Press Releases

‍Eurocash Group is the largest wholesale food distributor in the country. Every day we reach more than 80,000 entrepreneurs running small and medium-sized retail stores. In total, nearly 15% of the food sold in Polish stores passes through our distribution centers and wholesalers.

The scale of our business imposes a unique responsibility on us in the context of the ongoing coronavirus epidemic. Our goal and social mission is to ensure the continuity of the food supply chain to people throughout Poland. This process runs smoothly and with the highest quality standards, as our wholesalers and distribution centers are currently operating at increased turnover.

Our absolute priority is the health and safety of our customers — store owners, their employees, as well as Group employees. Therefore, the Management Board of the Eurocash Group has appointed a COVID-19 Team, which makes strategic decisions in support of all the Group's business areas in this regard.

We have put in place appropriate work and hygiene procedures in our offices, stores, wholesalers and distribution centers. We conduct an extensive information campaign aimed at our employees and customers. We have created special hotlines, we organize periodic webinars of the Board on the epidemic. We work extremely intensively and are at the constant disposal of our employees and customers.

Sincerely,

Luis Amaral

President of the Management Board 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.

• Eurocash Group revenues in 2019 exceeded PLN 24.8 billion and were 9% higher than the previous year. The Group recorded sales growth in both the wholesale (+6% y/y) and retail (+19% y/y) segments.

• EBITDA (i.e. operating profit plus depreciation) calculated in accordance with IFRS 16, effective from the beginning of 2019, reached PLN 794 million, and EBITDA before applying this standard amounted to PLN 430 million. EBITDA excluding one-off events amounted to PLN 415 million last year and increased by 11% compared to the previous year.

• Consolidated net profit for 2019 amounted to PLN 79 million, while after excluding one-off events, net profit increased by 28% to PLN 86 million.

Wholesale: sales growth coupled with increasing efficiency

In the wholesale segment, the Eurocash Group recorded a 6% increase in sales to PLN 18.7 billion. EBITDA generated in this segment (before IFRS 16) reached PLN 442 million, which is 9% more than in 2018.

“Tobacco and impulse products accounted for the largest share of the increase in sales in the wholesale segment last year, which was 15% higher than a year earlier. Although cigarette sales are characterized by low profitability, the EBITDA of the wholesale segment also increased significantly year-on-year, which we owe, among other things, to the good results of the Cash&Carry wholesale. Cash&Carry like-for-like sales increased by 2.6% last year, and by 6.2% year-on-year in the fourth quarter alone — indicated Jacek Owczarek, Member of the Management Board and Chief Financial Officer of the Eurocash Group.

“In the fourth quarter of 2019, we also completed the integration of Eurocash Dystrybucja with Eurocash Alcohols — this is another important stage of cost optimization of the wholesale segment, which should result in a further increase in efficiency in the current year. As part of Eurocash Dystrybucja, we have successfully continued the development of the eurocash.pl platform. In 2019, 12 thousand of our customers — independent entrepreneurs running retail stores — have already used it indicated Jack the Shepherd.

Detail: the final integration of the acquired supermarkets

External sales realized by the Eurocash Group in the retail segment in 2019 exceeded PLN 5.9 billion, which represents an increase of 19% compared to 2018. EBITDA of this segment amounted to PLN 133 million (before IFRS 16), which is 23% more than a year earlier.

“In the fourth quarter of 2019, we completed the integration of supermarket chains acquired in previous years with Delikatesami Centrum. As of the first quarter of this year, all these stores are already managed within a single organizational structure, which should translate into further improvements in efficiency. Although Mila stores still function under the existing brand, their target rebranding to Delikatesy Centrum will basically only mean a change of the sign and will not involve significant expenses — announced Jack the Shepherd.

Projects: accelerated expansion

The Projects segment, within which the Eurocash Group develops innovative retail formats such as Big Ben (alcohol markets), abc on wheels (mobile convenience stores) and Kontigo (beauty salons) doubled its sales: in 2019 it reached PLN 105 million compared to PLN 51 million in 2018. Due to the increase in expenditure related to the accelerated expansion of all these formats, the impact of the segment Projects for consolidated EBITDA in 2019 amounted to PLN -47 million (before IFRS 16) compared to PLN -37 million a year earlier.

“Last year, the number of Big Ben stores doubled and at the end of December there were already 77 outlets. Like-for-like sales increased by 20%. This year we will continue to expand this network. We estimate that the break-even threshold will be reached with the number of around 120 markets. We expect this to happen in the current year — announced Jacek Ovczarek.

