The Beer market in our country decreased by 5% in 2023

The beer market in our country experienced, with only 15 million hectoliters of beer sold, a decrease of 5% at the end of last year, a decrease that is added to that of 2022, according to the report presented yesterday by the representatives of the Association of Romanian Brewers.

From the cited document, it appears that last year the market was also dominated by the lager assortment (93% of the total beer consumption), even if in a slight decrease compared to 2022, when it represented 93.4% of the respective consumption. The Specialties and Mixes & Flavors (non-alcoholic) categories saw a slight advance, while the alcoholic assortments remained stable.

Beer imports totaled, in 2023, 484,000 hectoliters, down 240,000 hectoliters compared to 2022, and exports were also on a downward trend, reaching 422,000 hectoliters, compared to 520,000 hectoliters in 2022.

By packaging category, PET marked the biggest decrease compared to 2022, by 2.6%, but still maintaining the largest share in consumption, at 37.4%. However, this category continues the downward trend it has registered in recent years, dropping from 54% in 2015. At the opposite pole, sales per dose increased to a share of 26.4% in 2023, compared to 24.8% with a year earlier, confirming the trend of recent years.

Despite the reduction in volumes sold, beer producers in our country continued to invest and spent in this regard last year over 117 million euros, 50% more than in 2022, an important place being held in investments to create the necessary infrastructure the implementation of the Return Guarantee System, which became operational on November 30, 2023. More precisely, the funds were allocated to the RetuRO operating infrastructure, consisting of the network of packaging collection and counting centers, the equipment necessary to carry out these processes and the development of the IT system that ensures the operation of the SGR.

Michal Mrowiec, president of the Association of Romanian Brewers and Ursus Breweries, said: "The total investments made by the companies in the field in the period 2014-2023 exceeds two billion euros. In addition, we are proud of the key role played by the beer sector for the launch of SGR, an initiative capable of contributing to a better Romania".

One of the problems faced by beer producers in our country is the unpredictability of the tax regime, although companies in this sector of activity contributed to the state budget in 2023 with more than 311 million euros, which represents an increase of 8.7% compared with the year 2022. Of these, excise taxes represented 142 million euros, increasing by 6% compared to 2022.

Julia Leferman, general director of the Romanian Brewers' Association, stated: "The main challenge of the period is the uncertainty regarding the tax regime, especially in the context of this year's elections, and the escalation of the conflict in Ukraine. This will further put pressure on the supply of raw materials and higher costs on the beer production chain. In order to respond to all economic and fiscal challenges, which seem to be the rule in recent years, but also to take advantage of investment opportunities, the Romanian beer sector needs predictability and fair treatment from the authorities. Only in this way will we be able to continue to bring added value to all economic sectors in direct and indirect relation with brewers".

The representatives of the beer producers declared themselves dissatisfied with the fact that in 2022 the Government increased the excise duty on beer twice, followed by the increase in 2023 and therefore by 10% at the beginning of 2024.

Michal Mrowiec, president of the Association of Romanian Brewers, said: "Do we like taxes? No, but we pay them. We accept responsibility. We are beer producers and we pay all the necessary taxes".

Regarding the excise tax increase, Julia Leferman said: "As a sector we have been exposed to repeated increases in this tax which we have typically had at the beginning of each fiscal year. This has been the predictable mechanism that the industry has advocated with the Government and that we have had in place for the last 5 years, but in the last 2 years we have had a difference in approach at Government level. The industry was faced with an increase in excise duty which happened in the middle of the fiscal year".

Thus, it would be a matter of a 6% increase in excise duty compared to August 2022, which came into force on January 1, 2023.

Ms Leferman said: "The difference between 2022 and 2023 was 11% (increase). This year, from January 1, 2024, a new increase of 10% came into force. Today we have a level of excise duty on beer 18% higher than in Germany. This in the conditions where the purchasing power of Romanians is three times lower".

The general director of the Association of Romanian Brewers believes that the level of taxation of the sector has reached a maximum threshold.

Julia Leferman also said: "From this year, that annual indexing mechanism that over time represented an element of predictability for the industry was stopped. We initiated a dialogue with the Ministry of Finance in order to have a discussion to complete the legislative framework that would ensure a level of predictability regarding the amount of the excise duty in the following years as well".

The members of the Association of Romanian Brewers are the most representative players in the beer market, producing over 90% of the total beer consumed in Romania, and suppliers of agricultural raw materials necessary for beer production. The Association of Romanian Brewers is a member of the Concordia Employers' Confederation and part of the large family of European beer producers, represented by the Brewers of Europe organization.