Required Report - Public distribution

**Date:** 2/28/2008

**GAIN Report Number:** PL8007

PL8007

**Poland**

**Retail Food Sector**

**Annual**

**2008**

**Approved by:**

![](media/image1.wmf)Eric Wenberg

AgWarsaw

**Prepared by:**

Eric Wenberg, Jolanta Figurska

**Report Highlights:**

Poland\'s food retailing sector continues to modernize as consumer
incomes grow much faster in real terms than the rest of Europe (18-20%
annually) for many of Poland's 38.6 million people. Hypermarkets
increased from 276 in 2003 to 295 in 2006, while sales in discount
stores are to increase over 20% during the next four years. Consumers
with money are spending it on better lifestyles like higher quality
foods. Sometimes U.S. sales are hampered by stiff Polish and EU
competition, stringent food ingredient regulations, and costly terms of
business to get product onto large retailers\' shelves. Further
development of the retail sector could be limited by recently introduced
regulations concerning permits for building and mandatory holiday
closures. There are opportunities as outlined in Section IV, \"Best
Prospects\" for high quality U.S. foods such as pears, pistachios, ice
cream, wines, bourbon, lobsters and others have entered the Polish
market over the last year.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Warsaw \[PL1\]

\[PL\]

**Table of Contents**

**SECTION I. MARKET SUMMARY 3**

**General Information 3**

**Description of Retail Trade 5**

**Import Conditions 12**

**SECTION II. Road Map for Market Entry 16**

**A. Hypermarkets, Supermarkets, Delicatessen, Discount Shops 16**

**B. Convenience Stores, Gas Marts, Kiosks 19**

**C. Traditional Markets 20**

**SECTION III. Competition 21**

**SECTION IV. Best Prospects 21**

**Products present in the market which have good sales potential 21**

**SECTION V. Embassy contact information 23**

**ATTACHMENT A 24**

Largest Foreign investment projects in food-processing and tobacco
Industries

(*investments over 1 \$ Million in 2006*)

# SECTION I. MARKET SUMMARY

## General Information

Since the late 1990s the Polish economy grew rapidly. In 2006, GDP grew
by 6.1 percent as compared with 3.5 in 2005.

Chart 1. GDP growth in 2001-2007 (%)

![](media/image2.wmf){width="4.111111111111111in"
height="3.173611111111111in"}

> *Source: Main Statistical Service (GUS)*

Economists forecast that GDP should grow by at least 6.5 percent in
2007. Poland's GDP per capita amounted to \$13,700 in 2005 and increased
to \$14,800 in 2006.

***Chart 2. GDP level in Poland in 2006 compared to neighboring
countries in (%)***

![](media/image3.wmf)

> *Source: Main Statistical Service (GUS)*

Consumer price inflation has been dropping during the last several
years. Average annual inflation in 2006 was 1 percent (5.5% in 2001).
According to the Polish Statistical Office's (GUS) forecast, in 2007 CPI
will increase to 2.3 percent.

***Chart 3. Average annual inflation in 2001-2007***

![](media/image4.wmf)

> *Source: GUS Polish Statistical Office*

Unemployment has fallen steadily from 2001.  According to the Polish
Statistical Office (GUS) the unemployment rate reached 12 percent in
2007, and is expected to decrease further in the coming years. It will
drop below 11 percent at the end of 2008 as the effect of the increase
in economic activities connected with organization of Euro 2012
(European football cup games championship to be organized in Poland and
Ukraine) and further employment migration of Poles into other EU
countries (mainly UK, Ireland, Spain and Germany).

The transformation of the Polish economy into a free market has resulted
in significant development of retail trade since the late 1990s. Dynamic
changes in the domestic market have occurred, resulting in increased
competition in both the production and trade sectors. The number of
retail outlets in Poland totaled 395,458 in 2006, a 2.5 percent increase
versus 2005, and as compared with 448,000 in 2003. In 2006, there were
about 110,000 other retail outlets such as small kiosks, stands, stalls,
etc. Polish companies trading in food products fear competition as
foreign competitors from inside the EU (mainly French and German) enter
the market. Foreign capital and new standards of distribution and trade
have not only shown Polish retailers new ways of operating their
businesses but also challenged them to create their own methods to
attract and retain customers. Polish retail trade companies also realize
that they cannot ignore globalization. They have begun concentrating and
consolidating processes to strengthen their market position; for example
there is the continuous consolidation process of the Emperia Holding.

Compared to Western Europe, the Polish retail trade is still very much
fragmented due to the nature of Poland's demographic structure, where 38
percent (15 million people) of the Polish population live in rural
areas, in scattered villages.

## Retail Trade

***Current Challenges***

Poland's retail sector has been developing rapidly over the last fifteen
years. Operating in this sector is far more challenging than just having
to face regular open market competition. This sector was swept up in a
populist campaign initiated by members of the Polish Parliament (the 5th
term October 19, 2005- November 4, 2007). Even though members of the
previous Parliament who supported two new populist regulations were not
reelected; these regulations hamper retail trade and still remain in
force.

The first regulation in question (approved by Parliament on August 24,
2007) pertains to regulations prohibiting trade in retail outlets on
certain holidays. The new regulation concerns the following holidays:
All Saints day, Polish Independence day, Christmas, New Year, Easter,
Labor Day, Constitution Day, Whit Sunday and Assumption Day. November 1,
2007, (All Saints Day) was the first day when new regulations concerning
"ban on trade during certain holidays" approved by Parliament of the 5th
Term was enforced and all of the hypermarkets/supermarkets/medium stores
remained closed. 

Retail trade operators are very concerned with this regulation as in
previous years they had record sales on most of the days listed above.
Many Polish consumers used to plan major shopping for holidays and many
retail trade centers promoted special events and promotions well ahead
of these holidays and managed to attract great crowds. The current
Parliament is not saying it plans to change the regulation; this
regulation is likely to remain in enforce for an extended period of
time. This situation is likely to reduce annual sales of the retail
sector although sector experts noted that increase purchases noted prior
to November 1, 2007, compensated for part of the losses resulting from
the obligatory shut down.

The second regulation in question pertains to a law approved by the
Polish Parliament on May 11, 2007, concerning limits on creation and
approval of already existing shopping centers/hypermarkets with sales
area of above 400 square meters (4,305 square feet). This regulation
involves almost all shopping centers already operating or to be
constructed in the future. The regulation prescribes that special
approval would be needed from local authorities to build a new
shop/center. This regulation is considered by sector experts to be
extremely harmful for the current operations of the retail sector, as
well as stimulating local corruption. This view is shared by the current
Government and Parliament and hence this particular regulation is likely
to be amended in early 2008.

***Consolidation Process***

Consolidation continued among the foreign retail chains operating in
Poland during 2005-2006 with Tesco (through purchase of Leader Price),
Carrefour (purchase of Ahold) and Metro/Real (purchase of Geant) gaining
a stronger positions on the Polish market. Major Polish enterprises also
continued the integration process with Eldorado and Boss joining to
create the Emperia Holding (comprising companies operating within BOS,
Eldorado and DLS). The Polish chain with the longest history dating back
to the socialist times, Spolem, also initiated a process of
consolidation.

***Table 1. Latest consolidating transactions within retail chains
operating in Poland during 2005-2006***

+-----------+-----------------+-----------+--------+------------------+
| *Year of\ | *Selling\       | *Chain*   | *      | *P               |
| tra       | Company/Country |           | Number | urchaser/Country |
| nsaction* | of Origin*      |           | of     | of Origin*       |
|           |                 |           | s      |                  |
|           |                 |           | tores* |                  |
+-----------+-----------------+-----------+--------+------------------+
| 2005      | Ahold (The      | Hypernova | 2      | Carrefour        |
|           | Netherlands)    |           |        | (France)         |
+-----------+-----------------+-----------+--------+------------------+
| 2005      | Ahold (The      | Hypernova | 1      | Real (Germany)   |
|           | Netherlands)    |           |        |                  |
+-----------+-----------------+-----------+--------+------------------+
| 2005      | Julius Melin    | Julius    | 9      | Tesco (UK)       |
|           | (Austria)       | Meinl     |        |                  |
+-----------+-----------------+-----------+--------+------------------+
| 2006      | Casino (France) | Geant     | 19     | Real (Germany)   |
+-----------+-----------------+-----------+--------+------------------+
| 2006      | Casino (France) | Leader    | 145    | Tesco (UK)       |
|           |                 | Price     |        |                  |
+-----------+-----------------+-----------+--------+------------------+
| 2006      | Ahold (The      | Hypernova | 15     | Carrefour        |
|           | Netherlands)    |           |        | (France)         |
+-----------+-----------------+-----------+--------+------------------+
| 2006      | Ahold (The      | Albert    | 179    | Carrefour        |
|           | Netherlands)    |           |        |                  |
|           |                 |           |        | (France)         |
+-----------+-----------------+-----------+--------+------------------+

> Source: HANDEL Magazine, GFK Statistics

***Table 2. Top 10 Retailers on the Polish Market in 2006***

> ***Table 3. Number of shops according to ownership*.**

  ------------- --------------------- ------------------- ---------------
  **Years**     **Number of shops                         
                according to                              
                ownership**                               

                National              Foreign             Mixed

  2001          445212                3250                877

  2004          363696                4324                782

  2005          377756                5385                860

  2006          388709                5878                871

                                                           

                **Percent in overall                      
                store number**                            

  2001          99.1                  0.7                 0.2

  2004          98.3                  1.2                 0.5

  2005          98.4                  1.4                 0.2

                                                          

  2006          98.3                  1.5                 0.2

  2006/2005\    102.9                 109.2               101.3
  in %                                                    
  ------------- --------------------- ------------------- ---------------

SOURCE: Polish Statistical Office GUS

Retail sales in 2006 amounted to USD \$191 billion dollars increasing
almost 10 percent, from 2005. Retail trade represented 18.5 percent of
Poland's GDP in 2006. Non-food products sales are estimated to represent
as much as 63 percent of total retail sales.

