Press releases

‍2,300 completed purchases for seniors, 30,000 lunches for medical personnel, 90,000 liters of water for hospitals and invaluable time and effort of thousands of employees and entrepreneurs. The Eurocash Group has just published a report summarizing its commitment to the fight against the epidemic in recent months.

— Since the beginning of the epidemic, we have been aware that the scale of our business imposes a huge responsibility on us — says Katarzyna Kopaczewska, member of the board of the Eurocash Group. “In a short period of time, we had to dynamically adapt the activities of the entire Group to the new reality in order to be able to realize our mission of ensuring the continuity of the supply chain and the delivery of food to people throughout Poland, with a special focus on small towns and villages, which are often outside the area of business interest of large retail chains. Tens of thousands of our employees and customers have been involved. Our work at the business level has resulted in the social engagement of many people, and the scale and reach has exceeded our wildest expectations. We have described this phenomenon in the title of our report as the “Social Engagement Network”. Why? The Eurocash Group is an entity with a complex structure made up of different groups of people, connected directly or indirectly, united by a common goal — commitment to the fight against COVID-19. One group transmitted the impetus to another, thus forming a “Social Engagement Network”. This, in turn, translated into assistance to institutions and individuals — adds Kopaczewska.

In the report”Eurocash Group Social Engagement Network in the fight against COVID-19 The activities undertaken for, and by, employees, entrepreneurs and consumers in the period from March to August 2020 are presented. The activities described are divided into the following chapters:

• Responsible management — Eurocash COVID-19 Staff — a chapter describing the work of the 24/7 COVID-19 Staff, responsible for coordinating COVID-19 actions and making recommendations for all structures in the company.
• Safety and employee engagement — in this part of the report, the Group presented educational and volunteer actions of employees, such as Shopping for Seniors 60+, in which more than 240 volunteers took part. It also summarizes the activities related to changing the organization of work and ensuring personal protection. To this end, the Group purchased, among others, about 830 thousand pieces of disposable masks, 24.5 million pieces of foil gloves, 6.6 million pieces of rubber gloves, 24.5 thousand pieces of protective helmets and 172 thousand liters of hand sanitizers.
• Actions for entrepreneurs — this chapter summarizes the educational activities and ongoing support provided by the Group to customers, who, among others, through the eurocash.pl platform and the channels of the Eurocash Academy of Skills, could learn about the new rules of organization of the store's work, quickly implement newly hired employees, or learn about the rules of using the Anti-Crisis Shield. In total, more than 8,700 participants took part in 58 online events organized by the Eurocash Skills Academy. Among other activities for the Group's clients, we will find, among others, the transfer of PLN 10 million of support to the aid fund for entrepreneurs by the Polish Lewiatan Retail Network, or information about the “Heroes of Everyday” action. The aim of the project was to show the importance of trade workers in society who, both in a situation of danger and in everyday life, in addition to performing their work, are able to show courage and a big heart.
• Actions for consumers — a chapter presenting the actions carried out by employees, entrepreneurs and networks organized by the Group for the safety and support of people from high-risk groups or medical personnel. Examples of such activities include 500 aid actions organized by Groszek franchisees to help fight the coronavirus, as well as the execution of 13,000 orders for seniors by the Polish Lewiatan Shopping Network.

The report is available at Responsible Business of the Eurocash Group.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍Lectures by well-known and respected experts and motivational speakers, webinars and trainings conducted by lawyers and OSH specialists, e-books, implementation path for newly hired employees. These are just some of the educational activities that the Eurocash Skills Academy has prepared for the owners and employees of retail stores affiliated to the franchise networks of the Eurocash Group during the COVID-19 epidemic. A total of nearly 70 online meetings, from March to mid-September, as many as 10,000 participants took part.

Help from the first days of the epidemic

The first webinar organized by AUE in connection with the epidemic was already held on March 18
and concerned, among others, labor issues such as care benefits or quarantines. The partner of this, as well as several subsequent webinars with current legal advice, was the law firm SKS. Since April, the Academy has also conducted regular online workshops for managers and employees of grocery stores, during which practical tips on the operation of stores during the epidemic were given.

AUE experts and trainers also developed a special comprehensive educational program, which was intended to help entrepreneurs to efficiently and safely implement newly hired employees and managers of stores or warehouses to work. Each of the positions in the store received a specially created educational and training path, implemented respectively in an express, 2-week time.

