Retailers' decision to expand their portfolio of private labelshas amounted to a breath of fresh air for small and medium-sizedbeer producers affected by the sales decline.
Small beer producers, which together hold less than 5% of the localmarket, compared with 20% five or six years ago, have signedprivate label production contracts with retailers such asCarrefour, Metro, and Mega Image.
After losing ground to beer multinationals, which now account forover 90% of the market, small producers are seeking new strategiesto stay in business on a market put at one billion euros peryear.
"We started to produce retailers' private labels in 2009 after endconsumers turned towards this type of stores and products. Sincethe beginning of this year, we have started collaboration withanother two retailers," said Luminita Martin, general manager ofAlbrau Group, producer of Albrau and Zimbru brands, which postedaround eight million euros in turnover in 2008.
Beer producers say there are two ways of producing beer forretailers, i.e. for their private labels (for instance Carrefourhas the Carrefour and No. 1 labels) and for dedicated labels, whichare produced for a single retailer, but under a different name fromthat of its private label.
Martens Galati, which posted a four million-euro turnover in 2009,produced both private labels and dedicated labels for retailerssuch as Winny (Cora), Steiner (miniMax Discount), Top Budget(Interex), Soveja, Cozia, Postavaru, and Kanzel.
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