Statistics indicate that more shoppers are turning to hyper markets in
place of smaller traditional markets. In 2005 the number of people who
shopped at hypermarkets more than once a week doubled compared to 2000
(from 19% to 40%). Further increases are expected to occur within the
next five years. The average purchase in 2006 at a hypermarket, is
estimated at PLN 190 = \$77.00 (PLN 230 in Warsaw, PLN 185 in Gdansk,
PLN 150-190 outside of major cities). On the other hand, the average
value of the transaction in traditional shops has dropped 18 percent.
This decrease has mainly affected shops located in areas inhabited by
fewer than 10,000 people.

The retail trade was the first sector of the Polish economy to be almost
entirely privatized at the beginning of the transformation period. At
present there are only a few state/cooperative companies and they
represent only about 0.3 percent of the total number of shops.

Despite the trend toward increasing use of hypermarkets, the Polish
market is still dominated by shops with trading area below 100 square
meters (1,076 square feet), which in 2006 constituted as much as 94
percent of total retail outlets. However during the last decade
traditional retail business (shops with an area smaller than 300 square
meters -- 3,229 square feet) have noted continuous decrease in sales
results. The fast moving consumer goods market has been stabilizing, and
strong competition has surfaced within modern distribution channels
(mostly with international investment from France and Germany). The
latter is taking place at the expense of traditional distribution
channels whose financial situation is worsening.

**Table 4. *Number of food stores operating in Poland 2001-2006***

  ----------------- ------- ---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
  **Year**          ** **   **2001**                 **2004**                 **2005**                 **2006**   

  **Type of store**         **Number   **structure   **Number   **structure   **Number   **structure   **Number   **structure
                            of\        in %**        of\        in %**        of\        in %**        of\        in %**
                            stores**                 stores**                 stores**                 stores**   

  Total number\             173907     100           138302     100           143474     100           145790     100
  of food stores,\                                                                                                
  including:                                                                                                      

  general food              145934     83.9          112301     81.2          116097     80.9          120455     82.6

  fruit-vegetable           5251       3             4778       3.5           5224       3.6           4451       3.1

  Meat                      14714      8.5           12456      9             13073      9.1           12002      8.3

  Fish                      1572       0.9           1053       0.8           1106       0.8           942        0.6

  Bakeries                  4101       2.4           5446       3.9           5520       3.9           5430       3.7

  alcoholic                 2335       1.3           2268       1.6           2454       1.7           2510       1.7
  beverages                                                                                                       
  ----------------- ------- ---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------

*Source: Polish Statistical Yearbook 2005, 2006*

***Table 5. Structure of retail sales in Poland in 1995-2005 by %
(current prices)***

> *Source: Polish Statistical Yearbook 2006*

About 75 percent of shops are located in urban areas, which has been the
case for the last five years. As the market becomes more saturated and
as a result of market consolidation (e.g. creation of "Carrefour
Express" shops as a result of purchase of Ahold/Albert stores)
international retail operators are bound to move outside of major
metropolitan areas. Due to the lack of capital, weak financial
situation, and low profitability, Polish companies have lost the initial
battle for access to the food retail market in the early nineties.
However, over the last ten years there has been a more active approach
towards regaining lost positions.

Nonetheless, given their greater access to capital, foreign companies
are expected to play a particularly significant role in trade
development during the coming years. The fact that 98 percent of retail
companies have no more than two shops is further evidence of the
dispersed structure of the trade.

The growth in a number of super and hypermarkets continues. In 2006, 276
foreign and 17 Polish hypermarkets were operating, a 12 percent increase
over 2005. Supermarkets increased by 11 percent versus 2005 (561 foreign
and 855 Polish). In 2006 only a slight, 1 percent, increase was noted in
discounter stores sector (1,596).

> ***Table 6.*** Companies by number of shops owned

  --------------------------------- ------------- ------------- -------------
  **Specification**                 **2003**      **2004**      **2005**

  **Total**                         **404,286**   **324,845**   **336,628**

  up to 2 shops                     398,681       319,240       330,758

  3-10 shops                        4,551         4,559         4,792

  11-20 shops                       740           710           716

  21-50 shops                       264           265           270

  51-100 shops                      35            50            66

  101-200 shops                     10            15            20

  Over 200 shops                    5             6             6
  --------------------------------- ------------- ------------- -------------

#### Source: Polish Statistical Yearbook 2006

**Delicatessen Chains**

The Polish market is the development of modern delicatessen chains. Alma
Market and Bomi delicatessen chains are opening new outlets every year
and are a first choice for high-end consumers. Alma Market (based in
Krakow) is one of the few companies importing high-end food and it is
interested in certain U.S. products such as processed nuts (almonds) and
dried fruit (prunes).

### 

### Structure of retail Food stores in 2005-2006

In 2006 the food retail network in Poland included about 120,600 shops,
a 2 percent increase over 2005. However, the total number of shops
selling different types of food (including hypermarkets, supermarkets,
convenience stores, discount stores, gas stations, kiosks) increased by
2.5 percent and amounted to 395,458.

***Open-air markets*** continue to play a significant role in the Polish
retail sector. In 2006, there were 2,230 permanent markets where about
130,000 regular points of sale were registered. This indicates that a
considerable portion of domestic revenue is generated in these markets.
The scope of activities has not changed for many years. Over 80 percent
of the markets are retail; the remainder is operated by wholesale
traders. The majority of goods sold in the markets are supplied by local
producers, except for fruits and vegetables, many of which are imported.

***Private label***

In 2006, food products sold within the private label category amounted
to 13.5 percent of overall sales recorded in retail outlets. In the
early nineties retailers operating in Poland introduced private label
products by offering customers low prices and relatively low quality. A
typical private label price level is still about 30 to 60 percent lower
than their brand equivalent prices, mainly due to savings on
advertising, promotion and discounting for large quantities of such
products. Consumers' interest in these lower priced products and private
label goods has increased in the last three years. The rivalry with
brand names now includes both lower prices and high quality. In 2006,
Tesco ("Tesco --Quality for you" "Tesco -- Jakość dla Ciebie") and
Carrefour made a first attempt to introduce a higher priced private
label lines in their stores. According to retailers in Poland most of
the goods sold under private label are produced by Polish companies.
These include firms from all production segments - small and medium
firms, but also the biggest Polish food processors. Overall it is
estimated that 500 companies in Poland manufacture products sold by
large stores under their own brands.

Table 7. The most popular private labels in Poland are:

  ----------------------- -------------------- --------------------------
  **Private label**       **Store chain**      **Retailer (country)**

  Biedronka               Biedronka            Jeronimo Martins
                                               (Portugal)

  TiP Tanie i Pewne       Real                 Metro AG (Germany)

  Aro                     Makro Cash&Carry     Metro AG (Germany)

  Tesco Korzystny Zakup   Tesco, Hit           Tesco (Great Britain)
  ----------------------- -------------------- --------------------------

*Source GfK Polonia research*

According to customer surveys about 40 percent of shoppers care about
the brand and more than one third of them buy private label products
"often" or "very often". The majority of customers in favor of private
labels buy them in discount stores (76.4%) or in hypermarkets (13.5%).
Polish retailers purchase goods mainly from local producers and
wholesalers. Companies with foreign capital purchase from local
producers as well as import private label products from their European
branches.

**Expected Changes**

The next five years will see very dynamic structural changes in retail
trade. Hypermarket, supermarket, and discount chains will become the
leaders in food products retail. Supermarkets and discount shops are
predicted to develop quicker than other shops. On the other hand, this
development will be limited to a certain extent by new regulations,
which are either already in force or planned to be implemented. Among
these are restrictions concerning location of super and hypermarkets (as
discussed in Section I).

The following changes are expected in the retail trade:

-   Increased importance of large-area trade outlets in the structure
    and revenue of the retail trade; with continued mergers and buy-outs
    among large chains;

-   Increased importance of companies owning chains of stores, with
    continued integration among small and medium companies;

-   A decreasing number of specialized shops which represent 5% of the
    total number of shops (a decrease from 27,973 in 2001 to 25,335 in
    2006). These shops will either be closed, or will enlarge their
    product lines with new items.

```{=html}
<!-- -->
```
-   Corner and Mom & Pop Shops located in large cities will continue to
    close, because of increasing competition from super, hypermarkets
    and service sectors (e.g. Banks, which present higher rent offers).

-   An increasing number of small shops continue to be opened in rural
    areas. Those small shops are bound to face competition from foreign
    chains introducing smaller shop formats e.g. Carrefour Express
    outside of central urban areas.

-   Continued considerable importance of traditional retail trade
    channels in small cities and rural areas;

-   Increasing importance of private label goods.

### Import Conditions

Overall, Poland's agro-food imports in 2006 amounted to \$9.946 mln as
compared with

\$8.391 mln in 2005. Poland's import of consumer oriented agricultural
goods in 2006 amounted to \$4.424 mln as compared to \$3.732 mln in
2005.

Official exports of agro-food products from the United States were
valued at \$ 116 million (1.1% share in total Poland's import), as
compared with \$98 mln in 2005. Direct export of consumer oriented
agricultural products from the United States amounted to \$32 mln (0.8%
share in Polish imports of consumer oriented agriculture). Highest
export levels were noted in the following commodities: frozen fish
(salmon), tree nuts (almonds), pet food, wine, distilled spirits, fresh
fruit (grapefruit). Due to customs-free borders and economic
integration, this value under-reports U.S. goods available in Poland.
Poland imports hormone-free beef through Spain, distilled spirits
through the UK, lobsters through Frankfurt airways, and pet food through
Germany. About \$55 million in beef and poultry is transshipped to
nations further east through Poland, landing at Gdynia.

