   |      | nland | land | of food      | Foods Sp. z o. o.  |
|           |      |       |      | products,    | (Karczew near      |
|           |      |       |      | beverages    | Warsaw)            |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Gerber  | 9.7  | U     | Un   | food         | EMIG Sp. z o. o.   |
| Foods     |      | nited | ited | procesing    | (Warsaw) - factory |
| Holdings  |      | Ki    | Kin  |              | in Mogielnica      |
| Ltd**     |      | ngdom | gdom |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Merrild | 9.6  | De    | Den  | manufacture  | Prima S.A.         |
| Cafe**    |      | nmark | mark | of food      | (Poznań)           |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Binder  | 8.0  | Ge    | Ger  | food         | Binder             |
| Intern    |      | rmany | many | procesing    | International      |
| ational** |      |       |      |              | Warszawa Sp. zo.   |
|           |      |       |      |              | O. (Warsaw)        |
+-----------+------+-------+------+--------------+--------------------+
| **Rieber  | 7.9  | N     | No   | manufacture  | Rieber Foods       |
| and Son   |      | orway | rway | of food      | Polska S.A.        |
| ASA**     |      |       |      | products,    | (Włocławek)        |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **R       | 7.8  | Ge    | Ger  | manufacture  | Raiffpol Sp. z o.  |
| aiffeisen |      | rmany | many | of food      | o. (Słupsk)        |
| HaGe**    |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco, |                    |
|           |      |       |      | wholesale    |                    |
|           |      |       |      | trade        |                    |
+-----------+------+-------+------+--------------+--------------------+
| **B       | 7.7  | F     | Fr   | manufacture  | 65% of shares of   |
| ongrain** |      | rance | ance | of food      | Mleczarnia Turek   |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **FmB &   | 7.7  | Ge    | Ger  | manufacture  | SNP Uśnice Sp. z   |
| Co. KG**  |      | rmany | many | of food      | o. o. (Uśnice)     |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 7.5  | The   | The  | manufacture  | Zeelandia Sp. z o. |
| Zeelandia |      | N     | Net  | of food,     | o. (Tarnowo        |
| Inte      |      | ether | herl | beverages    | Podgórne)          |
| rnational |      | lands | ands | and tobacco  |                    |
| Holding   |      |       |      | products     |                    |
| B.V.**    |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Frosta  | 7.0  | Ge    | Ger  | manufacture  | Frosta Sp. z o. o. |
| AG**      |      | rmany | many | of food      | (Bydgoszcz,        |
|           |      |       |      | products,    | Warsaw)            |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 6.7  | De    | Den  | manufacture  | 36% stake in PRime |
| Investeri |      | nmark | mark | of food      | Food Sp. z o. o.   |
| ngsfonden |      |       |      |              | (Przechlewo)       |
| for       |      |       |      |              |                    |
| Ost       |      |       |      |              |                    |
| landene** |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Celia** | 6.3  | F     | Fr   | manufacture  | Celia Polska Sp. z |
|           |      | rance | ance | of food      | o. o. , stake in   |
|           |      |       |      | products,    | dairy \"Fobs\"     |
|           |      |       |      | beverages    | (Sieraków)         |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Co      | 5.5  | Ge    | Ger  | manufacture  | Stake in Gdańskie  |
| rdesmeyer |      | rmany | many | of food      | Młyny i Spichlerze |
| Franc**   |      |       |      | products,    | Dr. Cordesmeyer    |
|           |      |       |      | beverages    | Ltd. Sp. z o. o.   |
|           |      |       |      | and tobacco  | (Gdańsk)           |
+-----------+------+-------+------+--------------+--------------------+
| **HK      | 5.4  | Fi    | Fin  | manufacture  | 21,12% stake in    |
| Ruokatalo |      | nland | land | of food      | \"Sokołów\" S.A.   |
| Oyj**     |      |       |      | products,    | (Sokołów Podlaski) |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| *         | 5.4  | Hu    | Hun  | food         | Elsner Products    |
| *Globus** |      | ngary | gary | procesing    | Sp. z o. o., 3     |
|           |      |       |      |              | food freezers in   |
|           |      |       |      |              | Lipno, Dąbrowa     |
|           |      |       |      |              | Chełmińska and     |
|           |      |       |      |              | Adamowo;           |
|           |      |       |      |              | refrigerator in    |
|           |      |       |      |              | Ełk                |
+-----------+------+-------+------+--------------+--------------------+
| **Karl    | 5.3  | Ge    | Ger  | manufacture  | Konecke Sp. z o.   |
| Konecke   |      | rmany | many | of food      | o. (Słubice)       |
