BID PoloniaConfiteria

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Market Research – Eastern Europe
Confectionery and milling

in Poland
. . . . . . . . . .
Proexport – Colombia
Equipo de Trabajo
Dirección de Información Comercial
Jorge Luis Gutiérrez – Director
Fernando Piñeros – Subdirector Proyectos Especiales
Bibiana Gutiérrez – Analista de Inteligencia de Mercados
bgutierrez@proexport.com.co
www.proexport.gov.co
www.proexport.com.co
Calle 28 No. 13ª – 15, Piso 35

Tel: (571) 5600100
Fax: (571) 5600118
Bogotá, Colombia
GRUPO CONSULTOR
EUNITE, Nederland
Todos los derechos reservados. Ni la totalidad ni parte de este documento puede

reproducirse o transmitirse por ningún procedimiento electrónico o mecánico, incluyendo
fotocopias, impresión o grabación.
Estimado Empresario:
La búsqueda de acuerdos comerciales que nos permitan como país ampliar los
escenarios y mercados de exportación, nos reta como PROEXPORT a apoyar en
forma directa a los empresarios en sus iniciativas exportadoras, ofreciendo
servicios dentro de un modelo del gestión comercial y compartiendo un
conocimiento más detallado sobre los mercados y sus oportunidades.
Para lograr lo anterior, PROEXPORT, con inversión de recursos propios y de

cooperación técnica no-reembolsables del BID-FOMIN, emprendió una labor de
recolección y análisis de información de primera mano en los principales mercados
de interés a través de la contratación de consultorías internacionales
especializadas en investigaciones de mercados. Los resultados de estos trabajos
permitieron analizar y conocer la dinámica comercial de los sectores en los cuales
existe un potencial para nuestras exportaciones, así como detallar aspectos de
competitividad, información valiosa para la orientación de las iniciativas
exportadoras de nuestros empresarios.
La información que contiene este estudio, sobre la dinámica del sector, la

demanda y consumo, la situación competitiva de los productos, estructura y
características de la comercialización y logística de acceso al mercado, es una
contribución e invitación a profundizar y conocer aspectos que nos permitan
avanzar en la realización de negocios en escenarios internacionales.
Cordialmente,
Luis Guillermo Plata P.

Presidente PROEXPORT
Contents
1. Introduction ..................................................................................................7
1.1 Introduction............................................................................................................ 7
1.2 Methodology .......................................................................................................... 7
2. General sector data......................................................................................9
2.1 Current market developments within the specified sector ..................................... 9
2.2 Sector’s participation in total GDP......................................................................... 9
2.3 Sector’s participation in employment................................................................... 10
2.4 Developments in production ................................................................................ 11
2.5 Available data about the sub-sectors .................................................................. 22
2.6 Recommendations............................................................................................... 22
3. Market composition and characteristics ..................................................23
3.1 Market size .......................................................................................................... 23
3.2. Confectionery market segmentation..................................................................... 25
3.3. Analysis of the apparent consumption dynamics ................................................ 28
3.4. Governmental plans and programs ..................................................................... 28
3.5. Demand in the market ......................................................................................... 29
4. Competition analysis .................................................................................33
4.1 Main trademarks available in the market............................................................. 33
4.2 Features of the commercialized products............................................................ 36
4.3 Marketing and advertising strategies................................................................... 37
4.4 Participation in the market and segments that are served .................................. 44
4.5 Quality of the product .......................................................................................... 48
4.6 Expansion plans .................................................................................................. 49
4.7 Pricing strategy.................................................................................................... 50
4.8 Segmentation of enterprises by sectors and its categorization ........................... 51
5. Distribution channels.................................................................................59
5.1 Retail structure .................................................................................................... 59
5.2 Confectionery products most frequently sold in groceries................................... 65
6. Commercial Access Guide ........................................................................69
6.1 Preferential tariffs ................................................................................................ 69
6.2 Tariffs imposed on major competitors ................................................................. 70
6.3 Norms of origin .................................................................................................... 72
6.4 Barriers ................................................................................................................ 73
6.5 Licenses .............................................................................................................. 74
6.6 Quotas ................................................................................................................. 74
6.7 Approvals & 6.8 Technical standards .................................................................. 75
6.9 Packaging............................................................................................................ 80
6.10 Required documentation for import ..................................................................... 84
6.11 Import modalities or regimes involved in the process.......................................... 92
6.12 Requirements for import of samples and accompanied luggage ........................ 93
6.13 Website links to rules and regulations ................................................................. 93
6.14 Flow chart of the process and related costs ........................................................ 94
Proexport Colombia 5
Market Researches in Eastern Europe
7. Physical Access .........................................................................................97

7.1 Available transportation infrastructure ................................................................. 97
7.2 Identification of ports, airports, roads – border passes – railways,
waterways.......................................................................................................... 106
7.3 Description of status, operation, security, costs, distances, transportation
arrangements and intercommunity customs...................................................... 107
7.4 Identification of other handling and distribution infrastructure ........................... 109
7.5 Identification of carriers that transport goods imported from Colombia ............. 111
7.6 International Freight or Transportation Costs .................................................... 112
7.7 Physical distribution services address book ...................................................... 117
8. Recommendations to the exporter .........................................................121
Annexes ...........................................................................................................123
Annex 1: Health inspection application form ............................................................. 123
Annex 2: Certificate of origin form A.......................................................................... 127
Annex 3: DV1 Form ................................................................................................... 128
Annex 4: Single Administrative Document (SAD)...................................................... 130
6 Proexport Colombia
1. Introduction
1.1 Introduction
This report aims at providing Colombian exporters with a comprehensive guide of

the Polish confectionery market. The main goal of the report is to identify export
opportunities for Colombian entrepreneurs in Poland. Civilization proximity,
similar structures of democratic institutions, comparable level of reforms
conveyed in the regions, close relations between EU and South America,
cultural, tradition and religion similarity, should additionally encourage both sides
to cooperate successfully. The report focuses on the analysis of the
confectionery and milling sector, the various trademarks performing in the Polish
market, competition description and profile of tendencies in the market.
1.2 Methodology
Information for the research was gathered by means of official information, such
as the Ministry of Agriculture and Rural Development, Ministry of Finance,
Ministry of Infrastructure, Central Statistical Office, Agricultural Market Agency,
Foreign Trade Database, studies, publications, databases, branch magazines,
internet sites of branch organizations, internet sites of companies present on the
market and different field research.
The data presented here has attempted to create a very diverse picture of the
Polish confectionery market. One must be aware that the confectionery sector is
not one of the most important branches of Polish agriculture. Official sources
such as the Central Statistical Office or Ministry of Finance provide limited and
general information concerning this market.
More detailed information is presented by professional reports, like for example

the analysis prepared by Boss Economic Information or Poradnik Handlowca
(Trader Guide). However, this information is usually based on estimations and
knowledge of professionals active in the certain market. Where possible, this
report combines data from both nationwide institutions and professional
organizations, sometimes showing the difference in figures given by these two
sources.
The biggest effort was made to provide as much information as possible,

however, some requested information was neither possible to gather or estimate.
The appropriate data is given in percentage, values in EURO or rating numbers.

The current exchange rate for 8th of August 2005 was € 1 = 4 PLN. All the graphs
and tables presented are based on several, comparable sources and prepared
for the purpose of this report. It is worth to state that certain data requested from
particular companies, such as pricing strategies, companies’ development plans,
are very hard to acquire, as entrepreneurs perceive it as merchant, official secret.
All the latest available data, possible to access freely and not interfering Polish
companies’ policies are however used and presented in this report.
2. General sector data
2.1 Current market developments within the specified sector

According to the General Statistic Office (GUS), 19.516 entities operate in the
sector of the manufacturing of food products and beverages. There are no
specific data about companies that manufacture only confectionery and milling
products
Table 2.1.1 Economic entities by ownership sectors, sections and divisions

Total Public Private
Manufacturing 206826 876 205950
Manufacturing of food 19516 87 19429

products and beverages
Source: Central Statistical Office (GUS), 2003
The industry is strongly dominated by private capital. Many previously state-

owned companies were taken over by private entrepreneurs.
According to BOSS 1 there are about 900 entities in the Polish chocolate and
sugar industry sector. The majority are medium size companies with 10 to 50
employees or smaller ones that employ less than 10 employees. Although there
are only about 120 companies, that employ more than 50 employees, these
companies dominate the Polish market. According to the Association of Polish
Producers of Chocolates and Sugar Confectionery POLBISCO, that associates
30 leading companies from this branch, the companies stated above produce
about 45% of the total production and employ 12.000 people, which amounts to
one-third of all employees employed in this sector. According to estimations by
BOSS in 2001, 70%, of the market is controlled by six big international
companies. The 15 biggest producers controlled approximately 88-90% of the
market.
2.2 Sector’s participation in total GDP

Data on Poland’s GDP are presented in Table 2.2.1. and Table 2.2.2.
Table 2.2.1 GDP in Poland 2002-2004 (current prices million EUR)

GDP 2002 2003 2004
195278,1 203730,6 220914,5
Source: Central Statistical Office (GUS)
1
Boss Economic Information
Table 2.2.2 Dynamic of GDP growth in Poland 2002-2004 (annual average prices from
previous year)
GDP 2002 2003 2004
101,4 103,8 105,3
The sector of chocolate and sugar confectionary as such is not detailed in

national accounts. The only information on general participation in GDP of
“manufacturing of food products and beverages” sector is given by the statistical
office. The share of the “manufacturing of food products and beverages” sector in
total GDP amounted to € 27773,95 mln in 2001 and € 25279,65 mln in 2002.
Table 2.2.3 Share of manufacturing of food product and beverages in manufacturing

1995 2000 2001 2002 1995 2002
In million EUR In percent
Total 65334,325 129745,725 130700,325 130354,65 100% 100%
Manufacturing 55325,925 112353,325 111118,825 109431,775 84,7 84
Manufacture 13786,75 25150,275 27773,95 25279,65 21,1 19,4

of food
products and
beverages
2.3 Sector’s participation in employment

The sector of chocolate and sugar confectionery as such is not detailed in
statistic data concerning employment in manufacturing elaborated by the Central
Statistical Office (GUS). There is however general information available about
the number of employees in the sector of food and beverage production, which
also includes the sector of confectionery and milling. The changes of methods of
production and privatisation of big state-owned companies in the ninieties have
had a big impact on the decreasing number of employed persons in the sector of
manufacturing of food production and beverages as a whole. The same
development occurred in the sector of confectionery and milling. During the last
few years the slightly decreasing trend in employment in this sector continued,
this time mainly due to the modernisation of methods of production and
reorganisation of management in the biggest companies operating in that sector.
General figures concerning employment in manufacturing sector in Poland are

given in table 2.3.1.
Confectionery and milling in Poland
Table 2.3.1 Employed persons as of 31 December (in thous.)

Specification 1995 2001 2002 2003
In thousands
Manufacturing 3103,5 2732,9 2486,0 2872,1
Manufacturing
of food 524,3 492,2 464,2 459,2
production
and
beverages
Table 2.3.2 presents the average gross wages in manufacturing.
Table 2.3.2 Average monthly gross wages and salaries in industries by sections and
divisions
Specification 1995 2001 2002 2003
in EUR
Manufacturing 439,1075 466,6275 477,88 495,1825
Manufacturing of 401,1275 431,26 435,3325 449,26

food production and
beverages
2.4 Developments in production
The confectionery industry in Poland has been developing continuously since the
early 1990s. The general growth characterising the confectionery industry is
attributable to economic factors (although slowly the real consumption of
confectionery products is growing) and sociological phenomena (sweets are
purchased even by the less affluent families, which can be seen as a way of
compensating for their inability to buy expensive durable goods). The
consumption of confectionery products is also undoubtedly stimulated by
promotion campaigns organised by the largest suppliers of these articles, as
evidenced by the fact that they ranked high among big spenders on advertising.
Table 2.4.1 Industrial production in national economy

1995 2000 2001 2002 1995 2002
Specification In mln EUR In percent
Manufacturing 55325,9 112353,4 111118,8 109431,7 100 100
Manufacture of 13786,7 25150,2 27773,9 25279,6 21,1 19,4
food products
and beverages

The table 2.4.2 presents the production of pastry, cakes, biscuits, wafers in
period 1995-2002. The current data are not available yet.
Table 2.4.2 Production of pastry, cakes, biscuits, wafers

Years 1995 1996 1997 1998 1999 2000 2001 2002
In thousand of 118 101 122 125 120 134 138,8 145
tons
The table 2.4.3 presents the value of sold production of pastry, cakes, biscuits,
wafers, chocolate and sugar confectionery in period 2000-2002.
Table 2.4.3 Value of sold production of confectionery industry (in mln € )
Production 2000 2001 2002
Pastry, cakes,
biscuits, wafers 99,3 139,8 108,0
Chocolate and data not
sugar available
confectionery 219,4 254,5
Total - 359,3 362,5
2.5. Sales-, import- and export activities
In 1999, Polish exports of sugar confectionary not containing cocoa decreased

due to the economic crisis in Russia. As a consequence Polish producers lost
contact with Russian wholesales and distributors. Even today export to Russia is
still below the potential because this country is still perceived as a risky and a not
transparent partner. Moreover, due to the introduction of customs duties on semi-
finished products and ready-made goods by Russia in 2000, the Russian market
became practically closed to producers operating in Poland and this country
ceased to be the “launching pad” for the food manufacturing concerns in their
expansion to the East.
Although losing part of the Russian market, since 2000 the Polish export and
positive trade balance of sugar confectionery (including white chocolate) not
containing cocoa have been raising appropriately (from € 46966,25 thousands
in 2000 to € 88302,25 thousands in 2003 and from € 4774,25 thousands to €
33479,5 thousands in 2003). In 2004 export raised by 17,1% compared to figures
from 2003, whilst import decreased by 0,1%. It has been caused by raising the
export to the European Union. Polish products are exported mainly to Germany,
Czech Republic, Netherlands and Lithuania. The imported products come from
Germany, Italy, Netherlands and Spain.
Table 2.5.1 Foreign trade of sugar confectionery (including white chocolate) not
containing cocoa in period 1999-2003 in thous. EUR
Foreign trade of sugar confecionery (including white chocolate) not containing
88302,25
cocoa in period 1999-2003 in thous. EUR
90000
64450,75
80000
54822,75
70000 import
46966,25
48902,5
47303,75
60000 47703
export
42998,5
40648,25
balance
value in thous. EUR
42192
50000
33479,5
40000 16747,75
30000
8254,25
20000
4774,25
-4305,25
10000
-10000
1999 2000 2001 2002 2003
years
Export of chocolate and other food products containing cocoa has grown since
the early nineties. The balance of foreign trade in this sector is positive. In 1998
Polish export totaled 102770,25 thousands EUR and in 2003 raised to 171484,5
thousands EUR. At the same time the Polish import raised from 42535 thousands
to 77285,25 thousands EUR. Hence, Polish trade balance in this sector remains
at the same level. The figures from 2004 show a faster growth of export for about
48,3 % compared to the same period in 2003. The import has increased 21,8%,
compared to the same period in 2003 .
Table 2.5.2 Foreign trade of chocolate and other food products containing cocoa in period
1999-2003 in thous. EUR
Foreign trade of chocolate and other food

products containing cocoa in period 1999-2003
in thous. EUR
171484,5
200000
156418,25
159197,5
151485,25
180000
160000
values in thous. EUR
102770,25
102633,25
140000
89102,75
120000
94206
86524,5
77285,25
100000
67315,5
72673
60235,25
80000 import
48852
export
42535
60000
40000
balance
20000
1999 2000 2001 2002 2003
years
Detailed data on the total Polish export and import during 2004 are presented in
Table 2.5.3. and Table 2.5.4.
Table 2.5.3 Export in period January - December 2004

TOTAL IN THE EU
Sugar confectionery
(including white
chocolate) not containing
cocoa
In tons 36838 22486
I-XII 2003=100 102,9 100,0
In thous. PLN 383571,2 243575,3
I-XII 2003=100 108,6 106,9
In thous. USD 103714 65806
I-XII 2003=100 114,6 112,6
TOTAL IN THE EU
In thous. EUR 83959 53251
I-XII 2003=100 104,7 102,8
Chocolate and other food
preparations containing
cocoa
In tons 97395 71473
I-XII 2003=100 172,3 198,8
In thous. PLN 1084558,5 775054,4
I-XII 2003=100 158,1 181,7
In thous. USD 297427 211971
I-XII 2003=100 169,7 194,5
In thous. EUR 239593 170801
I-XII 2003=100 153,9 176,4
Bread, pastry, cakes,
biscuits, wafers, etc
In tons 124198 96723
I-XII 2003=100 146,3 152,2
In thous. PLN 1064438,5 823908,5
I-XII 2003=100 162,8 170,7
In thous. USD 289866 223524
I-XII 2003=100 173,0 180,7
In thous. EUR 234470 181020
I-XII 2003=100 158,0 165,2
Table 2.5.4 Import in period January-December 2004
Total IN THE EU
Sugar confectionery
(including white
chocolate) non
containing cocoa
In tons 21397 18514
I-XII 2003=100 98,7 95,2
In thous. PLN 220805,4 196110,8
I-XII 2003=100 100,7 102,2
Total IN THE EU
In thous. USD 59883 53081
I-XII 2003=100 106,6 108,0
I-XII 2003=100 97,3 98,6
Chocolate and other food
preparations containing
cocoa
In tons 32066 30972
I-XII 2003=100 118,3 117,9
In thous. PLN 403683,3 389843,6
I-XII 2003=100 130,6 130,9
In thous. USD 111492 107673
I-XII 2003=100 141,0 141,3
I-XII 2003=100 128,2 128,5
Bread, pastry, cakes,
biscuits, wafers, etc
In tons 39292 34503
I-XII 2003=100 148,9 155,3
In thous. PLN 301470,4 260108,8
I-XII 2003=100 184,1 202,2
In thous. USD 82294 71000
I-XII 2003=100 195,9 215,3
I-XII 2003=100 179,3 196,9
The tables 2.5.5 - 2.5.10 present main directions of Polish export and import of
chocolate, sugar confectionery, cakes and wafers.
Table 2.5.5 Exports of sugar confectionery (including white chocolate), in period January -
December 2004 – major countries where Poland exports its sugar confectionery
In thous. EUR In thous. USD

Sugar confectionery 88302,1 90540
(including white chocolate)
Germany 18302 18911
Czech Republic 7552 7756
Netherlands 7079 7264
Lithuania 6830 7017
Russian Federation 5445 5577
Ukraine 4655 4774
Canada 3452 3547
Hungary 2898 2973
Italy 2564 2632
Romania 2504 2560
Saudi Arabia 2441 2496
USA 1802 1843
UK 1651 1689
France 1587 1629
Latvia 1543 1587
Denmark 1530 1568
Australia 1499 1537
Table 2.5.6 Import of sugar confectionery (including white chocolate), in period January -
December 2004 – major countries exporting to Poland

Sugar confectionery 54820 56165
(including white chocolate)
Germany 16462 16804
Italy 65934 6411
Spain 5294 5404
Belgium 2725 2806
USA 2416 2490
UK 1861 1902
Indonesia 1466 1506
Hungary 1409 1448
Ireland 1070 1102
Turkey 936 965
Slovakia 863 886

France 770 786
China 674 692
Switzerland 493 505
Austria 362 371
Table 2.5.7 Exports of chocolate and other food preparations containing cocoa, in period
January - December 2004 – major countries where Poland exports its chocolates and other
food preparations containing cocoa

Chocolates and other
food preparations 171485 175292
containing cocoa
Germany 27589 28146
Hungary 13986 14293
UK 11174 11426
USA 8995 9189
Lithuania 8559 8739
Ukraine 6928 7087
Sweden 6619 6754
Denmark 6427 6578
Croatia 3777 3884
Romania 3188 3252
Israel 2560 2623
Slovenia 2489 2548
Canada 2227 2276
Serbia and Montenegro 2156 2201
Table 2.5.8 Import of chocolate and other food preparations containing cocoa, in period
January - December 2004 – major countries exporting to Poland
Chocolates and other 77278 79079
food preparations
containing cocoa
Germany 38419 39301
Slovakia 12183 12471
Hungary 3516 3596
Italy 3503 3581
France 2447 2491
Switzerland 2140 2191
Denmark 1814 1859
Finland 1710 1746
Belgium 1378 1407
Austria 997 1026
UK 586 601
Turkey 520 533
Slovenia 352 363
Ireland 243 247
Sweden 213 219
Table 2.5.9 Export of bread, pastry, cakes, biscuits, wafers, in period January - December
2004 – major countries where Poland exports its bread, pastry, cakes, biscuit, wafers.
Bread, pastry, cakes, 163431 167540

biscuits, wafers
Germany 25685 26309
Hungary 25012 25602
Lithuania 9035 9261
Slovakia 8817 9058
Romania 7259 7422
USA 5761 5905
Slovenia 4507 4619
France 3179 3262
Denmark 2775 2847
UK 2663 2737
Latvia 2611 2680
Switzerland 2560 2624
Sweden 2386 2448
Saudi Arabia 2306 2362
Table 2.5.10 Import of bread, pastry, cakes, biscuits, wafers, in period January - December
2004 – major countries exporting to Poland
Bread, pastry, cakes, 40939 42010

biscuits, wafers
Germany 12144 12425
Bulgaria 7442 7675
Italy 2972 3025
Hungary 2166 2230
UK 1538 1582
Denmark 878 902
Romania 853 875
Sweden 676 696
Austria 566 580
Belgium 435 444
France 433 442
Slovakia 360 369
Israel 206 211
Lithuania 165 169
Viet Nam 107 111
For several years Germany has been the leader among the chocolate and sugar
confectionery exporters and importers. The market of the Czech Republic and
the Russian Federation is also vital for Polish manufacturers of chocolate and
sugar confectionery.
2.5 Available data about the sub-sectors