Since June, the Academy is also conducting “10 inspiring lectures on the 10th anniversary of the Eurocash Skills Academy”, which will continue until the end of the year. Recognized experts and motivational speakers address issues related to business management in a changing world, consumer trends during and after the epidemic, scenarios for the future, leadership and motivation in difficult times or techniques for coping with stress.

- Despite the ongoing epidemic and a number of associated limitations, in the 10th anniversary of the Academy, we showed our full potential. Our mission since the beginning of our activity has been to provide entrepreneurs with up-to-date and practical knowledge that they can use anywhere and at any time, regardless of the circumstances. The scale of the people trained this year shows how many entrepreneurs affiliated to the Eurocash Group networks needed support in the field of constantly changing sanitary regulations and restrictions, interpretation of the provisions of the Anti-Crisis Shield, recruitment of new employees, as well as meetings with recognized experts, psychologists or motivational speakers. During this time, we tried to act and educate in an interdisciplinary way and not to overlook any topics important to trade workers. However, we are not going to stop at 10,000 trained. In the autumn we started with another cycle of 45 practical webinars — tells Agata Wrzecionowska-Dzierba, manager of the Eurocash Academy of Skills.

More Academy Webinars — What About This Time?

The calendar of autumn webinars was built based on the results of an online survey conducted among entrepreneurs affiliated in the franchise networks of the Eurocash Group. Thanks to them, webinars are organized in an optimal way for the owners and their employees — on the days and times indicated by them, and they cover topics that are currently important for the clients of the Eurocash Group. The most pressing issues in the survey were, among others, stress management, effective communication with employees, building the profitability of the store and its individual stands, selection of assortment depending on the location or sales psychology and consumer behavior.

These webinars, as well as all lectures and content created by the Eurocash Skills Academy, are available to Eurocash Group customers free of charge and without restrictions. Entrepreneurs who already belong to the Academy for new webinars can register through the educational platform www.akademiaeurocash.com.pl — just choose an interesting lecture. Representatives of the franchise networks organized by the Eurocash Group help new participants gain access to the Academy.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍Two years ago, Eurocash Dystrybucja launched eurocash.pl — an innovative online shopping platform for owners of small and medium-sized stores. Entrepreneurs gained both the ability to conveniently and quickly order products, as well as a number of functionalities supporting the management of the store.

In the first half of 2020, which fell during the “national quarantine”, Eurocash Dystrybucja customers ordered goods worth PLN 2.1 billion (+0.5 billion y/y) through eurocash.pl. The event was sales via smartphone, which amounted to as much as PLN 485 million (vs. 270 million in the first half of 2019), and in July reached its record monthly value — PLN 100 million. The difficult period of the epidemic, during which eurocash.pl recorded record results, showed the business potential of B2B e-commerce solutions.

— eurocash.pl has been developing intensively for two years now — tells Tomasz Polański, General Director of Eurocash Distribution. — In addition to the regular increase in sales value, we note increased interest in the mobile version among Eurocash Dystrybucja customers. At the end of the first half of the year, we have 15 thousand users of the platform, of which 6.5 thousand used it via smartphone. This means more than 70% year-on-year growth in the mobile channel, and not only. In July, we managed to reach a mobile sales record — PLN 100 million. The real test for eurocash.pl was the time of coronavirus-related restrictions. Safe, contactless ordering and receiving of goods has become a great value of our platform during this period. During the pandemic, we have seen a visible increase in the value of online sales. In March, it was close to PLN 80 million of additional turnover. The difficult period of the pandemic showed how great is the business potential of e-commerce solutions for B2B. During this time, eurocash.pl has also become a reliable channel of information for our Customers regarding the operation of the store in the face of restrictions related to the pandemic. On the platform we have launched the page “Safely with eurocash.pl”, where we publish information about current regulations, advice from health and safety experts, quality management or lawyers. This site recorded a record number of nearly 100,000 hits during the pandemic — adds Tomasz Polanski.

eurocash.pl users are also happy to use other functionalities of the platform. Especially popular are trading promotions and discount coupons. For their implementation, customers receive additional benefits to use as part of purchases on the platform. In the first half of 2020, more than half of eurocash.pl users activated nearly 200 thousand coupons. More than 12,000 customers of the Eurocash Group took part in the trading actions.

