Bulgaria: InBev has achieved much in its first 10 years in Bulgaria

In its first 10 years in Bulgaria, InBev has introduced a series of innovations and varieties of beer entirely new to Bulgaria, and developed the beer market as a whole, the company's country manager and board chairman of Kamenitsa AD, Andreas Seemuller, told The Sofia Echo on July 25. In Seemuller's view, every penny they invested in Bulgaria was worth it in a market where the fight for the leadership is constant.

InBev entered Bulgaria's market in 1995, when Belgian Interbrew bought Kamenitza brewery. Since then, Kamenitza has spent about 130 million leva on production facilities, advertising, trademarks, information systems and personnel training.

InBev produces the brands Kamenitza (in light, dark, white, extra and non-alcoholic brews), Astika, Burgasko Pivo, Pleven, Slavena, Stella Artois, Beck's and Staro Pramen brands in three breweries in Bulgaria.

Ten years after most of the breweries in this country were privatised, more than 80% of the beer sold on the domestic market is made by multinational companies - Heineken, InBev and Carlsberg. Even the two larger Bulgarian breweries - Bolyarka and Bulbrew, also produce competitive products.

Kamenitza now holds about 30 % of the market, roughly the same as its main competitor, Zagorka (owned by Heineken and Greek Coca-Cola HBC). “We have very specific plans on how to grow further. It will be done by creating more innovation and launching additional brands on the market - InBev has a portfolio of more than 200 beer brands,” Seemuller said.

Bulgarian brewers continue to introduce more foreign brands, which they typically brew locally under licence. The segment has proved the most profitable in Bulgaria's beer industry, as InBev can attest to. In Bulgaria, InBev brews Beck's, Stella Artois and Staro Pramen, all under licence.

The beer market in the country grew 11 % last year to 4.7 million hectolitres. Poor weather and half-year sales data led industry experts to say that this would shrink to about 4.5 million hectolitres this year.

Bulgarian brewers sold about 2 million hectolitres of beer in the first six months of 2005, only 1% less than the same period last year. InBev was the top seller with 679 000 hectolitres. Seemuller says that the market is still not dynamic. “The fact that the three major international players control 80 per cent of the market will make it very unattractive for another major international player to enter,” Seemuller said.

InBev Bulgaria exports some of its brands to the United States, the United Kingdom and other countries, where they are popular among Bulgarian emigrant communities. This, the company believes, could open them new opportunities for growth.

In May, InBev Bulgaria started testing the neighbouring Macedonian market, exporting Kamenitza and Slavena brands. Although Seemuller said sales in Macedonia were going very well and above expectations, the market there had low capacity.

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