Brewers invest 12m euros in advertising
Companies in the beer industry invest 12 million euros in net amount in TV promotion every year, according to estimates made by Schahar Shaine, president of United Romanian Breweries Bereprod (URBB), the producer of Tuborg and Carlsberg beers and no. 4 on the Romanian beer market.
"This is not little. Our market is very active as far as
advertising is concerned. I think we will keep up this level (12
million euros, i.e.). The market is split, competition is very
strong and good advertising earns you more, whereas if you don't do
it, you lose straight out," Shaine told ZF in an interview.
URBB's budget for TV advertising for all its brands is 86.9 million
euros rate card (before discounts are applied). These are the first
data on the net budget invested in promoting companies in this
industry. According to the Media Fact Book report put together by
Initiative Media Romania, part of communication group Lowe, the
beer industry ranked fourth last year among sectors that invest in
advertising (TV, radio, press) with a 324 million-euro rate card
budget. No. 1 was the telecommunications industry, which spent
nearly half a billion euros in rate card amounts on
advertising.
As far as URBB's business is concerned, Schachar Shaine says beer
will only account for 60-70% of the company's overall sales in the
long run, while soft drinks and water will fetch 30-40% of the
turnover.