The beer market is likely to exceed 1.4bn euros next year, although major brewers are not counting on two-digit growth rates in 2008, after this year's record highs.
In fact, multinationals did not expect to register above 10% increases in early 2007, but the hot weather, doubled by PET beer sales and consumers' rising purchasing power led to a sales growth rate of around 20%.
As a result, in line with ZF estimates, based on data released by companies, beer sales are forecast to exceed 21 million hectolitres this year, which would generate a market worth around 1.2bn euros, according to statements made by industry players.
However, considering the beer market in the first 9 months of this year increased by 33.3% against the same period last year (according to market research firm MEMRB) the growth rate could exceed 20% in 2007. "(...) Starting next year, the domestic beer market will start posting increases of around 5%," estimates Shachar Shaine, URBB chairman.
Edwin Botterman, Heineken Romania chairman and CEO, shares the same opinion. The most optimistic player on the market is Ursus Breweries, which believes the market will maintain the same growth rate, due to the strong increase of beer consumption per capita in recent years.
In line with Ursus Breweries data, beer prices are lower in Romania than in Hungary and Poland. However, the rising price of raw materials and packaging and higher promotion costs are likely to have an impact on beer prices.
Ursus Breweries (SABMiller's domestic arm) was the first of the major players to announce price hikes across all brands amid this year's drought.
Heineken Romania believes the changes the beer market will see in 2008 will result in tighter competition, rising commercial expenses and therefore lower margins in the beer industry, and lower profits.
The fact that the top three brewers are among the 100 most valuable companies in domestic industry proves how competitive the market is, as no other firm in the dairy, bakery, meat products or alcoholic drinks industries exceeded the 200m-euro mark.
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