— The dynamics of the market, constantly changing trends mean that the eurocash.pl platform must constantly develop — translators Andrzej Szalowski, Marketing Director, Eurocash DistributionSince the beginning of the year, we have made nearly 50 improvements. These are both minor changes for ease of use and larger functionalities. A big change was, among others, the simplification of the transition to the offer of other business units of the Eurocash Group. Now eurocash.pl allows you to supply the store, in addition to food and alcohol products, also with over-the-counter products, OTC medicines and more than 35 thousand complementary products offered in the eurocash.pl Market.

The eurocash.pl platform enables entrepreneurs running small and medium-sized stores throughout Poland, among other things, to quickly and conveniently order goods. It can be used online, cloud and mobile. The solution also provides access to knowledge of the local market, rankings of best-selling products, previews of competition newspapers, and information about television campaigns of the largest FMCG manufacturers. The platform was created by Eurocash Distribution, part of the Eurocash Group responsible for active distribution (with delivery to the customer). Recently, however, Eurocash Eurocash Cash&Carry, Eurocash Serwis and Eurocash Gastronomy customers can also use it.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍“abc na kolach”, an agency network developed by the Eurocash Group that carries out mobile sales of FMCG products in small towns and villages in Poland, continues to expand and is looking for more collaborators. Employed entrepreneurs are guaranteed 4 thousand zlotys “on hand”, an attractive commission system and a car filled with goods for conducting trade.

Mobile stores “abc on wheels” are the original concept of the Eurocash Group. The company already has 100 such mobile points of sale, making it one of the largest networks of its kind in Europe.

“We are already the leader of the mobile trading market in Poland, but we still want to develop. Hence the need to recruit more entrepreneurs who would like to undertake such a business. The terms of cooperation with us are very simple and transparent. The social dimension of our network is also very important for us, because with our mobile stores we reach people who, for various reasons, cannot make purchases from stationary stores. This is how we prevent their exclusion — tells Klaudia Rudewicz, manager of abc network on wheels.

To start cooperation with the network “abc on wheels”, it is not necessary to meet exorbitant financial and formal requirements. The only financial contribution that an associate has to make is a deposit of PLN 3.5 thousand as security for the store's equipment in case of possible damage. Such a person must also conduct or establish a business. A representative of the network will help to arrange all the formalities.

Upon completion of recruitment, an agency contract is signed for an indefinite period, guaranteeing a fixed monthly salary of PLN 4,000 per hand. In addition, there is also a commission system depending on the turnover of the store, and the network provides work tools - a loaded and fully equipped modern car, as well as its full insurance and fuel subsidy. In the event of a breakdown or the need to repair the car, or any of its equipment, the network provides service and even a replacement car. The network also provides ongoing operational support, as well as training and marketing activities.

— An obvious requirement in the case of our network is a category B driving license and current sanitary tests. In addition, it will be necessary to easily establish relationships with other people, because as in the case of stationary, local stores - customer relations are a guarantee of success here - adds Klaudia Rudewicz.

“abc na kolach” stores buy from Eurocash Cash&Carry wholesalers and have access to their entire offer, numbering about 5 thousand products. In addition, sales agents can also take advantage of the offer of regional suppliers, ordering from them, for example, bread, cold cuts or cakes. In the “abc on wheels” car alone, an average of about 500-600 products are available.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

Big Ben doesn't slow down! On August 28, the 100th store of the alcohol chain created by the Eurocash Group will be launched in Wrocław. This is the 17th store of Duży Ben in Wrocław.

- We are proud that the project created from scratch by the Eurocash Group was successful and met the needs of Polish entrepreneurs, as evidenced by the opening of the 100th store of the Duży Ben chain in Wrocław. One of our priorities is to provide customers with a wide selection and variety of retail brands. This allows them to grow their business and thus boldly compete with large, centrally managed retail chains, not just general food. A network of modern liquor stores Duży Ben, one of the concepts developed by us, allows entrepreneurs to try their hand at an extremely attractive market — says Jacek Owczarek, member of the board of the Eurocash Group.

The Big Ben chain has been operating on the market since 2016. In addition to Lower Silesia, it also operates in the Lubuskie, Opole, Silesian, Łódź and Wielkopolska voivodships, where it originates. The concept combines a wide range of alcohol products at attractive prices with helpful service, familiar with trends and rules of alcohol selection. On the shelves of Big Ben you will find about 1300 products, including: craft beers, wines (also regional), spirits, snacks and ingredients needed to prepare your favorite drinks.

