Mihai Barsan (Ursus), Narcis Horhoianu (Heineken), Paul Markovits (Tuborg) are engineers and only Mihai Bonca (Bengenbier) has an economic background, but they have the latest information about weather conditions, as well as the schedule of football matches, supposed to fill beer mugs countrywide.
The four are the marketing managers of Ursus, Heineken, Bergenbier and URBB, the four international brewers on a market where over 16 million hectoliters of beer are sold annually and that ranks sixth in Europe by per capita consumption.
These brewers in 2013 generated total revenue worth EUR735 million. In the local beer industry, a EUR1.8 billion business, a major role is also played by Albacher, Dorfer and Muhlbacher brands (of group Romaqua), with a market share of as much as 10%, according to a Competition Council report.
In recent years, the task of international groups’ marketing heads has been the more challenging as consumption has been falling, price and budget pressures have been mounting.
They are the people behind over 40 brands, who, by their decisions, can bring a plus or a minus into companies’ accounts and whose promotion or communication ideas can tip the balance in favor of a brand or a category.
“I strongly believe beer is one of the most competitive industries, a land of marketing innovation. Romania is an extremely competitive beer market, where consumers can choose from over 200 national, international or regional beer brands. As regards beer consumption, Romania ranks sixth after the Czech Republic, Austria, Germany, Poland and Lithuania, according to E&Y survey for 2012,” says Narcis Horhoianu, marketing director at Heineken Romania.
He was appointed in this position in February. He has an 18-year experience at P&G and entered the industry in a period of decline, when the first thing he has to check is the weather forecast.
“The permanently changing economic context, the repeated excise hikes, the unfavorable weather conditions and purchasing power had a strong impact over consumers’ behavior,” added Horhoianu.
This summer, managers in the field kept an eye on the weather and the other one on the World Cup, which should have been the lifebuoy of consumption. Until the competition in Brazil started, the Romanian market had contracted by 10% (in January-May against the same period of 2013), according to ZF calculations based on Statistics Institute data.
“The two events kind of cancelled each other: while the football show was great, not the same can be said about temperatures,” says Mihai Barsan, marketing vice-president with Ursus Breweries, who has filled this position for two years.
He joined the beer industry from the same P&G. He has worked with Ursus since 2005 and in 2009-2012 was the marketing manager of SABMiller Europe.
Barsan adds economic factors also have an impact over beer consumption, such as Romanians’ lack of confidence in the economy or in future outlooks, fiscal pressures and the lower purchasing power noticed despite statistical data.
Mihai Bonca is 34 and the youngest marketing manager in the beer industry. He was recruited by Bergenbier from one of its main rivals, Ursus, being also the only one of the four managers with an economic training.
“People consume less, less frequently and at lower prices. From this reason, the economy and value segment has soared. The role of marketing is that of giving all the reasons for people to choose a good beer, which should offer as much as possible. Romania is a market with an extremely aggressive competition, with very many active brands, on all the segments. At the same time, none of the brands is a clear leader on its segment. The battle is fought on the market, and not on the chess table,” said Bonca.
The company he represents is the only one in the industry that is readying for investments, with its shareholders being convened in August to approve a EUR65 million capital increase. The exact destination of money is not known, yet.
Paul Markovits, marketing vice-president of United Romanian Breweries Bereprod, is the latest move in the industry. He came from Heineken, in a surprising move on the beer market. Markovits is handling the marketing of beer and beverage brands with sales of EUR58 million last year.
(English version by Catalina Apostoiu)