The beer industry is proof of this. Four large producers, with activities worldwide, entered the domestic market by acquiring local producers, with the exception of United Romanian Breweries Bereprod (URBB), local subsidiary of Carlsberg, which invested over $100 million in a Greenfield project.
“For international producers, acquiring a local factory is a lot less expensive and faster than building it from scratch,” said Aura Cadis, Managing Consultant of the Horvath&Partners management advisory company.
Moreover, Vifor Versescu, President of the Romanian Independent Beer Producers Employers Association (PSIPBR), indicated that acquisition prices in Romania are much lower than in other European countries.
The competitive edge brought by multinationals to the beer industry includes investments in technology for product development, distribution and logistics, sales and technical support, and communication and promotion.
The Romanian beer market exceeds €1 billion and 20 million hectoliters, and its main players include multinationals Heineken, InBev, Ursus Breweries, URBB, and the local European Drinks company. Annual consumption amounts to some 100 liters per capita.
