ZF English

Domestic beer under siege

14.05.2003, 00:00 10

Beck's or Ursus? Tuborg or Silva? Amstel or Ciuc? The answers to these questions could radically change the look of the Romanian beer market, as the international producers calling the shots here are planning to gradually drive almost every single "traditional" Romanian brand out.
The process began in 1997, when the major international groups (SABMiller, Carlsberg, Brau Union, Interbrew) entered the market but is bound to speed up this year, at least where quality beer brands are concerned.
Interbrew, the third leading European brewer has launched Beck's on the market, while SAB, world's number one introduced another German brand, Holsten, this year. Heineken in its turn will most likely begin producing Amstel this year, following takeover of Austria-based Brau Union, the Romanian market leader.
Sold for about the same prices as the Romanian quality beer brands, such as Silva and Ursus, the international premium brands could therefore start eating into the market share of their Romanian peers.
"I think the premium and superpremium beer segments will see no more than one or two Romanian beer brands withstanding competition over the next few years. Furthermore, the international brand releases will push the premium segment from the 5%-6% of the market as it is now to 10%, " Mihai Albu, Interbrew Romania general manager says.
Until now, the leaders of the premium beer segment in Romania have been Ursus Premium (SABMiller brand), Tuborg (Carlsberg) and Silva (Brau Union). Tuborg is the only international brand of the three.
As of this year, Beck's (the first German beer made in Romania) and probably Amstel's entry on the market will make the premium segment a more crowded place to be. This leaves only two choices: either growth for this segment or lower sales for the existing brands.
"We're not afraid of Beck's launch. On the contrary, we feel the launch of a quality beer will help the premium segment attain a higher weight in the total market. Which cannot but benefit us," said Shachar Shaine, marketing manager of Tuborg Romania, which makes Carlsberg, Tuborg and Skol in Romania.



 

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