“Five companies cover approximately 80% of mineral water consumption in Romania. Romaqua accounts for 38% of the total annual production, followed by three companies with about the same share in the total, 12%, Coca-Cola HBC, Perla Harghitei and Rio Bucovina and European Drinks accounts for 6%, says Mihail Ianas.
Out of the total production of one billion liters in 2012, ZF’s calculations show Romaqua’s production stood at about 380 million liters, and Coca-Cola HBC’s at merely 120 million liters. The representatives of the two companies had not provided any comment on the information by the time the story was ready for posting.
Romanian consumers’ appetite for local brands is most visible in the makeup of the local mineral water market, put at EUR300 million to EUR350 million, where mostly local companies like Romaqua (Borsec and Aquatique), European Drinks (Hera, Izvorul Minunilor), Perla Harghitei and Rio Bucovina call the shots.
The multinationals that took over local brands like Dorna and Izvorul Alb (Coca-Cola HBC) and Roua Muntilor (PepsiCo) have a hard time gaining ground in this industry.
The mineral water market remains one of the few segments of the food industry where local players can successfully keep multinational invasion at bay and imports stand at 1.5% of total consumption.
Local brands were among the top sellers by volumes in December 2011- November 2012. Borsec ranked first, followed by the private labels of the major retail networks, Izvorul Alb (Coca-Cola HBC), Bucovina and Kristall Perle, a brand of a small company in Cluj (NW Romania), according to Nielsen data.
The market peaked in 2008, when it reached 1.2 billion liters or 60 liters per capita and has been flat at 1 billion liters or 52 liters per capita for the last three years.
Only 3% of Romania’s mineral water production is exported, generally to those countries with large Romanian communities such as Israel, Greece, Italy, Spain and the United States.
“We’ve never exported too much. Why is that? Because export entails shipping costs, which drive the water price up. Marketing and advertising are yet another cost, which helps create brand awareness. And Romanian companies don’t have the financial strength for such expenses,” Ianas explains.
Romania’s potential is great, because it only exploits 30% of its resources, Ianas said.
(English version by Loredana Fratila-Cristescu)