Beer sales in Romania have experienced a significant decline of 9% year-on-year in the first five months of 2023, according to Berarii Romaniei, the association representing 90% of beer sales in the country. This decrease follows a 5% contraction in 2022, highlighting the ongoing challenges faced by brewers in Romania.
Several factors have contributed to this downward trend in beer sales. On the demand side, adverse weather conditions and households’ constrained budgets have played a role in reducing consumer spending on beer. Additionally, on the supply side, rising production costs and an increase in excise duty have further impacted the industry.
Julia Leferman, the general manager of the Brewers of Romania Association, emphasizes the difficulties faced by brewers in maintaining stability in the context of diminishing purchasing power among Romanians. While the potential of the local beer market remains strong, Leferman argues that fiscal predictability is crucial for the industry.
The value of excise duty on beer rose by 20% as of August 1, 2022, and an additional 6% increase took effect on January 1, 2023, amounting to RON 4.20 per hectoliter per degree Plato. These increases have added to the financial burden faced by brewers, making it even more challenging for them to sustain their operations.
Despite the current setbacks, the local beer market in Romania holds promise. However, it is essential for the government to provide a stable and predictable fiscal environment to support the industry’s growth. Without such predictability, the struggling purchasing power of Romanians could continue to hamper beer sales.
As brewers navigate these challenging circumstances, they will need to explore strategies to mitigate the impact of rising costs and excise duties. This may include adjusting pricing structures or seeking cost-saving measures within their operations. Nevertheless, maintaining activity at a stable level remains a priority for the brewers in Romania.
In summary, Romania’s beer sales have experienced a significant decline of 9% in the first five months of 2023, following a contraction in the previous year. Factors such as adverse weather, constrained budgets, rising production costs, and increased excise duty have contributed to this decline. To overcome these challenges and tap into the robust potential of the local beer market, the government must prioritize fiscal predictability, providing brewers with a stable environment for growth. With proactive measures and careful planning, the brewing industry in Romania can work towards revitalizing beer sales and ensuring its long-term sustainability.
