The beer industry remains one of the most competitive sectors on the market, with four large multinationals conducting production operations at present, whilst the industry continues to attract new producers. However, companies are confident that the estimated figure of 80 litres of beer consumed per capita by Romanians annually is not an unbreakable threshold.
When looking at the present beer industry it is important to ask the questions- how high are the costs involved in the construction of a brewery? Why would most companies on the market consider acquisitions or capacity expansions rather than considering a greenfield Investment?
"Building a brewery from scratch is much more expensive than expanding capacities, as it involves high financial costs and it takes a great deal of time. Identifying the best location, the time and effort involved in implementing the project, finding experts, all these can prove to be extremely difficult. After which, distribution has to be developed and the products promoted," says Edwin Botterman chairman with Heineken Romania, the biggest player on the domestic market, with turnover worth approximately 200m euros last year.
"When you buy a brewery, you can immediately start brewing and retailing, as a plant is generally bought for a brand and its distribution network. It depends on how quickly a company wants to enter the market with products, or whether a company chooses to enter with its own brands," says Botterman.
New names beginning to enter the beer market include the Romaqua group, which owns the best-selling mineral water brand Borsec. Other Romanian-held firms, Bere Mures and European Drinks, have already started capacity expansion projects. Multinationals are not stalling to expand on the beer market either. For instance, Ursus Breweries last year invested 30 million euros in expanding the production