| Fleischwa |      |       |      | products,    |                    |
| renfabrik |      |       |      | beverages    |                    |
| GmbH &    |      |       |      | and tobacco  |                    |
| Co. KG**  |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **General | 5.2  | USA   | USA  | manufacture  | 50% stake in       |
| Mills     |      |       |      | of food      | Cereal Partners    |
| Inc.**    |      |       |      | products,    | Poland             |
|           |      |       |      | beverages    | Toruń-Pacific Sp.  |
|           |      |       |      | and tobacco  | z o. o. (Toruń)    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 5.1  | G     | Gr   | food         | Chipita Poland Sp. |
| Chipita** |      | reece | eece | procesing    | z o. o. (Warsaw),  |
|           |      |       |      |              | Chipita Sp. z o.   |
|           |      |       |      |              | o. - factory in    |
|           |      |       |      |              | Tomaszów           |
|           |      |       |      |              | Mazowiecki         |
+-----------+------+-------+------+--------------+--------------------+
| **Peacock | 5.0  | USA   | USA  | manufacture  | 70,1% stake in     |
| Corp      |      |       |      | of food      | Podlaska Wytwórnia |
| oration** |      |       |      | products,    | Wódek Polmos S.A.  |
|           |      |       |      | beverages    | (Siedlce)          |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Royal   | 5.0  | The   | The  | manufacture  | Nutricia Sp. z o.  |
| Numico    |      | N     | Net  | of food      | o. (Warsaw and     |
| N.V.**    |      | ether | herl | products,    | Opole), 66% of     |
|           |      | lands | ands | beverages    | shares of Okręgowa |
|           |      |       |      | and tobacco  | Spółdzielnia       |
|           |      |       |      |              | Mleczarska         |
|           |      |       |      |              | (Węgrów,           |
|           |      |       |      |              | Mazowieckie        |
|           |      |       |      |              | Voivodship) -      |
|           |      |       |      |              | dairy              |
+-----------+------+-------+------+--------------+--------------------+
| **A       | 5.0  | De    | Den  | manufacture  | Espersen Polska    |
| .Espersen |      | nmark | mark | of food      | Sp. z o. o.        |
| A/S**     |      |       |      | products,    | (Koszalin)         |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Henkell | 4.9  | Ge    | Ger  | manufacture  | Toruńskie Piwnice  |
| &Sohnlein |      | rmany | many | of food      | Win Vinpol Sp. z   |
| KG**      |      |       |      | products,    | o. o. (Toruń)      |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Fina    | 4.9  | S     | Swi  | manufacture  | shareholder of     |
| Grain     |      | witze | tzer | of food      | Opolskie Zakłady   |
| Compagnie |      | rland | land | products,    | Drobiarskie        |
| Co        |      |       |      | beverages    |                    |
| mmerciale |      |       |      | and tobacco  |                    |
| Fin       |      |       |      |              |                    |
| anciere** |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **ARLA    | 4.3  | De    | Den  | manufacture  | Arla Foods Sp. z   |
| FOODS     |      | nmark | mark | of food      | o. o. - factory in |
| AmbA**    |      |       |      |              | Gościno near       |
|           |      |       |      |              | Kołobrzeg          |
+-----------+------+-------+------+--------------+--------------------+
| *         | 4.0  | Ge    | Ger  | manufacture  | Stake in Gdańskie  |
| *Hemelter |      | rmany | many | of food      | Młyny i Spichlerze |
| Muhle     |      |       |      | products,    | Dr. Cordesmeyer    |
| GmbH**    |      |       |      | beverages    | Ltd. Sp. z o. o.   |
|           |      |       |      | and tobacco  | (Gdańsk)           |
+-----------+------+-------+------+--------------+--------------------+
| **Sek     | 3.8  | Ge    | Ger  | manufacture  | stake in AMBRA     |
| tkellerei |      | rmany | many | of food      | S.A. (Biłgoraj)    |
| Schloss   |      |       |      | products,    |                    |
| W         |      |       |      | beverages    |                    |
| achenheim |      |       |      | and tobacco  |                    |
| AG**      |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Dan     | 3.8  | De    | Den  | manufacture  | Dan Cake Sp. z o.  |
| Cake      |      | nmark | mark | of food      | o. (Chrzanów)      |
| A/S**     |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 3.5  | U     | Un   | manufacture  | 85% stake in       |
| Caribbean |      | nited | ited | of food      | Polmos Łańcut S.A. |
| D         |      | Ki    | Kin  | products,    | (Łańcut)           |
| istillers |      | ngdom | gdom | beverages    |                    |
| Co        |      |       |      | and tobacco  |                    |
| rporation |      |       |      |              |                    |
