Alexandrion: After the crisis, the same slice will be divided among fewer players

Alexandrion Group Romania, the producer of alcoholic beverages Alexandrion and Kreskova, has a 5 million-euro net marketing budget this year, according to the data released by the company, to be able to maintain the market shares of the main brands in the portfolio.
More than half of this amount will be invested in the Alexandrion brand.
Even though the marketing budget of the producer is 10% lower than in the previous year, it still is significant on the local alcoholic beverage production market, where the top five players see turnovers in the rage of 30 to 50 million euros a year.
“We see the crisis as an opportunity. Whereas in the beer or cigarette industry there are three or four players at the moment, in the alcoholic beverages industry there are more than fifty players. Once the crisis has ended, the same slice will be divided among fewer competitors. This is why we decided to continue investments in marketing,” stated Gyuri Eperjessy, marketing manager of Alexandrion Group Romania.
He added that the main brands to which the marketing budget would be directed were the Alexandrion brandy, the Kreskova and Alexander vodka brands and the Red Bowler whisky.
The alcoholic beverages producer says that sales peak in autumn and winter, which is one of the main reasons why Alexandrion Group intends to invest in advertising mainly in the second half of this year.
This is also when Alexandrion will launch two new whisky brands, Highland Peak and Hogs, which, along with Red Bowler are made by the William Grant Scottish company in partnership with Alexandrion. The most important brand in William Grant’s portfolio, the Grant’s whisky has been available on the domestic market for a number of years, and is sold by one of the main local importers, Cristalex.
“The fast-paced increase of the whisky segment will slow down. The segment accounts for a small share of the alcoholic beverages market, which in 2009 will remain at the same level as in 2008 or will increase. Given the current economic environment, I believe that we will account for 5% of the market by the end of this year,” Eperjessy estimates.