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***[Table 8. Import of some food products in 2006]{.mark}***

[]{.mark}

+------------------+-----------+----------+------------+--------------+
| **Description**  | **Total   | *        | **Share of | **Main       |
|                  | imports   | *Imports | US imports | Foreign      |
|                  | of        | from the | in total   | C            |
|                  | agri-food | USA\***  | imports    | ompetitors** |
|                  | products  |          | (%)**      |              |
|                  | by        | **(\$)** |            |              |
|                  | Poland\   |          |            |              |
|                  | (\$ )**   |          |            |              |
+------------------+-----------+----------+------------+--------------+
| Frozen Fish      | 16        | 7        | 4.92       | Russia,      |
| (0303)           | 2,344,157 | ,979,856 |            | Netherlands, |
|                  |           |          |            | Norway,      |
|                  |           |          |            | Denmark,     |
|                  |           |          |            |              |
|                  |           |          |            | Germany      |
+------------------+-----------+----------+------------+--------------+
| Frozen Fish      | 32        | 10       | 3.39       | China,       |
| Fillets (0304)   | 0,940,769 | ,872,208 |            | Norway,      |
|                  |           |          |            | Iceland,     |
|                  |           |          |            | Argentina    |
+------------------+-----------+----------+------------+--------------+
| Almonds (080212) | 1         | 3        | 17         | Spain,       |
|                  | 9,162,870 | ,150,028 |            | Greece       |
+------------------+-----------+----------+------------+--------------+
| Pistachios       | 1         | 110,803  | 1.08       | Iran         |
| (080250)         | 0,295,598 |          |            |              |
+------------------+-----------+----------+------------+--------------+
| Peanuts (1202)   | 3         | 0        | 2          | China,       |
|                  | 2,018,329 | (direct  |            | Argentina,   |
|                  |           | imports) |            | Brazil       |
+------------------+-----------+----------+------------+--------------+
| Prunes (081320)  | 1         | 2        | 17         | Chile,       |
|                  | 3,451,886 | ,261,489 |            | Argentina    |
+------------------+-----------+----------+------------+--------------+
| Raisins (080620) | 2         | 703,325  | 4          | Iran,        |
|                  | 0,418,708 |          |            | Turkey,      |
|                  |           |          |            | Greece       |
+------------------+-----------+----------+------------+--------------+
| Wine (2204)      | 13        | 1        | 2          | Bulgaria,    |
|                  | 3,981,977 | ,811,999 |            | France,      |
|                  |           |          |            | Chile,       |
|                  |           |          |            | Argentina,   |
|                  |           |          |            | Australia    |
+------------------+-----------+----------+------------+--------------+
| Alcohol          | 9         | 2        | 2.5        | UK, Finland, |
| Beverages (2208) | 3,946,861 | ,160,372 |            | Sweden,      |
|                  |           |          |            | Germany      |
+------------------+-----------+----------+------------+--------------+
| Fresh Fruit      | 2         | 678,150  | 3          | Turkey,      |
| Grapefruit       | 4,349,144 |          |            | Spain,       |
| (080540)         |           |          |            | Cyprus,      |
|                  |           |          |            | Israel       |
+------------------+-----------+----------+------------+--------------+

**\*** **PLEASE NOTE**: The above statistics report on direct U.S.
exports to Poland of agro-food products from the United States.
Products, which are transshipped via other EU countries to Poland, are
in most cases not included. In case of wine the actual amount of EU
transshipments amounts to as much as 25 percent of the imports or USD
250,000. Similar situation concerns products such as dried fruit and
nuts, grapefruit, distilled spirits etc. Hence when considering the
importance of Polish market for U.S. products the above note should be
taken into consideration.

In recent years some categories of exported US products are not growing
significantly due to the rapid development of local production and
extensive foreign investments in food processing and the food production
sector. Foreign direct investment in Poland in 2006 was \$16.2 billion
with 82.7 percent of the flow of direct investments coming from the EU
countries. A list of companies that have invested in the agri-food
industry is included in the report in Attachment A. Table I. It is worth
highlighting that companies involved in retail trade form a strong group
among the top 30 foreign investors and are leaders. This refers to
Metro, Tesco, Carrefour and Auchan.

Please note: After Poland's EU accession, Polish imports are subject to
EU regulations. In some cases this improved access for U.S. products
because tariffs were decreased, such as for wine, bourbon, grapefruit,
dried fruit and nuts. It also harmonized many food import regulations
EU-wide. In some cases exports of products which were major U.S.
commodity exports to Poland, such as poultry and beef were eliminated
entirely due to EU rules. Detailed information regarding export
procedures applicable in the EU can be found at:
<http://www.useu.be/agri/usda.html>

Additional information on Poland specific regulations can be found in
Report -- Food and Agricultural Standards Report for Poland - PL 7045
at: <http://www.fas.usda.gov/gainfiles/200707/146291869.pdf>

Please note that after Poland's EU accession, the EU's external custom
tariffs now apply for imports by Poland.  Detailed information on the
current customs tariff applicable in the EU are available at
<http://europa.eu.int/comm/taxation_customs/dds/cgi-bin/tarchap?Lang=EN>

##### 

##### 

##### Advantages and Challenges facing US products in Poland

+-----------------------------+----------------------------------------+
| **Advantages**              | **Challenges**                         |
+-----------------------------+----------------------------------------+
| Population of 38.6 million  | Rapid development of local production  |
| people; increasing number   | (supported by foreign, and in many     |
| of those who can afford     | cases American, investments) has       |
| high-quality food products. | significantly reduced demand for       |
|                             | imported products.                     |
+-----------------------------+----------------------------------------+
| The growing retail industry | Importers, retailers, and consumers    |
| and the growing demand for  | lack awareness of American brands.     |
| more sophisticated and      |                                        |
| diversified products.       | Polish consumers prefer to purchase    |
|                             | products manufactured in Poland.       |
+-----------------------------+----------------------------------------+
| Experienced and             | Imported products are more expensive   |
| increasingly reliable       | due to transportation costs, high      |
| importers.                  | tariffs, and short period of payment.  |
+-----------------------------+----------------------------------------+
| Opportunity for different   | Registration process is slow, can be   |
| kinds of market promotion   | expensive; Polish language labels are  |
| with retailer               | required.                              |
| participation.              |                                        |
|                             | Third-country competition is           |
| Currently weakening U.S. \$ | significant, especially from western   |
| versus Polish zloty         | Europe countries.                      |
| currency (Jan 9, 2008       |                                        |
| exchange rate = 2.46        | Poland has joined the EU, which        |
| zloty/\$1 versus Jan 2003   | results in the same restrictions as    |
| rate of 4.04 zloty/\$1).    | those in other countries belonging to  |
|                             | the European Union including           |
|                             | biotechnology and traceability         |
|                             |                                        |
|                             | requirements.                          |
+-----------------------------+----------------------------------------+
| American food products are  | Farmers have a significant influence   |
| considered to be of good    | on government policy concerning import |
| quality.                    | regulations.                           |
+-----------------------------+----------------------------------------+

### 

# SECTION II. ROAD MAP FOR MARKET ENTRY

# 

***A. Hypermarkets, Supermarkets, Delicatessen and Discount Shops***

##### Entry Strategy

The majority of retailers operating on the Polish market do not conduct
direct imports and rely on local importers and wholesalers to obtain
products. Success in introducing new products in this segment of the
market depends to a large extent on local representative, importer and
distributor.

**[Market structure]{.underline}**

-   Products may be imported either by an importer or a representative
    office, which may also be a wholesaler and / or distributor

-   The representative office deals only with your product, and so pays
    much more attention to the promotion, advertising, and marketing
    activities than an importer who buys many, sometimes even
    competitive, products.

-   Some supermarkets are direct importers (e.g. Alma Delicatessen
    Chains).

-   Importers are distinctly separated into dry goods, refrigerated
    items, fruits and vegetables, alcohol, etc.

-   Importers or representative offices may use nation-wide logistic
    organizations for the storage and distribution of imported products.

-   Importers also have their own distribution networks.

Typical conditions for a supplier when entering foreign retail chains:

-   Entry fees (amounting to tens of thousands of Polish zlotys), which
    are not paid back if the agreement is canceled.

-   30-60 day terms of payment.

-   Considerable price discount - about 10% of regular price.

-   Obligatory participation in promotional activities, which are held
    3-5 times a year and last for 1-3 weeks. This requires another price
    decrease (of about 5%).

-   Obligatory participation in covering the cost of advertising of
    promoted products.

-   Slotting fees (\$250-4,500) for placing each type of product on the
    shelf.

-   Fees for the "display area".

-   No opportunity to influence the "shelf price" level.

-   Very strict delivery terms (exact date and time frame e.g. March 2,
    2008 12:00-14:00).

***[Table 9. Company Profiles of the most important retail chains in
2006]{.underline}***

+-------------+----------+--------+-------+--------------+------------+
| **Retailer  | *        | *      | **No. | **Location** | **         |
| Name and    | *Sales** | *Owner | of    |              | Purchasing |
| Outlet      |          | ship** | Outl  |              | Agent      |
| Type**      | **(\$)   |        | ets** |              | Type**     |
|             | mln**    |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+
| *1. METRO*  | 4,147    | *Ge    |       |              | Direct,    |
|             |          | rmany* |       |              | importers, |
|             |          |        |       |              | w          |
|             |          |        |       |              | holesalers |
+-------------+----------+--------+-------+--------------+------------+
| Makro Cash  | 2,897    |        | 25    | Nationwide   |            |
| and Carry,  |          |        |       |              |            |
| wholesaler  |          |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+
| Real,       | 1,250    |        | 49    |              |            |
| hypermarket |          |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+
| *2.         | 2,767    | *Por   |       | Nationwide   | Direct,    |
| JERONIMO    |          | tugal* |       |              | importers, |
| MARTINS*    |          |        |       |              | who        |
|             |          |        |       |              | lesaler*s* |
+-------------+----------+--------+-------+--------------+------------+
| Biedronka,  | *2,767*  |        | 905   |              |            |
|             |          |        |       |              |            |
| Discount    |          |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+
| *3 TESCO*   | 2,721    | ##     |       | Nationwide   | Direct,    |
|             |          | #### G |       |              | importers, |
|             |          | reat B |       |              | w          |
|             |          | ritain |       |              | holesalers |
+-------------+----------+--------+-------+--------------+------------+
| Tesco,      | 2,575    |        | 247   |              |            |
| hypermarket |          |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+
| Savia,      | 146      |        | 31    |              |            |
| supermarket |          |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+
| 4\.         | 2,200    | ##     |       | Nationwide   | Direct,    |
| *CARREFOUR* |          | #####  |       |              | importers, |
|             |          | France |       |              | w          |
|             |          |        |       |              | holesalers |
+-------------+----------+--------+-------+--------------+------------+
| Carrefour,  | 1,604    |        | 41    |              |            |
| hypermarket |          |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+
| Champion,   | 596      |        | 84    |              |            |
| supermarket |          |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+
| *5. AUCHAN* | 2,042    | ##     |       | Nationwide   | Direct,    |
|             |          | #####  |       |              | importers, |
|             |          | France |       |              | w          |
|             |          |        |       |              | holesalers |
+-------------+----------+--------+-------+--------------+------------+
| Auchan,     | 1,896    |        | 20    |              |            |
| hypermarket |          |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+
| Elea,       | 146      |        | 14    |              |            |
| supermarket |          |        |       |              |            |
+-------------+----------+--------+-------+--------------+------------+

*Source: Handel Magazine 2007*

It is important to note that "cash and carry" outlets are becoming more
and more popular. Some of these operate solely as wholesale units and
only serve retailers. Others sell to individuals but under the condition
that a certain quantity of goods is purchased and a member card is
obtained.