| Ltd.**    |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Lohmann | 3.0  | Ge    | Ger  | manufacture  | 49,04% stake in    |
| AG**      |      | rmany | many | of food      | Drobimex Sp. z o.  |
|           |      |       |      | products,    | o. (Szczecin)      |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Paul    | 3.0  | Ge    | Ger  | manufacture  | 48,63% stake in    |
| Wesjohann |      | rmany | many | of food      | Drobimex Sp. z o.  |
| & Co.     |      |       |      | products,    | o. (Szczecin)      |
| GmbH**    |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 3.0  | Spain | S    | manufacture  | 99,28% stake in    |
| Campofrio |      |       | pain | of food      | Zakłady Mięsne     |
| Ali       |      |       |      | products,    | Morliny S.A.       |
| mentacion |      |       |      | beverages    | (Ostróda,          |
| S.A.**    |      |       |      | and tobacco  | W                  |
|           |      |       |      |              | armińsko-Mazurskie |
|           |      |       |      |              | Voivodship), PUH   |
|           |      |       |      |              | Transport -        |
|           |      |       |      |              | Morliny Sp. z o.   |
|           |      |       |      |              | o. (Morliny), PHU  |
|           |      |       |      |              | Detal-Morliny Sp.  |
|           |      |       |      |              | z o. o. (Morliny), |
|           |      |       |      |              | Rawena-Morliny     |
|           |      |       |      |              | S.A.               |
+-----------+------+-------+------+--------------+--------------------+
| *         | 3.0  | S     | Sw   | manufacture  | Polfrys Sp. z o.   |
| *POLARICA |      | weden | eden | of food      | o. (Świdwin,       |
| AB**      |      |       |      |              | Zachodniopomorskie |
|           |      |       |      |              | Voivodeship)       |
+-----------+------+-------+------+--------------+--------------------+
| **        | 2.9  | Ge    | Ger  | manufacture  | Baltic Malt Sp. z  |
| Friedrich |      | rmany | many | of food      | o. o. (Gdańsk) -   |
| We        |      |       |      | products,    | malt production    |
| issheimer |      |       |      | beverages    | plant in Gdańsk    |
| Ma        |      |       |      | and tobacco  |                    |
| ltzfabrik |      |       |      |              |                    |
| KG**      |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Eu      | 2.8  | Li    | Lich | manufacture  | Eurovita Sp. z o.  |
| ropar-Ven |      | chten | tens | of food      | o. (Poznań)        |
| Company   |      | stein | tein | products,    |                    |
| Establ    |      |       |      | beverages    |                    |
| ishment** |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **        | 2.7  | Li    | Lich | manufacture  | Terravita Sp. z o. |
| Terravita |      | chten | tens | of food      | o. (Poznań)        |
| Holding   |      | stein | tein | products,    |                    |
| Establ    |      |       |      | beverages    |                    |
| ishment** |      |       |      | and tobacco, |                    |
|           |      |       |      | wholesale    |                    |
|           |      |       |      | trade        |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Conrad  | 2.6  | Ge    | Ger  | manufacture  | 11,48% stake in    |
| Jacobson  |      | rmany | many | of food      | \"Sokołów\" S.A.   |
| GmbH**    |      |       |      | products,    | (Sokołów Podlaski) |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Bagd    | 2.6  | R     | Ru   | manufacture  | Śnieżka S.A.       |
| asarian** |      | ussia | ssia | of food      | (Świebodzice)      |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Natel   | 2.5  | The   | The  | manufacture  | McLean Brothers    |
| I         |      | N     | Net  | of food      | Poland Sp. z o. o. |
| nvestment |      | ether | herl | products,    | (Szczecin)         |
| BV**      |      | lands | ands | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Gustav  | 2.5  | Ge    | Ger  | manufacture  | 34,1% stake in     |
| F. W.     |      | rmany | many | of food      | Zakłady Przemysłu  |
| Hamester  |      |       |      | products,    | Cukierniczego      |
| GmbH&Co** |      |       |      | beverages    | Wawel S.A.         |
|           |      |       |      | and tobacco  | (Kraków)           |
+-----------+------+-------+------+--------------+--------------------+
| *         | 2.3  | F     | Fr   | food         | Lesaffre           |
| *Lesaffre |      | rance | ance | procesing    | bio-corporation    |
| Group**   |      |       |      |              | Sp. z o. o.        |
|           |      |       |      |              | (Wołczyn),         |
|           |      |       |      |              | Advanced           |
|           |      |       |      |              | Biotechnologies    |
|           |      |       |      |              | Corporation Sp. z  |
|           |      |       |      |              | o. o. (Warsaw),    |
