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Mineral water to account for 7-8% of URBB's production

15.09.2009, 15:46 11

United Romanian Breweries Bereprod, producer of Tuborg and Skolbeer brands, says the production of mineral water, which will besold both on the Romanian market and abroad, will account for 7-8%of the company's production next year.

Shachar Shaine, president of United Romanian Breweries Bereprod(URBB), did not wish to provide a forecast as to next year's salesof the mineral water brand. "Now we are working in parallel atcompleting the factory and at creating the new brand, positioningit, designing the bottle and finding a name for it," he says.

The company's manager says that before starting the greenfieldproject he also considered acquiring a factory in Harghita county,but in the end decided building one from scratch would bebetter.

'We decided to build a greenfield project for the mineral waterfactory, primarily because this is what we do best. We haveaccumulated experience both from building the beer factory and fromstarting Granini production. A greenfield factory costs more, butyou build it the way you want to and you no longer have to face theproblems that arise in the wake of an acquisition," said thecompany's president, which last year posted 93 million euros inturnover from production of beer and juice.

URBB started to build the mineral water factory in Bilborcommune, Harghita county, at the end of last year, with thecompany's president estimating it will be operational by the end ofthis year.

"The mineral water market is very important to us because itbalances our portfolio. Moreover, we already have a good sales anddistribution system, and our policy is to use this system only forour products," Shaine explains.

The Tuborg beer producer has invested over 10 million euros inbuilding the water factory, this being the company's secondgreenfield project on the Romanian market, after the beer factoryin Pantelimon commune, Ilfov county. The water spring, leased outby the company from the Natural Mineral Resources Agency, has acapacity of 7 litres per second, with the new mineral waterbottling facility to have a capacity of 15,000 bottles per hour.

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