The challenges that 2020 brings

“This year, the Eurocash Group celebrates 25 years of working to improve the competitiveness of independent retailers. What we managed to achieve 25 years ago seemed impossible. Independent trade is still the largest segment of the FMCG market in Poland, and our market share has increased from 1% to 28%. The scale of our business also imposes a unique responsibility on us. Especially in the face of the risks posed by the coronavirus epidemic, it is crucial for us to ensure the safety and continuity of food supplies. We implement the regulations and policies defined by the Chief Sanitary Inspector, and we also work with GIS to develop detailed guidelines for our industry. About 10% of the food sold in Polish stores passes through our distribution centers and wholesalers, so we intend to do everything possible to maintain the supply of food products to our customers — underlined Member of the Management Board 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 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.

‍A team of thirty 15-18 year olds from Warsaw and Bielsko-Biała has created a robot that will fight in Turkey for the final of the international FIRST Robotics Competition. The robot will have to collect and throw balls into the basket, spin the wheel and hang on an unstable bar, among other things. Representatives of NASA, Google, Apple and Boeing will watch the shows of the participants of the competition.

The FIRST Robotics Competition (FRC) is the most prestigious competition for the design and construction of robots aimed at people aged 15-18 years. The first stage includes eliminations in Istanbul, for which Rabyte — as the young group from Warszay and Bielsko-Biała was called — has been preparing since the beginning of January, when this year's competition requirements were presented. The team then got parts and elements for the construction of their robot. It was created under the substantive supervision of the scientific staff of the Faculty of Electronics and Information Technology at the Warsaw University of Technology.

The qualifiers in Istanbul will take place in two stages. First, the robot will independently move around the arena and earn points for driving without the help of a pilot. After that, the robot, already controlled by Rabyte, will have to collect the balls and throw them accurately into the baskets, spin the wheel and hang on an unstable bar.

The Rabyte team consists of thirty of the brightest students from six high schools in the capital: Czacki, Mickiewicz, Staszic, Hoffmanowa, Zamoyski, Skłodowska-Curie and from the Mechatronic Technical School No. 1 in Warsaw, as well as from the V LO in Bielsko-Biała. In addition to constructing the robot, the team — in order to participate in the competition — also had to take care of proper promotion and acquisition of sponsors and partners. The FRC competition aims to prepare young people to enter the market of new technologies and, very importantly, to allow them to gain their first professional experience.

- Recently, there has been a lot of talk about the Global Innovation Index, a ranking that presents the most innovative countries in the world. Poland ranked 39th out of the 127th analyzed countries. We were ranked lower than our neighbors from the Czech Republic, Slovakia and Lithuania. Experts point to too low research and development spending as the reason for this situation, as well as insufficient education in this area. We assume that outside the school — in the process of stimulating innovation — business and private companies also have a role to play. That's why we decided to support Rabyte. On a daily basis, we support entrepreneurs running small and medium-sized stores in Poland, we implement technologies and innovations that help manage stores and optimize their costs. Perhaps someday solutions created by young people like Rabyte will allow us to support our customers even better in their daily work and service to Polish consumers — says Luis Amaral, Chairman of the Board of the Eurocash Group, which financially supports Team Rabyte.

The elimination tournaments will be held in Istanbul on March 5-7 and 9-11. The final of the competition will take place in Detroit from April 29 to May 2.

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 conducts mobile sales of FMCG products in small towns and villages in Poland, where there is a shortage of stationary stores, is growing dynamically. In 2018, it had only 33 mobile stores, and currently it already has 100.

— The network “abc on wheels” was established in 2015. At that time, about 4.6 million Poles did not have access to a stationary grocery store, and the Polish countryside was beginning to change intensively. Although the transport market in Poland already existed at that time, it has always lacked professional players who would conduct the sale of food products with the highest standards, including hygiene and customer service. We started with 10 mobile shops and reached villages and towns in the Lublin, Mazowieckie and Podkarpackie voivodships. Later we gradually appeared in the Świętokrzyskie, Łódź, Małopolska and Silesian voivodships — recalls Arnaldo Guerreiro, Member of the Management Board of the Eurocash Group. — We are currently the largest retail network on wheels in Poland and a significant player on the scale of Europe. We also definitely want to develop further and increase our area of activity. We can safely say that we have professionalized the mobile trading market in Poland and provided thousands of residents of smaller towns and villages with access to commercial services at the level of large cities and agglomerations. Thus, we improve the quality of life of their inhabitants and fight against social exclusion — adds Arnaldo Guerreiro.

How does the network “on wheels” work?

