Currencies hit vodka maker's forecasts

Polish vodka producer and spirits importer CEDC has reduced its full year net sales forecasts for 2009 from around US$2 billion to the range of US$1.25 billion to £14 billion.

The Zubrowka and Absolwent vodka maker said the revised figures were the result of a 35% weakening of the zloty and ruble in international markets since November.

President and ceo William Carey said: "Our number one market position and strong management teams in Russia, Poland and Hungary have enabled us to weather the current financial crisis much better than many of our competitors.

"Our key management objectives continue to focus on growing our margins, improving operating efficiency and lowering our interest cost."

Carey said sales of Green Mark vodka grew by 30% in volume in the final quarter of 2008, with key vodka brands in Poland expected to show mid-single digit volume growth in 2009.

He added: "We have continued to see spirit prices drop in our core markets which should have a positive impact on our gross margins.

"As inflation eases, we see a slowdown in our core cost components of labour and energy and have been continuing our ongoing programme of headcount reduction in streamlining our operations in Poland and Russia."

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