Romania Food and Drink Report Q4 2011

Business Monitor International, September 2011, Pages: 120

In BMI’s Food and Drink Business Environment Ratings (BER) table for Q411, Romania continued improving its matrix position, as a result of a more optimistic economic outlook for the country, which has subsequently boosted its rewards profile. However, the economic recovery is presently mostly export-driven, although we expect the Romanian consumer to also play an increasingly important part. In the longer term, the sizeable population of the country should stimulate investment into modern retail and premium products.

Headline Industry Data (local currency)

- 2011 per capita food consumption = +2.95%; forecast to 2015 = +25.77%

- 2011 alcoholic drinks sales = +4.24%; forecast to 2015 = +23.05%

- 2011 soft drinks sales = +4.95%; forecast to 2015 = +27.31%

- 2011 mass grocery retail = +7.29%; forecast to 2015 = +52.14% Key Company Trends

Romania Attracts Foreign Food Manufacturers – Foreign companies remain attracted by Romania’s low manufacturing cost. To this end, in July 2011, Greece-based privately-held food producer Olympus Foods made an investment of EUR55mn (US$80mn) for the construction of a new manufacturing plant near the city of Brasov in central Romania. Around the same time, German potato chips and nuts manufacturer Intersnack announced that it is to shut down its factory in Bulgaria to move production to a factory in Romania. Its EUR7mn (US$9.8mn) Romanian factory was opened in 2010.

Key Risks to Outlook Financial Austerities Depressing Spending – A major risk to the consumer outlook in Romania is the state of its economy. Romania faces a tough road of fiscal consolidation as the government implements drastic austerity in an attempt to correct its budgetary overspend. While the country’s low outstanding debt load will help ensure the sovereign’s solvency, we nevertheless see challenging times ahead for Romania, even though the worst of the government's fiscal austerity drive has peaked. Nevertheless, record demand for Romanian exports is catalysing robust expansion in Romania's manufacturing and industrial sectors.

BMI Industry View
SWOT Analysis
Romania Food Industry SWOT
Romania Drink Industry SWOT
Romania Mass Grocery Retail Industry SWOT
Business Environment
BMI’s Core Global Industry Views
BMI Core Views
CEE Food & Drink Business Environment Overview
Table: Emerging Europe Food & Drink Risk/Reward Ratings Q411 - Published July 2011
Romania’s Food & Drink Business Environment Ratings
Macroeconomic Outlook
Industry Forecast Scenario
Consumer Outlook
Food
Food Consumption
Table: Romania Food Consumption Indicators - Historical Data & Forecasts
Confectionery
Table: Value/Volume Sales of Confectionery - Historical Data & Forecasts
Table: Confectionery
Canned and Processed Food
Table: Value/Volume Sales of Canned Food & Confectionery - Historical Data & Forecasts
Table: Meat
Table: Jams And Jellies
Pasta
Table: Pasta
Baked Products
Table: Snack Foods
Dairy
Table: Dairy
Drink
Alcoholic Drinks
Table: Romania Alcoholic Drinks Value/Volume Sales - Historical Data & Forecasts
Table: Alcohol Sales
Soft Drinks
Table: Romania Soft Drinks Value/Volume Sales - Historical Data & Forecasts
Hot Drinks
Table: Romania Hot Drinks Value/Volume Sales - Historical Data & Forecasts
Table: Hot Drinks
Trade
Table: Sectoral trade indicators - Export, Import and Balance Value - Historical Data and Forecasts
Mass Grocery Retail
Table: Romania Mass Grocery Retail - Value Sales by Format - Historical Data & Forecasts
Table: Grocery Retail Sales By Format – Historical Data And Forecasts
Food
Key Industry Trends And Developments
Food Consumption In Decline
Rising Investor Interest in Fast Food Industry
Reshuffling In The Confectionery Market
Romania Remains Attractive as Manufacturing Location
Romanian Dairy Industry Remains Competitive
Romanian Meat Industry Still In Good Shape
Market Overview
Food Consumption
Food Production
Leading Players
Meat Processing Industry
Confectionery
Canned Food
Trade
Agriculture
Organic Farming
Drink
Key Industry Trends And Developments Bottled Water Industry Continues Investment
Beverage Segments Emerging, Tentatively, From The Downturn…
…Carbonated Soft Drinks
…Beer
…Wine
Market Overview
Alcoholic Drinks
Beer
Wine
Spirits
Soft Drinks
Hot Drinks
Mass Grocery Retail
Key Industry Trends And Developments
MGR Players Continue To Expand In Romania, Despite Economic Challenges
Private Label Gaining Prominence
…But Leading Romanian Retailer Struggling
Competition Watchdog Hands Out Fines Over Price-Fixing
Market Overview
Leading Retailers
Table: Structure Of Romania’s Mass Grocery Retail Sector By Estimated Number Of Outlets
Table: Structure of Romania's Mass Grocery Retail Sector - Estimated Sales Value by Format
Table: Structure of Romania's Mass Grocery Retail Sector - Average Sales Value per Retail Outlet - 2010
Competitive Landscape
Table: Key Players in Romania's Food Sector, 2010
Table: Key Players in Romania's Drinks Sector, 2010
Table: Key Players in Romania's Mass Retail Grocery Sector (2010)
Company Profiles
Food
Kandia-Excelent
Vel Pitar
Nestlé Romania
Drink
Quadrant Amroq Beverages SA (QAB)/Pepsi Americas Romania
Brau Union Romania (Heineken)
SABMiller Romania
Bergenbier (CVC Capital Partners)
Mass Grocery Retail
Metro Cash & Carry Romania
Rewe Romania
Hiparlo/Carrefour
Delhaize
Auchan
BMI Methodology
Food & Drink Business Environment Ratings
Table: Rewards
Table: Risks
Weighting
Table: Weighting
BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing

- Quadrant Amroq Beverages SA (QAB)/Pepsi Americas Romania
- Brau Union Romania (Heineken)
- SABMiller Romania
- Bergenbier (CVC Capital Partners)
- Mass Grocery Retail
- Metro Cash & Carry Romania
- Rewe Romania
- Hiparlo/Carrefour
- Delhaize
- Auchan

Customers who bought this item also bought

• The Future of the Health and Beauty Packaging Market in Romania to 2017
• Strategic Opportunities in the Romanian Waste Management Market
• The Future of the Household Care Packaging Market in Romania to 2017
• Home and Garden Products Retailing in Romania: Databook to 2016
• The Future of the Home Improvement Packaging Market in Romania to 2017
• Electricals and Electronics Retailing in Romania: Databook to 2016
• Male Shaving Aftercare Market in Romania to 2014 (Male Toiletries)
• Male Razors and Blades Market in Romania to 2014 (Male Toiletries)
• Male Shaving Preparations Market in Romania to 2014 (Male Toiletries)
• Furniture and Floor Coverings Retailing in Romania: Databook to 2016