“abc on wheels” is a network of mobile convenience stores that sell specially designed for this purpose cars. Each of them has specialized equipment, including properly prepared refrigerated counters and a freezer. Mobile stores stock up at Eurocash Cash & Carry warehouses and have access to the entire range of approx. 5 thousand products. In addition, entrepreneurs can also use 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.

The largest sales from mobile stores are recorded by dairy products such as milk or eggs, as well as fresh products, including vegetables and fruits, cold meats, breads, and, in addition, drinks, dry assortment and sweets.

— The value of the average shopping cart in our case is higher than in small-format stores operating in the city. Our store visits customers 2-3 times a week. That is, they buy less often than city dwellers, but for this more. Among the most frequently bought products are dairy, vegetables and fruits, which shows us that the Polish countryside is changing and disagrarian. Our analysis shows that only about 10% of rural inhabitants make a living from agriculture, so self-production is much lower than in the past, and we too can respond to this need — indicates Arnaldo Guerreiro. — Interestingly, convenience products, including ready-to-eat dishes, are also of considerable interest. This surprised us a little, considering that our customers are mainly residents of villages and small towns, and not large cities, where this type of products record the highest sales — adds Member of the Management Board of the Eurocash Group.

How to start running such a business?

Due to the intensive expansion of the network, its representatives are constantly looking for people willing to work. The network operates in an agency model and offers interested entrepreneurs very attractive financial conditions. Each of them receives a specialized, fully loaded car and a monthly subsidy for fuel. In the event of its failure, you can count on a fast service from an external company.

Entrepreneurs cooperating with the network “abc na kolach” can count on a guaranteed salary in the amount of PLN 4,000 net and an attractive commission system, depending on the turnover generated. The network also provides ongoing operational support, as well as training and marketing activities.

The basic requirements set by the network for entrepreneurs who would like to take up running a store “on wheels” are the need to conduct their own business and have a driver's license category B. It is also welcome the ease of establishing relationships and the awareness that in the case of “abc on wheels” one of the guarantees of success of such an entrepreneur is precisely good contacts with customers. In this retail model, as network research has shown, this matters especially.

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.

According to the agreement, MCI funds will sell almost 56% of Frisco S.A. shares to Eurocash, achieving a total return of 2.8x CoC (cash-on-cash).

Frisco is one of the leaders of the Polish e-grocery market and the longest-running online supermarkets.

The Eurocash Group has been a strategic shareholder of Frisco since 2014, currently holding more than 44% of shares.

Frisco S.A. operates an online supermarket frisco.pl and is one of the longest-running online supermarkets. Funds from the MCI Group have made a significant contribution to building Frisco's value. The investment of the MCI.TechVentures fund took place with the company's revenues of PLN 17 million, which increased sevenfold in 7 years.

In 2014, Frisco's strategic investor became the Eurocash Group, the largest Polish company engaged in wholesale distribution of FMCG and marketing support for independent Polish entrepreneurs conducting retail activities. At the time, the Eurocash Group acquired 44% of Frisco's shares.

In 2019, Frisco opened a modern, fully automated warehouse in Klaudyn near Warsaw, which will allow the company to quadruple its scale of operations and further improve the quality of services provided to its customers.

Frisco is another successful investment of funds from the MCI Group. The estimated return for the MCI.TechVentures fund on this investment was 22.5%. IRR and 2.7 times the initial investment (2.7x CoC), amounting to PLN 43 million. The beneficiary of the transaction is also the Helix Venture Partners fund, whose investor is Krajowy Fundusz Kapitałowy (PFR Group).

The transaction will be settled in June 2020.

Luis Amaral, President of the Eurocash Group: 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. The partnership with MCI within Frisco is a model example of combining MCI's knowledge and experience in online business development with the scale and experience of the Eurocash Group in food distribution.

Tomasz Czechowicz, Managing Partner of MCI: We estimate that the value of Frisco.pl's revenues in the whole of 2019 will amount to approximately PLN 120 million. Frisco is a leader in e-commerce with a big advantage over its competitors. During the course of our investment, we rebuilt the management team, organized the business model and made investments in a modern, highly automated logistics center. The investment in Frisco was carried out by the funds Helix Ventures Partners and MCI.TechVentures, and in the next stage joined the Eurocash Group as an investor, making a valuable contribution to the development of the company and becoming a strategic target investor for Frisco.

