Heineken Romania’s business up 36% in H1

 “For the first half of 2007, we have met our targeted financial objectives,” said the President and CEO of Heineken Romania, Edwin Botterman.

The value of the domestic beer market is estimated at €1 billion, with multinational companies totaling 70 percent in market share. Beer production amounted to some 17.8 mln hectoliters in 2006, a 16 percent annual increase, and twice as much as the level registered 10 years ago, according to the “Brewers of Romania” Association. Heineken’s beer production increased by one fifth, to 2.3 mln hectoliters, in H1 2007.

According to companies in the field, Heineken has a 26.5 percent market share, followed by Ursus Breweries, with a 23 percent share, InBev, which controls 20 percent of this market, and URBB, with a 10 percent share. Other local producers are: European Foods, controlled by brothers Viorel and Ioan Micula, Bere Mures, Bermas Suceava, and Robema Rosiorii de Vede.

The local subsidiary of Heineken, one of the world’s leading international brewers, invested €190 mln in its business since it entered the market in 1997 until H1 2007, of which more than €20 mln were invested in 2007 alone.

Heineken will invest a further €20 mln in modernizing machinery in its factories in the coming five months. The company owns four beer factories in Romania and its product portfolio includes the Heineken, Zipfer, Gösser, Schlossgold, Silva, Ciuc, Golden Brau, Bucegi, Gambrinus, Harghita, and Hategana brands. The company’s top brand, Heineken, registered a 40 percent increase in H1 2007 from 2006 first six months.

Consumption 
The average annual beer consumption per capita in Romania is estimated at 81 liters per year, compared to 160 liters in the Czech Republic, 118 liters in Germany, 111 liters in Austria, 106 liters in Luxembourg, 96 liters in Belgium, 79 liters in Spain, and 78 liters in the Netherlands, according to data provided by the “Brewers of Romania” Association.