Is Heineken finally coming to Romania?

Dutch group Heineken, one of the world’s leading beer companies, is looking into the possibility of beginning production in Romania, by acquiring a local plant or by building a factory from scratch.
The information was released by the Ministry for Small and Medium Enterprises (MIMMC), as ministry officials were contacted by a Dutch company – A.F. Korff, to provide them with information on the opportunity of launching a beer business in Romania.
“The company (A.F. Korff, i.e.) is asking for the mediation of a Heineken investment in Romania, aimed at manufacturing the Amstel beer brand for the Romanian market and the neighbouring countries,” the MIMMC says.
According to ministry officials, A.F. Korff has also requested information about the privatisable beer making companies in Romania and the possibility of turning a piece of farmland into a beer plant.
Heineken, the only European beer group not doing business in Romania, has repeatedly tried to start production on the local market in the past few years.
According to market sources, the Dutch had voiced interest in Brewery Holdings (BH), Bere Aurora Brasov and Martens Galati.
Ziarul Financiar contacted the Heineken officials at the end of last year, but they would not comment on information regarding their attempts at entering the Romanian market.
The acquisition of BH, an investment fund-owned holding comprising three beer plants, would have been the best opportunity for Heineken. BH was put up for sale in 2000, but the best offer came from Austrian group Brau Union, which bid 165 million euros. At that time, BH had 18% of the Romanian beer market.
Heineken’s arrival is bound to significantly impact on a market estimated at 550 million dollars, divided between Brau Union (Austria), Interbrew (Belgium), South African Breweries, and Carlsberg (Denmark) – through United Romanian Breweries Bereprod (URBB).
Brau Union owns 34% of the market, South African Breweries – 15.1%, Interbrew – 12.5% and URBB – 6.3%.
Austria’s Brau Union has embarked on a strong acquisition campaign in Central and Eastern Europe in the last few years. Given the rapid growth pace, the Austrians started looking for more powerful partners.
Talks on a partnership, that could also entail the sale of shares, started several weeks ago and are now in full swing.
As Heineken is not present on the exact markets where Brau Union holds leading positions (Romania included), the Dutch company may be considering the acquisition of the Austrian-based group.
According to sources on the Romanian beer market, the request for information about opportunities in Romania may be part of the Brau Union acquisition project. Beside Romania, Brau Union is among the market leaders in the Czech Republic, Hungary and Austria.