MCI is one of the largest technology investment funds in the CEE region, engaged in digital private equity. MCI funds manage PLN 2.3 billion, investing capital in the areas of: technology companies (disruptors), companies undergoing digital transformation (digital transformation), and IT infrastructure. The funds, in their 20 years of history, have carried out more than 100 investments and more than 60 share sales processes. MCI was involved in Mall.cz, WP.pl, Invia/TravelPlanet, DotPay/eCard and iZettle.

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 about 15 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.

‍Owners of abc stores can implement a courier service in their establishments. This solution will allow them, among other things, to increase the number of customers and increase sales, and consumers to receive and send packages at a convenient location and time.

The abc chain of stores is the largest chain of grocery stores in Poland (about 8,600 outlets throughout the country), operating mainly in smaller towns, owned by independent Polish entrepreneurs. Marketing and organizational support of abc network is provided by Eurocash Group.

Sending and receiving parcels in abc stores is a convenient solution for consumers that will save their time and provide the convenience of using courier services when making daily purchases. It is worth emphasizing that by ordering a package to abc the consumer gets the opportunity to pick it up at very flexible hours. Most abc stores are open until late at night. In accordance with the planned development plans, the service will enable the handling of parcels by the largest courier companies in Poland.

— The first abc stores will be able to launch the service as early as November. We hope that soon store owners and their customers will feel the first benefits of its implementation. The pre-Christmas period is the most important time for the e-commerce industry, where online sales are at their highest all year — says Jan Domański, spokesperson for the Eurocash Group.

Support of the processes of issuing and receiving shipments from the technical side will be possible thanks to Polish ePayments, a leader in the segment of multifunctional payment terminal providers.

Coordinates implementation activities and operational support in stores Pointpack, technological integrator of courier services. He is also responsible for establishing and developing cooperation with courier companies.

Owners of abc stores interested in implementing the courier service “My Package” can do so in a simple way by filling out the application form. One signature is enough, and the payment terminal of Polskie ePayments will handle the reception and collection of parcels.

The courier service will be available at points that report a desire to implement it. Every month there will be more and more such stores in Poland.

The operator of the service will be the company DHL Parcel, for which cooperation with the Eurocash Group is the next step towards expanding the network of Partner Points, which currently numbers almost 8000 outlets.

— We have decided to provide the courier service of the abc chain of stores, because such a solution will allow our customers — store owners — to build their competitiveness on the Polish retail market — tells Jan Domański, spokesperson for the Eurocash Group “It is possible that some people will say that this is the answer to non-trading Sundays, but abc stores are run by independent entrepreneurs and most of them have decided to open their stores on Sundays. We have repeatedly stressed that small independent shops are the beneficiaries of the legislative changes introduced. In the case of the implementation of courier services, this is about completely new benefits for entrepreneurs. First, we are seeing an increase in the number of retail outlets that offer courier services. Currently, they are provided by other franchise chains, press outlets or gas stations. This is primarily due to the dynamic development of the e-commerce industry. More and more consumers are interested in this service and more and more often our customers have also asked about its introduction. Secondly, for small format stores, it is an opportunity to increase the number of customers, get an additional margin or, in practice, simply increase sales. Interestingly, research shows that the co-purchase rate is around 30% with this type of service. This means that 3 out of 10 consumers, giving or receiving a package at a point of sale, will make purchases on this occasion. All these factors influenced our decision to implement the service “My Package” to the abc network. The aim of the Eurocash Group is to support independent trade in Poland and to provide its participants with tools and opportunities to compete in this market. The decision whether to take advantage of a given solution and improve the competitiveness of your store by offering courier services or working on Sundays, both before and now, is solely on the side of the store owner — adds Domanski.

Since the beginning of this year alone, 15,000 registered users have benefited from the largest e-learning platform in Poland dedicated to small-format commerce — www.akademiaeurocash.com.pl. At that time, it had nearly 400,000 views and users logged in as many as 86,000 times. The platform allows store owners and their employees to access practical e-learning courses and dozens of educational articles dedicated to running a store. Following the latest trends in e-education, the Eurocash Academy of Skills has launched its own online television — AUE TV.

Operating since 2010, the Eurocash Academy of Skills is the largest educational and training program in Poland supporting Polish independent retail stores affiliated in the franchise and partner networks of the Eurocash Group.

The offer of the Academy consists of 4 areas of activity. These are: practical training workshops, the annual Congress of Entrepreneurs of Polish Trade, postgraduate studies and advanced courses conducted in cooperation with the Warsaw School of Commerce (SGH) and a modern e-learning platform — www.akademiaeurocash.com.pl - under which the Internet television AUE TV has now been launched.

