Historians claim that the ancient Thracians used to drink ‘a beverage made of rye’, which gives Bulgarians reason enough to be proud that they were the first to brew beer in Europe. Anyway, contemporary Bulgarians cherish beer, especially in the summer heat. A cold beer relieves everyone from daily strain.
At present all world beer brands can be found on the Bulgarian market. The brewing industry is among the most lucrative branches of the Bulgarian economy. The privatization of the Bulgarian breweries started in the late 1990s and was completed in a few years’ time. Then large-scale investment was made in updating the equipment of the breweries, the majority of which is owned by key players on the world beer market, such as Heineken, Carlsberg and InBev. Over the past decade the Bulgarian breweries have invested more than EUR 250 million in technological equipment, marketing, advertising and staff training. “From the point of view of technology the Bulgarian breweries are above the average European standard”, the members of the Bulgarian Brewers’ Union contend. During the first half of 2010 alone the total amount of investment amounts to more than EUR 9.5 million. That figure could have been greater had it not been for the world economic crisis, which made breweries curb their investment programmes, Vladimir Ivanov, president of the Managing Board of the Bulgarian Brewers’ Union, argued.
“Investment in breweries will continue, and I would like to point to two major reasons for that. In the first place, there is incredible competition on the Bulgarian beer market. Following the reconstruction and modernization of the Bulgarian breweries, currently they all work at 65%-70% of their full capacity. Brewers compete literally for every single bottle of beer on the Bulgarian market. They try to preserve their market share at least, and if they manage, to acquire the market share of the other brewers.”
Another reason for the upsurge in investments is the opening of the Bulgarian market since Bulgaria joined the European Union, Vladimir Ivanov says, and adds:
“Bulgarian brewers cannot stop making investments because they are part of a free 500-million strong market, where there are powerful beer makers. The minute they see some kind of weakness in product presentation, marketing, advertising, or the quality of the beers, they will storm the Bulgarian market and will acquire our businesses.”
Nearly 2.5 million hectolitres of beer were sold over the first six months of 2010 in Bulgaria. Exports however are far less impressive – 29 000 hectolitres. There has been a drop in sales on 2009 figures, as well. In June alone it amounted to a 10% decrease. That could be down to the poor weather and the rainfalls, because people stayed at home instead of going out drinking ice-cold beer. However, the recent FIFA World Cup in South Africa saved the declining of sales.
Bulgarian breweries manufacture 8 world famous beer brands and 85 products altogether. Bulgarians buy beer in plastic bottles the most, because it is the cheapest. Says Vladimir Ivanov,
“Beer sales are like a test to the economic situation of the Bulgarians. The smallest quakes in their financial state and their incomes affect significantly beer sales.”
In 1997 during the leap in inflation rate beer sales plummeted by 50%. “It took us 9 years to reach the pre-1997 level”, Vladimir Ivanov says in conclusion.
English version Radostin Zhelev
