Romanians want lower prices even when buying the cheapest beverage, water
Cheap products, such as table or spring water, are the biggest
threat to the mineral water industry, valued at around 300m euros,
say bottlers.
Production at mineral water sources dropped by 9% in the first half
against a year ago as part of consumers shifted to the low-price
segment, that of mineral-free water.
The flood of cheap products on stores' water shelves is forcing
mineral water producers to boost the number of promotional offers
and bet on large packaging, of 5-6 litres.
Companies' representatives estimate the market contracted by 15% in
volume in the first six months of this year from a year ago and say
that it is only large packaging, of above 2 litres, which still
brought them sales increases in 2010.
"I do not believe that the water sales advance generated by the
high temperatures of August will offset the volume declines of the
first half. I expect the mineral water industry to fall by 9-10%,
even more, in 2010" maintains Becsi Zsolt, Apemin Tuşnad CEO.
In his turn, Cristian Şerban, Rio Bucovina CEO, projects flat water
sales against 2009 for his company, with the best scenario
including slight growth, of several percentage points.