There are three distinctive segments in the confectionery market in Poland.
These are: the premium segment, medium-priced segment and the low-priced
segment.
The premium segment consists of the most expensive products, usually imported
from Germany or Switzerland. There are also Polish producers who offer
expensive products like Wedel and SolidarnoĞü. A well-established foreign
trademark for example is Lindt. The box of pralines (approximately 200g) costs
more than € 7,50, and chocolate table (100g) from € 1,25 to € 2,00.
The medium-priced segment is dominated by big international companies and

domestic firms, which often emerged from former state-owned companies. The
price for a box of pralines is about € 2,50-7,50 and for chocolate tablets € 0,50-
0,75.
The low-priced segment is represented by private labels of the biggest super-

and hypermarkets. The chocolate tablets costs less than € 0,50 while a box of
chocolates can cost up to € 2,50. For more detailed information concerning
prices of different kinds of confectionery products, please see chapter 4.7.
2.6 Recommendations
This chapter provides the reader with the basic information on the chocolate and
sugar confectionery sector in Poland. Since the beginning of the nineties the
production (in the food industry) has been increasing and the employment is
rather stable. Polish confectionery gains recognition on the European markets as
being of high quality and good price. Prospects for the market’s development are
good since the average Pole eats relatively small amounts of chocolate, candies
and cookies as compared with the level of consumption in the European Union.
3. Market composition and characteristics
3.1 Market size

The Polish confectionery market growth is detailed by the Central Statistic Office
(GUS) only for the years 2001 and 2002, earlier data are not available. More
specific information is available on the value of the the market of food product
and beverages as a whole.
Table 3.1.1 presents the information about value of the confectionary market for
the past two years. The data indicates that the production has been stable during
that period. According to the Ministry of Agriculture and Rural Development
during the last past years 2002-2004 the production of confectionery has been
growing, but official data is not available for now.
Table 3.1.1 Value of sold production of confectionary industry in million EUR in period
2001-2002
Value of sold production of confectionery

industry in EUR
1600
production in mln EUR
1400
1200
Pastry, cakes,
1000 biscuits, wafers
800 Chocolate and
600 sugar confectionery
data not available
400 Total -
200
0
2000 2001 2002
years
Source: Central Statistic Office
Table 3.1.2 below presents the value of manufacturing of food product and
beverages in the whole manufacturing in the period 1995-2002 in million EUR.
The presented data indicates that the production of food product raised
significantly in period 1995-2000, since 2000 the production is stable and
practically on the same level.
Share of manufacturing of food product and

beverages in manufacturing
140000
production in mln EUR
120000
100000
Total
80000
60000 Manufacturing
40000
20000 Manufcture of food
products and
0 beverages
1995 2000 2001 2002
years
Source:Central Statistic Office
Table 3.1.3 presents the percentages of production of food products and

beverages in manufacturing. According to the data, the percentages of
production of food products and beverages in manufacturing slightly decreased
from 84,7% to 84%.
Share of manfacturing of food

product and beverages in
manufacturing
100,00%
84,70% 84,00%
80,00%
Manufacturing
60,00%
40,00%
21,10% 19,40%
20,00% Manufcture of
0,00% food products and
1995 2002 beverages
years
Source: Central Statistical Office
3.2. Confectionery market segmentation
Consumer basket of food products and beverages in 2003 had a value of

€ 10 486 852 500. The confectionery products share was 9,55%, so it was worth
€ 1 001 395 000. According to the ACNielsen 2 research, the total volume of sales
in the confectionery market, for the period August 2003 – July 2004, reached
96,7 thousand tones. Comparing to the same period one year ago, it has grown
10,2 thousand of tones, which amounts to almost 12%.
The different sorts of confectionery goods and their share in the whole segment
of sweet products are listed in the table below.
2
ACNielsen – Market research, information and analysis agency
Table 3.2.1 Main segments in the Polish confectionery market
CONFECTIONERY MARKET – MAIN SEGMENTS

SALES VALUE
VALUE
in thousand
SHARE (%)
EUR
Confectionery products 1 001 395 9,55
Sweet biscuits, cookies
296 152 30
and wafers
Chocolate tablets 186 497 19
Candies and lollipops 163 902 16
Pralines 149 162 15
Bars 130 247 13
Pastilles 23 325 2
Chocolate spread 19 753 2
Halva 16 307 2
Filled croissants 11 963 1
Sesame 4 085 0
Source: ACNielsen, data for 2003
The value of the chocolate market was estimated at € 425 mln in 2003. The
higher cost of sugar and better consumers moods caused higher spending.
Chocolate bars and wafers were worth € 214 mln .
Chart 3.2.2 Kinds of chocolate products and their share in whole segment of chocolate
confectionery
6.90%
Dragees 8.50%
15.70%
Chocolate wafers 17.70% VIII 2003 - VII 2004
18.30% VIII 2002 - VII 2003
Pralines 19%
23.10%
Chocolate bars 18.40%
36.10%
Chocolate tables 36.50%
0% 5% 10% 15% 20% 25% 30% 35% 40%
S
Source: AC Nielsen, data for period August 2002 – July 2004
According to the latest research by ACNielsen, Poles spend more and more on
confectionery goods every year. The value of sales of chocolate goods will
increase 10% every year (it does not include bulk products). This is mainly
generated by chocolate bars and tablets. Chocolate tablets generate almost 40%
of the turnover in the chocolate sector. They are very popular, due to their wide
accessibility. Poles the most often choose plain milk or dessert chocolate
boards(should this not say bars) of 100 g weight. Most popular among filled
chocolates are the strawberry flavorred ones.
Segmentation of chocolates:
x solid : milk, dessert, bitter
x with nuts, delicacies, raisins
x with filling: strawberry, blackcurrant, yoghurt, cherry, raspberry, kiwi, orange,
pistachio, coconut, almond, toffee, coffee and hazelnut.
Table 3.2.3 Kinds of candies and their share in whole segment of candies market
CANDIES AND LOLLIPOPS – MARKET SHARES (%)

Quantity
Volume Value
(packages)
2002 2003 2002 2003 2002 2003
Lollipops 8 8 11 11 32 32
Candies > 51g 62 63 41 41 24 24
Candies < 50g 30 29 48 48 44 44
Source: ACNielsen
Kinds of candies flavors:

x fruit: lemon, orange, strawberry, blackberry, apple, cherry, grapefruit, lime
x herbal, vitamin, healing
x mint
x toffee, coffee, chocolate
x sour and fizzy
x sugar free
Table 3.2.4 Kinds of candies and their sales value and volume
KINDS OF CANDIES AND THEIR SALES VALUE AND VOLUME

SALES VALUE SALES VOLUME
mln EUR /% mln kg/%
All 173/100 27,9/100
Solid caramels 73/42 13,2/47
Sweet dragees 52/30 6,4/23
KINDS OF CANDIES AND THEIR SALES VALUE AND VOLUME

mln EUR /% mln kg/%
Filled candies 18/10 3,2/11
Jellies 12/7 2,2/8
Toffee, milk candies 9/5 1,7/6
Chewy candies 9/5 1,3/5
Source: MEMRB, data for period November 2003 – October 2004
In 2004, the sales of packed candies rose dynamically. Despite the increase in
the sugar price, the sales went up and its value in the period December 2003 –
November 2004 amounted to more than € 214 mln. Candies generate 25% of the
total sales of sweets, which has grown 24% in 2004.
3.3. Analysis of the apparent consumption dynamics
Table 3.3.1 Polish apparent consumption in euros, 2003
Confectionery Milling
Production 439.673.000 275.899.000
+ Import 138.379.000 66.571.000
- Export 323.552.000 234.470.000
= Apparent Consumption 254.500.000 108.000.000
Source: Boss Rolnictwo
Poland is quite a large confectionery and milling producer and quite a substantial
part of that production is therefore exported to third countries, mainly in the
European Union. Part of the domestic consumption relies on the import of
confectionery and milling products as well. This usually concerns either cheaper
imports of confectionery from mainly Asia or very well known brands that are not
being produced within Poland.
3.4. Governmental plans and programs
Poland, as a member of the European Union, has access to many community

programs, which derive advantages for the Polish trade and production market.
The best examples are the PHARE programs, realized mostly by the Polish
Agency for Enterprise Development. Due to EU membership, in November 30th of
2004 the Polish government formed in a specific strategy for cooperation with
non-European developing countries, for all sectors. However, there are no
available documents or information about specific plans or programs for the
confectionery and milling market.
All the general projects are conveyed through the Ministry of Economy and
Labour. Especially worth mentioning is the program of Economical Promotion of
Poland, which is inclined to promote Polish expansion to foreign markets and at
the same time create a bigger absorption of foreign investments, with emphasis
on Direct Foreign Investment.
Also worth mentioning is the decision made on 1st of May 2004 by the Minister of
Agriculture and Rural Development to embark on a new Program, Try Fine Food
to replace the hitherto program Polish Fine Food. The main objective of the
program is to inform consumers of high quality food products. The program is
voluntary and open to each entrepreneur from the European Union. The logo is
assigned only to those products which comply with the criteria established by the
Scientific Council for Food Product Quality.
The Try Fine Food logo helps the consumer to choose the most suitable
products. Simultaneously, the objective of the Community food policy is being
pursued, i.e. expanding the range of diverse products of high quality on the
Common Market. The logo’s aim is also to enhance consumer confidence in the
food product through information on its quality. It is only food producers that have
a right to submit applications for Try Fine Food logo and the application is free of
charge.
The program covers the following groups of products:

1) meat and meat products
2) eggs and egg products
3) milk and milk products
4) fruit and vegetables (including potatoes), mushrooms and preparations thereof
5) cereals and preparations thereof, including bakery goods
6) fish, seafood and preparations thereof
7) non-alcoholic beverages
8) mineral waters
9) honey
10) sugar confectionary and cakes
11) herbs and spices
12) consumer fats and oils
13) mixed and highly processed products based on the above mentioned raw
materials
The products that are awarded the Try Fine Food logo are inspected by the
Scientific Committee for Food Product Quality through numerous independent
control bodies. For detailed information, see website www.minrol.gov.pl .
3.5. Demand in the market
Income of the population determines the demand for food and are a derivative of
the growth in GDP, which increased by 3,7% in 2003 compared to 2002. The
total food consumption rose by 2,5%, the average remuneration in the enterprise
sector increased in real terms by 2% as well as the average old-age and
disability pensions from the non-agricultural social insurance system – by 4,1%.
The consumption of particular products fluctuated depending on their prices.
The most popular confectionery product is the chocolate tablet. 83% of Poles
consumes it at least once a month. 40% of this group eats chocolate at least
once a week. About 2/3 of questioned Poles buy cookies or cakes once a month
or more frequently (61,8%) and 26,7 % buy them at least once a week.
Table 3.5.1 Consumption of confectionery products
PERCENTAGE OF CONSUMPTION OF THE FOLLOWING PRODUCTS

Once a month
At least once a week
Chocolate tablets 83,1 40,1

Packed biscuits 61,8 26,7
Chocolate bars 59,4 53,4
Chocolate wafers 58 47,3
50,4
Packed chocolate goods 5,8
Solid caramels 46,9 15

Pralines 34,9 13,9
Chocolate spread 26,7 35,6
24,6
Dragees and pastilles 20,8
Source: AC Nielsen, 2004
Research by SMG KRC 3 has shown that approximately 63% of consumers

between 20 - 40 years of age reach for a candy at least once a month. A
research of retail panel by ACNielsen has shown that hard caramels make up
about 40% of total sales of candies (the value of sales in this category is almost
€ 172,75 mln). Most consumers favor fruity flavor candy (51% of total sales).
The consumption of confectionery products in Poland reached a level of about

8,8 kg per capita, which means that it was 2,5 times lower than the average
consumption in the EU countries (about 22 kg). However, thanks to its large
population Poland is now one of Europe’s largest markets in terms of the overall
value of sales of confectionery goods. The Polish market of confectionery goods
is 5,5 times smaller than the German market and 3 times smaller than the French
3
Market and public opinion research institute
market, which is proportionally to the per capita incomes and expenditures in

these countries.
3.6 Recommendations
It is very attractive for foreign enterprises to enter the Polish market. The food
market in Poland is still in progress of forming its balance and stable condition.
The coming years will be the best period to invest in Poland, because now, as a
member of European Union, Poland is a reliable partner and a firmly developing
country, which has already reached a sustainable level of welfare.
4. Competition analysis
4.1 Main trademarks available in the market
The Polish confectionery market is highly congested. There are enormous

numbers of trademarks being sold on the market. The competition is tight, hence
the market is not an easy one. The most popular brands are active in the
following segments: chocolate tables, bars, wafers, packed products and biscuits.
Despite the fact that Wedel, the best known Polish trademark, is now owned by
Cadbury, people are used to the brand and are very loyal. The favourite
chocolate brands are presented in the table below.
Table 4.1.1 The most popular chocolate brands and their market share:
MOST FREQUENTLY CHOSEN BRANDS AMONG PEOPLE CONSUMING
CHOCOLATE CONSUMPTION (%)
Wedel 39,2
Alpen Gold 25,5
Milka 21,1
Goplana 17,0
Wawel 6,2
Terravita 4,6
Fazer 1,7
Kinder Chocolate 1,7
Nestlé 1,3
Baron 1,2
Mieszko 0,9
Nussbeisser 0,8
Nesquik - Nestlé 0,6
Cadbury 0,5
Lindt 0,5
Inda 0,5
Alpen Si 0,3
Toblerone 0,2
Other 1,4
Source: SMG/KRC, data TGI for period July 2003 - June 2004
The sector of chocolate bars and wafers has reached its maturity. All the world
best-known trademarks are present on the market and hence, the competition is
strong. This sector is very dynamic with the 20% growth in 2004. As much as
60% of people interviewed by SMG/KRC declare consumption of chocolate bars.
For the past few years brands that gained the biggest popularity haven’t changed
their positions. Those are: Snickers, Mars (both produced by Masterfoods), Lion
(Nestle) and 3 Bit (Kraft Foods). Slightly less, but still impressing is 58%
CONSUMING consumption of the chocolate wafers. They prefer GrzeĞki
(Kaliszanka), Prince Polo (Kraft Foods) and Princessa (Nestle).
Table 4.1.2 The most popular chocolate bars brands and their market share

CHOCOLATE BARS CONSUMPTION (%)
Snickers 28,2
Mars 15,3
Paweáek 14,1
Lion 12,7
3 Bit 11,6
Twix 8,7
Milky Way 6,3
Bounty 5
Bajeczny 4,7
Alibi 2,6
Source: SMG/KRC, TGI, 2004
Table 4.1.3 The most popular chocolate wafers brands and their market share

CHOCOLATE WAFERS CONSUMPTION (%)
GrzeĞki 43,9
Prince Polo 28,1
Princessa 26,0
Kit Kat 4,4
Kinder Bueno 3,8
WW 3,6
Teatralny 2,8
Knoppers 2,9
Polish consumers find chocolate packed products very tasty and they are used to
the traditional Polish sweets. The most frequently chosen is Ptasie Mleczko,
which is a mousse, appearing in vanilla, chocolate and caramel flavor, covered
in chocolate. The candy assortment called Mieszanka Wedlowska, a Wedel
specialty, is also very popular.
Table 4.1.4 The most popular chocolate packed brands and their market share

CHOCOLATE PACKED PRODUCTS CONSUMPTION (%)
Ptasie Mleczko - Wedel 20,9
Mieszanka Wedlowskie Igraszki - Wedel 11,5
Ptasie mleczko – Goplana 10,8
Toffifee 7,5
Merci 7,4
Michaáki – Wawel 6,4
Galaretka w czekoladzie – Jutrzenka 5,9
Michaáki z Hanki 5,7
Rafaello – Ferrero 5,4
Kinder niespodzianka – Ferrero 4,4
Ptasie mleczko – Otmuchów 4,3
Mieszanka Krakowska – Wawel 4,3
Traviata – Alpen Gold 4
Mieszanka Teatralna – Goplana 3,9
The market is becoming attractive because consumers buy more of the most
expensive and most processed cookies, which have also the fastest growing
prices. The market is expanding dynamically. Delicje, jellies covered in chocolate,
are the most frequently chosen biscuits. Crunchy cookies, Pieguski, with pieces
of chocolate and delicacies and Jezyki, with caramel and chocolate, are the most
popular brands among their kinds.
Table 4.1.5 The most popular packed biscuits brands and their market share

PACKED BISCUITS (%)
Delicje - Wedel 35,1
Pieguski - Wedel 13,9
Wafle Familijne – Jutrzenka 8,5
Jezyki – Jutrzenka 8

PACKED BISCUITS (%)
Pierniczki Alpejskie – Wedel 7,5
Petitki – LU 4,9
Pierniki ToruĔskie – Kopernik 4,9
Delicje Duo – Wedel 4,1
Pierniki w czekoladzie – Bahlsen 3,7
Kruche – Goplana 3,3
AHA- Sezamki 3,3
Kokosowe – Lajkonik 3,1
The information about the most popular trademarks among candies are
presented in chapter 5.2., with the most frequently sold products.
4.2 Features of the commercialized products
Packaging is a factor that helps when choosing a product. That is why producers
pay attention to the design as possible. It appears in various colors, shapes,
sizes and materials. The attention of the customers is lured by marketing tricks.
Young people are very open to new products. Children can be easily attracted by
colorful pictures. Colorhas a big influence on the purchase decisions. Red
increases the interest and causes the need for impulse buying. Blue and green
is fresh so is usually used for the mint sweets. Black, silver, golden and purple
are colors that indicate luxury, so they are usually designed in elegant package,
especially in case of the boxed chocolates or premium segment chocolate tables.
The packaging needs to fulfill certain requirements and must contain following
information, given in the Polish language, while being distributed throughout
Poland:
x name of the product (product named ‘chocolate’ must contain at least 45%
of cocoa)
x ingredients, in order of decreasing quantity
x expiry date
x name of the producer, country of the product origin, and (if relevant) name
of the distributor, address and contact details, for the customer ability to
gather more information or complain about the product
x netto weight (without packaging) or number of pieces in the package
x storing conditions
x bar code
x pictures on the packaging must be relevant to the product ingredients, for

example if the filling has its taste thanks to strawberry synthetic, and not to
natural aroma/flavor, there cannot be real strawberry fruit images on the
packaging
x as from November 2005 it must contain information about substances that
may cause allergy
x it is not necessary to list nutrition information, however it is recommended,
for the increase of trust in the product
If the product packaging is smaller than 10 cm2 the following information need to
be indicated:
x name of the product
x expiry date
x netto weight (without packaging) or number of pieces in the package
More specific requirements regarding packaging are listed in Regulation of

Ministry of Agriculture and Development of Rural Area on labeling of food
products, dated on 16th of December. For more information concerning legal
criteria for packaging, please see chapter 6.9. For examples of products and
packaging, we refer to the annexes. For prices of products, we refer to paragraph
4.7.
4.3 Marketing and advertising strategies
Producers use different kinds of advertisement to draw attention to their products.

