Heineken and InBev, the first victims on the beer market

beer, decline, Heineken, InBev

According to Heineken officials, the decision was made following “the thorough analysis of all relevant aspects in the company, including optimizing costs, the possibility of expansion, the existing capacities, and the needs for future investments.” As part of this measure, 61 employees will be laid off. Heineken has five beer factories in Romania, in Constanta, Craiova, Hateg, Miercurea-Ciuc, and Targu Mures, and 1,300 employees.

“This measure was taken due to the decline in demand, caused by the economic context and the fact that beer is a seasonal product. In this period, we will continue to produce beer in our Ploiesti factory,” representatives of InBev said.

For the immediate future, premises are not optimistic, as estimates on the market include declines of 20 percent for the whole of 2009, compared to 2008, when the market grew 4.1 percent, according to Vifor Versescu, General Manager of the Association of Employers in the Romanian Beer Industry. The official said that sales in the first eight months were far below the expectations of producers, and registered a 17 percent drop.

Beer sales exceeded €1.6 billion in 2008, and main players on this market are Heineken, Ursus Breweries, InBev, United Romanian Breweries Bereprod, European Drinks, and Romaqua.

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