Ursus Breweries sold 8 percent less beer last year following de-stocking and fiercer competition

Ursus Breweries, the local division of SABMiller and the biggest player on the Romanian beer market, has reported an 8 percent decrease in sales volumes in for the 2011 – 2012 fiscal year which ended on March 31. The announcement comes after in Q4 2011, the beer producer saw volumes go down by 6 percent.

“The completion of planned de-stocking in the second half of the year affected Poland and Romania, which together with the effects of continuing competitor price reductions and promotional activity, resulted in volume declines of 4 percent and 8 percent respectively for the year,” reads the company’s annual report.

In Romania SABMiller operates production facilities in Timisoara,Cluj-Napoca, Buzau and Brasov. It also owns local producerBere Azuga.

In Europe SABMiller’s full year lager volumes declined by 1 percent on an organic basis “as beer market growth continued to be subdued and competitors aggressively promoted economy brands and packs”.

Globally, the company’s sales went up 3 percent for both the year and the fourth quarter.

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After decreasing for two consecutive years, the local beer market reached 17 million hl in 2011, the same level as a year before, according to the Brewers of Romania Association. The market value also remained stable at EUR 1.7 billion (based on shelf price).

Simona Bazavan