Romania: Brau Union Romania reports leadership consolidation for the first half of 2006

Brau Union Romania, member of the Heineken Group, concluded the first six months of the year 2006 with an increase of 25% in turnover.

In a context of important investments, sales evolution is on ascendant trend and demonstrates the efficiency of the company’s consolidation process.

“For the first half of 2006, we are pleased to announce we have met our set financial objectives and consolidated the increasing trend in sales”, said Edwin Botterman, President & CEO, BRAU UNION Romania. The company concluded the first 6 months of the year with turnover increase of 25% compared to the same period, the previous year.

Constant growing of sales in the first half of 2006

This year’s first half represented a consolidation of the growing trend of sales that became visible during the last months of 2005. The total company beer sales in the first half of 2006 reached an increase of 17% compared to the January – June 2005 sales.

International recognition for two Romanian beer brands: Golden Brau and Ciuc

Two Romanian beer brands - Golden Brau and Ciuc, brewed by BRAU UNION Romania, won each a golden medal at the 2006 edition of “World Selection of Beer”. The award acknowledges the quality of these products and, in the same time, the ability of the company to produce at international standards.

“The true consecration for a brewer is the recognition of the quality of his products. The medals obtained by Golden Brau and Ciuc represent the reward for the master brewers’ efforts and, in the same time, the certification of the exceptional character of our products” stated Edwin Botterman.

Richest brand portfolio and investments up to €250 million till 2008

At present, BRAU UNION is operating through 4 breweries; it has over 1,400 employees and provides the market with the widest portfolio: 11 brands and over 50 products.

The investments realized by BRAU UNION in Romania were of €175 million since the entrance on the market in 1998 till June 2006. Over €11 million were recently invested in the BRAU facilities in Constanta and Craiova. Concluded at the beginning of 2006, the Craiova investment amounted to € 3,3 million and represented the setting in function of a new PET bottling line. An over €8 million investment was announced at Constanta brewery this summer, aiming at a threefold increase in the production capacity of the BRAU facility.

Market estimations 2006: general growth of 14%, consumption 74litres/capita

For 2006, we estimate a beer market growth of around 14% compared to the previous year, reaching up to 16 million hectoliters.

This growth will result in a development of annual consumption per capita to 74 l in 2006. Despite its growth, annual beer consumption per capita remains low as compared with other countries (Czech Republic cu 157 l, Germany cu 118 l, Austria cu 111 l, Belgium cu 96 l).

Market estimations 2006: Continuous growing trend of PET package

The latest BRAU UNION estimations point towards a sustained growth of PET in 2006. The PET market conquest accelerated since 2003. In 2005, the PET was holding 33% of the market.
By the end of June 2006, the PET share was 40%.

“Although primarily perceived as a cheap bottling option, our PET bottles seem to have won consumers’ appreciation. We believe our efforts to innovate constantly and improve the quality and appearance of PET bottles have largely contributed to this change of perception” said Edwin Botterman, President & CEO, BRAU UNION Romania.

Heineken N.V., the mother company of BRAU UNION, announced on September 6, that it has achieved accelerated organic growth across all key metrics: +6.3% in revenues, +10.4% in EBIT (beia) and +13.7% in net profit (beia).

Group beer volume grew 11.6%, to 62.8 million hectolitres of which organic growth accounted for 6.6%. Consolidated beer volume amounted to 53.3 million hectolitres.
Volume of the Heineken® brand in the global premium segment rose 12.7% to 11 million hectolitres, increasing the brand's share of the segment.

Established in 1998, BRAU UNION is the leader of the Romanian beer market since 2000. The company is part of the Heineken Group. BRAU UNION Romania operates on the Romanian beer market with four breweries in Miercurea Ciuc, Haþeg, Constanþa and Craiova.

The brand portfolio offered by BRAU UNION Romania covers all segments of the market: Heineken, Zipfer (import), Gösser, Schlossgold, Silva, Ciuc, Golden Brau, Bucegi, Gambrinus, Harghita and Hategana.

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