|           |      |       |      |              | Pomorska Fabryka   |
|           |      |       |      |              | Drożdży Polmos     |
|           |      |       |      |              | S.A. (Tczew)       |
+-----------+------+-------+------+--------------+--------------------+
| **Johan   | 2.1  | The   | The  | manufacture  | Agro-Bor Louisa    |
| van       |      | N     | Net  | of food      | Sp. z o. o.        |
| Leendert  |      | ether | herl |              | (Kostrzyn)         |
| B.V.**    |      | lands | ands |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Uniq    | 2.0  | U     | Un   | manufacture  | Lisner Sp. z o. o. |
| plc**     |      | nited | ited | of food      | (Poznań)           |
|           |      | Ki    | Kin  | products,    |                    |
|           |      | ngdom | gdom | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Danish  | 2.0  | De    | Den  | manufacture  | Dania Fast Food    |
| Fast      |      | nmark | mark | of food      | Sp. z o. o.        |
| Food**    |      |       |      | products,    | (Warsaw)           |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco, |                    |
|           |      |       |      | retail trade |                    |
+-----------+------+-------+------+--------------+--------------------+
| **GIF     | 2.0  | Italy | I    | manufacture  | Frubella           |
| SRL.**    |      |       | taly | of food      | Processing Sp. z   |
|           |      |       |      | products,    | o. o..             |
|           |      |       |      | beverages    | (Białobrzegi)      |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Bauer   | 1.9  | Ge    | Ger  | manufacture  | O.K. Owocowe       |
| Peter**   |      | rmany | many | of food      | Koncentraty Sp. z  |
|           |      |       |      | products,    | o. o. (Przeworsk)  |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Indian  | 1.7  | USA   | USA  | manufacture  | Okręgowa           |
| Food      |      |       |      | of food      | Spółdzielnia       |
| Company** |      |       |      | products,    | Mleczarska         |
|           |      |       |      | beverages    | (Ciechanów)        |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Lannen  | 1.6  | Fi    | Fin  | manufacture  | Lannen Polska Sp.  |
| Tehtaat   |      | nland | land | of food      | z o. o.            |
| OY**      |      |       |      | products,    | (Tolkmicko)        |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Hans    | 1.6  | Ge    | Ger  | manufacture  | \"Hoell-Pol\"      |
| Hoell     |      | rmany | many | of food      | Zakład Mięsny Sp.  |
| Fleischwa |      |       |      | products,    | z o. o. (Kaszczor) |
| renfabrik |      |       |      | beverages    |                    |
| AG, Co    |      |       |      | and tobacco  |                    |
| KG**      |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **OSI     | 1.6  | Ge    | USA  | manufacture  | Esca Food          |
| Inte      |      | rmany |      | of food      | Solutions sp. z o. |
| rnational |      |       |      |              | o. (Warsaw)        |
| Holding   |      |       |      |              |                    |
| GmbH**    |      |       |      |              |                    |
+-----------+------+-------+------+--------------+--------------------+
| **L       | 1.5  | F     | Fr   | manufacture  | Lactalis Polska    |
| ACTALIS** |      | rance | ance | of food      | Sp. z o. o.        |
|           |      |       |      | products,    | (Warsaw), Polser   |
|           |      |       |      | beverages    | S.A. - operation   |
|           |      |       |      | and tobacco  | of dairies and     |
|           |      |       |      |              | cheese making in   |
|           |      |       |      |              | Siemiatycze        |
+-----------+------+-------+------+--------------+--------------------+
| **Corey   | 1.5  | USA   | USA  | manufacture  | Bona Sp. z o. o.   |
| Durling** |      |       |      | of food      | (Złotów)           |
|           |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| *         | 1.5  | Ir    | Ca   | manufacture  | Fantasy Foods Sp.  |
| *Herisson |      | eland | nada | of food      | z o. o. (Kobyłka   |
| Ltd**     |      |       |      | products,    | near Warsaw)       |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Materne | 1.2  | Be    | Bel  | manufacture  | Materne-Polska Sp. |
| -Confilux |      | lgium | gium | of food      | z o. o. (Łopatki)  |
| S.A.**    |      |       |      | products,    |                    |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+
| **Chapman | 1.0  | C     | Ca   | manufacture  | Chapman Ice Cream  |
| Ice       |      | anada | nada | of food      | Poland Sp. z o. o. |
| Cream**   |      |       |      | products,    | (Poznań)           |
|           |      |       |      | beverages    |                    |
|           |      |       |      | and tobacco  |                    |
+-----------+------+-------+------+--------------+--------------------+