We live in an age of ubiquitous image and video, which is recognized as the most engaging type of content among Internet users — tells  Agata Wrzecionowska-Dzierba, manager of the Eurocash Academy of Skills. — We have less and less time for this and we are accompanied by a constant rush. The same phenomena penetrate into the process of education. We want to learn today with the help of the Internet, use a variety of visual materials and assimilate them in express mode. Hence the popularity of the term e-education. Observing these trends, we decided to launch Internet TV AUE TV. ­On our TV channel you can watch a few minutes of e-trainings and practical advice that will help you assimilate as much content as possible in a short time — adds Wrzecionowska-Dzierba.

On AUE TV you can find more than 40 short training and instructional videos, divided into 3 thematic areas: development, specialist and category management. Among the proposals of specialized videos, there are practical video tutorials on, among others, managing inventory in the store, calculating the profitability of the store, taking care of the correct exposure of the refrigerated counter or handling a difficult customer. On AUE TV we will also find the most interesting speeches of experts from the 4th Congress of Polish Trade Entrepreneurs in September, including a presentation by Jarosław Sokolnicki from Microsoft on the concept of “Retailer 4.0”, i.e. the vision of an intelligent store that recognizes the consumer and can interact with him. As well as a speech by Jacek Santorski on the formation of leadership qualities in the leader of the future.

You can learn more about AUE TV from the short video: https://youtu.be/MCGLmQzylN4

Eurocash Group is the largest Polish company engaged in wholesale distribution of quickly marketable food products, household chemicals, alcohol and tobacco products. It also offers marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together about 15 thousand independent stores operating under such brands as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep, Gama, Duży Ben, as well as Kontigo and Koliber.

• Eurocash Group's revenues in the third quarter of 2019 amounted to PLN 6.67 billion, which is 7% more than in the same period last year. The growth was driven by both significant organic growth in the wholesale segment and continued growth in sales in the retail segment.

• EBITDA (i.e. operating profit plus depreciation) reached PLN 219 million, of which approximately PLN 90 million is due to the application of IFRS 16, in force since the beginning of this year. EBITDA before IFRS 16 in the third quarter of this year amounted to PLN 129 million, which means an increase of 23% y/y and is mainly related to the rapid improvement in profitability in the retail segment.

• Consolidated net profit, calculated according to the new IFRS 16 standard, in the third quarter of 2019 amounted to PLN 25 million, while the net profit in comparable terms before IFRS 16 reached PLN 41 million, which is more than 7% more than a year earlier.

Wholesale: strong organic growth

In the wholesale segment, the Eurocash Group recorded sales growth of nearly 7% y/y to PLN 5.09 billion in the third quarter of 2019.

“The growth in wholesale sales was driven by the rapid sales of tobacco products and impulse products, which increased by nearly 17%, while at the same time good sales in other distribution formats, in particular in the active distribution format to our franchisees, where we recorded an increase of 14%. Due to the low profitability of cigarette sales and the very high result last year, the EBITDA of the wholesale segment remained at a comparable level year-on-year. Current profitability is also affected by the further integration of Eurocash Alcohols with Eurocash Distribucja, which is the next stage of cost optimization of the segment — explained Jacek Owczarek, Member of the Management Board and Chief Financial Officer of the Eurocash Group.

In the third quarter of this year, EBITDA of the wholesale segment before IFRS 16 amounted to PLN 130 million, and after applying the new reporting standard — more than PLN 177 million.

The number of stores affiliated in the abc chain, which are the main customers of Cash & Carry wholesale, stood at 8,816 outlets at the end of September, which means an increase of 63 stores in the third quarter of this year and by 257 stores year-on-year. The number of partner and franchise stores organized as part of the Groszek, Euro Sklep, Lewiatan and PSD (Gama) chains, operated by Eurocash Dystrybucja, at the end of the third quarter of 2019 was 5,087, which is 47 more than the previous quarter and 144 more than a year ago.

Retail: profitability up thanks to improved results of acquired supermarkets

Eurocash Group's sales in the retail segment in the third quarter of this year reached PLN 1.52 billion, which is 7.5% more than in the same period of 2018, which consisted of a 6% increase in sales to Delikatesy Centrum franchise stores and an 8.5% increase in sales in its own supermarkets (operating under the brand name Delikatesy Centrum and Mila), as well as more than 8% higher sales in the newsrooms of Inmedio.

EBITDA of the Retail segment amounted to PLN 74 million in the third quarter of this year, and before applying IFRS 16 almost PLN 33 million compared to almost PLN 12 million a year earlier (an increase of 179% y/y).

