Profile: Central European Distribution Corp (CEDC.O)

Central European Distribution Corporation (CEDC), incorporated on September 4, 1997, is an integrated spirit beverages business. The Company produces vodka at Poland and is a distributor of alcoholic beverages. The Company is also an importer of spirits, wine and beer in Poland, Russia and Hungary. Its products are also exported out of Poland. CEDC offers a portfolio of alcoholic beverages with over 700 brands. In May 2008, the Company completed the acquisition of a 50% minus one voting power and 75% economic interest in the Whitehall Group. On March 11, 2008, the Company acquired 85% of the share capital of Copecresto Enterprises Limited, a Cypriot company. On July 9, 2008, the Company closed a strategic investment in RAG through an equity investment which provided the Company with an indirect stake of approximately 42% in RAG. On September 24, 2009, the Company closed its acquisition of the remaining 15% minority interest in Copecresto Enterprises Limited.

CEDC produces and sells four main vodka segments in Poland: top premium, premium, mainstream and economy. During the year ended December 31, 2008, the Company produced and sold 10.1 million nine-liter cases of vodka through its Polish business. In addition, in its Bols plant, CEDC produces vodka in Hungary, Royal Vodka, which it distributes through its Hungarian subsidiary Bols Hungary. In the Bols distillery, the Company produces the Bols and Soplica vodka brands among other spirit brands.

The Company’s Polmos Białystok distillery sells mainstream Absolwent, in Poland. In addition to Absolwent, Polmos Białystok also produces Zubrowka. The Zubrowka brand is also exported out of Poland, mainly to Europe.

CEDC operates as a distributor of alcoholic beverages in Poland. The Company's business involves the distribution of products that it imports on an exclusive basis and products it produces from its two distilleries, as well as the distribution of a range of products from the local and international drinks companies operating in Poland. CEDC operates a next-day alcoholic beverage delivery service with 19 distribution centers and 124 satellite branches located throughout Poland. The Company distributes over 700 brands of alcoholic beverages consisting of a range of alcoholic products, including spirits, wine and beer, as well as non-alcoholic beverages. The Company distributes products throughout Poland directly to approximately 39,000 outlets, including off-trade establishments, such as small businesses, medium-size retail outlets, petrol stations, duty free stores, supermarkets and hypermarkets, and on-trade locations, such as bars, nightclubs, hotels and restaurants, where such products are consumed.

Import and Export Activities

CEDC has rights to import and distribute approximately 40 brands of spirits, wine and beer into Poland. The Company also provides marketing support to the suppliers who have entrusted it with their brands.

The Company’s exclusive import brands, include, Corona, Budvar, Guinness, Carlo Rossi Wines, Concha y Toro wines, Metaxa Brandy, Rémy Martin Cognac, Guinness, Sutter Home wines, Grant’s Whisky, Jagermeister, E&J Gallo wines, Jim Beam Bourbon, Sierra Tequila, Teacher’s Whisky, Campari, Cinzano, Skyy Vodka and Old Smuggler.