Source: PAIZ report

### Sector Trends

[Further development of the food processing industry in the next 5-10
years will be stimulated by]{.mark}

 [The increased demands of local as well as foreign (E.U. and Former
Soviet Union countries) food markets:]{.mark}

 Increased demand for processed fruit, vegetables, milk, fish, and meat

 Increased demand for convenience products (highly processed, easy to
cook, ready to eat),

 Further reduction in presence of small local processing, giving way to
domination by large plants. Food processed by small plants is generally
of lower quality and costs more than food processed by larger plants.
Industry experts predict that foreign investment in the food processing
industry will continue for several years, until medium sized players are
eliminated from the market.

The influence of western consumption habits and increased income
contribute to the development of food processing industry.

 Development of the HRI food service market, which is presently less
significant for Polish consumers, however it is expected to develop
along with increased incomes and changes in the lifestyle of Polish
families. The food processing industry will be influenced by the fast
food and catering industries. The need for convenience food will be
stimulated by large (nearly 40 percent) percentage share of two income
households.

 Increased demand for organic foods, produced without using chemicals.

Membership in the European Union has created new export opportunities
for domestic food processors in segments of food processing industry
where Poland has a competitive advantage in the EU. Poland's advantage
is mainly in processed milk production (cheese and yogurt) and frozen
fruit and vegetables. Significant investments are necessary to adapt the
Polish food industry (particularly dairy and meat producers) to the EU
standards. Such investments can be partly financed with EU funds.

[The Polish food processing industry will undergo changes in the
structure of food products offered, but also in further modernization
and concentration of food processing. These changes will be occur in
response to market demands as well as by the Polish food industry
adapting to EU standards (hygiene, veterinary, quality, and
wholesomeness of food).]{.mark}

Foreign investments have played a significant role in developing and
modernizing the Polish food processing industry. Throughout 2004 total
foreign investments in the food industry exceeded \$6,624.8 million.
American companies are the largest foreign investors in this sector. The
following companies are invested in the food processing sector:

 Coca Cola Beverages

 Pepsico: production of beverages, snacks, confectionery products,

 Smithfield: meat processing,

 Mars Incorporated (Master Foods): production of confectionery products
and animal feeds,

 McDonalds: fast food,

 Cargill Inc: production of animal feeds,

 Bestfoods: production of food concentrates,

 Gerber: fruit and vegetable processing,

 Wrigley: confectionery,

 Philip Morris and Reynolds Tobacco: tobacco industry.

#  SECTION III. COMPETITION

#  

European Union companies are and will be the main competitors in the
food processing sector for U.S. exporters and investors. Currently, over
60 percent of food product (processed and raw materials) imports come
from EU countries, particularly Germany. Companies from the EU and the
United States are the most significant foreign investors in the Polish
food processing sector.

U.S. products compete with European Union dairy products (cheese,
yogurt, ice-cream), processed fruits (preserved and dried), alcoholic
(wine and beer) and non-alcoholic beverages, fish and seafood, vegetable
fats, condiment, snacks and food additives.