“The significant improvement in profitability in Retail is mainly the result of clearly better results of the former EKO stores and the Mila chain. After a period of integration of the acquired supermarkets with Delicatesami Centrum, which involved the need to incur additional costs, we are beginning to see an improvement in their operating results. Integration work is a very complex process and is still ongoing, but the main thing is that they go according to plan and from the new year all stores will already be managed within a single organizational structure — indicated Jack the Shepherd.

The network of small supermarkets built by the Eurocash Group (eventually all will operate under the Delikatesy Centrum brand) at the end of September 2019 included a total of 1,561 outlets, including 986 franchise stores and 575 own stores. At the end of the third quarter of this year, Inmedio had 445 stores.

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 about 15 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 Eurocash Group has received an AA rating in the MSCI ESG rating, which assesses the activities of companies around the world in terms of environmental protection, corporate social responsibility and corporate governance. The Polish company was rated higher than such global players in the retail industry as WalMart, Sysco, Ahold, 7/11 or Wallgreens.

Investors around the world are increasingly looking not only at the financial performance of companies, but also at non-financial aspects, including issues related to environmental protection, corporate social responsibility and corporate governance. These issues may give rise to certain risks or opportunities for the business conducted by a given company and therefore also have a significant impact on its future results. MSCI's ESG rating is one of the most important ratings of this type, which is noted by reputable global funds that want to invest responsibly. Therefore, we are very happy that we have received an AA rating. This is a great honor for us — tells Cezary Giza, Director of Investor Relations of the Eurocash Group. “It also turned out that we were not short of obtaining the AAA rating, which in our sector can boast only 2% of all the companies evaluated. The MSCI ESG rating, in addition to appreciating the strengths, also clearly indicates which elements need to be further improved. We are a listed company, one of our values is transparency, thanks to which we can be evaluated by institutions such as MSCI — adds.

The Eurocash Group was among the highest rated companies in the commercial sector in terms of corporate governance, human resource management and product quality and safety. Other areas evaluated in this group of companies include, among others, the carbon footprint, the acquisition of raw materials or the offer of healthy food. The rating is issued on a 7-point scale, with CCC-B ratings being negative, BB, BBB, A grades being average, and AA and AAA ratings indicating leaders in the field of ESG.

Eurocash Group is the largest Polish company engaged in wholesale distribution of quickly marketable food products, household chemicals, alcohol and tobacco products. It also offers marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together about 15 thousand independent stores operating under such brands as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep, Gama, Duży Ben, as well as Kontigo and Koliber. 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.

‍More and more of the largest producers of beer, vodka and whiskey offer a similar range at similar prices in all sales channels — according to the 3rd edition of the “Equal in Business” ranking. This is especially important for customers who buy more than 40% of quick-trade goods and 70% of beer in small-format stores.

- We had problems with manufacturers who saw nothing wrong with the fact that half a liter of canned beer is a third cheaper in other sales channels than in bottles of the same capacity in small-format stores. For consumers, of course, this was a problem. Fortunately, this approach of manufacturers has begun to change — says Pedro Martinho, Member of the Management Board of the Eurocash Group.

The leader of the previous two editions of the Browar Namysłów ranking was taken over by Grupa Żywiec (Heineken). However, this did not improve the position of this concern in the ranking, as it was in 4th place (in 2018 it was 3rd). The leading places are occupied by the two smallest of the leading beer producers: Perła — Brewary Lubelskie and Van Pur. Compared to the previous year, the largest player on the market — Kompania Piwowarska (Asahi), which is 3rd (in 2018 it was 5th).

Market leaders also strong in the ranking

An event on the scale of the entire ranking is the vodka market, because the order of producers in “Equal in Business” almost coincides with the order in the list of the largest producers. This means that Roust and Stock, as leaders of the vodka market in Poland, treat all sales channels equally.

- In the past, vodkas in small packages - in terms of liter - were often tens of percent more expensive in small-format stores than the same ones sold in larger packages. However, now in the largest manufacturers there has been a significant change for the better — explains Pedro Martinho.

The Polish whiskey market can also be considered sustainable, despite the fact that Stock leads the ranking, which is only 5th in the list of the largest producers. However, not much worse than Stock's ratings were obtained by the entire top of the market, and above all Brown-Forman and Pernod Ricard.