***B. Convenience Stores, Gas Marts, Kiosks***

##### Entry strategy

There are two ways to place new products on shelves depending on the
type of product. Either an exporter should use a representative for
direct personal contact with the shops or shop managers supply
themselves from the wholesalers who may import the products. In this
case goods should be available in several regional wholesale units,
where smaller wholesalers and retailers collect them. They should also
be delivered to the cash and carry outlets.

**Market structure**

**[Company Profile -- Convenience Stores, Gas Marts,
Kiosks]{.underline}**

The sector of Polish convenience stores, gas station marts, or kiosks is
very fragmented and often each retail outlet has a different owner even
when in a chain of gas stations. Ruch, a chain of kiosks, currently
consists of over 10,000 outlets and even though newspapers and magazines
constitute as much as 80 percent of its offered products, snack and
convenience foods are increasing their presence too. This sector usually
comprises of small units employing up to 5 people. According to Polish
law provisions, business entities employing fewer than 5 people are not
obliged to deliver any statistical information. Unfortunately, as a
result, there are no data available regarding these units. A significant
percentage of gas station marts (about 70%) are held by the Polish
refinery Orlen. The remaining part of the market is controlled by a
Polish Refinery in northern Poland, as well as foreign companies (e.g.
BP, Shell, Statoil, Jet, NESTE etc).

***Traditional markets -- "Mom and Pop" small independent grocery stores
and farmer's markets***

##### 

##### Entry strategy

Shops representing traditional markets usually purchase their supplies
from wholesale units located close to the shop. Therefore it is
important for the entity dealing with the import of goods to have a
sufficient distribution system, and access to different wholesalers
(including cash and carry) all over the country.

**[Market structure]{.underline}**

##### 

![](media/image5.wmf)

##### 

##### Company Profiles -- Traditional markets -- "Mom and Pop", small independent grocery stores and farmer's markets

There are about 119,000 outlets that may be regarded as traditional
markets.

Small retail outlets generally have different owners and there are no
chains or franchises. Many of the retail outlets are family-run
businesses. These stores are usually modest in size with an average area
of 15-25 m^2^ (161-269 square feet). Farmer's Markets - vary greatly in
size and facilities. In most cases they consist of open air and / or
kiosk facilities located in an area of 200-400 m^2^ (2,150-4,305 square
feet).

# SECTION III. Competition

Local production and exporters from the European Union, mainly Germany,
France, Italy, Great Britain, Spain, Finland, and the Netherlands (50
percent of total Polish food imports) are the main competitors for
American exporters. Dynamic development of Polish producers and foreign
investments of international firms in the Polish food industry resulted
in an increased offer of high quality products being produced locally.
Even such "American" products as chewing gum, Coca-Cola or Pepsi-Cola
are produced in Poland. It should also be noted that Polish consumers
prefer Polish products to imported products. This obviously influences
the shoppers to purchase products made in Poland. Many chains use the
fact that they offer Polish goods as an advertising tool to increase
sales. In 2003 Tesco started a "Buy Polish products" campaign and since
2006 introduced promotion of Polish goods in the UK.

### 

### **SECTION IV. BEST PRODUCTS PROSPECTS**

***U.S. Products Present on the Market, which have Good Sales
Potential.***

The sales of the following products imported from the United States
continue to grow:

-   Wine

-   Dried Fruit (prunes, raisins)

-   Nuts (almonds, peanuts, pistachios)

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

-   Distilled spirits (bourbon, rum)

-   Grapefruit (red ruby)

-   Pears

-   Food consisting of many ingredients, highly processed, convenient,
    and i.e. ready-to-cook products (on limited basis),

All of these products are known to Polish consumers. The demand for them
changes in line with different phases of development. Many similar
products are produced in Poland, with the use of imported ingredients.

Table 10. Products present in the market, which have good sales
potential

+------+--------+--------+--------+------+------+--------+---------+
| **   | *      | *      | *      | ***5 | *    | ***Key | **      |
| *Pro | **2006 | **2006 | **2006 | -Yr. | **Im | Const  | *Market |
| duct | Market | Market | Impo   | Avg. | port | raints | Attract |
| cat  | siz    | size   | rts*** | An   | Ta   | Over   | iveness |
| egor | e(Volu | in     |        | nual | riff | Market | for     |
| y*** | me)*** | U      |        | Im   | Rat  | De     | USA***  |
|      |        | S\$*** |        | port | e*** | velopm |         |
|      |        |        |        | G    |      | ent*** |         |
|      |        |        |        | rowt |      |        |         |
|      |        |        |        | h*** |      |        |         |
+------+--------+--------+--------+------+------+--------+---------+
| Fish | 3      | 780,0  | \      | 57%  | 0-2  | Price  | Growing |
| (fr  | 03,000 | 00,000 | $760,4 |      | 2%\* | compe  | market. |
| esh, | tons   |        | 09,706 |      |      | tition |         |
| chil |        |        |        |      |      | from   |         |
| led, |        |        |        |      |      | local  |         |
| fr   |        |        |        |      |      | and EU |         |
| ozen |        |        |        |      |      | prod   |         |
| dr   |        |        |        |      |      | ucers. |         |
| ied, |        |        |        |      |      |        |         |
| sal  |        |        |        |      |      |        |         |
| ted, |        |        |        |      |      |        |         |
| smo  |        |        |        |      |      |        |         |
| ked, |        |        |        |      |      |        |         |
| and  |        |        |        |      |      |        |         |
| ot   |        |        |        |      |      |        |         |
| hers |        |        |        |      |      |        |         |
| i    |        |        |        |      |      |        |         |
| nclu |        |        |        |      |      |        |         |
| ding |        |        |        |      |      |        |         |
| fish |        |        |        |      |      |        |         |
| fil  |        |        |        |      |      |        |         |
| ets) |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
| in   |        |        |        |      |      |        |         |
| clud |        |        |        |      |      |        |         |
| ing: |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
| Atla |        |        |        |      |      |        |         |
| ntic |        |        |        |      |      |        |         |
| sa   |        |        |        |      |      |        |         |
| lmon |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
| and  |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
| Pac  |        |        |        |      |      |        |         |
| ific |        |        |        |      |      |        |         |
| sa   |        |        |        |      |      |        |         |
| lmon |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
+------+--------+--------+--------+------+------+--------+---------+
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      | 3000   |        |        |      |  2%  |        |         |
|      | tons   |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        | \$12,0 | \$10,6 | 93%  |      |        |         |
|      |        | 00,000 | 75,114 |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
|      |        |        |        |      |      |        |         |
+------+--------+--------+--------+------+------+--------+---------+
| Alm  | 2,800  | \$20,0 | \$19,1 | 3%   | 2-   | Lack   | Growing |
| onds | tons   | 00,000 | 62,870 |      | 3.5% | of     | market, |
|      |        |        |        |      |      | co     | dynamic |
|      |        |        |        |      |      | nsumer | pro     |
|      |        |        |        |      |      | know   | cessing |
|      |        |        |        |      |      | ledge. | i       |
|      |        |        |        |      |      | Compe  | ndustry |
|      |        |        |        |      |      | tition | growth. |
|      |        |        |        |      |      | from   |         |
|      |        |        |        |      |      | S      |         |
|      |        |        |        |      |      | panish |         |
|      |        |        |        |      |      | supp   |         |
|      |        |        |        |      |      | liers. |         |
+------+--------+--------+--------+------+------+--------+---------+
| Wine | 68 mln | \      | \      | 4%   | EU   | Strong | Good    |
|      | L      | $150,0 | $133,0 |      | tari | po     | rep     |
|      |        | 00,000 | 00,000 |      | ff\* | sition | utation |
|      |        |        |        |      |      | of     | of      |
|      |        |        |        |      |      | F      | Cali    |
|      |        |        |        |      |      | rench, | fornian |
|      |        |        |        |      |      | It     | wines,  |
|      |        |        |        |      |      | alian, | growing |
|      |        |        |        |      |      | Bul    | market. |
|      |        |        |        |      |      | garian |         |
|      |        |        |        |      |      | and    |         |
|      |        |        |        |      |      | other  |         |
|      |        |        |        |      |      | New    |         |
|      |        |        |        |      |      | World  |         |
|      |        |        |        |      |      | supp   |         |
|      |        |        |        |      |      | liers. |         |
+------+--------+--------+--------+------+------+--------+---------+
| D    | 12 mln |        | \$94,0 | 20%  | EU   | Strong | Growing |
| isti | L      |        | 00,000 |      | tari | po     | market  |
| lled | PA\*\* | \$94,0 |        |      | ff\* | sition | and     |
| Spi  |        | 00,000 |        |      |      | of     | con     |
| rits |        |        |        |      |      | local  | tinuous |
|      |        |        |        |      |      | and EU | high    |
|      |        |        |        |      |      | supp   | consu   |
|      |        |        |        |      |      | liers. | mption. |
+------+--------+--------+--------+------+------+--------+---------+

\* Please refer to EU duty rate database available at
<http://ec.europa.eu/taxation_customs>

\*\* LPA -- Liters of Pure Alcohol

# SECTION V. POST CONTACT AND FURTHER INFORMATION

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

Office of Agricultural Affairs

American Embassy

Jolanta Figurska, Marketing Specialist

Al. Ujazdowskie 29/31

00-540 Warsaw

Poland

ph: 4822-504 23 24

fax: 4822-504 23 20

e-mail: Jolanta.Figurska@fas.usda.gov

homepage: http://polish.poland.usembassy.gov/poland-pl/agric.html

Please visit the Foreign Agricultural Service home page (www.fas.gov)
for more information about exporting U.S. food products to Poland,
including "The Exporter Guide", "The HRI Food Service Sector Report",
product briefs on the market potential for U.S. wine, dried fruit and
nuts, grapefruit. Importer lists are available from our office to
exporters of U.S. food products.

