Beverage Distribution Group (BDG) Bucuresti last year made a turnover of 9.6 million euros, 25% higher year-on-year, from which almost 1.3 million euros accounted for sales of Corona and Budweiser beer.
“The imported beer segment is underdeveloped in Romania, accounting for only 2% of the total beer market. The high level of import taxes means that prices for imported beer are higher than for premium and super-premium beers that are produced locally,” said Mihaela Teodor, marketing manager with BDG.
In terms of value, Corona”s turnover was almost three times higher than that of Budweiser: over 900,000 euros as compared with 350,000 euros.
Teodor says they expect 30% higher sales for this year. “The forecasts for 2005 are upbeat given the growth we”ve seen in terms of beer consumption over the last three years, combined with the now higher income levels of the population, which indirectly will lead to increased demand for higher value brands.”
In the wake of Romania joining the European Union, estimates Teodor, sales of imported beer will grow. “We are waiting for EU integration because then customs duties, which are currently quite high, will disappear. Adding to this the openness of our foreign partners, we hope to be “discussing” from a different position with local premium and super-premium brands starting in 2007,” said Teodor.
The Corona brand belongs to Mexican brewers Grupo Modelo (one of the world”s top ten) and is a best selling beer internationally, ranking fourth in the world in 2002 with exports in excess of 22 million hectolitres. Grupo Modelo carries out its entire production in Mexico, where it has 7 facilities. Budweiser is a brand of Czech brewer Budjovicy Budvar, which is still state owned. On a global level, the Budweiser brand is disputed by the Czech company and world number two brewer Anheuser Busch.
BDG”s portfolio also includes the sauces of the largest company in the sauce industry, US company Heinz, as well as alcoholic spirits made by major French producer Giffard and a series of other drinks.
Corona”s main competitors in Romania in terms of imported beer are the Salitos, Carlsberg and Heineken brands. Recently, Dutch brewer Heineken announced it had hit its sales target for the Romanian market and would soon start producing the brand in Romania.
Last year, the beer market reached 600 million euros (14 million hectolitres), representing a slight increase on the year before, when the market was worth 550 million euros (12.8 million hectolitres).
stelian.negrea@zf.ro