Tudor Furir, the general manager of Pernod Ricard, one of the largest players on the imported alcoholic beverages market, says the abolition of customs duties once Romania has joined the European Union will lead to a drop in the price of imported spirits, whisky in particular.
"The price of whisky will go down by 35% after accession because of the elimination of customs duties, as well as due to prices rallying to those in the EU," Tudor Furir says.
This makes Pernod Ricard's boss say that the sales of whisky will double next year, once promotion budgets increase.
"We have a portfolio of brands whose growth pace will allow us to double sales next year," he adds.
Whisky brands account for over 50% of Pernod Ricard's turnover in Romania. Research institute IWSR says the whisky market will reach over 2.8 million litres this year, an increase of 10% on 2005.
Pernod Ricard's general manager added that, under normal market circumstances, imported beverages account for 15-20% of the total of their respective category.
"Imports currently represent about 3 to 4% of the volume sold, so that there is a 500% growth potential. I don't think it's just a potential, I believe that 10% of the domestic alcoholic beverage market can be covered by imports by 2010," he says. According to Furir, market growth will be driven by new consumers.
"The whisky market is dominated by imports, there is no domestic competition and it is unlikely there will be in the future. This category clearly demonstrates that brands can be successful in Romania and that Romanians are as brand-oriented as the Spaniards and Italians are," Furir adds.
Tudor Furir, formerly the general manager of Allied Domecq Romania, took over as general manager of Pernod Ricard Romania at the beginning of this summer.
The company he runs became one of the largest players in the industry following the takeover of Allied Domecq. Pernod Ricard's market share was only just above 10%, while Allied had over 50% of the imported spirits market.
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