For more information on exporting U.S. agricultural products to other
countries please visit the Foreign Agricultural Service home page:

## *Attachment A*

*Largest foreign investment projects in Polish food-processing and
tobacco Industries (with investments over 1 \$ Million in 2006)*

It's estimated that in 2006, 82.7 percent of the flow of direct
investments came from the EU countries. The funds discussed and located
in Poland were supplied mainly by non-residents entities located mainly
in: Germany, Gt. Britain, Spain and France. The largest investors from
beyond the EU were from non-residents entities coming from Switzerland,
South Korea, Japan, The USA and North America.

  ---------------------- ---------------- --------------- --------------------- ----------------------- ---------------------
  **Investor name**      **Country of     **Country of    **Activities(PKD)**   **Activities(class)**   **Comments**
                         registration**   origin**                                                      

  **Brouwerij Palm NV**  Belgium          Belgium         Manufacture of food,  Manufacture of          Browar Belgia Sp. z
                                                          drinks and tobacco    beverages;              o. o.
                                                          products;                                     

  **Dossche**            Belgium          Belgium         Manufacture of food,  Manufacture of prepared Dossche Sp. z o. o. -
                                                          drinks and tobacco    animal feeds;           Kalisz
                                                          products;                                     

  **Materne-Confilux     Belgium          Belgium         Manufacture of food,  Processing and          Materne-Polska Sp. z
  S.A.**                                                  drinks and tobacco    preserving of fruit and o. o. - Łopatki
                                                          products;             vegetables;             

  **Chapman Ice Cream**  Canada           Canada          Manufacture of food,  Manufacture of dairy    Chapman Ice Cream
                                                          drinks and tobacco    products;               Poland Sp. z o. o. -
                                                          products;                                     Poznań

  **Podravka d.d.**      Croatia          Croatia         Manufacture of food,  Manufacture of other    Podravka Polska Sp. z
                                                          drinks and tobacco    food products;          o. o. - Kostrzyn,
                                                          products;                                     Podravka
                                                                                                        International Export
                                                                                                        Import Sp. z o. o. -
                                                                                                        Warsaw

  **Kofola a.s.**        Czech Republic   Czech Republic  Manufacture of food,  Manufacture of          Kofola Sp. z o. o. -
                                                          drinks and tobacco    beverages;              Office in Katowice,
                                                          products;                                     Kofola Sp. z o. o. -
                                                                                                        factory - Factory in
                                                                                                        Kutno

  **A.Espersen A/S**     Denmark          Denmark         Manufacture of food,  Processing and          Espersen Polska Sp. z
                                                          drinks and tobacco    preserving of fish and  o. o. - Koszalin
                                                          products;             fish products;          

  **ARLA FOODS AmbA**    Denmark          Denmark         Manufacture of food,  Manufacture of dairy    Arla Foods Sp. z o.
                                                          drinks and tobacco    products;               o. - Factory in
                                                          products;                                     Gościno near
                                                                                                        Kołobrzeg

  **Carlsberg Breweries  Denmark          Denmark         Manufacture of food,  Manufacture of          Carlsberg Polska
  A/S**                                                   drinks and tobacco    beverages;              S.A. - office in
                                                          products;                                     Warsaw, Carlsberg
                                                                                                        Marketing Polska Sp.
                                                                                                        z o. o. (Warsaw),
                                                                                                        Bosman Browar
                                                                                                        Szczecin S.A.
                                                                                                        (Szczecin), Słodownia
                                                                                                        Sierpc Spółka Sp. z
                                                                                                        o. o. (Sierpc,
                                                                                                        Mazowieckie
                                                                                                        Voivodship)

  **Dan Cake A/S**       Denmark          Denmark         Manufacture of food,  Manufacture of other    Dan Cake Sp. z o.
                                                          drinks and tobacco    food products;          o. - Chrzanów
                                                          products;                                     

  **Danish Brewery Group Denmark          Denmark         Manufacture of food,  Manufacture of          Faxe Polska Sp. z o.
  A/S**                                                   drinks and tobacco    beverages;              o. Breweries in
                                                          products;                                     Koszalin and
                                                                                                        Jędrzejów- Browary
                                                                                                        Brok-Strzelec and
                                                                                                        Perła, Browary
                                                                                                        Lubelskie

  **Danish Fast Food**   Denmark          Denmark         Manufacture of food,  Manufacture of other    Dania Fast Food Sp. z
                                                          drinks and tobacco    food products;          o. o. - Warsaw
                                                          products;                                     

  **House of Prince      Denmark          Denmark         Manufacture of food,  Manufacture of tobacco  Scandinavian Tobacco
  Denmark A/S**                                           drinks and tobacco    products;               S.A. - Myślenice
                                                          products;                                     

  **Investeringsfonden   Denmark          Denmark         Manufacture of food,  Production, processing  36% stake in Prime
  for Ostlandene**                                        drinks and tobacco    and preserving of meat  Food Sp. z o. o. -
                                                          products;             and meat products;      Office in Przechlewo

  **Merrild Café**       Denmark          Denmark         Manufacture of food,  Manufacture of other    Prima S.A. -- Poznań
                                                          drinks and tobacco    food products;          
                                                          products;                                     

  **Schulstad Brod A/S** Denmark          Denmark         Manufacture of food,  Manufacture of other    Lantmännen Axa Poland
                                                          drinks and tobacco    food products;          Sp. z o. o. -- Poznań
                                                          products;                                     

  **Lannen Tehtaat OY**  Finland          Finland         Manufacture of food,  Processing and          Lannen Polska Sp. z
                                                          drinks and tobacco    preserving of fruit and o. o. -- Tolkmicko
                                                          products;             vegetables;             

  **Raisio Group**       Finland          Finland         Manufacture of food,  Manufacture of          Raisio Polska Foods
                                                          drinks and tobacco    vegetable and animal    Sp. z o. o. - Karczew
                                                          products;             oils and fats;          near Warsaw

  **Barry Callebaut      France           Switzerland     Manufacture of food,  Manufacture of other    Barry Callebaut Sp. z
  France S.A.**                                           drinks and tobacco    food products;          o. o. -- Łódź
                                                          products;                                     

  **Belvedere S.A.**     France           France          Manufacture of food,  Manufacture of          70% stake in Fabryka
                                                          drinks and tobacco    beverages;              Wódek Gdańskich w
                                                          products;                                     Stargardzie Gdańskim
                                                                                                        S.A. - Activity in
                                                                                                        Starogard Gdański.
                                                                                                        Stake in Krakowska
                                                                                                        Destylarnia Polmos
                                                                                                        S.A. - Activity in
                                                                                                        Kraków

  **Bongrain**           France           France          Manufacture of food,  Manufacture of dairy    65% of shares in
                                                          drinks and tobacco    products;               Mleczarnia Turek
                                                          products;                                     

  **BSN Gervais Danone** France           France          Manufacture of food,  Manufacture of other    Danone Polska Sp. z
                                                          drinks and tobacco    food products;          o. o. - Office in
                                                          products;                                     Warsaw. Manufacturing
                                                                                                        plants in Warsaw and
                                                                                                        Bieruń, Bakoma S.A. -
                                                                                                        Warsaw, Bakoma Nova
                                                                                                        Sp. z o. o. - Kutno,
                                                                                                        Bakoma Serwis Sp. z
                                                                                                        o. o.

  **Bunge Investment     France           France          Manufacture of food,  Manufacture of          Zakłady Tłuszczowe
  France**                                                drinks and tobacco    vegetable and animal    Kruszwica S.A. --
                                                          products;             oils and fats;          Kruszwica

  **L.D.C. S.A.**        France           France          Manufacture of food,  Production, processing  98.9% stake in Drosed
                                                          drinks and tobacco    and preserving of meat  S.A. - Office in
                                                          products;             and meat products;      Siedlce

  **LACTALIS**           France           France          Manufacture of food,  Manufacture of dairy    Lactalis Polska Sp. z
                                                          drinks and tobacco    products;               o. o. - Warsaw,
                                                          products;                                     Polser Sp. z o. o. -
                                                                                                        Operation of dairies
                                                                                                        and cheese making in
                                                                                                        Siemiatycze

  **Lesaffre Group**     France           France          Manufacture of food,  Manufacture of other    Lesaffre
                                                          drinks and tobacco    food products;          bio-corporation Sp. z
                                                          products;                                     o. o. - Wołczyn,
                                                                                                        Advanced
                                                                                                        Biotechnologies
                                                                                                        Corporation Sp. z o.
                                                                                                        o. - Warsaw, Pomorska
                                                                                                        Fabryka Drożdży
                                                                                                        Polmos S.A. - Tczew

  **Malteries Soufflet   France           France          Manufacture of food,  Manufacture of          Słodownia Soufflet
  S.A.**                                                  drinks and tobacco    beverages;              Polska Sp. z o. o. --
                                                          products;                                     Poznań

  **Michel Marbot**      France           France          Manufacture of food,  Manufacture of other    Danuta S.A. --
                                                          drinks and tobacco    food products;          Malbork
                                                          products;                                     

  **Saint Louis Sucre    France           France          Manufacture of food,  Manufacture of other    Śląska Spółka Cukrowa
  International S.A.S.**                                  drinks and tobacco    food products;          S.A.
                                                          products;                                     

  **Seita**              France           France          Manufacture of food,  Manufacture of tobacco  Altadis Polska S.A.
                                                          drinks and tobacco    products;               -- Radom
                                                          products;                                     

