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Brewers, past two-digit growth period

Beer sales advanced by only 5 percent in the first four months of this year against the same period of 2007, with last year's performance, a 27 percent increase, not being repeated this year, Ziarul Financiar informs on Wednesday.

Thus, 2008 is the first year after 2005 when brewers see a growth rate of below 10 pc in January-April period and particularly a decline in January, of around 12 pc. The figures, however, can be explained, and were even anticipated by producers, given that the high temperatures seen in the first half of 2007 were not registered this year. The low temperatures and rainy weather of the first few months are thus a reason brewers blame for the low growth pace of the market. 'Because of the rainy weather, sales at outdoor restaurants and bars stagnated compared with last year, while retail sales rose by 30-40 pc in the first half of this year. The market resumed its upward trend in the last half of June, but everything depends on this summer's weather,' stated Shachar Shaine, chairman of the Romania's Brewers Association and chairman of United Romanian Breweries Bereprod, Tuborg brand producer. While URBB posted a 15 pc advance in overall beer sales this June, below the 20 pc initial estimate of the company's representatives, Heineken representatives state the subsidiary of the Dutch group hit its sales volume and value targets. 'The beer market posted a 6 pc increase in late June against the same period of last year,' stated Edwin Botterman, Heineken chairman and CEO. The slowdown is visible taking into account the fact that the market in mid-2007 reported a volume of around 9.4 million hectolitres and an increase of around 20 pc compared with the figures reached two years before. During the same period, beer multinationals' subsidiaries (Heineken Romania, Ursus Breweries, InBev Romania and URBB) generated a 30 pc increase compared with 2006, but in the last two quarters of 2007 the four players' sales growth dropped to 13 pc and 12.8 pc, respectively. In 2007, the market hit a volume of 19.4 million hectolitres, up just 9.6 pc from 2006. After the weaker results seen in late 2007, major brewers devised their budgets around more moderate increases, of around 5-7 pc, according to some previous statements by the companies. In late 2007, beer consumption per capita reached 89 litres annually and estimates for 2008 point to 95 litres, the European average, so that growth rates of above 20 pc are hard to forecast for industry players. This is why brewers have already started diversifying their portfolio, betting on special beers. According to brewers, the strong increases of recent years were particularly due to sales of PET-bottled beer, especially spurred by the development of major store chains promoting this type of product. Sursa: http://www.rompress.ro

Tags: brewers around market first sales growth period

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