Romanians spent 1.7bn euros on beer last year

Beer sales domestically rose by 6.7% last year from 2007, to 20.7 million hectolitres, according to brewers quoting the National Statistics Institute. This way, Romania will be among the only seven countries of Europe with production of above 20 million hectolitres and among the top six, with annual consumption of more than 95 litres per capita. Taking into account an average shelf price of 0.85 euros per litre of beer sold, this means that in 2008 Romanians spent over 1.7bn euros on beer, up 8% from 2007. Beer is thus the second consumer good after tobacco Romanians spend their wage on, with the cigarette market being put at between 2.5 and 3bn euros. The figures are in line with the expectations of players in the industry, which in early 2008 forecast a beer market growth pace of between 6 and 8%, slower than in 2007. "For this year, we expect a beer market growth rate of between 0% and 3% amid the financial crisis fallout and the shrinking on-premise beer consumption," stated Shaine Shachar, a chairman with United Romanian Breweries Bereprod (URBB), the producer of Tuborg and Carlsberg brands. This is the smallest growth rate of the past years for beer sales, after until 2007 Romania was one of the growth engines of the beer industry in Europe. Still, the cumulated turnover the Romanian subsidiaries of beer industry multinationals (Heineken Romania, Ursus Breweries, InBev Romania and URBB) will register in late 2009 will top 850m euros.