“Despite the limitations and problems associated with the coronavirus epidemic, which affected all sectors of the economy, the Big Ben network is developing dynamically and consistently implementing its expansion strategy. The opening of the 100th store, and the doubling of the number of our establishments in a year, is proof for us that the format of our alcohol market pleases Polish consumers — says Dawid Kula, General Director of the Big Ben network. The coronavirus outbreak and lockdown have forced us to reschedule previously planned openings. However, now that most restrictions have been lifted, we can pursue our expansion without major obstacles by complying with current regulations and maintaining the highest safety standards in our facilities,” he added. Tower.

Entrepreneurs interested in running Big Ben can take advantage of the opportunity to open a store in the agency system.

- Together with her husband we have a lot of experience in business, but for the first time we will be running a store. However, this is not the first Big Ben in our family — our son Norbert and his fiancée already run two stores of this chain in Wrocław. We liked the stores themselves and the Big Ben concept so much that we decided to open our own. The whole procedure, from sending the application, was simple and fast — even for epidemic conditions — the network quickly offered us an attractive location and we started online training. For now, we'll be working behind the counter ourselves. We want to know the market and our customers, but also to prepare well for the holiday shopping season — says Barbara Kindel, head of the newly opened shop in Wrocław.

Duży Ben's new store in Wrocław is located at 16/U1C Więckowskiego Street.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 14 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

• Eurocash Group's revenues in the first half of 2020 amounted to PLN 12.1 billion and were 2% higher than in the same period of 2019.
• EBITDA (i.e. operating profit plus depreciation) in the first six months of this year amounted to PLN 337 million compared to PLN 338 million a year earlier. Eurocash Group estimates that additional costs related to the COVID-19 pandemic weighed on its results by about PLN 17 million.
• The net profit of the Eurocash Group for the first half of 2020 was negative and amounted to PLN -20 million compared to the net profit of PLN 7 million in the same period of 2020. Exchange rate differences resulting from the revaluation of lease contracts in accordance with IFRS16 had a significant impact on the net result.
• Cash flows from operating activities in the first half of this year reached PLN 221 million, and total cash flows amounted to PLN 56 million. Strong cash flows allow the Group to continue its growth both organically and through acquisitions. In June, Eurocash completed the acquisition of a majority stake in Frisco.

Wholesale: strong demand from independent stores, record sales of eurocash.pl

Sales of the wholesale segment of the Eurocash Group in the first half of 2020 slightly exceeded PLN 9.0 billion and were 0.3% higher than a year ago. EBITDA of this segment amounted to PLN 277 million, which means an increase of 3% y/y.

— The results of the wholesale segment were positively influenced by sales at Cash & Carry wholesalers, which increased by 4% year-on-year, as well as sales of cigarettes and impulse products, where growth exceeded 7%. The segment's results were also strongly supported by wholesale sales to independent stores and franchisees. The lower dynamics of total sales in the wholesale segment in the first half of this year is primarily due to the contract with Orlen ended the previous year and lower demand from gas stations, which were less frequently visited by consumers during the freezing of the economy after the outbreak of the coronavirus pandemic. We also recorded a significant decrease in sales in the Eurocash Gastronomy format — it supplies restaurants and hotels that have been closed for a long time — indicated Jacek Owczarek, Member of the Management Board and Chief Financial Officer of the Eurocash Group.

Eurocash Group recorded record sales on the eurocash.pl platform, which enables entrepreneurs running small and medium-sized stores across Poland to quickly and conveniently order goods online.

— In the first half of this year, Eurocash Dystrybucja customers ordered goods worth PLN 2.1 billion through eurocash.pl, which is PLN 0.5 billion more than in the same period of 2019. It is worth noting the growing popularity of the mobile application. The value of goods ordered by smartphones amounted to as much as PLN 485 million against PLN 270 million in the first half of 2019. The difficult period of the pandemic showed the business potential of B2B e-commerce solutions. Contactless ordering and safe collection of goods have been appreciated by eurocash.pl customers — commented Jacek Ovczarek.

At the end of the first half of 2020, the eurocash.pl platform already had nearly 15 thousand users, of which 6.5 thousand used it via smartphone.

Detail: Strong Delicatessen Center

External sales realized by the Eurocash Group in the retail segment in the first half of 2020 reached PLN 2.96 billion and were 5% higher than in the first half of last year. EBITDA of the Retail segment amounted to PLN 142 million, which means an increase of 3% y/y.

