Romaqua doubles its 2008 budget to €200 mln

"There is a simple explanation for this business increase. We will open two factories next year, one for mineral water and one for the production of beer," Romaqua's President, Octavian Cretu, told Business Standard.

The company will invest some €30 mln in the beer factory to be opened in March 2008 in the southwestern Transylvanian town of Sebes.

"The beer market will increase by some 20 percent in coming years and it would be a pity if Romaqua, which already has very good national distribution and a logistical network, were not also to cover a segment of this market," Vifor Versescu, President of the Association of Independent Beer Producing Companies in Romania, told Business Standard.

Versescu added that Romaqua's main advantages are the building of a factory, with new equipment, very low production costs, and higher profit margins than those of other beer producers, as there are only three greenfield beer factories in Romania.

Romaqua is market leader on the mineral water segment, with a 25 percent market share, followed by European Drinks (18 percent) and Coca-Cola (17 percent). Major players on the beer market are Heineken, Ursus Breweries, InBev, URBB, and European Foods.