- The whiskey market has been dominated until recently by big-box stores. Small-format stores sold her little. However, we managed to convince producers to improve the assortment and better price positioning, thanks to which the sales of whiskey in independent trade began to grow Pedro Martinho points out. — An example of a change in the approach of producers is our original concept — Czas na Whisky, which works perfectly in nearly 8 thousand stores cooperating with Eurocash. The shops offer a carefully selected assortment of whiskey at an affordable price. We opted for a selection of several types of whiskey - in a small-format store, the customer does not need 10 products of each type, because too wide selection does not mean good sales at all, and if consumers need whiskey for special occasions they usually go to specialized liquor stores anyway.

Even more percentages

In previous editions, the “Equal in Business” ranking, in the section dedicated to alcohol producers, included beer and vodkas. This year, the Eurocash Group and the Polish Chamber of Hadlu decided to expand it to whiskey. In each category, manufacturers are taken into account, which together occupy at least 90% of the market. This share of the Polish market is held by 5 beer producers, 5 — vodkas and 6 whisky producers. The calculations for individual companies were made on the basis of Nielsen data for the period June 2018 to May 2019, from discount stores, supermarkets and small format stores. The analysis covered only the most popular assortment, generating a total of 80% of the sales of a given manufacturer.

The company's place in the ranking was determined by the points awarded for: price level in different sales channels, sustainable distribution, market share, contribution to growth and dedicated products.

The full results of the “Equal in Business” ranking are available at http://www.pih.org.pl/.

The 25 largest producers of milk, cream, yoghurt and other selected most popular product categories, offered in store refrigerated counters, were evaluated by Eurocash Group analysts for their strategy towards small retail stores. The results were presented as part of the 3rd edition of the “Equal in Business” ranking.

- The ranking clearly shows that smaller manufacturers care the most about equal treatment of customers of all stores — says Pedro Martinho, Member of the Management Board of the Eurocash Group. “The largest manufacturers tend to target the best value offers mainly to discount stores and supermarkets, which means that customers of neighborhood stores do not buy their favorite products where they have the closest. Which does not mean that they go to a remote store for them. Often they do not buy them at all or choose a product from another manufacturer — adds.

Leaders of Equal Treatment

This phenomenon can be seen in the yogurt market. The same goes for dairy desserts. Also in the market of butter and margarine it is in vain to look for the top of the ranking of the largest producers. The leader of this market took only 8th place in the ranking, and in the top were companies that are only in the second half of the list of market leaders in terms of overall sales. The largest producers of sour cream perform equally poorly. The milk market is unique, where SM Mlekpol, despite being the sales leader, is also in the top three of the “Equal in Business” ranking. However, the same company is much lower in the ranking of producers of sweet and homogenized cheeses, which once again confirms the rule that similar strategies for all types of stores are primarily used by smaller suppliers.

- Fresh products should be purchased near the place of residence, that is, in small-format stores. This is why it is surprising that although consumers make more than 40% of all their grocery purchases in small format stores, only 28%* are purchases related to the dairy category. And the consumer loses in this, because there is no fresh goods at home. This is also detrimental to retailers and manufacturers, who lose speed and turnover because consumers buy less than they could. Very risky is the strategy of the largest dairy producers, who depend a significant part of their sales on discount stores, causing enormous price pressure on farmers — evaluates Pedro Martinho.

Milk spilled

In previous editions, the ranking from the group of fresh products included only milk. This year, the Eurocash Group and the Polish Chamber of Hadlu decided to extend the analysis to other popular product categories. In each of them, manufacturers are taken into account, which together occupy at least 90% of the market. Such a share in the Polish market has, for example, 5 dairy dessert producers, 7 yogurts and 10 cream makers. The calculations for individual companies were made on the basis of Nielsen data for the period June 2018 to May 2019, from discount stores, supermarkets and small format stores. The analysis covered only the most popular assortment, generating a total of 80% of the sales of a given manufacturer.

The company's place in the ranking was determined by the points awarded for: price level in different sales channels, sustainable distribution, market share, contribution to growth and dedicated products.

The full results of the “Equal in Business” ranking are available at http://www.pih.org.pl/.

* Data based on Nielsen Retail Panel; small format market; dairy category, data for the period August 2018-July 2019

We know the winners of the “Heroes of Innovation” contest. Out of 661 ideas submitted by independent entrepreneurs running retail stores, consumers in the voting and the jury, after assessing the business potential of the projects, selected 54 best projects. During the vote, store customers cast a record more than half a million votes. The value of the prizes in the competition was PLN 1 million.