The competition is severe, so expenditures on promotion and marketing are high.
Brand imaging is increasingly important. Each producer is trying to create their
own unique image. One differs from another with the target group. Producers
work hard to maintain their position at any price and they keep introducing new
products.
Interesting findings are presented by PENTOR 4 , which presents what ways of

promotion are the most influential and best to inform customers about new
products. Main advertising activities which have the biggest influence on the
customers are presented in the chart below.
4
Opinion and Market Research Institute
Chart 4.3.1 Most efficient types of advertising and promotion
3 Loyalty programs
5 Coupons in the magazines
7
Lotteries, competition
26
Recommendation by the salesperson
31
32
Product free sample
59 Presentation of the product in the POPs
77
Pricing promotion
TV, radio, press, billboards

0 10 20 30 40 50 60 70 80 90
Source: Institute for Opinion and Market Research PENTOR-PoznaĔ, October 2004
The confectionery market requires high expenditures on advertising because

Poles are disloyal consumers. Advertisements can boost the sales even 20-30%.
Marketing expenditures reach more than 5% of sales value in case of large
producers and 1-2% for small companies. As competition grows, spendings on
marketing will continue to rise.
Table 4.3.2 TV advertising expenditures in the confectionery sector

TOTAL TV ADVERTISING EXPENDITURES (EUR)
All 111 035 262
Ferrero 25 416 049
Cadbury Wedel 19 457 841
Masterfoods Polska 10 137 967
Kraft Foods 10 011 753
Storck Polska 9 685 539
Danone 7 874 400
Nestle Polska 7 063 192
Wawel Kraków 3 789 079
Wrigley's 3 070 127
Perfetti Van Melle Polska 2 142 495
Jutrzenka Bydgoszcz 1 876 194
Leaf Poland 1 826 296
Kaliszanka 1 542 385
TOTAL TV ADVERTISING EXPENDITURES (EUR)

ZPC Mieszko 1 279 693
Chipita 1 078 556
SPPS SolidarnoĞü 948 709
Lindt and Sprungli 871 586
Haribo 722 741
Odra Brzeg 676 087
ZPC Lider Artur 658 946
Greenvita Ltd. 509 181
Krüger Polska 316 767
Other producers 79 677
Source: TNS OBOP (monitoring TV) for the period January 2004 – December 2004
Table 4.3.3 Advertising expenditures in the trade press in the confectionery sector
TOTAL ADVERTISING EXPENDITURES IN THE TRADE

PRESS (EUR)
All 1 624 158
SolidarnoĞü 193 535
Wawel 158 670
Ferrero 155 509
Cadbury 143 949
Eurovita 143 149
Fazer 119 051
Haribo 109 176
Mieszko 92 589
Nestle 85 935
Kaliszanka 67 180
Odra 48 660
Jutrzenka 46 268
Lu Polska 44 056
Milano 33 898
Kruger 31 724
Other producers 146 807
Source: Monitoring Trade Press 2004
The TV commercial expenditures in the segment of chocolate, which include:

chocolate tablets, pralines, bars, wafers and chocolate spread, have increased in
comparison with 2003 as € 7,25 mln more was spent. The main players in the
market have increased their marketing budgets. This trend is followed by
domestic manufacturers: Wawel, Kaliszanka and SolidarnoĞü.
Table 4.3.4 TV commercial expenditures in chocolate sector
TV COMMERCIAL EXPENDITURES IN THE CHOCOLATE

SECTOR (mln EUR)
2003 2004
66,3 74
Ferrero 14,1 18,25
Wedel/Cadbury Poland 17,2 18,07
Masterfoods Polska 5,48 9,13
Kraft Foods 9,29 7,83
Nestlé/Goplana 4,98 6,95
Storck Polska 3,57 3,1
Wawel Kraków 1,31 2,67
Stollwerck Polska 3,48 2,18
Kaliszanka Sp. z o.o. 0,69 1,55
SPPS SolidarnoĞü 0,09 0,95
Source: TNS OBOP monitoring TV
Table 4.3.5 TV advertising expenditures of candies
TV ADVERTISING EXPENDITURES IN THE CANDIES

SEGMENT AND THE ANNUAL GROWTH IN
COMPARISON WITH 2003 (mln EUR / %)
All 23,33 -30,1
Ferrero 6,38 -13,1
Storck 5,26 -15,0
Wrigley’s 3,07 -38,8
Perfetti Van Melle 2,14 -21,1
Cadbury Poland 1,4 -69,1
Wawel Kraków 1,12 -34,5
Masterfoods 1,01 +5,9
Leaf Poland 0,75 +100
ZPC Mieszko 0,74 -35,2
According to Expert Monitor 5 data, the highest expenditures in the chocolate

sector are directed to chocolate bars and wafers. Four top advertisers are:
Masterfoods, Ferrero, Nestle and Kraft Foods. Each of them spends more and
more every year to maintain its position in the market. Every year the strategy is
the same - to promote well-known brands. If producers promote a limited number
of brands, there is usually one chosen, which is supported more than the others.
A good example of focus on solely the main brands is Kraft Foods. For 3Bit
advertising in 2003 it spent € 2,75 mln and in 2004 it switched to invest more in
Prince Polo. The expenditure on the mentioned brand has risen from € 1 mln to 3
mln.
The strategy of Masterfoods is to support three best-sellers equally: Snickers,

Mars and Twix. Nestle invests in Princessa, Lion and Kit Kat. Ferrero’s product
line Kinder expands and earns new consumers, not only children but also adults.
The advertisement cost of this line reached as much as € 1,75 mln, which is
twice as much as in 2003. Domestic producer Kaliszanka also strongly supports
its GrzeĞki.
The marketing expenditures in total for the chocolate wafers and bars in 2004 are
estimated to reach about € 31,95 mln. The highest campaign expenses were
made by the following producers: Masterfoods – € 9,3 mln, Ferrero - € 7,925
mln, Nestle – € 7,2 mln and Kraft Foods – € 4,65 mln (according to Expert
Monitor). Detailed data is only available for 2003, as presented below.
Table 4.3.6 TV advertising expenditures of chocolate bars and wafers
TV ADVERTISING EXPENDITURES IN THE CHOCOLATE

BARS AND WAFERS SEGMENT (mln EUR)
Chocolate bars 18,07
Masterfoods 5,47
Ferrero 5,05
Kraft Foods 2,76
Nestle 2,25
Danone 1,97
Wawel 0,56
Chocolate wafers 4,58
Nestle 2,72
Kraft Foods 1,01
Kaliszanka 0,69
5
Media Tracking and Advertisement Monitoring Agency
GRP is the Gross Rating Point, the criterion for the pressure of publicity. It is
identified with the sum of the number of times that 1% of the target group is being
reached or contacts with the target groups are established.
GRP = Frequency x Reach = OTS x Coverage
Chart 4.3.7 The most effective advertising campaigns in the trade press - GRP
Wawel
800 Solidarnosc
Fazer
700 Eurovita
Odra
600 Haribo
Mieszko
Cadbury Wedel
500 Nestle
Ferrero
400 Kaliszanka
Leaf
300 Jutrzenka
IDC Polonia
200 Milano
Kruger
Lu Polska
100 Van Melle
Masterfoods
0 Storck
GRP OY Panda
Bahlsen
Source: SMG/KRC, RMT, 2004
OTS is Opportunity To See. This is the number of times the target audience is
exposed to the advertisement and has an average contact with the
advertisement.
OTS=GRP / Reach, Coverage
Chart 4.3.8 The most effective advertising campaigns in the trade press – OTS 1+
80 Solidarnosc
Haribo
Fazer
70 Mieszko
Nestle
60 Wawel
Eurovita
Kaliszanka
50 Cadbury Wedel
Odra
40 Lu Polska
IDC Polonia
Van Melle
30 Kruger
Storck
20 Leaf
Ferrero
Masterfoods
10 Jutrzenka
Milano
0 OY Panda
Bahlsen
OTS 1+
Source: SMG/KRC, RMT, 2004
The campaigns primary medium is television. Confectionery commercials are

aired on TVP1, TVP2, TVN, Polsat, TVN7, TV4, MTV and TVP3, which are the
most popular channels in Poland. The advertising clips made for the purposes of
the campaigns, promote brands and focus on the most important aspects of
sweet products. The knowledge of brand names increases with more
commercials aired on TV.
The evaluation of the effectiveness of campaigns is prepared by market research

institutes and thanks to that the market learns which campaigns are the most
efficient. It is easy to notice that new products are very much advertised.
Television is the main channel of informing about the unique news in the portfolio
of the producer. With the frequent promotional campaigns current interest in the
product is built. Additional advertising activities are sampling and price
promotions in the market chains. Promotions for the shops are usually gifts, free
products and samples.
4.4 Participation in the market and segments that are served
The chocolate market was worth € 215,25 mln in the period July 2003 – June
2004. The following players were present in the market in the above indicated
period.
Table 4.4.1 Chocolate producers and their market share
PRODUCERS OF CHOCOLATE AND THEIR MARKET SHARE (%)

mln EUR /% mln Kg/%
All 215,25 34
Wedel 28,5 28,5
Stollwerck 17,1 17,5
KJS 16,3 14,5
Goplana 8,0 8,6
Privete labels 3,3 6,9
Terravita 6,6 6,9
Ferrero 7,2 3,3
Wawel 3,0 3,3
Other producers 10,0 10,5
Source: MEMRB, data for period July 2003 – June 2004
The sector of pralines was worth € 148,12 mln. Wedel has the biggest market
share, as presented in the table below.
Table 4.4.2 Pralines producers and their market share:
PRODUCERS OF PRALINES AND THEIR MARKET SHARE (%)

mln EUR/% mln Kg/%
All 148,12 16,6
Wedel/Cadburys 31,2 39,9
Storck 16,8 12,4
Ferrero 13,0 6,7
Solidarnosc 5,5 5,7
Goplana/Nestle 5,3 3,7
Wawel 4,2 4,7
KJS/Stollw/Olza 3,9 2,3
PRODUCERS OF PRALINES AND THEIR MARKET SHARE (%)

mln EUR/% mln Kg/%
Jutrzenka 2,6 4,1
Mieszko 2,6 2,6
Mauxion 2,3 2,2
Vobro 2,0 1,7
Private Label 1,8 5,3
Other 8,8 8,7
Source: MEMRB, data for period November 2003 – October 2004
The market of chocolate bars and wafers was worth € 213,12 mln. The main
players in the market are: Masterfoods, Goplana/Nestle and Kraft Foods. Theirs
and other players market shares are presented in the table below.
Table 4.4.3 Chocolate bars and wafers producers and their market share
PRODUCERS OF CHOCOLATE BARS AND WAFERS AND THEIR MARKET
SHARE (%)
SALES VALUE
mln EUR/%
All 213,12
Masterfoods 23,5
Goplana/Nestle 22,9
KJS/Stollwerck/Olza 17,7
Kaliszanka 10,3
Wedel/Cadburys 9,1
Ferrero 6,0
Wawel 4,1
Skawa 1,1
Jutrzenka 0,9
Mieszko 0,5
Other producers 3,8
Source: MEMRB, data for period November 2003 - October 2004
Candies market was worth € 174,5 mln. Main players in terms of volume sold
were Goplana, Leaf, Van Melle and Storck. Their market shares are presented in
the table below.
Table 4.4.4 Candies producers and their market share
PRODUCERS OF PACKED CANDIES AND THEIR MARKET SHARE (%)
SALES
SALES VALUE
VOLUME
mln EUR /%
mln Kg/%
All 174,5 27 818
Goplana 9,6 14,7
Leaf 7,9 12,2
Van Melle 18,5 11,5
Storck 12,9 10,9
Skawa 4,5 8,5
Mieszko Racibórz 3,5 4,8
Ferrero 10,1 3,7
Jutrzenka 2,6 3,5
Odra Brzeg 1,7 2,9
Source: MEMRB, data for period January 2004 – December 2004
Hard candies are substantial part of the segment of all candies. They are very
popular in Poland and there is number of producers present on the market. Their
market shares are presented in the table below.
Table 4.4.5 Hard candies producers and their market share:
PRODUCERS OF HARD CANDIES WITHOUT FILLING AND THEIR
MARKET SHARE (%)
mln EUR /% mln Kg/%
All 72,6 13,2
Goplana 16,5 24,6
Storck 16,2 12,1
Wedel/Leaf 13,4 20,1
Warner Lambert 12,2 4,8
Van Melle 11,1 7,5
Wrigley's 10,7 3,2
PRODUCERS OF HARD CANDIES WITHOUT FILLING AND THEIR

MARKET SHARE (%)
mln EUR /% mln Kg/%
Odra Brzeg 3,6 5,6
Mayora 3,4 1,7
Mieszko Racibórz 2,6 4,1
Sweet dragees and pastilles are becoming more popular every day. The biggest
market share in terms of value have two producers: Van Melle and Ferrero. But
volume-wise, the Polish producer Skawa plays the key role in the market. The
market shares are presented in the table below.
Table 4.4.6 Sweet dragees and pastilles producers and their market share:
PRODUCERS OF SWEET DRAGEES AND PASTILLES AND THEIR
MARKET SHARE (%)
mln EUR /% mln Kg/%
All 51,9 6,4
Van Melle 40,9 28,7
Ferrero 32,8 15,7
Skawa 14,8 36,3
Master Foods 4,3 3,8
Jutrzenka 2,9 5,6
The market of cakes and cookies is worth € 377,5 mln. The main player in the
market is LU Polska with more than one fourth of the market, in terms of value
and also of volume. All of the players are presented in the table below.
Table 4.4.7. Cakes and cookies producers and their market share:
PRODUCERS OF CAKES AND COOKIES AND THEIR MARKET SHARE (%)

mln EUR/% mln Kg/%
All 377,5 83,6
LU 27,2 26,0
Goplana/Nestle 9,2 6,3
Bahlsen/Lajkonik 8,9 10,3
Kaliszanka 8,0 6,5
Olza/KJS 7,8 5,5
Jutrzenka 7,3 8,3
Private Label 3,3 6,0
Wedel/Cadbury`s 2,7 2,0
Chipita 2,5 2,4
Skawa 2,2 2,8
Solidarnosc 1,8 1,9
Ferrero 1,8 1,0
4.5 Quality of the product
Quality of confectionery products is determined by ingredients, size, packaging,

texture, flavor and color. These features are described below for chocolate
products, cookies and candies.
The most popular among consumers are chocolates in tablets. The most popular
are 100g, but they are also produced in following sizes: 70 g, 125 g, 180 g, 250
g, 300g. Chocolates are also sold as pralines, so called boxed chocolates. They
occur in different sizes 100 – 500 g. The chocolate tablet is usually wrapped in
tinfoil and then in paper. Box of chocolates are made of cardboard paper or metal
tin. Packaging is usually in the shape of box, heart, candy or coffer and is
colorful, which is to draw attention of potential customers. The name of the brand
and logo are situated horizontally in most cases, so it is easier to display on the
shelf. Boxes are designed to be stylish and elegant. There is usually a picture of
pralines shapes, flowers, views, occasional pictures like First Holly Communion,
Christmas, Easter or Valentines. Pralines in box are sold in the same kind or
varieties. Available flavors of solid chocolates are: milk, bitter and dessert.
Chocolate with delicacies: nuts, raisins and different types of filling: strawberry,
blackcurrant, yoghurt, cherry, raspberry, kiwi, orange, pistachio, coconut, almond,

toffee, coffee, hazelnut and alcohol.
Chocolate wafers and bars are sold in sizes: 23 g – 60 g. Popular are XL

weights, usually of 100 g (in case of bars) and 60 g (wafers) . On the other hand,
sales of light, crunchy bars is rising dynamically, which is main trend in the
market. Bars and wafers are impulse purchases and colors used for the
packaging are to draw attention and cause hunger. The colors are very warm and
instant: red, yellow, orange, brown. Beside chocolate (milk and white), the bar
often contains wafer, caramel, peanuts, different delicacies or biscuit.
Cookies occur in various shapes, sizes and flavors. There are several types of
cookies on the market: biscuits, sponge cakes, crunchy cookies, cream-filled
biscuits, gingerbread. The most popular in Poland are Delicje, jellies on the
biscuit, covered with chocolate. They are sold in different sizes. Desired weight
can be bought after asking the sales assistant in the shop.
Candies are sold as hard caramels, solid or with filling, sweet dragees, jellies,
toffee, coffee and milk candies, chewies and lollipops. The most popular flavors
are fruit: lemon, orange, strawberry, blackberry, apple, cherry, grapefruit, lime.
More popular become herbal, vitamin, mint candies and sugarfree ones. Lately
launched, sour and fizzy candies are perceived as very attractive by children.
They are usually sold in bags 50 g, 100g, 125 g, 150 g and in the paper or folio
wraping of 20 - 50g. It is also possible to buy them in the desired amount with
help of sales assistant in the shop.
4.6 Expansion plans

Every year there is a set number of new products introduced to the market. The
main trend on the Polish market is the launch of new products that are attractive
to children. A healthy lifestyle is becoming more and more a way of life for the
Poles. This generates the need for the fresh, herbal and sugarfree sweets.
Expansion plans of each company are confidential. However, the main trends in
the market indicate the direction companies are going to follow. The market is
congested so it is likely to happen that small local companies will merge and
consolidate to gather a bigger market share. Jutrzenka has bought the Goplana
plant and brand from Nestle, which is, after Wedel, the second best-known Polish
trademark among confectionery products. The products of Goplana and
Jutrzenka are complimentary, so the merged company will play an important role
on the confectionery market in each segment. It has already benefited from the
synergy effect.
The market of confectionery products is rising about 10% a year. It is going to

grow continuosly, since Pole consumption of chocolate products and cookies is
still much lower than that of the average EU citizen.
4.7 Pricing strategy
For consumers, price seems to be the most decisive factor, while quality and
brand are less often taken into account. The market is not a homogenous one
and experts divide it into three segments: 1) luxury products, with high prices,
from such companies as Dove and Lindt; 2) the crowded middle with, Milka,
Terravita, Wedel’s Jedyna; and 3) the cheapest, products from several small
regional Polish manufacturers and hypermarkets private labels. The price
competition is very severe.
Table 4.7.1 Prices of confectionery products in hypermarkets

PRICES OF CHOCOLATE PRODUCTS (EUR) IN DIVISION INTO PRICE
SEGMENTS
Product level High Middle Low
Lindt, Wedel
Chocolate slabs Milka, Alpen Gold Private label
Maestria
Price / 100g 1-1,5 0,5-0,75 0,25-0,5
Box of Lindt, Wedel Serce Wedel Pasjonata,
Mieszko
chocolates Merci
Price / 200g 7,5-12,5 2,5-7,5 0,75-2,5
Nestle Quality Street Leaf HOPS, Goplana
Candies Nimm2, Fruittella
Brando
Price / 150g 1-2,5 0,5-1 0,25-0,5
- Chupa Chups,
Lollipops Private label
Alpen Liebe
Price / piece - 0,125-0,25 less than 0,125
Princessa, Prince
Chocolate wafer Wawel Private label
Polo
Price / 100g 0,5-0,75 0,25-0,5 0,125-0,25
Loacker Buon
Mieszko, Wawel,
Wafers Giorno, Wedel Torcik Wedel, LU
Jutrzenka
Wedlowski
Price / kg 7,5-12,5 3-7,5 2-3
Snickers, Alibi, Milky Way, Paweáek, Lion,
Chocolate bar Private label
3Bit
Price / 100g 0,5-1 0,25-0,5
JeĪyki, Delicje Jutrzenka,
Cookies Pieguski, Hit
SolidarnoĞü
Price / kg 5-7,5 3-5 1,5-3
Source: individual elaboration in the hypermarkets
There is a huge increase in the number of hypermarkets private labels products.

Although the main criterion of choosing sweets is still the price factor, people
more often reach for the better quality products. The brands are very important,
which is a matter of good marketing and information strategy. In this market
children’s preferences are substantial. Very often they are the decision makers
and hence have a big influence on the purchases.
4.8 Segmentation of enterprises by sectors and its

categorization
Privatization of Polish companies and Greenfield investments have led to the

domination of foreign manufacturers on the Polish market. The process started
with the privatization of Wedel, Poland's largest confectionery factory. Later
Nestle bought the second biggest plant, Goplana in PoznaĔ. In 1992 Mars Inc.
spent € 100 million on constructing a factory. In 1994 Cadbury opened a factory
near Wrocáaw and Stollwerck opened one near PoznaĔ. The State Treasury sold
the Olza factory in Cieszyn to KJS (Kraft Foods) and GdaĔsk's Baátyk to Fazer.
Few Polish factories were able to withstand such competition. Those which
survived hold strong positions on regional markets or manufacture niche
products. The four most important of them are Jutrzenka, Mieszko and Wawel, all
quoted on the Warsaw Stock Exchange, and Greenvita.
Most important players in the chocolate confectionery market
Cadbury Wedel Sp. z o.o.
Location: Warsaw
Beginning of activity: 1851 (Wedel), 1999 (Cadbury Wedel)
Number of employees: 1250
Turnover: € 128 886 500
Website: www.cadburywedel.pl
When the Wedel chocolate factory was sold to Cadbury Schwepps in 1998, this
caused a great sensation. Wedel is a symbol of delicious treats and nearly
sacred national treasure. Poles have been consuming Wedel products since
1851.
Before World War II, Wedel had shops in London and Paris. Since 1991 the
company was gradually bought out by PepsiCo. But PepsiCo decided to sell one
factory to the Finnish company Leaf and then the chocolate factory to Britain’s
Cadbury and the cookie factory to France’s Group Danone (that owns LU
Polska). The company made the decision despite the fact that those plants were
profitable. The production of sweets is not PepsiCo’s specialty and the company
needed to focus on producing soft drinks and salty snacks in Poland.
Cadbury has not yet achieved success in Poland, despite an investment of

€ 40 million in its own chocolate factory. Poles don’t like the British chocolate as
much as those from Wedel. As a result, in 1998 Cadbury owend less than 3% of
the chocolate market, while Wedel had 24%. The takeover of the plant and to the
use of Wedel’s name enabled Cadbury a great expansion.
Portfolio: all types and flavors of chocolate tablets; pralines: Pasjonaty Deserowe,
Pasjonaty Mleczne, Serce, Chopin, Sáodkie Serduszka, Avanti, Maestria and
Baryáki; bars and wafers: Rekord, Paweáek, Bajeczny, WW, Smyk and Pierrot;
packed choolate products: Wedlowskie Ptasie Mleczko, TorcikWedlowski and
Mieszanka Wedlowska.
Kraft Foods Polska S.A.
Location: Warsaw
Beginning of activity: 2004
Turnover: EUR 180 407 500
Kraft is part of the world leading producer of food products, Kraft Foods. In
Poland it has been operating since 1992. It bought Olza in 1999 and Stollwerck in
2002. It owns the following brands: Milka, Prince Polo, 3Bit, Alpen Gold,
Nussbeisser, Maxi, Mleczna Kraina and Bąbolada; pralines: Verdi and Traviata
Nestle Polska S.A.
Location: Warsaw
Website: www.nestle.pl
Nestle operates on the Polish market since 1993. It has taken over Goplana,
after Wedel, the best known Polish brand. However, in 2004 it has decided to sell
Goplana to Jutrzenka and focus on strategic brands, which are: Crunch,
Smarties, Classic; bars and wafers: Princessa, Lion, Kit Kat, Nesquik, Cini-Minis
and Chocapic.
Masterfoods Polska Sp. z o.o.
Location: Sochaczew
Website: www.masterfoods.pl
Masterfoods is less known on the chocolate market, but it is the unquestioned

leader in the chocolate bar segment with its Snickers and Mars bars. It has built
its own sweets and pet food factory 50 km from Warsaw. Its portfolio consists of:
bars and wafers: Snickers, Mars, Milky Way, Twix, Bounty, Dove, No name;
dragees: M&Ms, Skittles and Starburst; chocolate spreads: Snickers and Milky
Way.
Fabryka Pieczywa Cukierniczego “Kaliszanka” Sp. z o.o.
Location: Kalisz
Website: www.kaliszanka.com.pl
Kaliszanka owns the best known wafers brand in Poland: GrzeĞki and biscuits:
BeBe, Petit Beure, MaĞlane
Zakáady Przemysáu Cukierniczego SKAWA S.A.
Location: Wadowice
Beginning of activity: n.a.
Turnover: EUR 26 500
Website: www.skawa.com.pl
It produces wafers: Elitesse and dragees: Korsarz.
Zakáady Przemysáu Cukierniczego Wawel S.A.
Location: Kraków
Website: www.wawel.com.pl
It produces solid and filled chocolate tablets, light chocolates; pralines: Kasztanki,
Malagi, Tiki Taki, Michaáki Zamkowe and Buáawka; chocolate bars: Danusia,
Maciek.
PrzedsiĊborstwo Cukiernicze JUTRZENKA S.A.
Location: PoznaĔ
Number of employees: n.a.

