Stock Spirits recaptures its position in key Polish market

A PRICING overhaul and the rising popularity of flavoured vodkas have helped drinks maker Stock Spirits regain its footing in its key Polish market.

The eastern Europe-focused spirits maker moved to address weak performance in Poland last year after coming under attack from activist investor Western Gate.

Initial indications suggest the changes seem to be working, with operating profits in Poland rising 12pc to €16.86m (£15.2m) in the six months to June 30. This was largely thanks to price reductions on some of its brands and growing demand for flavoured vodkas.

Mirek Stachowicz, who took over as chief executive from Chris Heath a year ago, said the price differential between its core brands and that of key competitors had narrowed and this, alongside improvements in its sales and marketing efforts, had helped it perform better in the country.

The company had suffered in a bitter price war in the region as rivals’ cuts left its brands looking expensive. This was highlighted by Western Gate, run by Portuguese cash-and-carry tycoon Luis Amaral, as a key factor in the group’s waning performance.

Shares in Stock Spirits jumped 10.3pc to 174.5p yesterday as the better numbers in Poland helped group sales rise 3.3pc to €119.8m while pre-tax profits jumped 23pc to €15.65m.

The company also saw its market share in the Czech Republic rise to 35.3pc thanks to the better-than-expected performance of its recent bolton acquisition of Bohemia Sekt.

It also announced that Lesley Jackson, the chief financial officer, will step down as a director in November. She will be replaced by Paul Bal, from Tupperware Brands.