Romania: SABMiller’s Ursus Breweries puts emphasis on sophisticated consumers

Dan Paucean, the manager of the Ursus brewery in Cluj-Napoca, says EU integration will lead to a diversification of brands present on the market, Ziarul Financiar posted June 22.

"We expect to have consumers that are much more sophisticated, which will lead to a change in consumption habits, as well as a greater diversification of brands compared with the current situation. Consumers will have more alternatives both in terms of beer and beverages overall," Dan Paucean told ZF Transilvania.

The manager of the Cluj-Napoca-based brewery specified the management's main concern was to prepare the brewery for European market competition amid a production increase in the entire company to approximately 4 million hectolitres.

Dan Paucean also says the retooling processes will be completed by the end this year. Investments put at more than 1.5 million euros will be made in the brewery in Cluj in a bid to improve the production process and in finalising the station for the homogenisation and controlled pumping of wastewater.

"The brewery in Cluj last year benefited from investments of around one million euros for the construction of a wastewater treatment station, as well as from investments aimed at the environment," he also said. According to Paucean, the total amount of money invested in the Cluj brewery stands at more than 35.5 million euros.

Paucean considers that, although the development of the beer market after Romania's EU integration is hard to assess, the average growth is likely to stabilise at around 2% per year. Consumption in its turn may gradually get close to the European average, of around 75-80 litres per capita.

In terms of production capacities, the brewery in Cluj ranks third among Ursus Breweries, behind the plants in Buzau and Brasov. According to the company's management, sales by Ursus Breweries in Transylvania account for a 25% share of company's domestic production.

The brewery in Buzau was the first one SABMiller acquired in Romania and will benefit from investments of approximately around 25 million euros designed to boost production capacity this year. In the wake of investments, production capacities will be expanded by one million hectolitres, with Ursus Breweries set to reach a production capacity of 3.9 million hectolitres in 2006.

Ursus Breweries during the financial year April 2005-March 2006 posted turnover worth 150 million euros, up 22% from the previous year. The domestic branch of SABMiller continued to focus on domestic brands, especially on Ursus Premium, which grew by 9% last year.

The company will this year continue to invest to promote the Peroni brand, with the company's representatives saying they may consider importing other brands of SABMiller's international portfolio should the market require it.

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