Website: www.jutrzenka.com.pl
Its target are consumers who have a lower dan average income. It recently
bought Goplana from Nestle. Wafle Familijne is the best brand sold by Jutrzenka.
It also offers chocolate wafers and bars: Alibi, Apetit, Amiko; cookies: Petit-
Beurre, Elitki, Zwierzaczki, JeĪyki, Kokosowe; jellies: Gumolki, DĪo, Serduszka,
MiĞki.
Zakáady Przemysáu Cukierniczego MIESZKO S.A.
Location: Racibórz
Turnover: n.a.
Website: www.mieszko.pl
Main products are pralines: Klejnoty Premium, Klejnoty Classic, Espresso,

Momento, Bellissima, Twój Sekret, La Stella; candies: Michaszki, Trufle; jellies:
Duet, Solo, Rajska PlaĪa, Zozole, Yolobo, Vitto and wafers: Miáe Chwile.
TERRAVITA Sp. z o.o.
Location: PoznaĔ
Website: www.terravita.pl
Terravita is 60% owned by Polish capital. It offers chocolate: Amaretto, Advocat,

Kawowa, Serduszka, Andrzejki, Natchnienie; occasional chocolate figures for
Christmas and Easter. It also produces sauces for ice cream in several flavors
and chocolate spread.
Lindt & Sprungli Poland Sp. z o.o.
Location: Warszawa
Turnover: n.a.
Website: www.lindt.com
It offers chocolate products from the premium segment: Excellence, Gold, alcohol
filled; pralines: Lindor, Swiss Tradition, Nouvelle Confiserie, Fioretto, Petis
Desserts.
Ferrero Polska Sp. z o.o.
Location: Warszawa
Turnover: € 42, 5 million
Website: www.ferrero.com
It produces Nutella chocolate spread; bars and wafers: Kinder Niespodzianka,

Kinder Bueno, Kinder Country, Kinder Pingui, Kinder Delice; pralines: Rocher,
Mon Cheri, Rafaello and dragees: Tic-Tac.
Firma Cukiernicza SolidarnoĞü Sp. z o.o.
Location: Lublin
Turnover: n.a.
Website: www.solidarnosc.pl
It offers pralines: Záote, Golden Hazelnut, Golden Advocat, Almondo, Choco

Choco, WiĞnie w likierze.
Most important players in the milling market
The baked goods market is also dominated by foreign companies, which either
have taken over Polish plants (Bahlsen, Nestle, Kraft, United Biscuits) or have
built their own factories (Danone). Of the main producers, only Jutrzenka, Wawel
and Kaliszanka are owned by Polish capital.
LU Polska
Location: Warszawa
Turnover: n.a.
Website: www.lupolska.pl
It produces cakes: Delicje SzampaĔkie, Delicje Impresje, Pieguski, Petitki, Petitki

DzieĔ Dobry, àakotki, Pierniczki Alpejskie, Pyszotki San, golden wafers Danone.
Thie Lorenz Bahlsen Snack-Wols Sp. z o.o.
Location: Warszawa

Turnover: n.a.
Website: www.lorenzsnack-world.pl
It is owner of Lajkonik, Bahlsen, Hit and Leibniz.
Most important players in the sugar confectionery market
Mieszko
The company has been described above.
It is one of the most important player in candies sector. It produces Fruits Frutis
and famous Zozole.
Leaf Poland Sp. z o.o.
Location: Warszawa
Website: www.leaf.pl
It produces hard caramels and jellies HOPS!, Bomba, Mython pastilles, halva
Królewska, sesame AHA!, Chupa Chups lollipops.
Perfetti van Melle Sp. z o.o.
Location: Tarczyn
Turnover: € 36 057 750
Website: www.perfetti.com
It offers Fruittella, Mentos, Alpen Liebe and Golia.
STORCK Sp. z o.o.
Location: Warszawa
Beginning of activity: n.a.
Turnover: n.a.
Website: www.storck.pl
It offers Werthers Original, Nimm2, Ice Fresh, Riesen, Mamba; pralines: Merci
and Toffifee; wafers: Knoppers.
PrzedsiĊbiorstwo Wyrobów Cukierniczych ODRA S.A.
Location: Brzeg
Turnover: n.a.
Website: www.odra.com.pl
It offers hard caramels : Mini Owocowe, LeĞne, Landrynusy, Cytruski, Tropic;

jelly in chocolate: Opolanki, candies: Michaáki Piastowskie and Trufle, pralines:
Bon Voyage, Elegancja; Sesame Halva.
Cloetta Fazer Polska Sp. z o.o.
Location: GdaĔsk
Website: www.fazer.com.pl
It offers candies: Dumle, Geischa, Liqueir Fills, Fazer Mint, Fantazja and Fazer
chocolate tables.
4.9 Recommendations
The Polish market is very congested and full of players: domestic as well as
international. All main world leading companies have an establishment and so
are numerous Polish producers. Lack of space does not mean there is no chance
to enter the market.
The product, however, needs to offer unique values, be interesting and be

supported by suitable marketing strategy. Moreover, the market is being shaped
by retailers, discount opportunities and a rapid turnover of goods. It is very
difficult to fulfill expectations of such markets, but thanks to a good concept,
imagination in advertisements and promotion, it may bring in large profits. The
biggest chances to success have those companies which find their niche in the
market and strengthen their image and products position.
Poles are very demanding nowadays. They have a great choice of good quality
products and are not loyal customers. Poles still eat less than average EU citizen
and hence, consumption of confectionery products is likely to increase. Average
Pole eats 0,96 kg of chocolate annually, 2,16 kg of sugar confectionery and 6,36
cakes and baked products. That means there are huge possibilities for all the
producers on the market. The success strategy is focusing on own position,
widening the product range and increasing the market share. Due to increasing
competition on the market profits are not as high as they were a couple of years
ago. However, in long term perspective, with the growing consumption and
development of the market, profits could be very attractive.
5. Distribution channels
Over the last decade the number of retail outlets in Poland has doubled, from
around 230,000 to almost 450,000 shops. Poland has attracted the most foreign
investors from Europe. Of the 20 largest retailers in Europe, 12 are already
established in Poland and according to Colliers International 6 , over 120 new
retailers will seek to enter the Polish market. The share of foreign retailers in the
Polish market, according to GfK Polonia, Market Research Agency, soared from
0% as late as 1990 to 50% in 2002. Large-scale facilities (hypermarkets and
supermarkets) still account for only 2% of the total number of general food
retailing outlets, however according to figures released by AC Nielsen, there are
only four hypermarkets per million inhabitants in Poland compared to 20 in
Germany and 13 in the Czech Republic. Since the mid-1990s the expansion of
large-scale retail facilities with foreign capital has been accompanied by a slight,
though noticeable fall in the number of small shops with sales space of up to 50
m2, in particular specialist outlets. On the other hand, such small shops still
constitute a very high proportion of all retail facilities (92,4%) and in this respect
Poland is unique on a European scale.
5.1 Retail structure
The most popular ways to distribute confectionery products to final consumers

are presented below.
x Hypermarkets and superstores
Hypermarkets and superstores are a Western phenomena which has made a

clear impact on the Polish retail scene since the collapse of Communism.Today
these increasingly popular outlets count for over 15% of the national modern
grocery distribution.
UK-based Tesco is now the leading player in the sector with its eponymous
Tesco outlets, followed by French Auchan (Auchan), the German Metro Group
(Real) and French players Casino (Géant) and Carrefour (Carrefour). After a
considerable gap, further players worth mentioning include Dutch Ahold, French
Leclerc plus German retailer Schwarz Group. Together, all these players
operated a total of over 170 hypermarkets and superstores at the end of 2003.
Nonetheless, the country’s most densely populated regions are already facing
hypermarket over saturation, so operators are now expected to target smaller
cities of around 150,000 inhabitants. It is also worth noting that hypermarket
growth rates have probably peaked now, as legal obstacles to opening outlets
larger than 2 000 square meters are making their impact on the market.
6
Commercial Real Estate Consultants
x Supermarkets
Supermarkets are very important sales channels in Poland, although of less

importance than hypermarkets. It is interesting to mention that supermarkets
have increasingly come in the spotlight recently as tougher planning regulations
have made it harder for retailers to open outlets larger than 2,000 square meters.
It is also worth mentioning that many supermarkets continue to be operated by
small local companies and co-operative groups and at least in the cities most of
these stores look very clean and attractive.
As is the case with the hypermarkets, the sectors group of leading players is
clearly dominated by foreign operators. Dutch grocer Ahold (with its Albert
banner) is the clear leader, followed by the French ITM group (Intermarché),
French Carrefour (Champion), the German Rewe (Minimal), local player
Polomarket (Polomarket), UK-based Tesco (Savia), Polish supermarket group
Tarkon Gradi (Eko, Taf) and French Auchan (Elea). After a considerable gap,
there is also a local player Eldorado (Stokrotka) and the Austrian Meinl (Julius
Meinl) and French Leclerc (Leclerc) worth mentioning. Together, all these
operators had a combined network of some 600 supermarkets at the end of
2003, although obviously there are many more supermarkets available for
shoppers run by small local businesses and the co-operative societies.
x Discount stores
The Polish discount market continues to be dominated by the formerly domestic

Biedronka chain, which was taken over in 1998 and subsequently expanded
aggressively to more than 650 outlets by Portuguese retailer Jeronimo Martins.
Next to Biedronka, important operations in the Polish discount market include
German Tengelmann (Plus), French Casino (Leader Price), Danish Dansk
Supermarked (Netto) and the German Schwarz Group (Lidl). These five
companies operated a combined total of over 1,000 outlets at the end of 2003.
x Convenience stores
Apart from the domestic operator of Poland’s largest petrol station network, PKN
Orlen, further prominent representatives of the national forecourt store scene are
BP (Aral Store, BP Connect, BP Express), Shell (Select), ConocoPhillips (Jiffy)
and ExxonMobil (Esso Snach & Shop, Tigermarket), with the former two foreign
networks being significantly larger than those of ConocoPhillips and ExxonMobil.
x Neighborhood stores, traditional outlets
Given the relatively low incomes in Poland, independent neighborhood stores

continue to play a key role in the national food supply - especially in the small
towns and poor rural areas, but to a certain degree also in the large cities,
including the capital Warsaw, where they usually cater for people who pick up
some ingredients for their lunch at the office or factory.
According to CAL, a strategic source of information for the FMCG sector, there
were some 115 700 food shops trading in the country from less than 300 square
meters in 2002. This corresponded to 98,1% of all food stores - virtually
unchanged from the 98,4% two years earlier in 2000. However, the value of an
average shopping basket in the small stores has decreased by an estimated 10-
15% over the last few years in favor of the increasingly popular hypermarkets.
In regard to the small-store sector, it is interesting to note that there are also
huge numbers of kiosks, newsagents spread across the country, where people
buy not only kiosk ranges such as newspapers and tobacco products but also
confectionery. The leading player here is the state-owned Ruch chain which
alone has over 13 000 20-square meters kiosks spread all over Poland. Even in
the capital Warsaw it is difficult to walk a distance of 300 meters without
encountering such an outlet.
x Cash & carries
The national cash & carry sector is without the slightest doubt dominated by
German grocery giant Metro Group, which is also the national market leader with
a market share of around 10. The company is clearly benefiting from the large
number of independent shops which are still around and will be around for some
time to come. Another important customer group for Metro are restaurants and
caterers.
Apart from Metro, German Rewes Selgros operation is also worth mentioning, as
are the local C&C network of Eldorado and, last but not least, the Eurocash
stores which were formerly owned by Portuguese grocer Jeronimo Martins but
were bought out by their local management in early 2003.
x Delivered wholesale
Delivered wholesale continues to play a very important role in the Polish food
sector. Especially the huge number of independent shops in the small towns and
rural areas depend on such partners.
Shoppers not only spend the bulk of their household goods expenditure in
modern trade, they are also spending significantly more in this trade in 2003
compared to 2002. The strengthening of a range of modern store formats modern
trade has experienced a strong growth in store count of over 8% per annum in
the past 2 years. Over the same time period, the number of traditional stores has
declined by 7% per year.
The number of hypermarkets, supermarkets, convenience stores, and personal

care stores has been gradually increasing over the past 3 years. In accordance
with European rules governing the development of retail chains, the structure of
the modern form of trade in Poland in the years ahead, should evolve in the
same direction as in countries with a high level of development in retail trade
(such as Belgium and France). This would signify a further intensification of
trends towards the concentration and integration of retail enterprises as well as a
rapid increase in the still underdeveloped areas of direct sales and Internet
retailing.
Table 5.1.1 The most important hyper- and supermarkets in Poland
Shop Website
Albert www.albert.pl
Alma Market S.A. www.almasupermarket.pl
Auchan Polska www.auchan.com
Biedronka www.biedronka.pl
Carrefour Polska www.carrefour.pl
Eldorado S.A. www.eldorado.pl
E. Leclerc www.leclerc.com.pl
Geant www.geant.pl
Hypernova www.hypernova.pl
Intermarche www.intermarche.pl
Kaufland www.kaufland.pl
Leader Price www.leaderprice.pl
Lewiatan www.lewiatan.pl
Makro Cash&Carry www.makro.pl
Netto www.netto.pl
Piotr i Paweá www.piotripawel.pl
Real www.real.pl
Selgros Cash&Carry www.selgros.com.pl
Tesco Polska www.tesco.pl
Source: Individual research
Table 5.1.2 Sales area and assortment of food products

SALES AREA AND ASSORTMENT OF PRODUCTS
TYPE OF
AREA ASSORTMENT LEVEL
SHOP
Hypermarket > 2 500m2 40 000 products (50% food, 50% non-food)
400 –
Supermarket 10 000 (70% food, 30% non-food)
2 499m2
800-1 000 (mostly food articles, price levels lower by
Discount store various
15-30% than the average market)
Large grocery 101-399 m2 85% food products, 15% non-food products
Medium grocery 41-100 m2 85% food products, 15% non-food products
Small grocery < 40m2 85% food products, 15% non-food products
Source: http://www.pmrpublications.com/index.php?pr_id=4
Big confectionery manufacturers sell mainly in supermarkets and hypermarkets,

while smaller companies focus on traditional shops. Those provide them with
higher profit margins. However, Poles’ purchasing habits are changing and they
spend more time shopping in the big retailers. Every second confectionery
product is now purchased in a hyper- or supermarket. This is mainly because of
the growing number of the modern stores, but also due to the growing number of
purchases.
Chart 5.1.3 Retail structure for confectionery products
Newsagents 1,1%
Confectionery shops 2,5%
Small groceries 21,8%
Medium groceries 19,9%
Large groceries 11,1%
Supermarkets <2500m2 23,6%
Hypermarkets >2500m2 20%
Source: ACNielsen, data for period August 2003 – July 2004
Sales of chocolate products are expanding especially thanks to modern outlets.

The significant growth of sales of 17% took place in the modern shops, while in
the traditional shops the turnover has risen for about 5%. These shops are easy
to access and offer competitive prices. Almost all of the shops sell chocolate
tables. Even in the small size convenience stores, where there is lack of space
for other goods, chocolate is usually sold.
Candies don’t follow the modern trend of focusing on hypermarkets. They are
sold most often in traditional shops and small convenience stores. The most
important channel for sales are the shops smaller than 40m2, which sell about
55% of all candies. Less important is the sales in the modern stores with 30%.
However, the sales in modern stores have grown by 24% in the year 2004.
In the small and medium sized shops there is a wide range of products that are
most popular. Small shops are very important for the wholesalers and producers.
Customers trust the brands sold in those shops, while in the big retailers, unique
and high-demanding customers are best served. Small shops are usually
serviced with producers own sales strengths. Well displayed products and good
advertisement strategy are main factors for those products to be fast rotating.
Candies often are impulse purchases, so they are usually located in the very
near distance of the checkout. Sweets are very often purchased while going to
work or school. Hence it is important that they are well displayed, eye-catching
and easy to reach. Close to the checkout there is only place for the most popular
and well-known brands. Sweets for children are usually located on a shelf at their
eyelevel.
Table 5.1.4 Retail structure of the candies sales