— Sales conducted through own and franchise stores within the Delikatesy Centrum chain had a positive impact on the revenues of the retail segment. Wholesale sales to franchise stores in terms of LFL in the first half of this year increased by 10% y/y, and the growth of LFL retail sales in Delikatesach Centrum reached 6% y/y. Due to the limitation of the operation of shopping malls, sales of Inmedio kiosks in the period under consideration were more than 20% lower than a year ago — indicated Jacek Ovczarek.

Projects: Big Ben and abc on wheels sell more and more, Kontigo grows online

Sales of the Projects segment, within which the Eurocash Group develops innovative retail formats such as Big Ben, abc on wheels and Kontigo, reached PLN 84 million in the first half of 2020 and was more than 2 times higher than a year ago. Due to the further expansion of all these formats, the impact of the Projects segment on the consolidated EBITDA result in the first half of this year was PLN -21 million compared to PLN -20 million a year earlier.

— The engine of sales of the Projekty segment was the chain of liquor stores Duży Ben. Their number in the first half of this year increased by 16 and at the end of June already numbered 93 stores. We are also pleased with the dynamic increase in sales of this format in terms of LFL, which amounted to 16% y/y — said Jacek Ovczarek.

Very dynamically, as sales of the Kontigo online store increased by as much as 140% y/y in the first half of 2020.

The project of mobile abc convenience stores on wheels increased by 14 vehicles in the first half of this year, to 100. LFL sales of this format increased by 27% y/y during this period.

Strong entry into the e-grocery market

The Eurocash Group has taken another significant step to strengthen its presence in the online world. At the end of June, it completed the acquisition of a majority stake in Frisco — the leader of the Warsaw e-grocery market, of which it has been a significant shareholder since 2014. “With the acquisition of Frisco, we gain knowledge and extensive experience in online sales, which will allow us to further develop this area for our customers, owners of independent retail stores — summed Jacek Ovczarek.

Eurocash Group is the largest Polish company engaged in wholesale distribution of quickly marketable food products, household chemicals, alcohol and tobacco products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together about 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep, Gama, Duży Ben and Kontigo. In order to achieve a scale appropriate to ensure the competitiveness of its customers, the Eurocash Group is also developing a network of its own retail stores.

The sustainable market strategies of the largest suppliers of whisky in Poland contribute to the growth of its sales in independent stores — according to the Eurocash Group's analyses.

According to the latest edition of the “Equal in Business” ranking of the Eurocash Group and the Polish Chamber of Commerce, as many as four whisky producers have a comparable offer in all types of stores in Poland. At the top of the ranking of equal treatment of all on the market are two producers of four brands of the very popular “Scotch”, which accounts for 2/3 of all whiskey consumption in Poland. The lead is Johnnie Walker manufactured by Diageo, followed by the Pernod Ricard concern, which includes the brands: Ballantines, Chivas Regal and Passport Scotch.

However, high availability and comparable prices are also ensured in Polish stores by whisky producers from other countries of origin, i.e. the United States and Ireland. Both types are gaining popularity in Poland. Jim Beam bourbon (Stock) tops this group, with Jameson Irish whiskey (Pernod Ricard) and American Jack Daniels (Brown-Forman) closing out the top.

— During the first half of this year, the value sale of whisky in Eurocash Distribution to small and medium-sized stores increased by 20%. This was influenced by the increase in excise duties in January, but also by a few percent increase in volume sales. It can be seen that whiskey, along with rum and gin, drives the increase in sales of strong spirits in Poland, which only gain in volume in independent stores and discount stores. The best seller is whiskey in bottles of 0.7 liters at a price of up to 90-100 PLN. It is worth adding that sales of Scotch whiskey of our own brand Highlander increased by almost 70% this year. At the moment it is already the fifth brand on the Polish whiskey market — says Maciej Wilk, coordinator of the project “Time for Whisky”, Eurocash Dystrybucja.

The “Equal in Business” ranking for the first quarter of 2020 was prepared based on Nielsen data for the period April 2019 - March 2020. The full ranking of whiskey producers and other product categories, together with the methodology used for the calculations, are available on the website GroupEurocash.pl.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍Due to the emergence of the coronavirus pandemic and its difficult to predict consequences for the Polish and world economy, the Management Board of Eurocash Group intends to recommend to the Ordinary General Meeting of the Company that the payment of dividends for 2019 be waived and the entire profit allocated to reserve capital.

