The chairman of Ursus Breweries, the second-leading company on the domestic beer market, says the strategy SAB Miller chose to follow in Romania is primarily being built on domestic brands.
"Our strategy has been to acquire existing plants and brands, which sets us apart from the most important competitors. I strongly believe beer is a domestic product and this is why we chose to focus on domestic brands," says Dieter Schulze.
Ursus Breweries portfolio includes three of the best known beer brands on the domestic market: Ursus, Timisoreana and Ciucas. Beside these, the company also manufactures Peroni and Stejar Strong Beer and imports Pilsner Urquel brand.
"We are investing massively to promote Peroni and we will probably bring other brands from SAB Miller''s international portfolio, as well, if the market requires it, but our core business will still be represented by domestic brands," Schulze also said.
The strategy embraced in the case of Ursus, for instance, is to centre this brand on the needs of Romanian consumers wherever they may be around the world.
"We will identify these export opportunities for Ursus. I believe this is a brand that will develop in the areas where Romanians live, but I don''t believe there is an opportunity for it to become an international brand," adds Schulze.
Ursus Breweries chairman says the company''s intention is to become a leader on the domestic beer market, but that such a position cannot be built in a short period of time.
"I think strategies need to be built along brands, along product portfolios, I believe these are the ingredients one needs to be successful on the market," explains Schulze.
Of course this is not possible without investments in production facilities, to keep up with the growth of the market.
Ursus Breweries is therefore carrying out an investment worth 30 million dollars (25 million euros) in the plant located in Buzau, the first facility SAB Miller acquired in Romania.
"This is the biggest investment in capacity since the company entered the domestic market. Over the last two years, our plants have operated at full capacity, producing more than 3 million hectolitres per annum," Schulze said. He explained that strategic decisions within the company are made by local management, which is also setting the company''s direction of development.
Schulze explained the respective investments had been in the company"s plans ever since 2005 and were meant to cut down transportation costs by reducing the distance between production and consumption centres.
Ursus Breweries production capacity will reach 3.6-3.8 million hectolitres. dana.ciriperu@zf.ro
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