The company’s current forecast is below initial estimates, of a stagnation of the industry this year.
“The start of the year was weaker than we expected, but the market is showing slight signs of a revival in the second quarter. While at the end of last year we were expecting the market to be flat in 2011 against 2010, we have become conservative after the first half and expect a 5% decline for the whole year,” Eperjessy told ZF.
If the Alexandrion representative’s forecast comes true, 2011 will not be the first year of decline for the market. The Romanian spirits market fell 20% last year, the largest decline in the last five years, according to information cited by the company. Under the circumstances, amid the excise increases and the economic crisis, the spirits industry lost around half of its volume in the last five years, reaching 50,000 hectoliters in 2010.
Alexandrion Group, controlled by businessman Nawaf Salameh, has
been present on the Romanian market since 1994 and has brands such
as Alexandrion, Brancoveanu, Cava d’Oro, Kreskova, Red Bowler
scotch whisky brands in its portfolio, along with 20 other
brands.
Alexandrion Grup posted RON265 million (EUR62.5 million) in gross
sales last year, and had initially budgeted a rise of over 5-6% “if
the market stayed the same.” However, since the market is below
estimates, the company is now considering “slight losses against
2010.” Last year, the company’s sales increased in value, but were
slightly down in terms of volume. (EUR1=4.2246)
(English version by Daniela Stoican, Editing by Loredana Fratila-Cristescu)