Beer consumption showed the first obvious signs of a rebound in 2012, when the market increased by 5%. Ursus–which owns plants in Brasov, Buzau and Timisoara (central, eastern and western Romania respectively)–applied for permission from the environmental authorities for an expansion of its production capacity in Brasov.
Heineken–which has breweries in Miercurea Ciuc, Mures, Craiova, and Constanta (central, southern and south-eastern Romania)–filed a similar application to build a facility to house fermentation tanks in Harghita County (center of the country).
This could be a sign that brewers are getting ready for a new increase in consumption after sales returned to growth in 2012 following two years of decline and a year of stagnation.
Heineken requested the Harghita Environment Protection Agency permission to build a facility to house four fermentation tanks in. When ZF asked them about it, Heineken officials said it was an upgrade, which the company does often, and did not provide further details.
On the other hand, Ursus applied for permits to expand production capacity in Brasov, a project that should be conducted in several phases and enable the company to produce 5 million hectoliters a year, five times the current capacity.
Considering beer consumption in Romania reached 17.6 million hectoliters last year, Ursus’ production line in Brasov could cover 28% of the market’s needs.
Ursus is constantly considering scenarios and opportunities to develop the business. The plans for the brewery in Brasov are only part of a feasibility study, but there is no certainty the investment will actually happen, said Andrew Highcock, Ursus Breweries president.
Investment is very much linked to the macroeconomic context, to its stability and predictability as any other industry. The recent beer excise duty hike and its sudden introduction is not an encouraging sign and the company will have to wait and see how consumers and the market react to it, Highcock added.
The Ursus president added Romania competes with other countries when it comes to development projects and the decisions are made globally (the company is part of SABMiller group).
The results posted lately confirm the need for development of the company’s local capacities. Ursus sales in Romania rose by 23% in October-December 2012 (the third quarter of the group’s fiscal year).
Heineken’s sales volumes increased by 5% to 10% in Romania, better than the group performance in Central and Eastern Europe, 3.8%.
Other companies operating in the beer industry are Bergenbier, URBB and Romaqua (which owns Albacher and Dorfer brands).
(English version by Loredana Fratila-Cristescu)