SALES OF CANDIES IN EACH TYPE OF SHOP
SALES VALUE
TYPE OF SHOP
EUR %
All 181 617 750 100
Hypermarkets >2500m2 21 500 000 11,8
Supermarkets <2500m2 32 523 500 17,9
Large groceries 19 238 000 10,6
Medium groceries 41 551 000 22,9
Small groceries 50 344 750 27,7
Newsagents 10 508 250 5,8
Confectionery shops 3 225 250 1,8
Chemists 2 726 750 1,5
Source: ACNielsen, data for period December 2003 – November 2004
5.2 Confectionery products most frequently sold in groceries
In the survey carried out on behalf of Trader Guide, owners of the groceries of
size not bigger than 400 m2 declared best sellers among confectionery products.
Chart 5.2.1 Chocolate tablets most frequently sold in the shops smaller than 400 m2 (%)
Wedel 86%
Alpen Gold 40%
Milka 37%
Goplana 20%
Terravita 4%
Chart 5.2.2 Chocolate spread most frequently sold in the shops smaller than 400 m2 (%)
Nutella 66,8%
8%
Milky Way 7%
Terravita 7%
6%
Choco Nut Cream 4%
Chart 5.2.3 Chocolate bars most frequently sold in the shops smaller than 400 m2 (%)
Snickers 51%
Mars 41%
Wedel 16%
Paweáek 10%
Lion 10%
8%
Milky Way 6%
Kit Kat 5%
5%
Kinder Bueno 4%
Chart 5.2.4 Chocolate wafers most frequently sold in the shops smaller than 400 m2 (%)
GrzeĞki 40%
Princessa 33%
Jutrzenka 23%
Prince Polo 15%
Skawa 13%
Tago 8%
Wedel 7%
Goplana 4%
Nestle 4%
Chart 5.2.5 Candies most frequently sold in the shops smaller than 400 m2 (%)
Wedel 46%
Goplana 25%
Wawel 15%
SolidarnoĞü 15%
Mieszko 10%
Jutrzenka 6%
Odra 6%
Kukuáki 6%
Michaáki 5%
Fazer 4%
Zozole 4%
Raczki 4%
Krówki 4%
Worth mentioning is the seasonal character of the market. The confectionery

products are best sold in the time of national holidays: Christmas and Easter. In
months like July and August there is less demand in the market. Exposition and
display of the products is very important. Experts state that goods, especially
chocolate tablets should be grouped regarding their brands and then by kinds
and flavors. Customers decisions are based on the trademark and linked to that,
price.
5.3 Recommendations
The choice of distribution channel depends on the kind of product offered. To

attract the consumer’s attention in the shop an adequate pricing strategy and
eye-catching display are desired. Also a strategic cooperation in Poland should
be considered, for instance with a significant importer of confectionery products
or a well known distributor.
When entering the Polish market through supermarkets or big chains of shops, it
is highly recommendable to contact them directly. This formula is adaptable also
for smaller distributors throughout Poland. The direct approach is a best way to
negotiate cooperation terms. The business language in Poland is English. Super-
and hypermarkets usually require a quotation of an offer (price is usually a first
indicator of considering further cooperation) in advance as a beginning of the
cooperation. First contact should be made with a manager, responsible for a
certain group of products. Local distributors should be contacted directly to
arrange an opening conversation meeting.
6. Commercial Access Guide
6.1 Preferential tariffs
All goods entering the EU are subject to import duties. External trade conditions
are mostly determined by EU regulations. Poland also uses the EU´s
Harmonized Tariff Schedule (Nomenclature) on the TARIC (Integrated Tariff of
the European Community) which is issued by the Commission and the Member
States for the purpose of applying Community measures relating to import and
exports. The level of the tariffs depends on the country of origin and the product.
If there is not a special trade agreement in force, the general import tariff
(conventional duty) applies.
In January 2005 Commission Regulation (EC) No 1810/2004 entered in force

which is binding in all Member States. In its Part Two “Schedule of Customs
Duties”, subcategories 1704,1806 and 1905 deal with ”Sugar confectionery”,
“Chocolate and other food preparations containing cocoa” and “Bread, pastry,
cakes, biscuits and other bakers' wares, whether or not containing cocoa;
communion wafers, empty cachets of a kind suitable for pharmaceutical use,
sealing wafers, rice paper and similar products”.
Colombia is included in the general system of preferences – GSP. This

agreement allows products originating in the countries concerned to be imported
at preferential tariffs or, for the least developed countries, duty-free. A “Certificate
of Origin Form A” has to be filled in by the exporter and issued by the competent
authorities. Tariff contingents and tariff ceilings do not exist anymore.
According to international agreements Colombia is included in the SPGE group

of preferences and therefore benefits from 0% tariff preference on the basis on
Regulation (EC) No 2501/2001 and Commission Regulation (EC) No 2331/2003.
Untill July 1st 2005, this meant that Colombian exporters could introduce so-
called “non-sensitive” products at a 0% tariff rate and “sensitive” products, such
as all products under nomenclatures code 1704, 1806 an 19 at a 3.5% reduced
rate.
However since July 1st 2005, Colombia is a member of the GSP Plus program,
which assists the countries of the Andean Community, such as Colombia, in their
battle against drugs. The GSP Plus will officially enter into force on the 1st
January 2005, but has already started to run in its preliminary form for 14
countries on the 1st July 2005. Exporters based in one of the GSP Plus programs
are also exempt from duties on sensitive products. Therefore all confectionery
and milling products can be imported into the European Union from Colombia
duty free.
6.2 Tariffs imposed on major competitors
The tariffs for different countries are according their membership in the tariff
group. In some cases there are exceptions and the preferences are not valid for
certain countries, in which case the full amount of these tariffs has to be paid. On
overview of those tariffs is presented below. All the preferential tariffs are
applicable only with the Certificate of origin.
The major competitors in the confectionery and milling branch are all European
Union memberstates, such as Germany, Poland, Slovakia and Spain. They do
not face any tariffs or duties of any kind, because they all belong to the European
common market.
Figure 6.2.1 Overview of examples of import tariffs countries similar to Colombia or

potential competitors
Group of Examples of products according TARIC numbers

preferences
Country 1806 10
according 1704101100 1905 20 10
15
international
agreements
0 % + 27.1 EUR / 100 0 % + 18.3 EUR /
Colombia SPGE 0%
kg MAX 17.9 % 100 kg
2.7 % + 27.1 EUR / 5.9 % + 18.3 EUR
Argentina SPGL 2.8 %
100 kg MAX 17.9 % / 100 kg
0 % + 27.1 EUR / 100 0 % + 18.3 EUR /
Bolivia SPGE 0%
kg MAX 17.9 % 100 kg
2.7 % + 27.1 EUR / 5.9 % + 18.3 EUR
Brazil SPGL 2.8 %
100 kg MAX 17.9 % / 100 kg
0 % + 18.3 EUR /
0 % + 27.1 EUR / 100 1.7 % or 100 kg or 5.9 %
Chile CL/SPGL
kg MAX 17.9 % 2.8 % + 18.3 EUR / 100
kg
2.7 % + 27.1 EUR / 5.9 % + 18.3 EUR
China SPGL 2.8 %
100 kg MAX 17.9 % / 100 kg
EU
EEA 0 0 0
countries
2.7 % + 27.1 EUR / 5.9 % + 18.3 EUR
India SPGL 2.8 %
100 kg MAX 17.9 % / 100 kg
2.7 % + 27.1 EUR / 5.9 % + 18.3 EUR
Indoasia SPGL 2.8 %
100 kg MAX 17.9 % / 100 kg
MX, Latin 0 % + 27.1 EUR / 100 9.4 % + 18.3 EUR
Mexico 8%
America kg MAX 17.9 % / 100 kg
0 % + 27.1 EUR / 100 0 % + 18.3 EUR /
Peru SPGE 0%
kg MAX 17.9 % 100 kg
Russian 2.7 % + 27.1 EUR / 5.9 % + 18.3 EUR
SPGL 2.8 %
Federation 100 kg MAX 17.9 % / 100 kg
No 6.2 % + 27.1 EUR / 9.4 % + 18.3 EUR
USA 8%
Preferences 100 kg MAX 17.9 % / 100 kg
0 % + 27.1 EUR / 100 0 % + 18.3 EUR /
Venezuela SPGE 0%
kg MAX 17.9 % 100 kg
Source: EU tariff schedule – TARIC
6.3 Norms of origin
To be able to benefit from the GSP Plus 0% duties on sensitive and non-sensitive
products it is necessary to prove that the product that is being imported is really
from Colombia or another GSP (Plus) country. Some products clearly originate in
a given country, e.g. because they are grown there from local seed. These are
called “wholly obtained” goods. But increasingly in today’s world, others are not
produced in a single country.
In general terms, products are wholly obtained in a particular beneficiary

country (or in the EC, in the case of cumulation) if only that country has been
involved in their production. Even the smallest addition or input from any other
country disqualifies a product from being "wholly obtained".
In practice, except for naturally-occurring and related products, situations where

only a single country is involved in the manufacture of a product are relatively
rare. Globalisation of manufacturing processes has resulted in many products
being made from parts, materials etc. coming from all over the world. Such
products are not of, course, wholly obtained, but they can nevertheless obtain
originating status.
The condition is that the non-originating materials used (in practice: the materials
imported into the beneficiary country) have undergone "sufficient working or
processing". It must be stressed that only the non-originating materials need to
be worked or processed sufficiently. If the other materials used are by
themselves already originating (either by virtue of being wholly obtained, or by
having been worked or processed sufficiently), they do not have to satisfy the
conditions set out.
What can be considered as sufficient working or processing, depends on the

product in question. For the products that belong under subcategory 1704, all
sugar confectionery products, the requirements are that the working or
processing carried out on non-originating materials, which confers originating
status is manufacture from:
- Materials of any heading, except that of the product, and in which the valu
of all the materials of Chapter 17 used does not exceed 30% of the ex-works
price of the product
For the products that belong under subcategory 1806, all chocolate products, the
requirements are that the working or processing carried out on non-originating
materials, which confers originating status is manufacture:
- from materials of any heading, except that of the product, and

- in which the value of all the materials of Chapter 17 (sugars and sugar
confectionery) used does not exceed 30% of the ex-works price of the product
For the products that belong under subcategory 1905, all bread, pastry, cakes,
biscuits and other bakers' wares, the requirements are that the working or
processing carried out on non-originating materials, which confers originating
status is manufacture:
- Manufacture from materials of any heading, except those of Chapter 11

(milling products)
There are three principal forms of proof used in the context of the EC GSP:
x The certificate of origin Form A 7 , used as proof of origin at import into the EC
and in regional cumulation.
o Regional cumulation can be present between the countries of one
of the regional groups recognised by the EC GSP4. 8 Materials
originating in one country of the group which are further worked or
processed in another beneficiary country of the same group are
considered to originate in the latter country.
x The Invoice Declaration, which can be used for goods whose total value does
not exceed € 6000 (Article 89).
x The Movement Certificate EUR1, which may be used as may an invoice
declaration, when goods are exported to beneficiary countries from the EC in
the context of bilateral cumulation. (Article 90a).
o Under bilateral cumulation, materials originating in the EC, within
the meaning of the EC GSP RoO, and further worked or processed
in a beneficiary country, are considered to originate in the
beneficiary country.
The period of validity of a proof of origin is 10 months
6.4 Barriers
Levying of any customs duty or charge having an equivalent effect and the
application of any quantitative import restriction or measure having an equivalent
effect are prohibited in trade with third countries.
7
We kindy refer you to the annexes for an example of Form A
8
The regional groups (listed in Article 72) are:
- Group I: Brunei-Darussalam, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore,
Thailand, Vietnam;
- Group II: Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras,
Nicaragua, Panama, Peru,
Venezuela;
- Group III: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka.
For exporters in developing countries legislative standards enforced through EU

legislation and possibly through EU member states, increasingly pose obstacles
when exporting to the EU. Although standards are developed in order to protect
consumers, environment or improve the harmonization of the internal EU market;
they are often seen as technical, non-tariff barriers to trade or as a green wall
protecting the fortress of Europe when looking at environmental standards.
When looking at the situation of exporters in developing countries who would like
to access the EU market, there are many differences to overcome. Differences
between the EU and third countries in their technical regulations and conformity
assessment procedures are based on legitimate origins, such as differences in
local preferences regarding health, safety and the environment, and differences
in levels of income and labour conditions.
Moreover, exporters in developing countries often are critically constrained by the

lack of important issues such as:
- Access to credit and insurance and investment climate
- Human and physical capital, management and marketing skills
- Sufficient facilities for transport and storage infrastructures
- Transparent legal and regulatory framework
- Awareness and knowledge
- Participation in the development of standards
- Certifying bodies, test laboratories, standardization institutes etc.
Therefore, the standards in the EU could be seen as obstacles when accessing

the EU market, though official barriers do not longer excist.
6.5 Licenses
There are no specific licences stated on confectionery and milling products.
6.6 Quotas
There are no import quotas stated on confectionery and milling products.
6.7 Approvals & 6.8 Technical standards
Health control of foodstuff of non-animal origin
Imports of foodstuffs of non-animal origin into the European Union (EU) must
comply with general conditions and specific provisions designed to prevent risk to
public health and protect consumers' interests.
The general rules applicable to these products are as follows:
1. General rules of hygiene for foodstuffs

2. General conditions concerning contaminants in food
3. Special provisions on Genetically Modified (GM) food and Novel food
4. General conditions of preparation of foodstuffs
5. Official control of foodstuffs
Besides, in view of fulfilling food and feed safety conditions in the EU, specifically
in relation with requirements for traceability, importers are required to keep
documentation available in order to identify the exporter in the country of origin,
as established by Regulation (CE) 178/2002.
1. General rules of hygiene for foodstuffs
The general rules of hygiene for foodstuffs and procedures for verification of
compliance with these rules are laid down in Directive 93/43/EEC (OJ L-175
19/07/1993).
All imported foodstuffs must comply with these rules so that they ensure their
safety and wholesomeness. These measures cover preparation, processing,
manufacture, packaging, storage, transport, distribution, handling, sale and
supply of foodstuffs.
Member States may introduce more specific hygiene provisions if they are not
less stringent and do not constitute a restriction to trade in foodstuffs.
If a hygiene problem likely to pose a serious risk to human health arises or
spreads in the territory of a third country, the European Commission may
suspend imports from all or part of the third country concerned or take interim
protective measures regarding the foodstuffs concerned, depending on the
seriousness of the situation.
2. General conditions concerning contaminants in food
Contaminant substances may be present in food as a result of the various

stages of its production and marketing or due to environmental pollution. Since
they represent a real risk for food safety, the EU has taken measures to
minimise the risk by setting maximum levels for certain contaminants in

foodstuffs.
a) Maximum levels of certain contaminants in foodstuffs
Certain foodstuffs (i.e. fruit, vegetables, nuts, cereals, fruit juices, etcಹ) must
not, when placed on the market, contain higher contaminant levels than those
specified in Regulation (EC) 466/2001
This Regulation covers four different categories of contaminants: nitrates,

aflatoxins, heavy metals (lead, cadmium, mercury) and 3-monochloropropane-
1,2diol (3-MCPD).
The maximum contaminant levels relate to the edible part of the foodstuffs but
apply also to the ingredients used for the production of compound foodstuffs.
b) Maximum levels of pesticide residues in and on food
Member States may restrict the putting on the market within their territories of
certain products containing pesticide residues if the quantity of these residues
exceeds the maximum levels permitted. These limits depend on the toxicity of
the substance in question.
Pesticides residues in food are regulated by three Council Directives

76/895/EEC (OJ L-340 09/12/1976) 86/362/EEC (OJ L-221 07/08/1986) and
90/642/EC (OJ L-350 14/12/1990) which cover the following products: fruit and
vegetables, cereals and other products of plant origin.
This legislation is also applied to the same products after being dried or
processed or after their inclusion in a composite food in so far as they may
contain pesticide residues.
c) Maximum levels of radioactive contamination of foodstuffs
Regulations (EC) 3954/1987 (OJ L-371 30/12/1987) and 944/1989 (OJ L-101
13/04/1989) lay down the maximum permitted levels of radioactive
contamination of foodstuffs (either immediately or after processing) which may
be placed on the market following a nuclear accident or any other case of
radiological emergency.
There is a list of minor foodstuffs (i.e. those which are consumed least) for
which the maximum permitted levels are considerably higher (ten times higher)
d) Materials intended to come into contact with foodstuffs
Materials and articles intended to come into contact with foodstuffs must be
manufactured so that they do not transfer their constituents to food in
quantities which could endanger human health, change the composition of the
food in an unacceptable way or deteriorate the taste and odour of foodstuffs.
The Regulation (EC) 1935/2004 establishes a list of groups of materials and

articles (such us plastics, ceramics, rubbers, paper, glass, etc.) which may be
covered by specific measures that include a list of the authorised substances,
special conditions of use, purity standards, etc. Specific measures exist for
ceramics, regenerated cellulose and plastics.
3. Special provisions on Genetically Modified (GM) food and Novel food
In order to ensure the highest level of protection of human health, EU

legislation provides for a single authorisation procedure for the placing on the
market of food containing, consisting of or derived from Genetically Modified
Organisms.
An application must be sent to the competent authority of a Member State and

then referred to the European Food Safety Authority (EFSA) which carries out
a risk assessment.
On the basis of the opinion of EFSA, the Commission drafts a proposal for
granting or refusing the authorisation, which must be approved by the Standing
Committee on the Food Chain and Animal Health. The authorised food and
feed are entered in the Community Register of GM food and feed.
GM food lawfully placed on the EU market prior to 18 April 2004 may continue
to be placed on the market, used and processed provided that they are notified
to the Commission before 18 October 2004.
Novel foods (i.e. foods and food ingredients that have not been used for
human consumption to a significant degree within the EU before 15 May 1997)
must also undergo a safety assessment before being placed on the EU market.
Companies that want to place a novel food on the EU market must submit their
application to the competent body of a Member State for risk assessment
purposes. As a result of this assessment, an authorisation decision may be
taken. The authorisation decision defines the scope of the authorisation, the
conditions of use, the designation of the food or food ingredient, its
specification and the specific labelling requirements.
Novel foods or novel food ingredients considered by a national food

assessment body as substantially equivalent to existing foods or food
ingredients may follow a simplified procedure, only requiring notifications from
the company.
4. General conditions of preparation of foodstuffs
EU legislation lays down the rules relating to treatment of foodstuffs, food

ingredients and their conditions of use in order to protect the health of
consumers and guarantee the free circulation of foodstuffs in the European
Union market.
Moreover, specific provisions for groups of foods are laid down in specific
Directives. These include compositional requirements, hygiene requirements,
list of additives, purity criteria, specific labelling requirements , etc.
a) Authorised food additives and flavourings
The scope of the Directives covers food additives and flavourings used as
ingredients during the manufacture or preparation of food and which are part of
the finished product.
The only substances which may be used as food additives are those included
in the approved common lists and then only under the conditions of use
mentioned in those lists (e.g. colorants, sweeteners, preservatives, emulsifiers,
stabilisers, raising agents, etcಹ).
b) Preparation and treatments of certain foodstuffs
Rules in relation with the manufacture, marketing and importation of foods and
food ingredients that are subject to specific treatments (e.g. ionising radiation
or quick-freezing) must be fulfilled.
c) Specific provisions for certain groups of products and for foodstuffs for
particular nutritional purposes
Specific provisions are applied to certain groups of products (such as cocoa,

sugar, etc.) and to foodstuffs intended for particular nutritional uses (baby
foods, dietary foods, gluten-free foods...). These may include specific
requirements on composition, hygiene, labelling (e.g. declaration of the energy
value, carbohydrate, protein and fat content), list of additives, purity criteria,
etc.
The Directives establish the procedures to be followed if a particular foodstuff,
though complying with the relevant specific Directive, is believed to endanger
human health.
5. Official control of foodstuffs
Directive 89/397/EEC (OJ L-186 30/06/1989) provides for official inspections of

foodstuffs, food additives, vitamins, mineral salts and other elements as well as
materials or articles intended to come into contact with foodstuffs to ensure
that they comply with the provisions designed to protect the health and
interests of consumers.
The control may apply to import into the EU and/or to any other stage of the
food chain (manufacture, processing, storage, transport, distribution and trade)
and may include inspection, sampling and analysis, inspection of staff hygiene,
examination of written and documentary material, examination of verification
systems set up by the food operator and of the results obtained.
Inspection will be carried out by the Member State competent authorities

regularly, and/or where non-compliance is suspected.
The general methods of sampling and analysis that must be carried out by
official laboratories for the monitoring of foodstuffs are established in Directive
85/591/EEC (OJ L-372 31/12/1985) and their implementing measures.
Additional information for Poland
Control Procedure
Health controls are carried out at designated control points.

The importer, or his representative, must request a health inspection by
submitting the first part of the application form, together with the documents
related to the consignment.
Depending on the cases, the product may also go through a documentary check,
an identity check and/or a physical inspection, which may lead to sample taking
for analysis.
The result of the inspection is reflected in the second part of the application form.
The product can only be released for consumption after favourable result.
Competent authority / competent bodies
Glówny Inspektor Sanitarny (Chief Sanitary Inspectorate)

ul. Dluga 38/40
PL-00-238 Warsaw
Tel: (+48) 22 635 45 81
Fax: (+48) 22 635 61 94
E-mail: inspektorat@gis.gov.pl
Website: http://www.gis.gov.pl
6.9 Packaging
Packaging EU
Care must be given to the packaging of products if one intends to export to the
EU countries. It is obvious that the packaging must be travel-resistant. As
required, products should also be protected against the elements, changes of
temperature, rough handling and theft. Besides these basics issues, some
importers may have specific demands concerning packaging, like information
concerning the order printed on the boxes (order number, box number, name
department or contact person etc.).
For environmental reasons packaging made from materials like PVC is less
popular with consumers and in some cases is or will be forbidden by
governments. Exporters in developing countries should be prepared to discuss
this issue with potential clients and should anticipate the cost of special
packaging in their selling price, if required.
The European Directive on Packaging and Packaging Waste (94/62/EC)

establishes overall legislation for the treatment of packaging waste, consisting of
quantitative objectives to be achieved by each of the EU member states. The
member states have the responsibility to translate the Directive into national
legislation.
It is becoming increasingly difficult and expensive to dispose of waste in Europe.

