Mihai Ghyka, general manager of InBev Romania, producer of Bergenbier, says in the last three months of 2007 beer consumption experienced a downward trend for the first time in recent years amid the low temperatures and the migration of a rising segment of the population to Italy and Spain.
"We were surprised by the stronger seasonality, by the fact that May and June were extremely hot months, which saw very high demand (an increase of above 20%) in comparison to previous years, whilst the yearend surprised us with low temperatures after demand fell by 5-8% compared with 2006".
According to the manager of InBev, which derived turnover worth almost 160m euros in 2006, there are two prime factors behind stronger seasonality on the beer market: "The low temperatures and the migration of an emerging middle class to Spain and Italy has heightened consumption, not only for beer, but for all products over a short period of time i.e. July and August. People tend to return home and spend their savings," says Ghyka.
This is particularly harming to producers of consumer goods that lack alternative portfolios.
Solutions to cover the changing consumer market include winter or special beers that have a low content of alcohol (i.e. below 2-3%). However, on the Romanian market, the special beers segment only accounts for 3% of overall sales.
Given the stronger seasonality and the over 20% increase posted during summer months, InBev's production capacity was insufficient
In order to optimise production and maintain its position on the market InBev Romania, ranked third on the domestic beer market, relocated production from its Baia Mare brewery to the main brewery in Ploiesti. In addition, the company also owns a brewery in Blaj, Alba county.
Ghyka did not specify the value of InBev's 2007 sales, but after the first nine months the company re
