Research and Markets: Food and Retail Company Rewe-owned Billa Romania Is Expecting To Open Ten Stores in Total by the End Of 2009

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/c292ed/romania_food_and_d) has
announced the addition of the "Romania Food and Drink Report Q4 2009" report to
their offering.

The Romania Food and Drink Report provides industry professionals and
strategists, corporate analysts, food and drink associations, government
departments and regulatory bodies with independent forecasts and competitive
intelligence on Romania's food and drink industry.

In the Food and Drink Business Environment Ratings (BER) for Q409, Romania
retained the fourth position it achieved the previous quarter, out of the 14
markets surveyed in the Central and Eastern European (CEE) region. Although
consumers are feeling the pinch of the recession, Romania's food consumption
values are expected to post stronger growth in 2008-2013 than those of many of
its CEE peers. In 2013, expenditure on food is forecast to reach RON71.89bn
(US$31.0bn), growing at a rate of 27.98% in local currency terms. This
development will be supported by the expansion of modern mass grocery retail
(MGR) outlets, which are increasingly targeting markets outside the capital
city. However, lower per capita incomes and undeveloped infrastructure in
expansive rural areas will remain some of the main barriers to growth, with
economic considerations weighing down on the short-term market expansion.

Nevertheless, a number of Romanian food and drinks players have reported
positive developments, despite falling consumer confidence in recent months. In
July 2009, multi-segment beverage company Tymbark Maspex reported a 14%
year-on-year (y-o-y) increase in H109. The company, a subsidiary of Poland-based
Maspex International, recently launched a EUR30mn manufacturing facility, which
is expected to significantly increase production capacity, both for domestic
supply and exports. Around the same time, the National Company of Mineral Waters
(SNAM) suggested that the mineral water market in Romania could grow as much as
10% in the course of the year, despite a 6% y-o-y drop posted in Q109. This
belief in the positive outlook for the Romanian soft drinks market is also
upheld by Dole Europe's acquisition of Distrifruit - its long standing Romanian
distributor - thus becoming the first multinational fruit conglomerate to enter
the Romanian market.

In the MGR sector, a number of leading players announced expansion for the
remainder of 2009. In fact, Belgium-based supermarket operator Delhaize Group
announced it is to sell its four German stores to locally based Rewe, in order
to focus on Romania as the hub of its Eastern European operations. Rewe-owned
Billa Romania is expecting to open ten stores in total by the end of 2009,
although the new outlets will be significantly smaller than the stores opened
previously. Billa is also aiming to strengthen its Clever private label line, in
a bid to maintain consumer levels during the economic crisis.

On the other hand, there is no denying that 2009 will be a challenging year for
both the food and drinks and the MGR industry. Indeed, Belgian brewing behemoth
Anheuser-Busch InBev (A-B InBev) is reportedly looking for interested parties
that would buy its CEE operations, including Romania. Meanwhile, Romania's
leading beer maker Heineken recently sold its bottled water operation to a
domestic business in accordance with its strategy to focus its resources
entirely on its beer business, while SABMiller's Romania-based subsidiary Ursus
Breweries pulled the plug on Bere Azuga's brewing facility, due to the poor
manufacturing capacity and equipment quality. Delhaize recorded Q109 net losses
in Romania and Indonesia (its rest-of-the-world market), despite growing sales
by 20.1% y-o-y, due to unfavourable exchange rates.

Key Topics Covered:

* Executive Summary
* SWOT Analysis
* Business Environment
* Food
* Drink
* Industry Forecast Scenario
* Mass Grocery Retail
* Industry Forecast Scenario
* Market Overview
* Competitive Landscape
* Appendix
* Country Snapshot: Romania Demographic Data
* Food & Drink Industry Glossary

Companies Mentioned:

* Kandia-Excelent
* Vel Pitar
* Nestlé Romania
* Quadrant Amroq Beverages SA (QAB)/Pepsi Americas Romania
* Brau Union Romania (Heineken)
* SABMiller Romania
* InBev Romania
* Delhaize
* Rewe Romania
* Hiparlo/Carrefour
* Metro Cash & Carry Romania

For more information visit
http://www.researchandmarkets.com/research/c292ed/romania_food_and_d

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Copyright Business Wire 2009