How Ursus adjusted its policy to keep market share at above 30%

Ursus Breweries, the brewer of Timisoreana and Ursus beers, has gained 10% of the market in the past three years, reaching a share of above 30% in 2009, according to the information it provided, from a level of 20-22% that remained constant during the 2002-2006 period.
Andrei Haret, sales and distribution vice-president of Ursus Breweries, says the main steps SABMiller’s domestic subsidiary took to rein in costs were a 40% reduction in distributor stocks at the start of fourth quarter and the renegotiation of transport contracts.
However, the brewer has not changed or given up any of its 40 distributors this year, despite Ursus Breweries having had its own distribution company, ANDIP Distribution for more than a year.
“Five-six years ago we undertook a partnership with distributors and a joint business and development plan. This is why we did not abandon them when times were harder for them and we helped them overcome the crisis period,” maintains the sales and distribution vice-president of Ursus Breweries, a company that last year generated turnover worth more than 325m euros.
He says ANDIP was set up only to ensure distribution in areas where the company cannot sell its products through a local distributor. “ANDIP operates only in six counties at present, with the percentage in overall distribution standing at a very low level,” Haret explained.
He believes, though, that Ursus Breweries’ progression this year has also been supported by the actions the company took before the economic downturn was felt. “Resignation and hope for better times are not part of Ursus Breweries’ organisational culture. For us, the crisis means opportunity and action (…),” Haret says.
Thus, although in 2006 the company’s sales were significantly directed to the on-premise segment, the share held on the retail segment has doubled in the past three years. “Since 2006, Ursus Breweries’ policy has been to boost the company’s presence on the off premise segment and maintain the position held on the on premise one. Therefore, we’ve rethought our sales force on the two channels and shifted the focus to off premise,” Haret explains. Moreover, the brewer has raised its forward stock.
Also, the company’s sales team has expanded by several percentage points in the past three years, after a new position was introduced between the position of regional manager and that of area manager.
All these decisions helped Ursus Breweries keep the 2008 sales growth pace in the first part of this year, too.