Romania: Interbrew Romania’s general manager predicts annual beer consumption per capita could reach 80 liters

Romanians are drinking more. All categories are growing in a parallel development with beer among them registering an increase, The Diplomat Bucharest published November 03. Only strong alcohol is witnessing a decline.

Though Romanians have never been huge beer monsters, Mihai Ghyka, general manager of Interbrew Romania, predicts that the annual consumption per capita could increase to 80 litres - a rise from 74 litres last year. This puts Romanians closer to the drinking level of Poland and Hungary.

The beer market in Romania is tough and crowded. It has the “highest competition” in eastern Europe, says Ghyka, due to the presence of four major international brewers, all with local production and a total of 75 per cent of the market. Around 15 beer brands are now being advertised on television. “This is too many,” says Ghyka.

The next stage is one of consolidation.

In the premium sector, Interbrew holds over 30 per cent of the market with Stella Artois and Beck’s, while Tuborg is the category leader. In the mass market, Interbrew leads with Bergenbier-which is also the biggest beer brand across all categories. This is the most fragmented sector, with the highest number of competitors - around 20.

“We expect consumption to focus on only a few brands in the future,” says Ghyka.
Meanwhile wine consumption is registering a ten per cent increase per year – could these two categories be going head to head?

“Wine is not against beer,” says Ghyka. “At least not in the next two to three years.”

Now Romanians have more cash and more excuses to celebrate. This means that the restaurant and pub industry has seen a boom in and outside Bucharest.

“Before 1989 people only went to a restaurant if invited to a wedding or the birthday of someone who was rich,” says Ghyka. “The rest could not afford to go. There was a feeling you were better off at home. Now you see more families and friends going out.”

In the past, beer was not the preferred choice of women or the upper classes. “It was just the working guy with his beer and same beer brand,” says Ghyka. “Now people drink different beers for different moments and have many choices. It is more about socialising, not a choice for a social class. Rich and poor drink beer.”

However the off-trade (shops) is growing faster than the on-trade (bars and restaurants). “This is because hypermarkets are coming into the game very fast and are not killing existing small grocers or kiosks,” he says. “But as new quality restaurants and pubs open, the old and poor ones die off.”

Beer is still predominantly an impulse purchase – it is bought every two or three days on the way home from work rather than in bulk from a hypermarket. When shopping, Romanian men and women tend to go together much more than in western countries. “Women thus have a big influence on the beer the man brings home,” says Ghyka. “Even if it is just for himself.”

At the end of 2005, Interbrew Romania had a market share of 21.5 per cent and a turnover of €140 million. For the first six months of 2006, Interbrew Romania reported a 35% increase in sales on same period 2005. Total investment up till end of 2005 ranked to €150 million. Its brand portfolio contains Stella Artois, Becks, Bergenbier, Lowenbrau, Noroc, importer of Leffe and Hoegaarden.

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