#  SECTION IV. BEST PRODUCT PROSPECTS 

**PRODUCTS WHICH HAVE BEST SALES POTENTIAL:**

\- Seafood: (salmon, butterfish, herring, mackerel, black cod)

\- Dried Fruit (prunes)

\- Nuts (almonds, pistachios, peanuts)

\- Food processing ingredients:

\- dairy isoglucose concentrates

\- high quality spices and mixes (tex-mex)

\- vegetable fat for processing sector

+-----+--------+-------+--------+-----+---------------+--------------+
| ##  |        |       |        |     |               |              |
| ### |        |       |        |     |               |              |
| ### |        |       |        |     |               |              |
| # I |        |       |        |     |               |              |
| mpo |        |       |        |     |               |              |
| rt  |        |       |        |     |               |              |
| Sta |        |       |        |     |               |              |
| tis |        |       |        |     |               |              |
| tic |        |       |        |     |               |              |
| s O |        |       |        |     |               |              |
| n S |        |       |        |     |               |              |
| ome |        |       |        |     |               |              |
|  Of |        |       |        |     |               |              |
|  Th |        |       |        |     |               |              |
| e C |        |       |        |     |               |              |
| omm |        |       |        |     |               |              |
| odi |        |       |        |     |               |              |
| tie |        |       |        |     |               |              |
| s W |        |       |        |     |               |              |
| ith |        |       |        |     |               |              |
|  Be |        |       |        |     |               |              |
| st  |        |       |        |     |               |              |
| Sal |        |       |        |     |               |              |
| es  |        |       |        |     |               |              |
| Pot |        |       |        |     |               |              |
| ent |        |       |        |     |               |              |
| ial |        |       |        |     |               |              |
+-----+--------+-------+--------+-----+---------------+--------------+
| **C | **P    | **2   | **Po   | **5 | **Key         | **Market     |
| N** | roduct | 005** | lish** | Y   | constraints** | at           |
|     | Cate   |       |        | r** |               | tractiveness |
|     | gory** |       |        |     |               | for USA**    |
+-----+--------+-------+--------+-----+---------------+--------------+
| Co  |        | M     | 2005   | A   |               |              |
| de  |        | arket | i      | ver |               |              |
|     |        |       | mports | age |               |              |
|     |        | Size  |        |     |               |              |
|     |        |       | \$     | imp |               |              |
|     |        | \$    |        |     |               |              |
|     |        |       |        | gro |               |              |
|     |        |       |        | wth |               |              |
|     |        |       |        |     |               |              |
|     |        |       |        | \%  |               |              |
+-----+--------+-------+--------+-----+---------------+--------------+
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
|     | Se     |       |        |     |               |              |
|     | afood: |       |        |     |               |              |
|     |        |       |        |     |               |              |
+-----+--------+-------+--------+-----+---------------+--------------+
| 0   | Frozen | 1     | 145,6  | 44% | U.S. product  | Polish       |
| 303 | Fish   | 50,00 | 79,958 |     | is considered | market is    |
|     |        | 0,000 |        |     | to be         | interested   |
|     |        |       |        |     | expensive.    | in the       |
|     |        |       |        |     | Polish        | following    |
|     |        |       |        |     | importers are | varieties    |
|     |        |       |        |     | mostly        | (H&G):       |
|     |        |       |        |     | interested in | salmon       |
|     |        |       |        |     | cheaper       | (keta,       |
|     |        |       |        |     |               | gorbusha)    |
|     |        |       |        |     | varieties.    |              |
|     |        |       |        |     | Large         | butterfish,  |
|     |        |       |        |     | competition   | herring,     |
|     |        |       |        |     |               | mackerel,    |
|     |        |       |        |     | exist from    | black cod,   |
|     |        |       |        |     | European      |              |
|     |        |       |        |     | suppliers.    | halibut.     |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
+-----+--------+-------+--------+-----+---------------+--------------+
| 030 | Frozen | 2     | 193,9  | 40% | U.S. product  | Polish       |
| 420 | F      | 00,00 | 86,660 |     | is considered | market is    |
|     | illets | 0,000 |        |     | to be         | interested   |
|     |        |       |        |     | expensive.    | in the       |
|     |        |       |        |     | Polish        | following    |
|     |        |       |        |     | importers are | varieties:   |
|     |        |       |        |     | mostly        |              |
|     |        |       |        |     | interested in | herring,     |
|     |        |       |        |     | purchasing    | mackerel,    |
|     |        |       |        |     | product for   | cod,         |
