Optimization of the production in Kofola's Group

Optimization of the production in Kofola’s Group In the scope of an intentional strategy of the Group, in the Hoop Polska Sp. z o.o. is implemented the process of the optimization of production, which is a consequence of merger Kofola and Hoop.

The Management Board of the Group has decided to implement the optimization and the concentration of production plan in order to achieve increased efficiency. This process shall allow for the implementation of strategic objectives of the Group and long-term achievement of a leading position on the Central and Eastern Europe market, both in terms of profitability,efficiency and innovation. The Company plans to continue the development and growth of its key brands in the soft drinks market. Currently, the portfolio of Hoop Polska includes: Hoop Cola, Jupi fruit drinks, Paola syrups, Jupik and Jupik Aqua children’s drink, mineral Arctic water and R20 energy drink. The Company also produces soft drinks that belong to a group of private labels - produced for external companies, primarily large retailers. In the scope of the reorganization, the management board of the Group has decided to concentrate the production and reallocation of the production line from Tychy to Kutno and close the factory in Tychy - one of the eight plants belonging to the Kofola’s Group. As a result of the factory closing, the Hoop Polska is planning to dismiss 163 workers. For those dismissed the possibility of relocation and outplacement has been proposed. The closing of the Tychy’s plant shall allow for expenses reduction, which currently are dealt with separately in both plants. It shall reduce capital’s exposure in fixed assets, and also increase flexibility in the direct management of production costs and bring the benefits arised from the effect of scale. Proposed changes shall enable the company to realize business achievement goals. In the interest of our employees in Tychy, we have created two special programs: outplacement and reallocation. Among other, the Hoop reallocation program shall enable Tychy workers to obtain work in Kutno Hoop factory. Furthermore we are in the process of conversation with other factories in the region to find employment for workers. In addition to help dismissed workers to find work in the region, we developed special training workshops that shall increase the opportunities in the labor market, offer learning of effective job seeking strategies, prepare for job interviews and active assistance in preparation of application documents and legal advice. "- says Vassilen Tzanov, President of Hoop Polska.