In principle, the importer is held responsible for disposal of the packaging waste
for all goods from outside the EU. It is therefore crucial, when planning exports to
the EU, to take the packaging of your products (both sales packaging and
transport packaging) into consideration. To fulfil the requirements of the target
market, good communication with the importer about packaging is necessary.
Outer containers should bear the consignee's mark and port mark and be
numbered, in accord with packing list, unless the contents can be otherwise
readily identified. The following items must appear on the two vertical sides of
each outer container:
x the sales contract number

x the consignee's instruction number
x the import licence number (if applicable)
x gross and net weights
A number of issues must be addressed when selecting packaging. Broadly, they

can be grouped into questions of containment for the logistics of distribution;
protection to ensure the produce arrives at the point of sale in the best possible
condition; marketing to present the produce in a preferred style; and

environmental impact relating to the handling of the used packaging.
There is now increasing pressure to create a more environmentally friendly

means of handling packaging waste. Some EU governments, rather than wait for
an EU wide directive, have already enacted legislation regarding packaging and
packaging waste. Their common objectives include the minimisation of waste, re-
use by re-cycling and safe disposal where no other use is possible.
Labeling 9
All foodstuffs marketed in the European Union (EU) must comply with EU
labelling rules, which aim at ensuring that consumers get all the essential
information to make an informed choice while purchasing their foodstuffs.
Hence, the applicable labelling provisions are as follows:
x General rules on food labelling

x Specific provisions for certain groups of products:
o Labelling of Genetically Modified (GM) food and Novel Food
o Labelling of foodstuffs for particular nutritional purposes
o Labelling of materials intended to come into contact with food
o Labelling of particular foodstuffs
Besides these mandatory rules, there is also additional information that may be
included by the manufacturers on a voluntary basis provided that it is accurate
and does not mislead the consumer. For example, nutritional labelling is not
obligatory unless a nutritional claim (e.g. "low fat", "high fibre") is made on the
label or in advertising material. In this case, nutritional claims must comply with a
standardised format, pursuant to Council Directive 90/496/EEC (OJ L-276
06/10/1990). Similarly, Council Regulation (EEC) 2092/91 (OJ L-208 24/07/1992)
sets out rules governing the use of the organic label.
General rules on food labelling
Labels of foodstuffs according to the general rules laid down by Council Directive
2000/13/EC must contain the following particulars:
x The name under which the product is sold. No trademark, brand name or
fancy name may substitute the generic name but rather may be used in
addition. Particulars as to the physical condition of the foodstuff or the
specific treatment it has undergone (powdered, freeze-dried, deep-frozen,
9
Source: DG Trade
concentrated, smoked, irradiated or treated with ionizing radiation) must

be included where omission of such may confuse the purchaser.
x The list of ingredients, preceded by the word "Ingredients", must show all
ingredients (including additives) in descending order of weight as recorded
at the time of their use in the manufacture and designated by their specific
name. In the case of those products that may contain ingredients liable to
cause allergies or intolerances, such as alcoholic beverages, a clear
indication should be given on the label by the word “contains” followed by
the name of the ingredient. However, this indication will not be necessary
provided the specific name is included in the list of ingredients.
x The net quantity of pre-packaged foodstuffs in metric units (litre, centilitre,
millilitre) for liquids and (kilogram, gram) for non-liquids.
x The date of minimum durability consisting of day, month and year in that
order and preceded by the words "best before" or "best before end" or the
"use by" date for highly perishable goods.
x Any special conditions for keeping or use.
x The name or business name and address of the manufacturer, packager
or importer established in the EU.
x Place of origin or provenance
x Instructions of use, where appropriate.
x Indication of the acquired alcoholic strength for beverages containing more
than 1.2% by volume.
x Lot marking on pre-packaged foodstuffs with the marking preceded by the
letter "L".
These particulars must appear on the packaging or on a label attached to pre-

packaged foodstuffs. In the case of pre-packaged foodstuffs intended for mass
caterers (foodstuffs sold in bulk), the compulsory labelling particulars must
appear on commercial documents while the name under which it is sold, the date
of durability or use-by-date and the name of manufacturer must appear on the
external packaging.
The labelling must not mislead the purchaser as to the foodstuffಬs characteristics
or effects nor attribute the foodstuff special properties for the prevention,
treatment or cure of a human disease. The information provided by labels must
be easy to understand, easily visible, clearly legible and indelible and must
appear in the official language(s) of the Member State where the product is
marketed. However, the use of foreign terms or expressions easily understood by
the purchaser may be allowed.
Specific provisions for certain groups of products
There are also labelling provisions which apply to specific groups of food
products in order to give the consumers more detailed information on the
contents and the composition of these products:
Labelling of Genetically Modified (GM) food and Novel food
Products consisting of or containing Genetically Modified Organisms (GMOs) and

food products obtained from GMOs which have been authorised for the placing
on the EU market are subject to labelling requirements pursuant to Regulations
(EC) 1829/2003 and 1830/2003.
In the case of pre-packaged products, operators are required to state on a label

that ಯThis product contains genetically modified organismsರ. This labelling
obligation also applies to highly refined products (e.g. oil obtained from
genetically modified maize) as well as GM additives and flavourings.
Labelling of foodstuffs for particular nutritional purposes
In addition to the rules applicable to foodstuffs in general, specific provisions (e.g.

declaration of the energy value, carbohydrate, protein and fat content, etc.) for
groups of foods for particular nutritional uses (baby foods, dietary foods for
special medical purposes, foods for weight reduction, foods for sportspeople,
etc.) are laid down in specific Directives.
These products must be suitable for their claimed nutritional purposes and
marketed in such a way as to indicate their suitability.
Labelling of materials intended to come into contact with food
According to Regulation 1935/2004, articles intended to come into contact with

foodstuffs, including packaging materials and containers shall be labelled "for
food contact" or shall bear the symbol with a glass and fork.
Additional information for Poland
The contents of the label must be at least in Polish. The compliance with the
labelling requirements and the accuracy of the information contained in the label
can be checked at any stage of the distribution chain (e.g. customs clearance,
distributors warehouses, wholesalers or retailers outlets …).
Competent authority / competent bodies
x Ministerstwo Zdrowia (Ministry of Health)

ul. Miodowa 15
PL-00-952 Warsaw
Tel: (+48) 22 634 96 00
Fax: (+48) 22 634 92 13
E-mail: kancelaria@mz.gov.pl
Website: http://www.mzios.gov.pl/
x Glówny Inspektorat Jakosci Handlowej Artykulów Rolno-Spozywczych (The

Agricultural and Food Quality Inspection)
ul. Wspólna 30
PL-00-930 Warsaw
Tel: (+48) 22 621 64 21
Fax: (+48) 22 621 48 58
E-mail: gi.sekretariat@ijhar-s.gov.pl
Website: http://www.ijhar-s.gov.pl
6.10 Required documentation for import
When importing products from a third country, like Colombia, into the European
Union six different documents are required;
1) Commercial invoice
The commercial invoice is a record or evidence of the transaction between the

exporter and the importer. Once the goods are available, the exporter issues a
commercial invoice to the importer in order to charge him for the goods.
The commercial invoice contains the basic information concerning the transaction
and it is always required for customs clearance.
It is similar to an ordinary sales invoice, though some entries specific to the

export-import trade are added. The minimum data generally included are the
following:
x Information on the exporter and the importer (name and address)

x Date of issue
x Invoice number
x Description of the goods (name, quality, etc.)
x Unit of measure
x Quantity of goods
x Unit value
x Total item value
x Total invoice value and currency of payment. The equivalent amount must
be indicated in a currency freely convertible to EUR or other legal tender in
the importing Member State
x The terms of payment (method and date of payment, discounts, etc.)
x The terms of delivery according to the appropriate Incoterm
x Means of transport
No specific form is required. The commercial invoice is to be prepared by the

exporter according to standard business practice and it must be submitted in the
original along with at least one copy. It generally needs not be signed. In practice,
the original and the copy of the commercial invoice are often signed. The
commercial invoice may be prepared in any language. However, a translation
into English is recommended.
2) Customs Value Declaration
The Customs Value Declaration is a document which must be presented to the

customs authorities where the value of the imported goods exceeds EUR 10 000.
The Customs Value Declaration must be draw up conforming to form DV 1 10 ,
laying down provisions for the implementation of the Community Customs Code.
This form must be presented with the Single Administrative Document (SAD).
The main purpose of this requirement is to assess the value of the transaction in
order to fix the customs value (taxable value) to apply the tariff duties.
The customs value corresponds to the value of the goods including all the costs
incurred (e.g.: commercial price, transport, insurance) until the first point of entry
in the EU. The usual method for establishing the Customs value is using the
transaction value (the price paid or payable for the imported goods).
In certain cases the transaction value of the imported goods may be subject to
adjustment which involve additions or deductions. For instance:
x commissions or royalties may need to be added to the price;

x the internal transport (from the entry point to the final destination in the
Community Customs Territory) must be deducted.
The customs authorities shall waive the requirement of all or part of the customs
value declaration where:
x the customs value of the imported goods in a consignment does not
exceed EUR 10 000, provided that they do not constitute split or multiple
consignments from the same consignor to the same consignee,
or
x the importations involved are of a non-commercial nature; or

x the submission of the particulars in question is not necessary for the
application of the Customs Tariff of the European Communities or where
the customs duties provided for in the Tariff are not chargeable pursuant
to specific customs provisions.
3) Freight insurance
The insurance is an agreement by which the insured is indemnified in the event

of damages due to a risk covered in the policy. Insurance is all-important in the
transport of goods because of its exposure to risks during handling, storing,
10
Please see the annexes for a sample of a DV1 form
loading or transporting cargo, and other rare risks, such as riots, strikes or
terrorism.
There is a difference between the goods' transport insurance and the carrier's
responsibility insurance. The transport insurance is a contract whose covered
risks, fixed compensation and indemnity are let to the holder's choice.
Nevertheless, the haulier's responsibility insurance is determined by different
regulations depending on the means of transport, indemnity is limited by the
weight and value of the goods and is only given if the transporter was unable to
evade responsibility.
The insurance invoice is required for customs clearance only when the relevant
data do not appear in the commercial invoice indicating the premium paid for
insuring the merchandise.
The standard extent of the transporter's responsibility is laid down in the following
international conventions:
1. Road freight
International transport of goods by road is governed by the Convention for

the Contract of the International Carriage of Goods by Road (CMR
Convention) signed in Geneva in 1956.
Under this Convention, the road haulier is not responsible for losses of or
damages to the goods if he proves that they arise from:
x the merchandise's own defect(s);

x force majeure;
x a fault by the loader or consignee.
There is no European Union's regulation regarding indemnifications for road

freight.
2. The rail carrier
International transport of goods by rail is regulated by the the Convention

concerning Intercarriage by Rail (CIM Convention), signed in Bern in 1980.
The rail carrier is not responsible for losses of or damages to the goods if he
proves that they arise from:
x the merchandise's own defect(s);

x force majeure;
x a fault by the loader or consignee.
With reference to compensation, there is currently no European regulation.

Indemnification is normally limited to a maximum amount per gross kilo lost
or damaged. This system means that, for the most part, the company is
unlikely to receive anything approaching the value of its goods.
3. The shipping company
The 1968 International Convention on Bill of Lading, better known as "The

Hague Rules" or the "Brussels Convention" dictates the marine carrier's
responsibilities when transporting international goods.
The shipping company is not responsible for losses of, or damage to, the
goods if it proves that they arise from:
x the merchandise's own defects and loss in weight during transport;

x a nautical mistake by the crew;
x a fire;
x if the ship is not seaworthy;
x force majeure;
x strikes or a lock-out;
x a mistake by the loader;
x hidden defects on board ship, which went unnoticed during rigorous
inspection;
x an attempt to save lives or goods at sea.
As far as compensation is concerned, there is currently no harmonisation at

the European Union level. It is normally limited to a certain sum per kilogram
of lost or damaged goods. This system causes the same problems as with
rail accidents, the exporter is likely to lose much of the value of the goods.
4. The air carrier
The 1929 Warsaw Convention as well as the Montreal draft Treaty of 1975
determine that the air carrier is not responsible for damages or loss of goods
if it is proved that:
x the carrier and associates took all the measures necessary to avoid the
damage or that it was impossible for them to be taken (force majeure);
x the losses arise from a pilotage or navigation mistake;
x the injured party was the cause of the damage or contributed to it.
Concerning the injured party's indemnification, there is no European

standard. Compensation is normally limited to a set amount per gross
kilogram of damaged or lost goods.
The air carrier can state specific reservations at the time of receiving the
cargo. These reservations will be written on the air consignment note (ACN)
(air transport contract) and will be used as evidence. However, airlines will
normally refuse dubious packages or those not corresponding to the ACN.
4) Customs Import Declaration (SAD)

All goods imported into the European Union (EU) must be declared to the
customs authorities of the respective Member State using the Single
Administrative Document (SAD) 11 , which is the common import declaration
form for all the Member States, laid down in the Community Customs Code
(Regulation (EEC) 2913/92.
The declaration must be drawn up in one of the official languages of the EU
which is acceptable to the customs authorities of the Member State where the
formalities are carried out.
The SAD may be presented either by:
x Using an approved computerised system linked to Customs authorities; or

x Lodging it with the designated Customs Office premises.
The main information that shall be declared is:
x Identifying data of the parties involved in the operation (importer, exporter,

representative,....)
x Custom approved treatment (release for free circulation, release for
consumption, temporary importation, transit,....)
x Identifying data of the goods (Taric code, weight, units), location and
packaging
x Information referred to the means of transport
x Data about country of origin, country of export and destination
x Commercial and financial information (Incoterms, invoice value, invoice
currency, exchange rate, insurance...)
x List of documents associated to the SAD (Import licenses, inspection
certificates, document of origin, transport document, commercial invoice...)
x Declaration and method of payment of import taxes (tariff duties, VAT,
Excises, etc)
The SAD set consists of eight copies, the operator completes all or part of the
sheets depending on the type of operation.
In the case of importation generally three copies shall be used: one is to be
retained by the authorities of the Member State in which arrival formalities are
completed, other is used for statistical purposes by the Member State of
destination and the last one is returned to the consignee after being stamped
by the customs authority.
11
See annexes
Documents associated to the SAD
According to the operation and the nature of the imported goods, additional
documents shall be declared with the SAD and shall be presented together
with it. The most important documents are:
x Documentary proof of origin, normally used to apply a tariff preferential

treatment
x Certificate confirming the special nature of the product
x Transport Document
x Commercial Invoice
x Customs Value Declaration
x Inspections Certificates (Health, Veterinary, Plant Health certificates)
x Import Licenses
x Community Surveillance Document
x Cites Certificate
x Documents to support a claim of a tariff quota
x Documents required for Excises purposes
x Evidence to support a claim to VAT relief
5) Freight documents
Depending on the means of transport used, the following documents are to be

filled in and presented to the customs authorities of the importing European
Union (EU) Member State (MS) upon importation in order for the goods to be
cleared:
x Bill of Lading
x FIATA Bill of Lading
x Road Waybill (CMR)
x Air Waybill (AWB)
x Rail Waybill (CIM)
x ATA Carnet
x TIR Carnet
Bill of Lading
The Bill of Lading (B/L) is a document issued by the shipping company to the
operating shipper which acknowledges that the goods have been received
on board serving as proof of receipt of the goods by the carrier obliging him
to deliver the goods to the consignee. It contains the details of the goods,
vessel and port of destination. It evidences the contract of carriage and
conveys title to the goods, meaning that the bearer of the Bill of Lading is
the owner of the goods.
The Bill of Lading may be a negotiable document. A number of different
types of bills of lading can be used. "Clean Bills of Lading" state that the
goods have been received in an apparent good order and condition.

"Unclean or Dirty Bills of Lading" indicate that the goods are damaged or in
bad order, in this case, the financing bank may refuse to accept the
consignor's documents.
FIATA Bill of Lading
The FIATA Bill of Lading is a document designed to be used as a

multimodal or combined transport document with negotiable status which
has been developed by the International Federation of Forwarding Agents'
Associations (FIATA).
Road Waybill (CMR)
The road waybill is a document containing the details of the international

transportation of goods by road, set out by the Convention for the Contract of
the International Carriage of Goods by Road 1956 (the CMR Convention). It
enables the consignor to have the goods at his disposal during the
transportation. It must be issued in quadruplicate and signed by the
consignor and the carrier. The first copy is intended for the consignor; the
second remains in the possession of the carrier; and the third accompanies
the goods and is delivered to the consignee. Usually, a CMR is issued for
each vehicle.
The CMR note is not a document of title and is non-negotiable.
Air Waybill (AWB)
The air waybill is a document proving the transport contract between the
consignor and the carrier's company. It is issued by the carrier's agent and
falls under the provisions of the Warsaw Convention. A single air waybill may
be used for multiple shipment of goods, it contains three originals and
several extra copies. One original is kept by each of the parties involved in
the transport (the consignor, the consignee and the carrier). The copies may
be required at the airport of departure/destination, for the delivery and in
some cases, for further freight carriers. The air waybill is a freight bill which
evidences a contract of carriage and proves receipt of goods..
The IATA Standard Air Waybill is used by all carriers belonging to the
International Air Transport Association (IATA) and it embodies standard
conditions associated to those set out in the Warsaw Convention.
Rail Waybill (CIM)
The rail waybill (CIM) is a document required for the transportation of goods
by rail. It is regulated by the Convention concerning International Carriage by
Rail 1980 (COTIF-CIM). The CIM is issued by the carrier in five copies, the
original accompanies the goods and the duplicate of the original is kept by
the consignor and the three remaining copies are intended for internal
purposes of the carrier. It is considered the rail transport contract.
ATA Carnet
ATA carnets are international customs documents issued by chambers of

commerce in most major countries throughout the world for the purpose of
allowing the temporary importation of goods, free of customs duties and
taxes. ATA carnets can be issued for the following categories of goods:
commercial samples and advertising film, goods for international exhibition
and professional equipment. 12
TIR Carnet
TIR carnets are customs transit documents used for the international
transport of goods a part of which has to be made by road. They allow the
transport of goods under a procedure called the TIR procedure, laid down in
the 1975 TIR Convention, signed under the auspices of the United Nations
Economic Commission for Europe (UNECE) 13
The TIR system requires that the goods travel in secure vehicles or containers,
all duties and taxes at risk throughout the journey are covered by an
internationally valid guarantee, the goods are accompanied by a TIR carnet, and
customs control measures in the country of departure are accepted by the
countries of transit and destination.
6) Packing list
The packing list (P/L) is a commercial document accompanying the commercial

invoice and the transport documents, and providing information on the imported
items and the packaging details of each shipment (weight, dimensions, handling
issues,etc.)
It is required for customs clearance as an inventory of the incoming cargo.
The data generally included are:
x Information on the exporter, the importer and the transport company

x Date of issue
x Number of the freight invoice
x Type of packaging (drum, crate, carton, box, barrel, bag, etc.)
x Number of packages
x Content of each package (description of the goods and number of items
per package)
12
Further information may be obtained in the International Chamber of Commerce's website:
http://www.iccwbo.org/index_ata.asp
13
Website; http://www.unece.org/trans/bcf/tir/welcome.html.
x Marks and numbers

x Net weight, gross weight and measurement of the packages
No specific form is required. The packing list is to be prepared by the exporter

according to standard business practice and it must be submitted in the original
along with at least one copy. It generally needs not be signed. However, in
practice, the original and the copy of the packing list are often signed. The
packing list may be prepared in any language. However, a translation into
English is recommended.
6.11 Import modalities or regimes involved in the process
What might be interesting for exporters of goods to the EU to know, is the fact
that there are so called free zones. These are special areas within the customs
territory of the Community (EU). Goods placed within these area are free of
import duties, VAT and other import charges. Free zone treatment applies to both
Community and non-Community goods. Non-Community goods stored in the
zone are perceived as not yet imported into the Customs territory.
With regards to the import of goods, free zones are mainly destined for storage of
non-Community goods until they are released for free circulation. No import
declaration has to be lodged as long as goods stay at free zone storage. In
addition, there may be special relieves available in free zones from other taxes,
excises or local duties. The free zones are mainly a service for traders to
facilitate trading procedures by allowing fewer custom formalities.
List of free trade zones in Poland can be found on the website:

http://europa.eu.int/comm/taxation_customs/customs/procedural_aspects/imports
/free_zones/index_en.htm and also in the table beneath:
Table 6.10.1 Free zones in Poland

FREE ZONE (CONTROL TYPE 1) ADDRESS OF CUSTOMS
AUTHORITY (ART.804 CCIP)
WOLNY OBSZAR CELNY na terenie Izba Celna w Warszawie ul. ModliĔska
MiĊdzynarodowego Portu Lotniczego 4 PL-03-016 WARSZAWA
Warszawa OkĊcie ul. Zwirki i Wigury 1
PL-00-906 WARSZAWA
WOLNY OBSZAR CELNY w Gliwicach Izba Celna w Katowicach Plac
ul. Portowa 28 PL-44-100 Gliwice Grunwaldzki 8-10 PL-40-127 Katowice
WOLNY OBSZAR CELNY w Terespolu Izba Celna w Biaáej Podlaskiej ul.

ul. Wojska Polskiego 47 PL-21-550 Póánocna 19 PL-21-500 Biaáa Podlaska
Terespol
WOLNY OBSZAR CELNY w Izba Celna w Szczecinie ul.
Szczecinie ul. Bytomska 7 PL-70-603 Energetyków 55 PL-70-952 Szczecin
Szczecin
WOLNY OBSZAR CELNY w Izba Celna w Szczecinie ul.
ĝwinoujĞciu ul. Jana Soltana 1 PL-72- Energetyków 55 PL-70-952 Szczecin
602 ĝwinoujĞcie
WOLNY OBSZAR CELNY w GdaĔsku Izba Celna w Gdyni ul. Polska 8 PL-81-
ul. ZamkniĊta18 PL-80-955 GdaĔsk 339 Gdynia
WOLNY OBSZAR CELNY w Izba Celna w Warszawie ul. ModliĔska
Mszczonowie ul. Fabryczna 6/10 PL- 4 PL-03-016 WARSZAWA
96-320 Mszczonów
Source: www.europa.eu.int
6.12 Requirements for import of samples and accompanied

luggage
The requirements for the import of samples are the same as for the general
import of confectionery and milling products, because they are perishable and
consumable goods. 14
6.13 Website links to rules and regulations

www.mf.gov.pl
- Customs Service of the Republic of Poland (SáuĪba Celna
Rzeczypospolitej Polskiej)
www.mgip.gov.pl
- Ministry of Economic Affairs and Labor (Ministerstwo Gospodarki i Pracy)
www.sejm.gov.pl
- Sejm of Republic of Poland (Sejm Rzeczypospolitej Polskiej)
www.europa.eu.int
- Euro Lex
www.polbisco.pl
- Association of the Producers of the Chocolate, Biscuits& Confectionary
Industries of Poland
www.foodbiz.pl
- Food Business Centre (Centrum Biznesu ĩywnoĞciowego);
14
Source: Dutch Customs Office
6.14 Flow chart of the process and related costs

6.14.1 Flow chart of the process and related costs 15
Customs Transportation of
Goods guarantee goods to the
inland Customs
and Office
Import
documen
ts Customs Declaration
agent or for the
Polish chosen
subsidiary customs
regime
The duties Confirmation of