  **Bahlsen Beteiligung  Germany          Germany         Manufacture of food,  Manufacture of other    Bahlsen Sweet Sp. z
  GmbH**                                                  drinks and tobacco    food products;          o. o. - (formerly
                                                          products;                                     Bahlsen Koncentraty
                                                                                                        Spożywcze S.A.) -
                                                                                                        Skawina, Bahlsen Sp.
                                                                                                        z o. o. - Poznań,
                                                                                                        Bahlsen Sweet Sp. z
                                                                                                        o. o., Bahlsen
                                                                                                        Snack - World Sp. z
                                                                                                        o. o. - Oława,
                                                                                                        Tarnowo Podgórne

  **Bauer Fruchtsaft     Germany          Germany         Manufacture of food,  Processing and          O.K. - Owocowe
  GmbH**                                                  drinks and tobacco    preserving of fruit and Koncentraty Sp. z o.
                                                          products;             vegetables;             o. -- Przeworsk

  **Binder International Germany          Germany         Manufacture of food,  Processing and          Binder International
  GmbH**                                                  drinks and tobacco    preserving of fruit and Warszawa Sp. z o. o.
                                                          products;             vegetables;             -- Warsaw

  **British American     Germany          United          Manufacture of food,  Manufacture of tobacco  British - American
  Tobacco GmbH**                          Kingdom/USA     drinks and tobacco    products;               Tobacco Polska S.A.
                                                          products;                                     -- Augustów

  **Dr August Oetker     Germany          Germany         Manufacture of food,  Manufacture of other    Dr Oetker Środki
  Nahrungsmittel KG**                                     drinks and tobacco    food products;          Odżywcze Gdańsk-Oliwa
                                                          products;                                     Sp. z o. o. -- Gdańsk

  **Eckes-Granini Int.** Germany          Germany         Manufacture of food,  Processing and          Aronia S.A. - Office
                                                          drinks and tobacco    preserving of fruit and in Łęczyca (Łódzkie
                                                          products;             vegetables;             Voivodship)

  **FmB & Co. KG**       Germany          Germany         Manufacture of food,  Manufacture of prepared SNP Uśnice Sp. z o.
                                                          drinks and tobacco    animal feeds;           o. -- Uśnice
                                                          products;                                     

  **Franz Cordesmeyer**  Germany          Germany         Manufacture of food,  Manufacture of grain    Gdańskie Młyny i
                                                          drinks and tobacco    mill products, starches Spichlerze Dr
                                                          products;             and starch products;    Cordesmeyer Sp. z o.
                                                                                                        o. - Office in Gdańsk

  **Franz Zentis GmbH    Germany          Germany         Manufacture of food,  Processing and          Zentis Polska Sp. z
  Co.KO**                                                 drinks and tobacco    preserving of fruit and o. o. - Factory in
                                                          products;             vegetables;             Żelków near Siedlce

  **Friedrich            Germany          Germany         Manufacture of food,  Manufacture of          49% in Baltic Malt
  Weissheimer                                             drinks and tobacco    beverages;              Sp. z o. o. - Office
  Maltzfabrik KG**                                        products;                                     in Gdańsk. Malt
                                                                                                        production plant in
                                                                                                        Gdańsk

  **Frosta AG**          Germany          Germany         Manufacture of food,  Processing and          Frosta Sp. z o. o. -
                                                          drinks and tobacco    preserving of fruit and Bydgoszcz, Warsaw
                                                          products;             vegetables;             

  **Hans Hoell           Germany          Germany         Manufacture of food,  Production, processing  Hoell-Pol Zakład
  Fleischwarenfabrik AG,                                  drinks and tobacco    and preserving of meat  Mięsny Sp. z o. o. --
  Co KG**                                                 products;             and meat products;      Kaszczor

  **Hemelter Muhle       Germany          Germany         Manufacture of food,  Manufacture of grain    Gdańskie Młyny i
  GmbH**                                                  drinks and tobacco    mill products, starches Spichlerze Dr.
                                                          products;             and starch products;    Cordesmeyer Ltd. Sp.
                                                                                                        z o. o. -- Gdańsk

  **Henkell&Sohnlein     Germany          Germany         Manufacture of food,  Manufacture of          Toruńskie Piwnice Win
  KG**                                                    drinks and tobacco    beverages;              Vinpol Sp. z o. o. --
                                                          products;                                     Toruń

  **Hochland AG**        Germany          Germany         Manufacture of food,  Manufacture of dairy    Hochland Polska Sp. z
                                                          drinks and tobacco    products;               o. o. -- Kaźmierz
                                                          products;                                     

  **Hohenstaufen         Germany          Germany         Manufacture of food,  Processing and          Mc Cain Poland Sp. z
  Neunundvierzigste                                       drinks and tobacco    preserving of fruit and o. o. -- Strzelin
  Vermögensverwaltungs                                    products;             vegetables;             
  GmbH**                                                                                                

  **Intersnack Knabber   Germany          Germany         Manufacture of food,  Manufacture of other    Polsnack Sp. z o.
  Gebaeck GmbH & Co.                                      drinks and tobacco    food products;          o. - Office in
  K.G.**                                                  products;                                     Warsaw. Factory in
                                                                                                        Nysa

  **Karl Konecke         Germany          Germany         Manufacture of food,  Production, processing  Konecke Sp. z o. o.
  Fleischwarenfabrik                                      drinks and tobacco    and preserving of meat  -- Słubice
  GmbH & Co. KG**                                         products;             and meat products;      

  **Kruger GmbH**        Germany          Germany         Manufacture of food,  Manufacture of other    Kruger Polska Sp. z
                                                          drinks and tobacco    food products;          o. o. - Ostrów
                                                          products;                                     Mazowiecka Kruger
                                                                                                        Polska Handel i
                                                                                                        Eksport Sp. z o. o. -
                                                                                                        Warsaw

  **Lohmann AG**         Germany          Germany         Manufacture of food,  Production, processing  49.04% stake in
                                                          drinks and tobacco    and preserving of meat  Drobimex Sp. z o. o.
                                                          products;             and meat products;      Office in Szczecin

  **Ludwig Schokolade    Germany          Germany         Manufacture of food,  Manufacture of other    Ludwig Czekolada Sp.
  GmbH & Co. KG**                                         drinks and tobacco    food products;          z o. o. - Tuczno,
                                                          products;                                     Wielkopolskie
                                                                                                        Voivodship

  **OSI International    Germany          USA             Manufacture of food,  Production, processing  Esca Food Solutions
  Holding GmbH**                                          drinks and tobacco    and preserving of meat  Sp. z o. o. -- Warsaw
                                                          products;             and meat products;      

  **Paul Wesjohann & Co. Germany          Germany         Manufacture of food,  Production, processing  48.63% stake in
  GmbH**                                                  drinks and tobacco    and preserving of meat  Drobimex Sp. z o. o.
                                                          products;             and meat products;      Office in Szczecin

  **Pfeifer und Langen** Germany          Germany         Manufacture of food,  Manufacture of other    Pfeifer und Langen
                                                          drinks and tobacco    food products;          Marketing Sp. z o.
                                                          products;                                     o. - Plants in Środa
                                                                                                        Wlkp., Kościan,
                                                                                                        Gostyń and Miejska
                                                                                                        Górka

  **Raiffeisen HaGe**    Germany          Germany         Manufacture of food,  Manufacture of prepared Raiffpol Sp. z o. o.
                                                          drinks and tobacco    animal feeds;           -- Słupsk
                                                          products;                                     

  **Schoeller**          Germany          Germany         Manufacture of food,  Manufacture of dairy    Schoeller Artykuły
                                                          drinks and tobacco    products;               Spożywcze Sp. z o.
                                                          products;                                     o. - Office in
                                                                                                        Warsaw. Plant in
                                                                                                        Namysłów

  **Sektkellerei Schloss Germany          Germany         Manufacture of food,  Manufacture of          Biłograjska Wytwórnia
  Wachenheim AG**                                         drinks and tobacco    beverages;              Win Ambra S.A. --
                                                          products;                                     Biłgoraj

  **Südzucker AG**       Germany          Germany         Manufacture of food,  Manufacture of other    Südzucker Polska Sp.
                                                          drinks and tobacco    food products;          z o. o. (Wrocław),
                                                          products;                                     90.22% stake in
                                                                                                        Śląska Spółka Cukrowa
                                                                                                        S.A., 96.33% stake in
                                                                                                        Cukier Małopolski
                                                                                                        S.A., 83% stake in
                                                                                                        Cukrownia Strzyżów
                                                                                                        S.A., 52.62% stake in
                                                                                                        Cukrownia Ropczyce
                                                                                                        S.A.

  **Tchibo Frisch Rost   Germany          Germany         Manufacture of food,  Manufacture of other    Tchibo Warsaw Sp. z
  Kaffee GmbH**                                           drinks and tobacco    food products;          o. o. -- Marki
                                                          products;                                     

  **Zott GmbH&Co KG**    Germany          Germany         Manufacture of food,  Manufacture of dairy    Zott Polska Sp. z o.
                                                          drinks and tobacco    products;               o. -- Opole
                                                          products;                                     

  **CC HBC (Coca-Cola    Greece           USA             Manufacture of food,  Manufacture of          Coca Cola HBC Polska
  Hellenic Bottling                                       drinks and tobacco    beverages;              Sp. z o. o. - Warsaw,
  Company)**                                              products;                                     Coca-Cola Poland
                                                                                                        Services Sp. z o.
                                                                                                        o. - Office in
                                                                                                        Warsaw. 3 plants in
                                                                                                        Łódź, Staniątki near
                                                                                                        Kraków and Radzymin

  **Chipita**            Greece           Greece          Manufacture of food,  Manufacture of other    Chipita Poland Sp. z
                                                          drinks and tobacco    food products;          o. o. - Warsaw,
                                                          products;                                     Chipita Sp. z o. o. -
                                                                                                        Factory in Tomaszów
                                                                                                        Mazowiecki

  **Globus**             Hungary          Hungary         Manufacture of food,  Processing and          Globus Polska Sp. z
                                                          drinks and tobacco    preserving of fruit and o. o. - 3 food
                                                          products;             vegetables;             freezers in Lipno,
                                                                                                        Dąbrowa Chełmińska
                                                                                                        and Adamowo.
                                                                                                        Refrigerator in Ełk

