Government Abandons Carrefour Takeover. KGS Presents New Strategy for Building a Polish Champion

On Monday, March 5, 2026, State Assets Minister Paweł Borys officially announced the government's abandonment of the plan to take over the Carrefour supermarket chain by the state-owned National Food Group. This decision sets the final direction for the state's food policy, which will focus on rebuilding processing capacity rather than investing in retail. "Carrefour is not a business opportunity," said Borys, quoted by RMF FM. He explained that the decision was made after analyzing the chain's profitability, which – although it is the second-largest player on the Polish market – struggles with high debt, low margins, and strong competition from the leading Biedronka. Instead of this transaction, the government and KGS presented a new, comprehensive strategy on Monday for building a Polish leader in the food sector. The National Food Group was established in 2023 as a subsidiary of the Polish Armaments Group. Its goal was to strengthen Poland's food security and improve the bargaining position of Polish farmers against international retail chains that have dominated retail distribution since the political transformation. KGS's new strategy was presented on Monday by its president, Piotr Pająk. The main assumption is to "organize" the assets it already owns and focus on processing. In practice, this means KGS will take over all food plants currently in the Polish Armaments Group's portfolio. A key element of this plan is to be the Kietrz Agricultural Combine, which – as reported by Radio Opole – will become an important link in the new strategy for Polish producers. The goal is to create an integrated entity that will control a significant part of the supply chain: from agricultural raw materials, through processing in plants like Kietrz, to the sale of finished products.

To secure a sales channel and become independent from large retail chains, KGS plans to simultaneously develop its own distribution network. Piotr Pająk, in an interview with portalspozywczy.pl, admitted that the Carrefour idea was "considered for a moment," but it was ultimately decided that building a network from scratch was a better and cheaper solution. This approach represents a clear shift in emphasis in government policy. Instead of a quick, albeit risky, acquisition of a ready-made retail network, the state is choosing the path of organic growth, investing in production capacity and gradually building brands. This direction finds support among some farming communities, which have long complained about low purchase prices imposed by retail chains with enormous bargaining power.

The decision to abandon the Carrefour purchase has met with mixed reactions. The portal Do Rzeczy states in an article title that "it was supposed to be a breakthrough for farmers," suggesting some disappointment. On the other hand, statements by Minister Borys and President Pająk indicate a pragmatic, business-like approach. The minister emphasized that the priority is investing in assets that will bring profit to the State Treasury and strengthen the Polish economy, not "rescuing" a foreign chain. Ultimately, Monday's announcements paint a picture of a state-owned food group with ambitions to become a significant, integrated player, but its success will depend on management effectiveness and the ability to compete with powerful private rivals both in processing and retail. Building such a champion is a process of years, not the result of a single transaction.