Handling of are paid or customs
customs the custom declaration
proceeding debt is that serves as
secured VAT
documentation
Source: Calculation by EUNITE BV
In general, only EU entities can clear goods for customs in Poland. Non-EU
entities can carry out customs proceedings only on goods under the transit
regime or under temporary admission. In other cases, foreign entities can clear
goods for Polish customs only in exceptional cases with the permission of the
Customs Office.
A foreign company exporting to Poland and wishing to import into the country
must either establish a Polish subsidiary to handle importation or engage a
customs agent to handle customs proceedings. It is usual practice that the Polish
purchaser of imported goods will handle the customs proceedings.
When imported goods reach the EU border, they are released to the transit
regime. The customs debt (all import duties that would apply on import under free
circulation) must be secured with a customs guarantee at this time. The goods
15
The prices of customs agents differ according the value and quantity of goods – see chapter
7.10. There are approximate prices of their basic services. All the exact prices are available on
request at the customs agencies – see the contacts in Chapter 7.4.
must then be transported to the inland Customs Office of final destination without
delay. Here the goods are declared for the chosen customs regime based on the
customs declaration filed by the importer (or his customs agent). The final
customs debt assessed by the Customs Office is either paid or guaranteed,
depending on the import regime and the conditions negotiated with the Customs
Office.
If import duties are properly paid (or the customs debt is secured), the Customs
Office issues a confirmed customs declaration, which serves as a VAT document
for the reclaiming of import VAT. In general, import VAT is applied on the total
declared customs value of imported goods and the applicable amount of customs
duty and any other charges levied by the Customs Office (e.g., excise duty).
From 1 January 2005, importers can reclaim the amount of import VAT paid, by
including the amount in their regular VAT returns, provided the importer is
registered for Polish VAT.
VAT rates are the same as for domestic products, currently 22%, 7% or 3%).
Importers registered for Polish VAT can normally recover import VAT costs,
provided a valid customs declaration (tax document) is obtained from the
Customs Office. The VAT rate for confectionery and milling products is currently
22%.
6.15 Recommendations
Documents requested to export chocolates and sugar confectionery to Poland
are: invoice, certificate of origin issued by Colombian authorities and Single
Administrative Documents (SAD). On the Polish customs clearance all the
documents will be verified and necessary customs duties and taxes will be
calculated.
The customs office has the right to take samples for testing. The procedure of
custom clearance is finished when all taxes and tariffs are paid.
7. Physical Access
7.1 Available transportation infrastructure
Poland has developed all transportation infrastructures: roads network, railways,

airports connections as well as sea ports.
Picture 7.1.1 Polish roads network
Source: www.gddkia.gov.pl
Picture 7.1.2 Polish roads - January 2005
Source: www.gddkia.gov.pl
Picture 7.1.3 Polish roads – executed projects and plans
Source:www.gddkia.gov.pl
Picture 7.1.4 Polish railroads network
Source: PKP (Polish State Railroads)

Picture 7.1.5 Airports in Poland
Source: http://www.lemon.travel.pl/samoloty/lotniska/polskie.jpg
International airport im. Fryderyka Chopina in Warsaw

ul. ĩwirki i Wigury
Warszawa
tel.: +48 (22) 650 42 20
www.lotnisko-chopina.pl
International airport im. Jana Pawáa II Kraków - Balice Sp. z o.o.

ul. Kpt. M. Medweckiego 1
32-083 Balice
tel.: +48 (12) 639 30 00
fax: +48 (12) 411 79 77
www.lotnisko-balice.pl
GórnoĞląskie Towarzystwo Lotnicze S.A. Internation Airport Katowice

Al. Korfantego 38
40-161 Katowice
tel.: +48 (32) 201 06 33
fax: +48 (32) 201 06 34
www.gtl.com.pl

Airport PoznaĔ-àawica Sp. z o.o.

ul. Bukowska 285
60-189 PoznaĔ
tel.: +48 (61) 849 20 00
fax: +48 (61) 849 23 17
www.airport-poznan.com.pl
Airport GdaĔsk Sp. z o.o.

ul. Sáowackiego 200
80-298 GdaĔsk
tel.: +48 (58) 348 11 54
fax: +48 (58) 345 22 83
www.airport.gdansk.pl
Airport ,,Mazury-Szczytno'' Sp. z o.o. w Szczytnie

Port Lotniczy Szczytno-Szymany
ul. Wielbarska 5
12-100 Szczytno
tel.: +48 (89) 624 32 81
fax: +48 (89) 624 22 94
www.airport.szczytno.pl
Airport Wrocáaw S.A.

ul. SkarĪyĔskiego 36
54-530 Wrocáaw
tel.: +48 (71) 358 11 00, 358 13 10
fax: +48 (71) 357 39 73
www.airport.wroclaw.pl
Lublinek Sp. z o.o.

ul. Gen. S. Maczka 35
94-328 àódĨ
tel.: +48 (42) 688 84 14
fax: +48 (42) 688 83 84
www.airport.lodz.pl
Airport Zielona Góra-Babimost

skr. pocztowa 4
6-110 Babimost
tel.: +48 (68) 351 23 00
fax: +48 (68) 351 27 29
Airport Rzeszów-Jasionka
36-002 Jasionka 942
tel.: +48 (17) 852 00 81
fax: +48 (17) 852 07 09
Airport Bydgoszcz S.A.

ul. Grodzka 12
85-109 Bydgoszcz
tel.: +48 (52) 345 95 96
fax: +48 (52) 322 52 32
Airport Szczecin-Goleniów Sp. z o. o.

72-100 Goleniów
tel.: +48 (91) 418 28 64
fax: +48 (91) 418 33 83
www.airport.com.pl
There are 4 big marine ports in Poland: GdaĔsk, Gdynia, ĝwinoujĞcie, Szczecin
and 8 small ones: Daráowo, Elbląg, Hel, Koáobrzeg, àeba, Police, Wáadysáawowo,
Ustka.
Chart 7.1.6 Cargo handling In Polish marine ports
Cargo handling 2003 [thous. tons]
Coal:
GdaĔsk 5926
Gdynia 1442
Szczecin i 5943
ĝwinoujĞcie
Total: 13311
Ore:
GdaĔsk 99
Gdynia 0
Szczecin i 2008
ĝwinoujĞcie
Total:2107
Other mass:
GdaĔsk 2582
Gdynia 1776
Szczecin i 1974
ĝwinoujĞcie
Total: 6332
Corn:
GdaĔsk 397
Gdynia 872
Szczecin i 979
ĝwinoujĞcie
Total:2248
Wood:
GdaĔsk 2
Gdynia 162
Szczecin i 33
ĝwinoujĞcie
Total:197

Package freight:
GdaĔsk 2295
Gdynia 7107
Szczecin i 4584
ĝwinoujĞcie
Total:13986
Liquid fuels:
GdaĔsk 9991
Gdynia 297
Szczecin i 125
ĝwinoujĞcie
Total:10413
Chart 7.1.7 Nr. of Ships entering Polish marine ports in 2002
GdaĔsk 2506
Gdynia 3483
Koáobrzeg 353
Police 269
Szczecin 3493

ĝwinoujĞcie 9950
Total: 30212
7.2 Identification of ports, airports, roads – border passes –

railways, waterways
The goods may be transported from Colombia to Poland by air, by sea, combined
air/sea or air/truck. In case of confectionery products the sea transportation is the
most recommended way of transportation. The costs are relatively low (for more
detailed information please see chapter 7.7.).
Transportation by sea is very popular. There are about 20 national and

international shipping lines operating in the Caribbean harbors. The vast majority
of trade, approximately 80 percent, leaves from Pacific ports of Buenaventura
and Tumaco and the Carribean ports of Barranquilla, Cartagena and Santa
Marta. These harbors are equipped with many ports and extensive storing
capacity. Container harbors exist in Cartagena, Barranquilla and Buenaventura.
The most important shipping lines are the FLOTA MERCANTE
GRANCOLOMIANA, AGROMAR S.A., COLOMENARES LTDA and
GERMEINCO. The transportation to the Polish ports Gdansk, Gdynia and
Swinoujscie will take approximately 27 days.
The combined transportation to Poland would involve the goods to be shipped to

Rotterdam or Amsterdam in the Netherlands and then transported by air, ship or
truck to Poland. There are many possibilities to enter Poland from other
European countries.
Table 7.2.1 Methods of transportation from Colombia
Method of
Time of delivery Security Factor Cost Freight Capacity
Transportation
Air freight 2 days Excellent Very expensive Often difficult
Sea freight 28-30 days Insufficient Cheap Sufficient
By sea/air 18-20 days Excellent Expensive Not always
Source: www.usergioarboleda.edu.co
According to transporting companies, the cheapest and fastest way to transport

goods from Southern America to the EU is via the port of Hamburg (Germany).
However, Southern-American countries also often use the Port of Rotterdam (the
Netherlands).
Most Southern-American exporters transport their goods to the EU as follows;

x Colombia (or another Southern-American country) – Europe by ship.

For transport by ship, most countries world wide, including Southern-American
countries, use one of the main ports in Europe to enter the EU. Besides
Rotterdam, Hamburg is an important port as well, The port of Gdansk (Poland) is,
due to its geographical position, of lesser importance than Rotterdam and
Hamburg. For distances between the mayor European ports and Poland, we
refer to table 7.2.2
x Colombia (or another Southern-American country) – Europe by plane.

In case exporters would like to bring the goods by plane, then it is better to
choose a big European airport, like Frankfurt or Amsterdam instead of the airport
of Warsaw and from there transport the goods further to Poland. As a stop-over
in Amsterdam or Frankfurt will be necessary anyway, it is cheaper and more
efficient to use road transport for further transportation. A minority of goods is
transported further by ship.
For the transportation of chocolate confectionary, it is recommended to take

special care, as chocolate products are sensitive for temperature changes. The
optimum storage and transport temperatures of chocolate are 10-18°C. At as low
as at 21°C, chocolate becomes soft. At the temperature of 28°C the cocoa butter
in the chocolate starts to melt, which makes the chocolate unmarketable.
Therefore, chocolate products have to be packed isolated. Standard containers
do not offer sufficient protection against temperature changes, so the transport
has to take place in refrigerated containers.
Virtually all road transporters in the EU, like for example Raben Group 16 , offer
transportion in suitable, climate controlled trucks.
Table 7.2.2 Distances from the most important ports to Warsaw

Port Country Distance to Warsaw
(km)
Hamburg Germany 747
Bremerhaven Germany 840
Gdansk Poland 256
Rotterdam Netherlands 1129
Amsterdam Netherlands 1096
Source: investigations EUNITE
7.3 Description of status, operation, security, costs, distances,

transportation arrangements and intercommunity customs
For transportation of confectionery products it is also possible to use air

transportation from Colombia to Poland. However, the costs are very high and
16
For contact details of Raben Group, please see paragraph 7.7
there is at least one trans-shipment necessary during the transport. Most

exporters from Southern-American countries prefer to transport their goods by
ship to one of the main ports in Europe and then transport them further by road.
LOT, the Polish airlines, is able to arrange all the flights from Colombia to Poland.
The air freight would approximately take 17 to 26 hours from Bogota, via New
York to Warsaw or Krakow. The loading takes place in one of the two available
airports in NY: JFK Airport or EWR Newark Airport. The shortest recommended
operating time needed for the transit in NY is 4 hours. The trans-shipment is
organized by handling agents, specialized companies that deal with loading and
redirecting it. The transportation order should be delivered to the company that
deals with the logistics. This is usually Cargo Agent or Airfreight Forwarder. The
route of the transport should be included in the order, with the indication of each
involved carrier. The sender as well as the receiver of the transported goods is
obliged to possess permissions, export/import licenses that are subjects to
customs law and sanitary rules in each country of transit.
Rates and charges published by the airline are based on the units of
measurement. They cover only the carriage of consignment between airports.
Such charges do not include the following services and charges: pick-up and
delivery, storage, insurance, customs clearance, disbursements, airport taxes
and charges, expenses for the repairing of faulty packing and other similar
advanced charges.
These arrangements and costs are negotiated separately on the basis of an

individual order. Prices depend on the amount of the transported goods, weight,
frequency of orders, but also on the person negotiating the rates. Agents from the
logistics centres are the most suitable persons to arrange these rates with.
The other airline, KLM Cargo is operating on the route Amsterdam – Warsaw.
KLM as well as LOT offers flights from Amsterdam to Warsaw 3 times a day. The
rates and general conditions from KLM Cargo are valid on the services within the
current KLM Cargo network. All shipments are governed by the General
Conditions of KLM Cargo. KLM states that the amount of goods transported from
Amsterdam to Poland by air is very limited due to the high air cargo transport
cost versus the low trucking costs. The transportation costs are less than 25% of
the air cargo costs. Furthermore, there is no container air cargo capacity between
Amsterdam and Warsaw, only loose belly capacity. The operating time by air is 2
hours.

7.4 Identification of other handling and distribution

infrastructure
The sea connections from Colombia to Poland:
The sea service is provided by domestic companies only for the route Poland-
Colombia. It is the international operators that deal with the transportation from
Colombia to Europe.
Table. 7.4.1 Sea connections from GdaĔsk port to Colombia

Destination Carrier Frequency Type of cargo Agent
Barranquilla Venbulk Service Every 6th week Containers/package MAG
GmbH freight
Source: www.portgdansk.pl
Table. 7.4.2 Sea connections from Gdynia port to Colombia

Destination Carrier Frequency Type of cargo Agent
Cartagena Conti Lines Month Conv. Okmarit
Barranquila Spliethoff Month Conv. Pomorscy
Maklerzy OkrĊtowi
Turbo Spliethoff Month Conv. Pomorscy
Maklerzy OkrĊtowi
Source: www.port.gdynia.pl
These Polish agents arrange transportation of goods such as steel and metal
equipment. This is called conventional cargo and is packed as loose cargo and
transported on pallets not in the containers. In case of confectionery
transportation should be arranged in containers.
Transportation by sea from Colombia to Poland is offered by:
x Maersk Sealand. As a leading, world-class ocean carrier, they offer

second to none door-to-door transportation service. With more than 300
container vessels, one million containers and own terminals, trucks and
trains they ensure getting a reliable worldwide coverage. Their offices in
more than 125 countries ensure that the cargo will receive an excellent
service in all corners of the world.
Table 7.4.3 Transit time and possible schedule from Cartagena to Gdynia
LOCATIONS SCHEDULE 1 SCHEDULE 2
Dep.: 30.Jun.05(Thu) 08.Jul.05(Fri)

By: AURETTE A ROTHORN
Cartagena,
Lloyds no.: 9242285 9126986
CO
Voyage no.: 0520 0520
Build year: 2002 1996

Manzanillo, Arr.: 02.Jul.05(Sat) 09.Jul.05(Sat)

PA
Dep.: 04.Jul.05(Mon) 11.Jul.05(Mon)
By: JEPPESEN OLIVIA MAERSK
MAERSK
Lloyds no.: 9215165 9251638
Voyage no.: 0510 0510
Bremerhave Arr.: 20.Jul.05(Wed) 27.Jul.05(Wed)
n, DE
Dep.: 26.Jul.05(Tue) 02.Aug.05(Tue)
By: FELICITAS FELICITAS
Lloyds no.:
Voyage no.: 0523 0525
Gdynia, PL Arr.: 28.Jul.05(Thu) 04.Aug.05(Thu)
Transit time: 28 days 27 days
Container type: Dry, Reefer Dry, Reefer
Source: www.maersksealand.com
Picture 7.4.4 The route from Colombia to Poland
x MSC Mediterranean Shipping Company S.A., of Geneva, Switzerland is a

privately owned shipping line, founded in 1970, which has rapidly
grown from a small conventional ship operator to become one of the
leading global shipping lines of the world. During recent years MSC's

maritime fleet has expanded substantially to consolidate its position in

2003 as the 2nd largest carrier in respect of container slot capacity and
of the number of container vessels operated. MSC operates in excess of
255 container vessels with an intake capacity of 670,000 TEUs. MSC
provides an unparalleled service network via dedicated own offices
throughout the world and remains a truly independent and private
company able to respond quickly to market changes and implement long
term plans, without unnecessary interference or delay. With a streamlined
management structure in Geneva, MSC has become a leading customer
focused and cost effective global transportation solution for many
shippers.
MSC prices are slightly higher than Maersk Sealand rates.
7.5 Identification of carriers that transport goods imported

from Colombia
The providers of air connections from Colombia to Poland and from the
Netherlands to Poland are:
x LOT – Polish Airlines

x KLM – Royal Dutch Airlines
The providers of road transportation throughout Europe are:
x Fresh logistics (Raben-Group) - developed, as one of the first logistic

companies, a special dedicated system for fresh products. The quality of
performed services was confirmed by obtaining a HACCP certificate. The
modern solutions guarantee the highest quality of servicing the market,
flexible reaction to its needs, faster and prompt deliveries, professional
stock management and detailed administration. Fresh Logistics delivers
goods of various volumes to indicated addresses - from one consignment
to full truck loads. Domestic deliveries to retail-, wholesale- and network
consignees are executed on the next working day. The company offers
services of international forwarding of consignments:
- groupage loads from 50 to 3 000 kg (fresh products from +2 to +6°C)

- part loads over 3 000 kg (fresh products from +2 to +6°C)
- full truck loads (frozen products, fresh products from +2 to +6°C, food
products with various temperature ranges: -18°C; +12°C; +18°C)
For more information please see: www.freshlogistics.com or the carrier

website www.raben-group.com
x Cargo Sped - Cargo Sped specializes in forwarding of all types of

freights. They offer road, railway and sea transportation services for
export, import, transit and domestic traffic. The trans-shipment services at

the borders, in the harbors and terminals are also offered. It also arranges
agency services in customs and administrative matters, cargo insurance
and customs securities.
x AXA – AXA company was established in the year 1991, and since then it
developed and improved the quality of services that are offered to
customers. The experienced personel and the variety of transportation
which might be suitable to the individual needs of clientele are some of the
features they provide. Known as reliable, dynamic company. Promptness
in picking up the cargo from the loading up places and delivering it to their
destinations is company goal. It specializes in the transportation all over
Europe and CIS countries.
7.6 International Freight or Transportation Costs
SEA TRANSPORTATION:
The costs of transportation are based on the container’s size. Maersk Sealand
offers containers as follows:
Table 7.6.1 Description of containers

Dry/steel
Type Size m3 ft3
» 20' standard 20' x 8' x 8'6" 33 1,170
» 40' standard 40' x 8' x 8'6" 67 2,390
» 40' high 40' x 8' x 9'6" 76 2,714
» 45' high 45' x 8' x 9'6" 85 3,040

Dry/aluminium
Type Size m3 ft3
» 45' high 45' x 8' x 9'6" 86 3,071
Maersk Sealand's dry containers come in several sizes and designs:
x 20' with a payload of up to 28.3 metric tonnes

x 40' - both 8'6" and 9'6" high cube - with a payload of up to 30.4 metric
tonnes
x 45' - 9'6" high cube - with a total capacity of 86 cubic metres
Table 7.6.2 The base freight for the routes from Colombia to Poland for 20’container
Base Exp.
Siz. Orig Dest Comm
Freight Date
GDYNIA DRY CARGO :
BARRANQUILLA
20 1690.00USD (port), CLASS 1 31Jul2005
(port), COLOMBIA
POLAND COMMODITIES
GDYNIA DRY CARGO :
CARTAGENA
(port), COLOMBIA
POLAND COMMODITIES
GDANSK DRY CARGO :
CARTAGENA
(port), COLOMBIA
POLAND COMMODITIES
GDYNIA DRY CARGO :
BUENAVENTURA
(port), COLOMBIA
POLAND COMMODITIES
SZCZECIN DRY CARGO :
BARRANQUILLA
(port), COLOMBIA
POLAND COMMODITIES
GDANSK DRY CARGO :
BUENAVENTURA
(port), COLOMBIA
POLAND COMMODITIES
GDANSK DRY CARGO :
BARRANQUILLA
(port), COLOMBIA
POLAND COMMODITIES
CARTAGENA
(port), COLOMBIA
POLAND COMMODITIES
BUENAVENTURA
(port), COLOMBIA
POLAND COMMODITIES

Table 7.6.3 Additional charges
Ocean Freight 1,700.00USD per Container

Redefining Basic Ocean Freight TLI Rate
CARRIER SECURITY CHARGE 6.00USD
BAF-NCSA To Europe (BAF) 70.00USD
PORT SECURITY CHARGE 3.00USD
DOCUMENTATION FEE - DESTINATION 15.00EUR
DOCUMENTATION FEE - ORIGIN 50.00USD
===========
Total Charges 1847.16 USD
Source: www.maersksealand.com, charges as of 27 July 2005
The above rate quotation is valid for 30 days. All rates published in the tariff at
the time of receipt of cargo will be applicable and supersede the above quoted
rates. Rate quote may not include local destination charges such as but not
limited to: Cleaning, Port fees, Primage, Overweight charges, Documentation
fees, or Customs inspections. These fees may be assessed to and settled locally
by the cargo receiver.
Seagoing vessels in GdaĔsk port:
Tonnage Dues for Seagoing Vessels in GdaĔsk port are described below: (for
more information see http://www.portgdansk.pl/index.php?id=charges&lg=en )
Tonnage dues for entry of seagoing ship to port and departure of ship from port,
transit through port area, and assurance of ship waste reception for recycling or
treatment (excluding ships specified in § 5) per 1 GT:
Fee
No. Ship size and type
(EUR/1 GT)
1 Car carrier 0.14
2 General cargo vessel 0.45
3 Reefer carrier 0.52
4 Container vessel 0.22
5 "Ro-Ro" ship 0.20
6 Bulk carrier 0.51
7 Passenger ship 0.13
8 Ferry 0.09
9 Passenger - cargo ship 0.09
10 Tanker up to 38.000 GT 0.57
11 Tanker over 38.000 GT 0.64