  **Hero**               International    International   Manufacture of food,  Manufacture of          Hero Polska Sp. z o.
                                                          drinks and tobacco    beverages;              o. -- Płock
                                                          products;                                     

  **Herisson Ltd**       Ireland          Canada          Manufacture of food,  Manufacture of other    Fantasy Foods Sp. z
                                                          drinks and tobacco    food products;          o. o. - Kobyłka near
                                                          products;                                     Warsaw

  **Ferrero Group**      Italy            Italy           Manufacture of food,  Manufacture of other    Ferrero Polska Sp. z
                                                          drinks and tobacco    food products;          o. o. -- Warsaw
                                                          products;                                     

  **GIF SRL.**           Italy            Italy           Manufacture of food,  Processing and          Frubella Processing
                                                          drinks and tobacco    preserving of fruit and Sp. z o. o. --
                                                          products;             vegetables;             Białobrzegi

  **Indafin Srl**        Italy            Italy           Manufacture of food,  Manufacture of other    Inda Polska Sp. z o.
                                                          drinks and tobacco    food products;          o. -- Warsaw
                                                          products;                                     

  **Societe Europeenne   Italy            Italy           Manufacture of food,  Processing and          Konserwa Polska Sp. z
  De Conserve S.A.**                                      drinks and tobacco    preserving of fruit and o. o. -- Łódź
                                                          products;             vegetables;             

  **Europar-Ven Company  Lichtenstein     Lichtenstein    Manufacture of food,  Manufacture of          Eurovita Sp. z o. o.
  Establishment**                                         drinks and tobacco    beverages;              -- Poznań
                                                          products;                                     

  **Terravita Holding    Lichtenstein     Lichtenstein    Manufacture of food,  Manufacture of other    15.17% stake in
  Establishment**                                         drinks and tobacco    food products;          Terravita Sp. z o. o.
                                                          products;                                     -- Poznań

  **Orkla Foods A.S.**   Norway           Norway          Manufacture of food,  Processing and          88% stake in Kotlin
                                                          drinks and tobacco    preserving of fruit and Sp. z o. o. - Kotlin
                                                          products;             vegetables;             Elbro Sp. z o. o. --
                                                                                                        Warsaw

  **Rieber and Son ASA** Norway           Norway          Manufacture of food,  Manufacture of other    Rieber Foods Polska
                                                          drinks and tobacco    food products;          S.A. -- Włocławek
                                                          products;                                     

  **Bagdasarian**        Russia           Russia          Manufacture of food,  Manufacture of other    Śnieżka S.A. --
                                                          drinks and tobacco    food products;          Świebodzice
                                                          products;                                     

  **SABMiller Plc**      South Africa     South Africa    Manufacture of food,  Manufacture of          Kompania Piwowarska
                                                          drinks and tobacco    beverages;              S.A.- Poznań,
                                                          products;                                     Kompania Piwowarska
                                                                                                        S.A.- Białystok

  **ABBA Seafood AB**    Sweden           Sweden          Manufacture of food,  Processing and          Superfish S.A. --
                                                          drinks and tobacco    preserving of fish and  Kołobrzeg
                                                          products;             fish products;          

  **Cloetta Fazer AB**   Sweden           Sweden          Manufacture of food,  Manufacture of other    Cloetta Fazer Polska
                                                          drinks and tobacco    food products;          Sp. z o. o. -- Gdańsk
                                                          products;                                     

  **POLARICA AB**        Sweden           Sweden          Manufacture of food,  Processing and          Polfrys Sp. z o. o. -
                                                          drinks and tobacco    preserving of fruit and Świdwin
                                                          products;             vegetables;             (Zachodniopomorskie
                                                                                                        Voivodeship)

  **Saturn Nordic        Sweden           Denmark         Manufacture of food,  Production, processing  82.54% stake in
  Holding AB**                                            drinks and tobacco    and preserving of meat  SOKOŁÓW S.A.
                                                          products;             and meat products;      

  **Vin & Spirit AB**    Sweden           Sweden          Manufacture of food,  Manufacture of          85% stake in Lubuska
                                                          drinks and tobacco    beverages;              Wytwórnia Wódek
                                                          products;                                     Gatunkowych Polmos -
                                                                                                        Activity in Zielona
                                                                                                        Góra

  **CEREAL PARTNERS      Switzerland      Switzerland     Manufacture of food,  Manufacture of grain    Toruń Pacific Sp. z
  WORLWIDE ( CPW )**                                      drinks and tobacco    mill products, starches o. o.
                                                          products;             and starch products;    

  **Finagrain Compagnie  Switzerland      Switzerland     Manufacture of food,  Processing and          ANIMEX - Opolskie
  Commerciale Agricole                                    drinks and tobacco    preserving of fish and  Zakłady Drobiarskie
  et Financiere**                                         products;             fish products;          S.A.-Opole

  **Hiestand Holding     Switzerland      Switzerland     Manufacture of food,  Manufacture of other    Hiestand Polska Sp. z
  AG**                                                    drinks and tobacco    food products;          o. o. - Grodzisk
                                                          products;                                     Mazowiecki, Hiestand
                                                                                                        Sp. z o. o. - Kraków

  **Kraft Jacobs Suchard Switzerland      Switzerland     Manufacture of food,  Manufacture of other    Kraft Foods Polska
  AG**                                                    drinks and tobacco    food products;          S.A. - Warsaw, Kraft
                                                          products;                                     Polska S.A. -
                                                                                                        Jankowice, Olza
                                                                                                        S.A. - Cieszyn,

  **CEPV**               The Netherlands  The Netherlands Manufacture of food,  Processing and          Farm Frites Poland
                                                          drinks and tobacco    preserving of fruit and S.A. - Lębork, Farm
                                                          products;             vegetables;             Frites Poland Dwa Sp.
                                                                                                        z o. o. - Wielka Wieś

  **CSM NV**             The Netherlands  The Netherlands Manufacture of food,  Manufacture of other    Leaf Poland Sp. z o.
                                                          drinks and tobacco    food products;          o. - Office in
                                                          products;                                     Warsaw. Chewing gum
                                                                                                        factory in Legionowo
                                                                                                        near Warsaw

  **Harbin B.V.**        The Netherlands  The Netherlands Manufacture of food,  Manufacture of          30.8% stake in Grupa
                                                          drinks and tobacco    beverages;              Żywiec S.A.
                                                          products;                                     

  **Heineken             The Netherlands  The Netherlands Manufacture of food,  Manufacture of          Heineken Polska Sp. z
  International B.V.**                                    drinks and tobacco    beverages;              o. o. - Warsaw Grupa
                                                          products;                                     Żywiec S.A.

  **Johan van Leendert   The Netherlands  The Netherlands Manufacture of food,  Production, processing  Agro-Bor Louisa Sp. z
  B.V.**                                                  drinks and tobacco    and preserving of meat  o. o. -- Kostrzyn
                                                          products;             and meat products;      

  **Natel Investment     The Netherlands  The Netherlands Manufacture of food,  Processing and          McLean Brothers
  BV**                                                    drinks and tobacco    preserving of fish and  Poland Sp. z o. o. --
                                                          products;             fish products;          Szczecin

  **Nutreco              The Netherlands  The Netherlands Manufacture of food,  Manufacture of prepared Trouw Nutrition
  International B.V.**                                    drinks and tobacco    animal feeds;           Polska Sp. z o. o. -
                                                          products;                                     Grodzisk Mazowiecki

  **Philip Morris        The Netherlands  The Netherlands Manufacture of food,  Manufacture of tobacco  99.89% stake in
  Holland B.V.**                                          drinks and tobacco    products;               Philip Morris Polska
                                                          products;                                     S.A. Office in
                                                                                                        Kraków. Factories in
                                                                                                        Kraków and Leżajsk

  **Polish Bakery        The Netherlands  The Netherlands Manufacture of food,  Manufacture of other    70% of shares in
  Investment BV**                                         drinks and tobacco    food products;          Elite Polska Sp. z o.
                                                          products;                                     o. - Office in
                                                                                                        Szczecin,
                                                                                                        Spółdzielnia
                                                                                                        Produkcji Spożywczej
                                                                                                        Społem - Remaining
                                                                                                        30% owned

  **Provimi Holding BV** The Netherlands  The Netherlands Manufacture of food,  Manufacture of prepared Provimi-Rolimpex
                                                          drinks and tobacco    animal feeds;           S.A. - Companies in
                                                          products;                                     Osnowo, Białystok,
                                                                                                        Dobrzelin, Jarosław,
                                                                                                        Olsztynek, Tworóg -
                                                                                                        fodder production

  **Royal Numico N.V.**  The Netherlands  The Netherlands Manufacture of food,  Manufacture of other    Nutricia Polska Sp. z
                                                          drinks and tobacco    food products;          o. o. - Warsaw and
                                                          products;                                     Opole 66% of shares
                                                                                                        in Okręgowa
                                                                                                        Spółdzielnia
                                                                                                        Mleczarska - Office
                                                                                                        in Węgrów
                                                                                                        (Mazowieckie
                                                                                                        Voivodship)

  **Union Caffe          The Netherlands  The Netherlands Manufacture of food,  Manufacture of other    Elite Cafe Sp. z o.
  Confectionary Group                                     drinks and tobacco    food products;          o. - coffee roasting
  BV**                                                    products;                                     plant in Tarnowo
                                                                                                        Podgórne near Poznań

  **Windjammer           The Netherlands  The Netherlands Manufacture of food,  Manufacture of          Kompania Piwowarska
  Investments B.V.**                                      drinks and tobacco    beverages;              S.A.- Poznań
                                                          products;                                     

  **Zeelandia            The Netherlands  The Netherlands Manufacture of food,  Manufacture of other    Zeelandia Sp. z o.
  International Holding                                   drinks and tobacco    food products;          o. - Tarnowo Podgórne
  B.V.**                                                  products;                                     