— The financial situation of the Eurocash Group is comfortable. A month ago, in difficult times of the pandemic, we negotiated a contract with a consortium of banks for a 3-year revolving loan in the amount of PLN 600 million. We have also secured EUR 50 million in funding from the EBRD. We continue to invest in new technologies, expand the eurocash.pl platform and loyalty programs. At the end of June, we bought 56% of Frisco shares. Decision on the destination reserve capital 100% of the total unit profit for 2019 is due only to an unstable macroeconomic situation. By increasing equity, we increase the financial security of the Company — said Jacek Owczarek, Member of the Management Board of Eurocash Group.

The change in the Eurocash Group's dividend policy is one-off and applies only to the payment of the dividend on net profit for 2019.

The General Meeting of Eurocash Group Shareholders is scheduled for August 25, 2020.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍On the eve of the epidemic, all types of stores were treated equally by the largest producers, including pasta and laundry products — according to the latest edition of the “Equal in Business” ranking, compiled by the Eurocash Group and the Polish Chamber of Commerce. This means that products such as Lubella or EkMak pasta or Persil, E, Ariel or Vizir washing powders could be found in discount stores, supermarkets and independent stores in a similar selection and at a comparable price.

The “Equal in Business” ranking, published since 2017, analyses both prices, but also distribution to different sales channels, market shares, the contribution of small- and large-area stores to sales growth and the presence of dedicated products in particular types of stores. The survey was based on Nielsen data for the period April 2019 — March 2020.

Importantly, in the first quarter of this year, sustainable strategies were applied not only by smaller manufacturers, but also by sales leaders in more than a dozen other product categories. The largest producers in Poland stood out positively: beer, vodka, canned fish, mustard, coffee, chips and popcorn, chocolate, tea, intimate hygiene products and toothpaste. According to the organizers of the rating, equal treatment of all stores encourages consumers to shop more often where they have the closest, that is, very often in local stores. In addition, interest in these stores increased even more after the introduction of a travel ban in Poland in mid-March this year.

— Increased purchases during the period of the epidemic emergency and later the epidemic itself showed how great sales potential the market of independent stores has — says Dominik Kasperek, Head of Central Purchasing of the Eurocash Group. “That is why we are pleased that in terms of willingly buying for a stock, they are highly ranked leaders of their markets. We see that their sustainable strategies are often copied by smaller producers. It is a pity, however, that this does not apply to all product categories — adds.

The situation was worse for consumers in the markets of as many as 21 product categories. For example, in the milk market, which was eagerly bought in March for stock, only Mlekpol was at the top of the ranking among the three largest Polish suppliers, and on the rice market, its largest supplier in Poland took only 6th place. The entire podium of the rice producer ranking was occupied by smaller players, who are clearly more focused on a sustainable offer in all stores than the market leaders. A similar situation is observed in the case of: butter and margarine, jams, sweet and homogenized cheeses, cream, sweet pastries and juices and non-carbonated drinks.

Interestingly, average prices in the toilet paper market, which was one of the best-selling product categories in March, were among the least differentiated among all 35 product categories analyzed, even though this market, due to special offers and favoring discounts by the largest manufacturers, can hardly be considered sustainable.

“The analysis of the first quarter also showed that the epidemic itself did not affect the increase in prices of food products, cleaning and hygiene products caused by increased purchases. As the Eurocash Group, we have called on manufacturers to focus on maintaining the continuity of the supply chain and not to change prices. And it worked out. It was only the lockdown in April and May that forced some suppliers to increase prices due to higher production costs. But we will be able to assess the scale of these changes in the second edition of this year's ranking, which will include data for the second quarter of this year — concludes Dominik Kasperek.

The “Equal in Business” ranking has been developed since 2017. Its aim is to level the playing field of independent stores in competition with centrally managed chains. The ranking aims to help make the largest FMCG producers in Poland aware of the important role of independent trade in Poland and what the expectations of its customers are. A complete list of all 35 product categories of the “Equal in Business” ranking for the first quarter of 2020 and a detailed calculation methodology are available at www.GroupEurocash.pl.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍The Eurocash Group has been a strategic shareholder of Frisco since 2014, with a 44% stake. In December 2019, the Company decided to increase its involvement in Frisco and acquire 56% of shares from MCI funds. The final value of the transaction amounted to PLN 132.5 million.

