United Romanian Breweries Bereprod (URBB), the bottler of Tuborg and Carlsberg beer brands on the Romanian market, is expected to make investments worth between 60 and 90 million euros, in order to double the production capacity of its plant, to 4 million hectolitres per year, i. e. just under a quarter of the total capacity of the Romanian beer market (20 million hectolitres).
The company made this decision after the beer market experienced growth in the first 9 months of the year, which was strongly boosted by recent high temperatures, and exceeded major players' expectations.
Company representatives have not decided on the location of the new production facility, which could be connected to the Bucharest-based plant, entailing the relocation of the distribution centre, or built in the Western part of the country, enabling better market coverage.
"If the investment is made at the Bucharest plant, its value will stand at around 40 euros per hectolitre, i.e. approximately 60 million euros, but if we decide to build outside the Capital, i.e. in the Western part of the country, investments could reach as much as 60 euros per hectolitre, i.e. 90 million euros," said Shane Shachar, president of URBB.
The beer market has experienced growth above the expectations of the major players in the industry, registering an over 20% turnover increase in the first six months alone. Initial estimates, made by the major domestic beer producers, pointed to a maximum 5-7% growth.
The growth of the beer market, aided among other things by this year's high temperatures, has persuaded leading market players to invest in boosting their production capacities. Heineken is carrying out investments worth around 40 million euros to increase its production capacity, from around 5 million hectolitres to 6 million hectolitres, whilst Ursus is investing 50 million eu