  **British Sugar        United Kingdom   United Kingdom  Manufacture of food,  Manufacture of other    BSO Polska Sp. z o.
  Overseas (BSO) Ltd.**                                   drinks and tobacco    food products;          o. (British Sugar
                                                          products;                                     Overseas) - Warsaw,
                                                                                                        68% stake in
                                                                                                        Sugarpol - Activity
                                                                                                        in Toruń, 53.46%
                                                                                                        stake in Cukrownia
                                                                                                        Glinojeck S.A.,
                                                                                                        Cukrownia Pelplin
                                                                                                        S.A., Cukrownia Guzów
                                                                                                        S.A., Sugar Tor Sp. z
                                                                                                        o. o., Sugarpol

  **Cadbury**            United Kingdom   United Kingdom  Manufacture of food,  Manufacture of other    Cadbury Wedel Sp. z
                                                          drinks and tobacco    food products;          o. o. - Bielany
                                                          products;                                     Wrocławskie Cadbury
                                                                                                        Wedel - Warsaw

  **Caribbean Distillers United Kingdom   United Kingdom  Manufacture of food,  Manufacture of          85% stake in Polmos
  Corporation Ltd.**                                      drinks and tobacco    beverages;              Łańcut S.A. Office in
                                                          products;                                     Łańcut

  **Gallaher Group Plc** United Kingdom   United Kingdom  Manufacture of food,  Manufacture of tobacco  Gallaher Polska Sp. z
                                                          drinks and tobacco    products;               o. o. - Office in
                                                          products;                                     Warsaw. Factory in
                                                                                                        Gostkowice (Łódzkie
                                                                                                        Voivodeship)

  **Gerber Foods         United Kingdom   United Kingdom  Manufacture of food,  Processing and          EMIG Sp. z o. o. -
  Holdings Ltd**                                          drinks and tobacco    preserving of fruit and Office in Warsaw.
                                                          products;             vegetables;             Factory in Mogielnica

  **Imperial Tobacco     United Kingdom   United Kingdom  Manufacture of food,  Manufacture of tobacco  96.4% stake in
  Plc**                                                   drinks and tobacco    products;               Imperial Tobacco S.A.
                                                          products;                                     (Jankowice near
                                                                                                        Tarnowo Podgórne)

  **Uniq plc**           United Kingdom   United Kingdom  Manufacture of food,  Processing and          Lisner Sp. z o. o. --
                                                          drinks and tobacco    preserving of fish and  Poznań
                                                          products;             fish products;          

  **United Biscuits      United Kingdom   United Kingdom  Manufacture of food,  Manufacture of other    Zakłady Przemysłu
  Investments**                                           drinks and tobacco    food products;          Cukierniczego SAN
                                                          products;                                     S.A. -- Jarosław

  **Cargill Inc.**       USA              USA             Manufacture of food,  Manufacture of prepared Cargill Polska Sp. z
                                                          drinks and tobacco    animal feeds;           o. o. - Office in
                                                          products;                                     Warsaw, Cargill
                                                                                                        Polska Sp. z o. o. -
                                                                                                        factory - Bielany
                                                                                                        Wrocławskie

  **Corey Durling**      USA              USA             Manufacture of food,  Manufacture of dairy    Bona Sp. z o. o. --
                                                          drinks and tobacco    products;               Złotów
                                                          products;                                     

  **CPIG (Chicago Poland USA              USA             Manufacture of food,  Manufacture of          Browar Namysłów Sp. z
  Investment Group)                                       drinks and tobacco    beverages;              o. o. -- Namysłów
  LLC**                                                   products;                                     

  **Gerber Finance       USA              USA             Manufacture of food,  Processing and          Alima - Gerber S.A. -
  Company**                                               drinks and tobacco    preserving of fruit and Rzeszów, Warsaw
                                                          products;             vegetables;             

  **H.J. Heinz Company** USA              USA             Manufacture of food,  Processing and          H.J. Heinz Polska
                                                          drinks and tobacco    preserving of fruit and S.A. -- Pudliszki
                                                          products;             vegetables;             

  **McLane International USA              USA             Manufacture of food,  Processing and          McLane Polska Sp. z
  Inc.**                                                  drinks and tobacco    preserving of fish and  o. o. -- Błonie
                                                          products;             fish products;          

  **Millenium Import     USA              USA             Manufacture of food,  Manufacture of          Polmos Żyrardów Sp. z
  LLC**                                                   drinks and tobacco    beverages;              o. o. -- Żyrardów
                                                          products;                                     

  **Peacock              USA              USA             Manufacture of food,  Manufacture of          65% stake in Podlaska
  Corporation**                                           drinks and tobacco    beverages;              Wytwórnia Wódek
                                                          products;                                     Polmos S.A. --
                                                                                                        Siedlce

  **PepsiCo**            USA              USA             Manufacture of food,  Manufacture of          PepsiCo General
                                                          drinks and tobacco    beverages;              Bottlers Poland Sp. z
                                                          products;                                     o. o. - Bottling
                                                                                                        plants in Łódź,
                                                                                                        Białystok, Gdańsk,
                                                                                                        Kraków, Poznań,
                                                                                                        Szczecin, Wrocław,
                                                                                                        Żywiec and Pniewy.
                                                                                                        Salted snacks factory
                                                                                                        in Grodzisk
                                                                                                        Mazowiecki. Sale of
                                                                                                        \"Delicja\"
                                                                                                        confectionery to
                                                                                                        Danone

  **Smithfield Foods**   USA              USA             Manufacture of food,  Production, processing  Animex - Krakowskie
                                                          drinks and tobacco    and preserving of meat  Zakłady Pierzarskie
                                                          products;             and meat products;      Sp. z o.o. - Kraków,
                                                                                                        ANIMEX Grupa
                                                                                                        Drobiarska Sp. z
                                                                                                        o.o. - Suwałki,
                                                                                                        Animex Sp. z o. o. -
                                                                                                        Warsaw, Animex-Pasze
                                                                                                        Sp. z o.o. - Zamość,
                                                                                                        Contipasz S.A. -
                                                                                                        Grodków, Grupa Animex
                                                                                                        S.A. - Ostróda,
                                                                                                        Iławskie Zakłady
                                                                                                        Drobiarskie EKODRÓB
                                                                                                        S.A. - Iława, SF
                                                                                                        Holding - Warsaw,
                                                                                                        Zakłady Mięsne Agryf
                                                                                                        S.A. - Szczecin,
                                                                                                        Zakłady Mięsne Animex
                                                                                                        S.A. - Starachowice,
                                                                                                        Zakłady Mięsne Mazury
                                                                                                        w Ełku Spółka z o.o.
                                                                                                        -- Ełk

  **Wm. Wrigley Jr.      USA              USA             Manufacture of food,  Manufacture of other    99.96% stake in
  Company**                                               drinks and tobacco    food products;          Wrigley Poland Sp. z
                                                          products;                                     o. o. - Office in
                                                                                                        Poznań

  **Pernod Ricard S.A**  France           France          Manufacture of food,  Processing and          85% stake in Wyborowa
                                                          drinks and tobacco    preserving of fruit and S.A., Agros Holding
                                                          products; manufacture vegetables; manufacture S. A.
                                                          of food, drinks and   of beverages;           
                                                          tobacco products;                             

  **Nestlé S.A.**        Switzerland      Switzerland     Manufacture of food,  Manufacture of other    Nestlé Polska S.A. -
                                                          drinks and tobacco    food products;          Warsaw, Kalisz,
                                                          products; Manufacture Manufacture of          Poznań. 50% stake in
                                                          of food, drinks and   beverages;              Nałęczowianka Sp. z
                                                          tobacco products;                             o. o. - office in
                                                                                                        Nałęczów

  **Mars Inc.**          USA              USA             Manufacture of food,  Manufacture of prepared Master Foods Polska
                                                          drinks and tobacco    animal feeds;           Sp. z o. o. --
                                                          products; Manufacture manufacture of other    Sochaczew
                                                          of food, drinks and   food products;          
                                                          tobacco products;                             

  **Marga B.V**          The Netherlands  The Netherlands Manufacture of food,  Manufacture of          Unilever Polska
                                                          drinks and tobacco    vegetable and animal    S.A. - Office in
                                                          products; Manufacture oils and fats;          Warsaw. Manufacturing
                                                          of chemicals and      Processing and          plants in Bydgoszcz,
                                                          chemical products;    preserving of fish and  Banino near Gdańsk,
                                                                                fish products;          Katowice and Poznań
                                                                                Manufacture of soap and 
                                                                                detergents, cleaning    
                                                                                and polishing           
                                                                                preparations, perfumes  
                                                                                and toilet              
                                                                                preparations;           

  **CEDC (Central        USA              USA             Manufacture of food,  Manufacture of          Carey Agri
  European Distribution                                   drinks and tobacco    beverages; Wholesale of International Poland
  Corporation)**                                          products; Wholesale   food, beverages and     Sp. z o. o. - Warsaw,
                                                          and retail trade;     tobacco;                61% stake in Polmos
                                                          repair of motor                               Białystok S.A., PWW
                                                          vehicles, motorcycles                         Sp. z o. o. - Warsaw,
                                                          and personal and                              MTC Sp. z o. o. -
                                                          household goods;                              Białystok, PHA Sp. z
                                                                                                        o. o. - Zielona Góra

  **Fortrade Financing   Italy            Italy           Manufacture of food,  Production, processing  Fortrade Financing
  SPA**                                                   drinks and tobacco    and preserving of meat  Warsaw Sp. z o. o.,
                                                          products; financial   and meat products;      FIM Tower - Warsaw,
                                                          intermediation;       other financial         Fortrade Leasing
                                                                                intermediation;         S.A. - Katowice,
                                                                                                        Zakłady Mięsne PFM
                                                                                                        Stanisławów, Dolina
                                                                                                        Łąk Sp. z o. o. -
                                                                                                        Małaszewicze,
                                                                                                        \"Dolina Łąk -
                                                                                                        Dystrybucja\" Sp. z
                                                                                                        o. o. - Małaszewicze
                                                                                                        (Lubelskie
                                                                                                        Voivodship), PFM
                                                                                                        Sochocin
  ---------------------- ---------------- --------------- --------------------- ----------------------- ---------------------

*Source.- Polish Information and Foreign Investment Agency 2007*