The Beer Producing Market In Romania, To Resume Growth In 2021

Mihai-Alexandru Cristea 01/07/2021 | 17:29

The turnover of beer producers in Romania increased in 2019 by 5.2% compared to the previous year and by 51% from 2010, reaching a record level of 4.5 billion lei, according to KeysFin analysts. However, for 2020 KeysFin specialists estimate a decrease of about 1.6%, based on the monthly data from the National Institute of Statistics, and in 2021 to resume its upward trend. Thus, the analysis of KeysFin, the Romanian beer producing market, shows that this market might reach a new record level, of 4.6 billion lei in 2021.

 

“The Romanian beer producing market managed to overcome the COVID-19 pandemic, registering a marginal decrease compared to other industries that were severely affected by the health crisis last year. Moreover, despite the dramatic decline in the HoReCa sector, local beer producers relied on the increase in domestic demand, and their plans proved realistic given the estimated growth for the current year. The market has a growth potential, especially with the relaxation of anti-pandemic measures this summer, and the results for the current year have all the chances to contribute not only to the return to the figures prior to March 2020, but even to exceed them”, said Roxana Popescu, Managing Director of KeysFin, one of the most important business information solution providers in Romania.

In 2019, the main 10 players on the local market had a turnover of approximately 4.5 billion lei, representing 99.6% of the national turnover.

Out of a total of 4,455 employees in this sector, 3,963 (89%) were employees in one of the top 10 players in the industry.

Also, in 2019 the net result of the market was approximately 344 million lei, 85% higher than in the previous year.

 

LOCAL BEER PRODUCING MARKET, CONTROLLED BY THE SAME 3 FOREIGN INVESTORS

In 2019, 100 beer producers were active in Romania, 17.6% more than in 2018 and 317% more than in 2010. However, 86% of the local beer producing market is controlled by the same 3 companies, all with predominately foreign ownership.

According to data from the Ministry of Finance, the leader of this sector was once again URSUS BREWERIES S.A. which owns, among others, the brands Timisoreana, Ursus, Grolsch, Peroni Nostro Azzurro, Pilsner Urquell, Ciucas, Stejar and Azuga. Part of the Japanese group ASAHI BREWERIES, the company had in 2019 a turnover of almost 2 billion lei, meaning a market share of 44%.

Second ranked the Dutch company HEINEKEN ROMANIA S.A., which sells locally the brands Heineken, Silva, Ciuc, Golden Brau, Bucegi, Neumarkt, Harghita, Hategana, Gambrinus, Affligem, Edelweiss, Birra Moretti, Amstel and Desperados. In 2019, the company recorded a turnover of 1.2 billion lei, corresponding to a market share of 27%. At the same time, it managed to mark the transition from the highest net loss in the beer producers’ market, of 33.8 million lei in 2018, to the second highest profit in the market, of 117.5 million lei in 2019, according to KeysFin analysts.

BERGENBIER S.A. ranked third with a turnover of 651 million lei in 2019, respectively a market share of 15%. BERGENBIER S.A. is controlled by the Dutch company MOLSON COORS NETHERLANDS BV and sells Bergenbier, Staropramen, Stella Artois, Beck’s, Noroc, Corona and Lowenbrau on the local market.

According to the turnover registered in 2019, the following positions were occupied by UNITED ROMANIAN BREWERIES BEREPROD S.R.L. (465.5 million lei), ALBRAU PROD S.A. (39 million lei), LIXID PROJECT S.R.L. (34.8 million lei), BERMAS S.A. (32.8 million lei), MARTENS S.A. (21.6 million lei), FABRICA DE BERE BUNĂ S.R.L. (5.7 million lei) and last but not least, HB TRADITIONAL BREWERY S.R.L. (4.2 million lei).

Moreover, compared to the turnover registered in 2018, the first 8 companies kept their position in the ranking, which reflects the stability of beer consumers’ preferences in Romania.

In terms of geographical distribution, Bucharest is the leader with 83% of the turnover of beer producers in Romania, followed by the companies registered in Ilfov (14.5%) and Harghita (0.8%) counties. Moreover, they concentrate about 98% of the national turnover.

 

DUE TO PANDEMIC CONDITIONS, ROMANIANS SPENT 6.5% MORE ON ALCOHOL IN 2020

According to the data provided by the National Institute of Statistics, in 2020 a Romanian spent on average about 290 lei per month to buy agri-food products, 4% more than the previous year. Also, Romanians spent 6.5% more on alcoholic beverages and 6% more on beer, the latter’s share in the total expenditures on alcoholic beverages being 53%, thus reaching 2.2% of total expenditures on agri-food products in 2020.

Regarding the dynamics of average monthly spending on agri-food products, compared to 2010, in 2020 there was an increase of 72%, while a Romanian paid 130% more for alcoholic beverages, and more specific a doubling of spending on beer in the same period.

According to the Romanian Brewers Association, Romania was seventh in the ranking of European beer-producing countries, with over 97% of beer consumed locally being produced in Romania, with 50% of the ingredients being also domestic.

Regarding the quantity of beer produced in 2020, the volume of the beer market reached 16.75 million hectolitres, up by 0.5% compared to the previous year.

Thus, the beer market continues to have a significant contribution to the country’s economy due to the more than 61 thousand jobs that the industry provides both directly and indirectly.

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