“The tequila market follows an upward trend, with a compound annual growth rate (CAGR) of 14%, but starting from a low basis. The market will see further growth this year, mainly on the diversifying consumption occasions,” said Nikos Xystouris, general manager of PPD Romania, a major spirits importer.
Tequila, beside rum and whiskey, were the only spirits categories that registered increases during the crisis, according to IWSR market research company. However, in total sales of spirits on the Romanian market, tequila holds a small weight of just 0.2%.
Overall, spirits consumption in Romania stands at 166 million liters, with a value of EUR750 million in 2012, according to IWSR data.
Against an average sales price of around EUR20 per one liter of tequila, the market can be valued at around EUR4.5 million last year, by ZF calculations.
Nikos Xystouris estimates 85% of tequila consumption is registered in pubs, clubs and restaurants and the rest in the off-trade area.
Bebi Oprea, manager of Bordello bar of Bucharest’s old town, states tequila remains young women’s favorite drink, but says that vodka has posted the biggest increase in recent years.
Oprea, manager of one of the pubs boasting the biggest receipts in the old town, believes Romania is an atypical country as we are surrounded by countries with high vodka consumption, but we prefer “brown spirits” such as whiskey.
The old town is one of the most important sales area for spirits market players and a major growth source for a declining industry.
The best-selling tequila brand on the domestic market is Camino Real, imported by BDG Import, with sales of over 51,000 liters in 2012. This is followed by Sierra tequila part of Heinrig Distribution portfolio (37,800 liters) and Jose Cuervo (over 33,750), a brand that was launched three years ago and is distributed by PPD Romania.
In 2012, the strongest increase year-on-year was posted by Jose Cuervo brand (23%), while the steepest decline was reported by the market leader, Camino Real (12%).
Next come Olmeca tequila part of Pernod Ricard Romania portfolio (25,200 liters) and Sauza, imported by Cristalex company (24,300 liters).
All the five brands cover some 85% of consumption, registering over 170,000 liters overall. These sell a total of around EUR3.5 million on the Romanian market, according to ZF calculations.
(English version by Catalina Apostoiu)