A great step, the benefits outweigh the costs

Lidl and Biedronka's campaign with a significant reduction in vodka prices was a brilliant marketing move. For the price of some TV ads, they brought people into stores for 5 days. Witold Franczak, director of the Bóbr Limanowa brewery and an expert in the alcohol industry, says that the costs of this measure were more than recouped in the sales basket.

Witold Franczak, director of the Bóbr Limanowa brewery and alcohol industry expert, in an interview with Portal Spożywczy, believes that the action of Lidl and Biedronka with a significant reduction in vodka prices was a great marketing move. Photo: Editorial Office/PTWP

  • On the penultimate weekend of February, Internet users were agitated by an unusual alcohol promotion in the largest discount chains;
  • Lidl offered half-litre bottles of vodka for PLN 9.99, and Biedronka for PLN 8.99;
  • This procedure aroused enormous interest and, on the one hand, legal, economic (how profitable?) and ethical doubts;
  • As Witold Franczak told us, the promotion was a great success from a sales and marketing point of view.

Discount stores big discount on vodka

On the penultimate weekend of February, netizens were stressed by an unusual event Promotion of alcohol in the largest discount chains. Lidl offered half-litre bottles of vodka for PLN 9.99, and Biedronka for PLN 8.99;

Although similar promotions for other products, especially beer, are not uncommon, this is the first time retail chains have discounted hard alcohol on such a scale.

This anger, among other things, Jan Spiewack, which submitted a notification to the Competition and Consumer Protection Bureau regarding the operation of the Lidl, Biedronka and Kaufland chains. In his opinion They commit so-called dumping and acts of unfair competition “By selling vodka for less than production costs and even less than excise tax costs.”

Will the Competition and Consumer Protection Bureau intervene in the issue of vodka promotion?

However, the Office of Competition and Consumer Protection does not wish to interfere in this matter.

– Preliminary analysis shows that according to the Act on Education on Moderation and Combating Alcoholism, the promotion of alcohol in the form adopted by these chains may constitute legally prohibited promotion of alcoholic beverages – Agnieszka Majchrzak from the UOKiK press team informed the newspaper Onet. Editorial office R.

However, the rest of the response from the Competition and Consumer Protection Office makes it clear that according to this institution, the case is a matter for the police or the Public Prosecutor's Office. “The issue of alcohol advertising and promotion should be of interest to law enforcement agencies,” says Majchrzak.

Will the Competition and Consumer Bureau take up the issue of cheap vodka from discount stores? "We analyze continuously"

Expert on cheap vodka at discount stores: Great move

Franzac is borndirector of the brewery Bóbr Limanowa and expert in the alcohol industry, in an interview with Portal Spożywczy, estimates that Lidl and Biedronka's act of dramatically reducing vodka prices was a brilliant marketing move.

-For the price of some TV ads, they brought people to stores for 5 days. The costs of the procedure were more than just compensation In the sales cart, and everyone has been talking about it for a few days. Of course, one can debate the moral aspect of the entire campaign, but let me remind you that similar beer promotions have been organized for years, he adds.

Witold Franczak: Russian vodka is almost non-existent in the world.  This is a great opportunity for Poland

Who are the vodka producers who participated in the discount store promotion?

Our interlocutor points out that not market giants were chosen for the promotional campaign, but two companies with Polish capital – BZK Alco and AWW.

-I think big players like Stock, Maspex or Wyborowa will not consent to such action; These are entities with such powerful status that networks cannot do this without their consent, he says.

Price war between Lidl and Pedronka. "Promotions they shy away from"

Will the Competition and Consumer Bureau question the promotion of vodka in supermarkets?

Witold Franczak believes that the threat of UOKiK intervention in this case is minimal.

– Even if the office takes over the proceedings, it will drag on for several years and the lawyers will end up making money – at his discretion.

The Competition and Consumer Protection Bureau lost in court.  There will be a fine of PLN 76 million on the retail giant

Young consumers no longer want to drink the cheapest beer?

In the opinion of our interlocutor, the significant declines currently observed in the beer market are due to inflation problems and lower consumer spending, but also to the fact that Young consumers have stopped drinking the cheapest beersBoth at home and in gastronomy.

Generation Z is looking for better beer today. They can afford to add 3-4 Polish zlotys and this is one of the reasons for the decline that we observe in the vodka and beer market. Let's be honest, the cheapest beers are produced using the cheapest ingredients and are made for a short time, which affects the quality. Let's also remember that almost all beer companies, despite quantitative declines, have seen margin increases and are profitable, Franczak adds.

Poles are buying less beer.  And all because of high prices

Why did discount stores stop promoting craft beer?

Our interviewer also points out that small craft breweries are facing difficulties.

– In my opinion, the main reason for the difficult situation of craft breweries is the fact that… Large chains, especially discount chains, have stopped promoting craft beer. They prefer to reach agreements with large companies. Just 3 years ago, Lidl had a really big offering of craft beer. Today we have only a few, and even fewer in Biedronka. Distribution cuts combined with a wave of small store closures are creating big problems for small breweries. From the perspective of a buyer in a large chain, it is better to reach an agreement with one big player than to reach an agreement with 15 smaller players, because that means less work and the money is the same or more. In my opinion, this is a big mistake – says Witold Franczak.

Discount stores sell eggs at well below cost.  The industry calls for common sense

Is this situation likely to change? Witold Franczak has doubts.

– While supermarkets have for some time begun to see craft beer as a lure to younger, more affluent customers, in the case of discount stores, to quote the classic phrase “I see the dark.” The world is changing and the younger generation is looking for such products – sums it up.

You are looking for a warehouse to rent. View ads on PropertyStock.pl

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Pension indexation 2024. Check out the new accounts – this is how pensions are supposed to grow

Pensions rose this year by a record 14.8 percent, and the reason…

These Lidl stores in Kielce are open all week. You can shop here on non-commercial Sundays [LISTA]

Poland is a country of Stuff. do not believe? Then check out…

Fuel prices and significant changes. As of March 18, change of work at stations

How much do petrol, diesel and LPG 95 cost? Important changes from…

Is a mortgage worth in 2022?

Interest rates – what next? After the February changes, the reference rate…