|     |        |       |        |     | further       | halibut.     |
|     |        |       |        |     | processing    |              |
|     |        |       |        |     | (cans).       |              |
|     |        |       |        |     |               |              |
|     |        |       |        |     | Some U.S.     |              |
|     |        |       |        |     | suppliers are |              |
|     |        |       |        |     | only able to  |              |
|     |        |       |        |     | provide whole |              |
|     |        |       |        |     | fish versus   |              |
|     |        |       |        |     | filets        |              |
|     |        |       |        |     | (herring).    |              |
|     |        |       |        |     | Also mackerel |              |
|     |        |       |        |     | and herring   |              |
|     |        |       |        |     | varieties     |              |
|     |        |       |        |     | from the U.S. |              |
|     |        |       |        |     | have less fat |              |
|     |        |       |        |     | content than  |              |
|     |        |       |        |     | the European  |              |
|     |        |       |        |     | varieties.    |              |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
+-----+--------+-------+--------+-----+---------------+--------------+
| 081 | Prunes | 10,00 | 9,5    | 28% | U.S. product  | Polish       |
| 320 |        | 0,000 | 28,202 |     | is considered | importers    |
|     |        |       |        |     | to be         | consider     |
|     |        |       |        |     | expensive.    | U.S. product |
|     |        |       |        |     |               | to be of     |
|     |        |       |        |     | Active        | high quality |
|     |        |       |        |     | competition   | and import   |
|     |        |       |        |     | exists from   | it for usage |
|     |        |       |        |     | Argentina and | in high end  |
|     |        |       |        |     | Chile.        | food         |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               | products.    |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
+-----+--------+-------+--------+-----+---------------+--------------+
| 080 | A      | 20,00 | 18,7   | 49% | U.S. product  | Polish       |
| 212 | lmonds | 0,000 | 09,396 |     | is considered | importers    |
|     |        |       |        |     | to be         | consider     |
|     |        |       |        |     | expensive.    | U.S. product |
|     |        |       |        |     |               | to be of     |
|     |        |       |        |     | Active        | high quality |
|     |        |       |        |     | competition   | and import   |
|     |        |       |        |     | from Spain.   | it for usage |
|     |        |       |        |     |               | in high end  |
|     |        |       |        |     |               | food         |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               | products. In |
|     |        |       |        |     |               | 2005 for the |
|     |        |       |        |     |               | first time   |
|     |        |       |        |     |               | import from  |
|     |        |       |        |     |               | the U.S.     |
|     |        |       |        |     |               | reached      |
|     |        |       |        |     |               | almost       |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               | similar      |
|     |        |       |        |     |               | volumes as   |
|     |        |       |        |     |               | those        |
|     |        |       |        |     |               | imported     |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               | from Spain.  |
+-----+--------+-------+--------+-----+---------------+--------------+
| 080 | Pist   | 9,00  | 8,0    | 45% |  U.S. product | Polish       |
| 250 | achios | 0,000 | 91,199 |     | is considered | importers    |
|     |        |       |        |     | to be         | consider     |
|     |        |       |        |     | expensive.    | U.S. product |
|     |        |       |        |     |               | to be of     |
|     |        |       |        |     | Active        | high quality |
|     |        |       |        |     | competition   | and import   |
|     |        |       |        |     | from Iran.    | it in order  |
|     |        |       |        |     |               | to supply    |
|     |        |       |        |     |               | delicatessen |
|     |        |       |        |     |               | customers.   |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
|     |        |       |        |     |               |              |
+-----+--------+-------+--------+-----+---------------+--------------+

#  SECTION V. POST CONTACT AND FURTHER INFORMATION 

If you have any questions or comments regarding this report, or need
assistance in exporting to Poland, please contact the Office of
Agricultural Affairs in Warsaw, at the following address:

> Office of Agricultural Affairs
>
> American Embassy
>
> Al. Ujazdowskie 29/31
>
> 00-540 Warsaw
>
> Poland
>
> ph: 48-22 504 2336
>
> fax: 48-22 504 2320
>
> e-mail: agwarsaw@usda.gov or agwarsaw@poczta.onet.pl
>
> homepage: http://poland.usembassy.gov/poland/agric.html

For more information on exporting U.S. food products to Poland,
including "The Exporter's Guide", "The HRI Sector Report", "The Retail
Food Sector Report", product briefs on the market potential for U.S.
fruit, wine and dried fruits and nuts, please visit the Foreign
Agricultural Service home page: http://www.fas.usda.gov. Importer lists
are also available from our office to exporters of U.S. food products.