- Frisco.pl is currently one of the leaders of the Polish e-grocery market. Thanks to the acquisition of Frisco S.A. our Group will gain knowledge and extensive experience in online sales, which will allow us to further develop this area for our customers, owners of independent retail stores - tells Jacek Owczarek, Member of the Management Board of the Eurocash Group. This investment is another element of our strategy to support independent trade in Poland.

Frisco.pl is the leader of Warsaw's e-grocery market, it is one of the largest and longest-running online supermarkets.

The acquisition of Frisco S.A. was financed by a loan granted by the European Bank for Reconstruction and Development (“EBRD”) in the amount equivalent of PLN 50 million. These funds, in addition to the acquisition of Frisco SA, will also be used to manage working capital in the Group's current operating activities.

In addition, as part of the changes in the Group's financing structure, Eurocash entered into an agreement on a 3-year revolving loan for a total amount of PLN 600 million on 19 June this year. The concluded agreement will allow the refinancing of the current debt under the loan agreement concluded on 14 September 2015, the repayment date of which expires on 14 September 2020. The new loan agreements will contribute to an increase in the Group's financing security in the long term.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍The Eurocash Group and the Polish Chamber of Commerce have released the annual report on the “Equal in Business” ranking for 2019 and announce that this year's edition will include even more product categories and manufacturers.

Last year, analyses of market strategies used by the largest producers of fast-moving goods in Poland until November last year covered more than 160 suppliers and 29 product categories. This year there will be 35 categories, and more than 180 manufacturers. In addition to the most popular food items, the ranking will also include cleaning and hygiene products.

- Last year's ranking showed that more and more manufacturers perceive the need to develop a strategy for independent trade. Local stores account for about 40% of food sales. Such a large market, its participants and customers should not be ignored — says Dominik Kasperek, Director of Central Purchases at Eurocash Group.

The differences in the treatment of individual sales channels by manufacturers are seen primarily in offering products at better prices in supermarkets and discount stores. There are categories in which the difference between the price level is several percent, and in extreme cases even 30%. In addition, small and medium-sized stores often have a different assortment or are offered in a different size of packaging. For customers of independent stores, sales promotions are also organized less often.

Due to unequal treatment by suppliers, local shops sold not enough certain product categories in relation to their market share. This included, for example, dairy products, cereals, coffee, ketchups and mayonnaise. Many consumers in discount stores or supermarkets most often bought rice, pasta, juices or water and soda, even though they are closer to the convenience store.

Last year, giants such as Coca-Cola and Pepsico changed their approach to independent stores, which in previous years were focused on sales in discount stores and supermarkets. Lotte Wedel, the largest producer of pralines and the second chocolate supplier on the Polish market, was increasingly sustainable. Nestlé, the market leader in breakfast cereals, also improved its place in the ranking. Equally, customers of all types of stores were treated by the largest vodka producers. The strategy of Herbapol — Lublin, the largest tea supplier in our country, was also fair.

- Unfortunately, last year, the largest dairy producers directed their best offers mainly to discount stores and supermarkets. This did not serve consumers, despite the fact that fresh products should be bought closest to the place of residence, that is, in local stores. Too large disparities were still visible among the largest producers of jams and sweet pastries. Smaller suppliers ranked highest in most of the categories analyzed, which means that they are more likely to see their market opportunity in treating customers of all types of stores equally.in — Dominik Kasperek assesses.

The full annual report of the “Equal in Business” ranking for 2019 can be found at GroupEurocash.pl.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

On 9 June 2020, the Eurocash Group and the European Bank for Reconstruction and Development (“EBRD”) concluded a loan agreement in the amount of PLN 50 million. These funds will be used to finance the acquisition of Frisco S.A. (additional 56% of shares) and working capital. The loan period is 5 years. The EBRD will benefit from the agreed security package.

“The investment in Frisco is another element of our strategy aimed at supporting independent trade in Poland through the development of innovative retail formats and technological solutions — tells Jacek Owczarek, Member of the Management Board of the Eurocash Group. Thanks to the acquisition of Frisco S.A. our Group will be able to benefit from the company's advanced know-how in the field of online sales, which will allow us to develop this area for our customers — owners of independent retail stores.

The financing obtained from the EBRD will also allow the Eurocash Group to manage working capital in its current operating activities.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.