Log Archives folder in 3.3.1 does not exist


I am relatively new in Nagios (using it last couple of months)
Anyway, after upgrade to 3.3 (from 3.2) in /usr/local/nagios/var there is no archives folder for old log files.
I have only nagios.log which is raising and fulfilling with all data - simply does not create .log file with date.
Bellow are some additional data about Nagios:
Nagios is virtual machine (VMware ESXi 4.0), upgraded from 3.2.3 version, nagios.cfg file is at /usr/local/nagios/etc, log_rotation_method=d, and at nagios.cfg main heading is “Sample Main Config File For Nagios 3.2.3” - maybe it is problem, but I do not know how to solve it.

Where I am making mistake in configuration?

Thanks in advance