In the first stage of the competition, entrepreneurs submitted their projects in 3 thematic categories: “Changing the world locally” (162 projects), “I invest in technology” (196 projects) and “I focus on practical solutions” (303 projects). The latter was dominated by projects related to the modernization of the store, e.g. the purchase of new equipment. The most popular innovations in investing in technology have been ideas to make it easier for customers to shop. In turn, in the category “Changing the world locally”, store owners submitted projects to revitalize the store environment, such as the construction of a playground, as well as support for local schools, organizations and sports teams. Entrepreneurs could apply for support for the implementation of the project in the amount of PLN 100,000, PLN 50,000 or PLN 15,000. The final evaluation of the proposal consisted of points for public support (the number of votes from the online voting) and points awarded by the members of the jury analyzing the business potential of each of the ideas.

Local Heroes

The main prize of 100 thousand zlotys was awarded Delicatessen Centrum z Beska (Podkarpackie), three prizes of 50 thousand PLN received Delicatessen Center from Baligrod (Podkarpackie), abc store from Jędrzejów (świętokrzyskie) and abc store from Zielona Góra (Lubuskie)50 prizes of PLN 15,000 went to Lewiatan, Groszek, Euro Sklep, abc, Gama and Delikatesów Centrum stores across Poland.

“The number of qualified projects and votes cast shows how great social potential lies in Heroes. With Heroes of Innovation, anyone can have an impact on how a local store operates, what its surroundings look like and how it impacts the local community. — says Jacek Owczarek, Member of the Management Board of Eurocash.

“I thank entrepreneurs and store customers for their great commitment to the competition and I congratulate the winners. I know that many participants of the competition carry out similar projects on a daily basis — emphasizes Jacek Owczarek.

Autonomous store

The aim of the best Delicatesów Centrum project from Besek is to create a completely autonomous shop without employees. Market with an area of 34 sqm. will be equipped with an advanced system of self-service cash registers and cameras monitoring the entire purchasing process. The store's offer will include the 100 most purchased products.

The residents of our village are very busy every day. They work in agriculture or commute to other cities, so they often do not have time to go shopping. That's why I wanted to give them the opportunity to shop around the clock independently, quickly and without queues — says Justyna Widota, owner of Delikatesów Centrum from Besek.

Playground instead of a tank

The project was awarded with the amount of PLN 50 thousand pt. “The joy of a child, not war” This is the owner's response Delicatessen Center from Baligrod (Podkarpackie) for the lack of a playground for children in this town. For now, the only “attraction” is the old T34 tank, set in the central square of Baligrod. Therefore, a playground will be built between the delicatessen and the monument tank. The project was selected in the category “Changing the World Locally”.

The same award was given to the project entitled. “Active shopping cart - Residential online shop for socially active people”. The idea of abc store from Jędrzejów (świętokrzyskie) was submitted in the category “I bet on practical solutions”. “Active shopping cart” combines the use of modern technologies in retail with the idea of corporate social responsibility. Customers will be able to shop remotely and pick them up at a neighborhood store while supporting the local community. The charity is based on the idea of a virtual “suspended basket” for someone who just happens to be unable to afford it. Customers will be able to upload products that they want to give to someone.

In and around the store

For the owner of 15 thousand zlotys won in the competition Shop Gama from Miastka (pomorskie) will be able to buy a modern refrigerated counter equipped with energy-saving fans and modern LED lighting, and the owner Euro Shop from Międzylesia Equip your facility with a quiet and energy-efficient refrigerated rack. Whereas the owner Delicatessen Center in Osobnica (Podkarpackie) will enrich the bistro operating in the shop with a coffee corner, where customers will be able to drink coffee, eat delicious cake and chat.

The largest number of initiatives awarded PLN 15,000 (33 out of 50) were projects from the category “Changing the world locally”. This is evidence of the interest of store owners in their surroundings and the needs of local communities. Nearly a third of the initiatives in this category concerned the creation of playgrounds, playgrounds, kindergarten gardens or amusement parks for children.

Heroes detail

Independent retailers from all over Poland took part in the competition, but entrepreneurs from the provinces of Podkarpackie (167 applications), Małopolska (80 applications) and Silesia (70 applications) showed the greatest activity. The largest number of applications were submitted by entrepreneurs running stores under the brand Delikatesów Centrum (355), Lewiatana (118), Euro Shop (73) and Groszka (46). Their ideas were also submitted by the owners of abc and abc stores on wheels, Gama, or Koliber, as well as entrepreneurs not associated within any network, but purchasing from the wholesalers of the Eurocash Group.

Eurocash Group is the largest Polish company engaged in wholesale distribution of quickly marketable food products, household chemicals, alcohol and tobacco products. It also offers marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together about 15 thousand independent stores operating under such brands as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep, Gama, Duży Ben, as well as Kontigo and Koliber.