12 Towing and pushing vessels 0.48

13 Other seagoing ships 0.45
Tonnage dues for line shipping and ferries entering port:

x at least 8 times a week amount to 40%
x 3 times a week amount to 60%
x 2 times a week amount to 65%
x 1 once a week amount to 70%
x less than once a week amount to 75%
of the pertinent fee rate specified in clause 1.
For seagoing new buildings and newly constructed hulls leaving port or shipyard,
arriving for repair, conversion, dismantling, scrapping, performance of towing
power tests or bunkering fuel or provisions or equipment, and not involved in
commercial activity, if their stay in port or shipyard is limited to the time
necessary to perform these action, the charge amounts to 25% of the pertinent
fee rate specified in clause 1. Please rephrase the sentence above. Not clear.
Use short sentences!
For vessels staying in the roadstead for loading or discharging cargo or for
passenger clearance the charge is 50% of the fee stipulated in clause 1.
For seagoing ship entering the port for other than commercial purposes the
charges amount to 25% of the pertinent rate specified in clause 1.
For ships passing in transit through the port area and not conducting commercial
activity, fees are charged for one way passage and amount to 50% of the
pertinent fee rate specified in clause 1.
Seagoing ships involved in commercial activity and next proceeding to the

shipyard, or involved in commercial activity on leaving the shipyard, are charged
with full tonnage dues.
Tonnage Dues for Seagoing Vessels in Gdynia port are described below 17 :
1. The following are the tonnage due charged for:
No. Type and size of vessel Amount of due [EUR/1

GT]
1. Car carriers 0,18
2. General cargo vessels 0,49
3. Reefer vessels 0,49
17
For more information see www.port.gdynia.pl
4. Container vessels 0,31

5. "Ro-ro" vessels 0,26
6. Bulk carriers 0,52
7. Passenger and cruise vessels 0,13
8. Ferries 0,13
9. Tankers 0,59
10. Tugs, pusher-tugs, push trains and towing 0,40
trains
11. Fishing vessels and boats less than 35 m 0,00
12. Other seagoing vessels 0,49
2. Tonnage due for seagoing liners and ferries entering the port:
a) at least 8 times a week amount to 40%,

b) at least 6 times a week amount to 45%,
c) at least 4 times a week amount to 50%,
d) 3 times a week amount to 60%,
e) twice a week amount to 65%,
f) once a week amount to 70%,
g) less than once a week (but not less than once a month) amount to 75% of the
relevant rate of dues specified in § 3 Section 1.
3. The amount of the tonnage due charged for the seagoing vessels carrying
homogeneous cargo to/from Gdynia and with the frequency not less than 8 calls
a quarter - is 80 % of the relevant rate of the due specified in § 3 Section 1 Is this
correct? . The reduction of dues is granted, provided that the Port accepts the
service declared by the ship operator.
4. For the seagoing vessels which are newly built and for the vessels calling at
the port or at a shipyard with the purpose of repair, conversion, demolition, ship
breaking, refuelling, replenishment of provisions or equipment materials or crew
replacement and which do not perform any commercial operations - if they stay in
port or in shipyard is only for the time necessary to perform the above mentioned
operations - the amount of due charged is 25 % of the relevant rate specified in
Section 1 above.
5. For the seagoing vessels calling for a stay in port without performing any
commercial operations, the amount of due charged shall be 25 % of the rate
specified in Section 1 above.
6. The seagoing vessels which perform commercial operations in the port and
then go to a shipyard or the other way around, shall be charged the full tonnage
due.

Costs for further transportation within the EU.
AIR TRANSPORTATION:
The arrangements and costs are negotiated separately on the basis of an

individual order.
General costs air freight Amsterdam to Warsaw with LOT Cargo;
Based cost B is EUR 34,03 which is a fixed cost

Each kilogram of the parcel is counted EUR 1,56.
In the case of a long-term partnership there is a possibility to negotiate the prices.
Prices of KLM Cargo (Amsterdam- Warsaw) as comparable to the prices of LOT

Cargo
Also Lufthansa offers daily cargo flights from Frankfurt (Germany) to Warsaw.
However, this option is only interesting when the route from Colombia to Europe
is been made by plane to Frankfurt, as Frankfurt has no direct sea connections.
General costs air freight Frankfurt to Warsaw with Lufthansa Cargo are
calculated individually for each client. No price offer was made by Lufthansa.
ROAD TRANSPORTATION:
Following prices (per truck) and time of the delivery for the distance from the
Netherlands to Poland:
Amsterdam – Warsaw EUR 1000
Amsterdam – PoznaĔ EUR 1200
Prices from Rotterdam are the same as from Amsterdam.
7.7 Physical distribution services address book
SERVICES ADDRESS BOOK:
SEA TRANSPORTATION:
1. MSC Poland
Plac Kaszubski 8
81-350 Gdynia
Phone: +48 58 666 1000
Fax: +48 58 666 1001
E-mail: gdy@medship.pl
www.mscgva.ch/index.html
The worldwide agents may be found at:

www.mscgva.ch/contact/contact_page.html
COLOMBIA
City Company Phone Fax
Bogota MSC Colombia +57 1 611 2787 +57 1 610 7347
Buenaventura MSC Colombia +57 2 241 8926 +57 2 241 7809
Cartagena MSC Colombia +57 5 667 1111 +57 5 667 0953
2. Maersk Sealand
Ul. Kwiatkowskiego 60
81-127 Gdynia
Phone: +48 58 660 39 39
Fax: +48 58 660 39 38
E-mail: gdysal@maersk.com
www.maersksealand.com
COLOMBIA
Bogota Maersk Colombia S.A +57 1-6449600 +57 1-3760960
Cali Maersk Colombia S.A. +57 2-6618217 +57 2-6534871
Medellin Maersk Colombia S.A. +57 4-3134865 +57 4-3136884
Buenaventura Maersk Colombia S.A. +57 2-2411400 +57 2-2418683
Cartagena Maersk Colombia S.A. +57 5-6502405 +57 5-6502407
Barranquilla Maersk Colombia S.A. +57 5-3602936 +57 5-3607315
POLAND
Gdynia Maersk Polska Sp. z o.o. +48 58 6603939 +48 58 6603938
Krakow Maersk Polska Sp. z o.o. +48 12 4212006 +48 12 4228727
Warsaw Maersk Polska Sp. z o.o. +48 22 5414250 +48 22 5414251
Polish sea operators:
2. MAG (Morska Agencja Gdynia Sp. z o.o.)
ul. T. Wendy 15

81-341 Gdynia
Phone: (+48 58) 661 41 41
Fax: (+48 58) 621 06 08
E-mail: mag@mag.gdynia.pl
www.mag.gdynia.pl
3. Okmarit Sp. z o.o.
Armii Krajowej 30 street

81-366 Gdynia
Phone: (+48 58) 661 22 61
Fax: (+48 58) 661 69 65
E-mail: okmarit@itnet.pl;
www.okmarit.com.pl
4. Pomorscy Maklerzy OkrĊtowi Sp. z o.o.
ul. Chopina 6
81-752, Sopot
Phone: (+48 58) 550 20 62
Fax: (+48 58) 550 20 18
E-mail: psb@transnet.info.pl
AIR TRANSPORTATION:
5. LOT Cargo agent in the Netherlands:
www.lot.com
Zygene European Freight Consult BV.

Flamingoweg 31, room 316,
1118 EE Schiphol-Zuid, The Netherlands.
Tel : 31-(0)-20-6530007
Fax : 31-(0)-20-6530581
E-Mail : jos@zygene.nl
www.zygene.nl
6. KLM Cargo in the Netherlands:
www.klmcargo.com
Schiphol Airport
Building 551
PO Box 7700
1177 ZL
Tel.: (31) 206498000

Fax.: (31) 206494553

E-mail: Customer-Service.SPL@KLMCARGO.COM
Rotterdam
Arlandabaan platformzijde 52 3045 AB
PO Box 12039
3004 GA
Tel.: (31) 104379455
Fax.: (31) 104370731
E-mail: Customer-Service.RTM@KLMCARGO.COM
7. Lufthansa Cargo Charter Agency GmbH

Langer Kornweg 34 H
65441 Kelsterbach
Tel: (49) 6107 777 721
Fax: (49) 6107 777 881
E-mail: Sales@LHCharter.com
ROAD TRANSPORTATION:
8. Raben Transport Spóáka z o.o.

ul. PoznaĔska 71
62-023 Gądki k/Poznania
tel.: +48 (61) 650 65 00
fax: +48 (61) 650 65 01
e-mail: transport@raben-group.com
www.raben-group.com
9. Cargo Sped
ul. Bokserska 66
02-690 Warszawa
tel.: +48 22 455 76 00
e-mail: warszawa@cargosped.pl
www.cargosped.com.pl
10. AXA
ul. Bukowiecka 92
03-893 Warszawa
tel.: +48 22 678 88 22
e-mail: info@axa.waw.pl
www.axa.waw.pl

8. Recommendations to the exporter
As a member of the EU, Poland has an opportunity to enhance and substantiate

trading relations with Colombia and other South American countries. This is
mainly due to the “Strategy of the Republic of Poland for cooperation with
developing countries” which focuses on 4 priority countries (Brazil, Argentina,
Mexico and Chile) and 2 countries of great importance (Venezuela and
Colombia).
It is recommendable to encourage Colombian entrepreneurs to enter the Polish

market. Poland has developed a status of a fully reliable partner, especially
thanks to accession to the EU. All the regulations for import and customs,
regarding the membership, are now unified with majority of European countries,
whereas only few matters are treated separately. The formalities are sometimes
facilitated, especially for non-Community countries, for example through the
possibility to benefit from the free zone in the country of imports destination. On
the other hand Poland still has its own currency (weaker than the euro, therefore
cheaper).
The big and growing market of confectionery products in Poland is undoubtedly

attractive for sellers because their margins are still higher than average margins
in the food sector. However, it has been very difficult to operate on this market
because of increasing competition resulting from investments of international
food concerns which dominated the domestic market.
Key characteristics of the confectionery sector include: strong brand names,

impulse buying, product innovation and strong merchandising. Poles are open to
new products on condition that it is a good quality and is well-known, which
means supported by marketing actions. Producers need to use more
sophisticated means of promotion due to growing maturity of consumers.
The negative aspect of potential confectionery export to Poland is a 22% VAT

rate for the product. Also, the already established trademarks, attached
instinctively by consumers with their price (established buyers habits), may be
some kind of obstacle for entering the Polish market.
However, in many categories Poles statistically consumes less than the average
EU citizen. The model of consumption is changing as the living standards of
Poles are improving, with more money being spent on confectionery. Polish
confectionery market has big growth potential, which should be considered as a
chance for new market possibilities. The gap between Polish and European
consumers, which amounts 8-12 kg, is an opportunity awaiting.

Annexes
Annex 1: Health inspection application form




Annex 2: Certificate of origin form A

Annex 3: DV1 Form


Annex 4: Single Administrative Document (SAD)

Annex5: Photo material
In this annex, packaging and products of the most popular brands in Poland are shown.
Chocolate Confectionery
Cadbury Wedel Sp. z o.o.
Chocolate Covered Marshmallows Lemon Wedel chocolate slabs

Different flavours, pack 100g. Different flavours, slab 100g.

Wedel chocolate with nuts Wedel chocolate bars with fruit filling
Slab 300 g. Slab 100 g.

Kraft Foods Polska S.A.
Alpen Gold chocolate slabs Milka Chocolate slabs

100 g. 100 g.

Mleczna Kraina Filled Chocolate Bars

Pack 4 pcs, 50 g.

Nestle Polska S.A.
Nestle Stratiatella Chocolate, also in Cocos Smarties Mini Choclolates

Slab 90 g. Pack 100 g.

Wawel S.A.
Wawel Chocolate with nuts Wawel Chocolate

Slab 100 g. Pack 100 g.

Milling products
Lu Polska
Lu Petitki Wafers Lu Lakotki Cookies

Pack 84 g. Pack 146 g.

Thie Lorenz Bahlsen Snack-Wols Sp. z o.o.
Lajkonik Cocos Biscuits Bahlsen Choco biscuits

225 g. Pack 100 g.

Sugar Confectionery
Leaf Poland Sp. z o.o.
Mieszko
Hops Fruit/ Mint Hard Candies Zozole Orange (Hard Candies, also in Cherry,
Apple, Cola, Tropical Fruit, Grapefruit
Bag 100 g. Bag 100g.

STORCK Sp. z o.o.
Nimm2 Fruit Bonbons Ice Fresh Mint Bonbons

Bag 150 g. Bag 150 g.

Annex 6: Companies Directories
Companies Directory
Country: Poland
Sector: Confectionery and milling
Página Web Idioma Idioma del Información General de Empresas Requiere Información
Contenido Disponible sin Costo Registro Adicional con
Costo
Directorios Europeos
http://www.kompass.com/ E E; I; O Contenido: Nombre de la empresa; SI SI
País; Dirección; Teléfono; Fax; Sitio
Web; Numero de empleados; Fecha
de constitución; Capital; No de
registro; Identificación del IVA.
Descripción: Información de
empresas para 70 Países.
Opciones de Búsqueda: País;
Productos/Servicios; Empresa;
Sector; Subsector; Marcas;
Dirigentes; Códigos.
http://worldyellowpages.com/ I I Contenido: Nombre de la empresa; SI NO
País; Dirección; Teléfono; Fax; E-
mail; Sitio Web; Descripción corta de
la empresa y sus productos.
Descripción: Paginas amarillas -
Lista alfabética de productos y
servicios; lista de empresas; Permite
acceder a las páginas amarillas de
cada País; Acceso a una pagina de
Información de negocios con algunos
Países entre los que se encuentran
Polonia y Republica Checa.
Opciones de Búsqueda: País;
Listado de productos; Listado de
países; Oportunidades de negocio
con algunos países.
http://www.europages.com/ E; I; O E; I; O Contenido: Nombre de la empresa; SI SI
País; Dirección; Teléfono; Fax; Sitio
Web; Productos/Servicios.
Descripción: Directorio en línea (en
25 idiomas) de la empresas europeas
mas dinámicas; Consulta gratuita de
las licitaciones publicadas en el diario
oficial de la Unión Europea; Directorio
impreso (en 6 idiomas) de los
compradores europeos mas
dinámicos; Directorio en CD-Rom (en
14 idiomas) de la empresas europeas
mas dinámicas. Permite contactar las
empresa vía intra mail.
Opciones de Búsqueda:
Temática; País; Sector.
Directorios Polacos

Companies Directory
Country: Poland
Costo
http://www.teleadreson.pl/ P; I P; I Contenido: Nombre de la empresa; NO NO
Nombre corto; Dirección; Ciudad; Zip
Code; Nombre del contacto; Teléfono;
Fax; Tipo de entidad; Estatus legal; E-
mail; Sitio Web; Empleados; Año de
fundación; NACE (No de Actividad de
la Comunidad Europea);
SIC(Clasificación Industrial Estándar).
Descripción: Permite elegir los
capítulos arancelarios como criterio
de búsqueda de las empresas.
Opciones de Búsqueda: Texto;
NACE (No de Actividad de la
Comunidad Europea); SIC
(Clasificación Industrial Estándar);
Estado nuevo - antiguo; Tipo de
entidad; Año de Fundación; Numero
de empleados.
http://www.panoramafirm.pl/ - P P Contenido: Nombre de la empresa; NO NO
www.pf.pl Dirección; Teléfono; Fax; Sitio Web;
E-mail; Productos/Servicios.
empresas polacas. Permite contactar
las empresa vía mail.
Sector (Categorías temáticas).
http://www.polishproducts.gov.pl/ - P P Contenido: Nombre de la empresa; NO NO
http://www.polishproducts.gov.pl/ Categoría; País; Dirección; Teléfono;
Descripción.
Descripción: Portal de promoción de
exportaciones del ministerio de
comercio polaco.
País; Categoría.
http://www.polandcompany.com/ P; I; A I; W Contenido: Descripción corta de la NO NO
empresa y sus productos; Link al sitio
Web de cada empresa.
Descripción: Portal descriptivo de las
empresas polacas, clasificadas por
Categorías de productos.
Opciones de Búsqueda: Sector.
www.pkt.pl P P; I Contenido: Nombre de la Empresa; NO SI
Dirección; Teléfono; E-mail; Sitio
Web; Sector; Productos/Servicios;
Códigos; Mapa.
empresas polacas. Permite contactar
las empresa vía intra mail
Sector; Productos/Servicios; Empresa
http://www.infodata.pl/ P; I P; I Contenido: Nombre; Ciudad; NO NO
Actividad o sector; Códigos de
Identificación; VAT; Código postal;
Teléfono: Fax; E-mail; Contacto; Sitio
Web.
Descripción: Base de datos de
empresas polacas - InfoData.
Opciones de Búsqueda: Negocios -
Base de datos; Nombre de la
empresa; Ciudad; Actividad.
Directorios por Sector

Companies Directory
Country: Poland
Costo
http://www.foodtrader.com/ I I Contenido: Información sobre SI SI
potenciales compradores.
Descripción: Pagina especializada
en las industrias de alimentos y
agricultura.
Opciones de Búsqueda:
Productos/Servicios; Categorías
http://www.foodnavigator.com/ I I Contenido: Descripción corta de la NO NO
empresa y sus líneas de productos;
Sitio Web.
Descripción: Página de noticias de
Alimentos y Bebidas en Europa. Hay
una suscripción gratuita para recibir
vía e-mail noticias sobre las 100
empresas top de la industria de
bebidas y alimentos.
Opciones de Búsqueda: Noticias de
Productos y proveedores; Por
patrocinador.
Idioma:
E: Español; I: Ingles; A: Alemán; C: Checo; H: Húngaro; P: Polaco; O: Otros; W: Idioma del Sitio Web

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Market Research – Eastern Europe

Confectionery and milling

Calle 28 No. 13ª – 15, Piso 35

Todos los derechos reservados. Ni la totalidad ni parte de este documento puede

Para lograr lo anterior, PROEXPORT, con inversión de recursos propios y de

La información que contiene este estudio, sobre la dinámica del sector, la

Luis Guillermo Plata P.

7. Physical Access .........................................................................................97

This report aims at providing Colombian exporters with a comprehensive guide of

More detailed information is presented by professional reports, like for example

The biggest effort was made to provide as much information as possible,

The appropriate data is given in percentage, values in EURO or rating numbers.

2.1 Current market developments within the specified sector

Table 2.1.1 Economic entities by ownership sectors, sections and divisions

Manufacturing of food 19516 87 19429

The industry is strongly dominated by private capital. Many previously state-

2.2 Sector’s participation in total GDP

Table 2.2.1 GDP in Poland 2002-2004 (current prices million EUR)

The sector of chocolate and sugar confectionary as such is not detailed in

Table 2.2.3 Share of manufacturing of food product and beverages in manufacturing

Manufacture 13786,75 25150,275 27773,95 25279,65 21,1 19,4

Source: Central Statistical Office (GUS)

2.3 Sector’s participation in employment

General figures concerning employment in manufacturing sector in Poland are

Table 2.3.1 Employed persons as of 31 December (in thous.)

Table 2.3.2 presents the average gross wages in manufacturing.

Manufacturing of 401,1275 431,26 435,3325 449,26

Source: Central Statistical Office (GUS)

2.4 Developments in production

Table 2.4.1 Industrial production in national economy

Source: Central Statistical Office (GUS)

Table 2.4.2 Production of pastry, cakes, biscuits, wafers

2.5. Sales-, import- and export activities

In 1999, Polish exports of sugar confectionary not containing cocoa decreased

Foreign trade of sugar confecionery (including white chocolate) not containing

Source: Central Statistical Office (GUS)

Foreign trade of chocolate and other food

1999 2000 2001 2002 2003

Source: Central Statistical Office (GUS)

Table 2.5.3 Export in period January - December 2004

Table 2.5.4 Import in period January-December 2004

In thous. EUR In thous. USD

In thous. EUR In thous. USD

In thous. EUR In thous. USD

In thous. EUR In thous. USD

Russian Federation 19910 20381

Czech Republic 16030 16361

Hungary 13986 14293

USA 8995 9189

Lithuania 8559 8739

Ukraine 6928 7087

Sweden 6619 6754

Denmark 6427 6578

Netherlands 4642 4776

Croatia 3777 3884

Romania 3188 3252

Israel 2560 2623

Slovenia 2489 2548

In thous. EUR In thous. USD

Canada 2227 2276

Serbia and Montenegro 2156 2201

Source: Central Statistical Office (GUS)

Source: Central Statistical Office (GUS)