Local brewers in bad shape

The entry of the multinational brewers on the Romanian market in full gear throughout 1995-2000 was expected to naturally put independent brewers out of business in a matter of years. The Q1 report of the Brewers Association, however, shows they are headed for disaster much sooner than anticipated. Faced with sliding consumption over the last two years and things getting worse (9% decline) in Q1, 2003, the domestic companies are finding it harder and harder to cope with the substantial marketing budgets of the multinationals. Sixteen of the twenty-eight independent factories saw sales drop by more than 30% in Q1. Four of the sixteen (Bere Scornicesti, Asbeer, Bere St. Georgeni, Generis Prod) did not actually sell anything, while two of them (Bere Margineni and Fulger Bragadiru) sold some of last year’s stocks. Fulger and Bere Margineni used to be among the top domestic players until last year, accounting for 3.4% and 2.4% of the market respectively in 2002. The two breweries have seen their market share seriously eroding since last year (i.e. Fulger fell from the 4.4% in 2001). Market information shows the two companies are no longer producing beer, as they have run into licence renewal problems due to fiscal reasons. Bere Margineni saw its sales shrink by 75.8% form 55,037 hectolitres to 13,334 hectolitres in Q1, 2003, while Fulger witnessed a 70% decline. ZF