One could think people drink more alcohol in times of crisis trying to drown problems. This might be true, but if money isn't enough to ensure the daily food, things change.

The descendent trend in alcohol consumption is perceptible in Romania regarding inter alia the consumption of beer. Bergenbier, the third biggest brewer on the domestic market, has recently announced - according to the publication Ziarul Financiar - it would close one of its breweries in the western part of Romania and, as a consequence, lay off around 170 employees. Nevertheless, the strategy to overcome times of crisis is to enhance the sales force, which is exactly what Bergenbier did, according to Ziarul Financiar. Although it closed a brewery and therefore fired manufacturing employees, it expanded its sales team by 12% since the beginning of the year.

"Boosting our sales force was a necessary move amid the current market conditions, when sales must be developed to the maximum. Therefore, we've invested in activities that directly generate volumes: brand promotion and distribution boosting. Hiring was mainly operated through external recruitment, but there were also internal promotions on certain positions," stated Mihai Ghyka, general manager of Bergenbier SA, part of StarBev group, with 135m-euro turnover last year, according to Ziarul Financiar.

When the domestic consumption stays low, export should grow. This should be the policy governing the business under the current economic situation according to Shachar Shaine, the chairman of United Romanian Breweries Bereprod, the brewer of Tuborg and Carlsberg, ranking fourth on the domestic beer market.

"This year, we strengthened exports, which have now doubled in terms of volumes against the same period of last year, to 5% in volume sales from around 3% in 2009. The economic crisis has hurt Balkan countries more than Western Europe and this is why we need to export," said Shaine according to Ziarul Financiar.

Rising exports help boosting sales and overcoming the difficult times the whole industry is facing. Nevertheless, Shaine notices some obstacles he would like to see removed: "The main problem is infrastructure. This is an aspect the government should focus on and for which it has done very little so far. It should accelerate tenders. Also, authorities need to bolster exports by reducing customs red tape and if they intensify checks these should be rapid and efficient", said Shaine according to Ziarul Financiar.

Romania's southern neighbors, the Bulgarians, identified, on the other hand, the right policy to boost the tourism sector. They decided to keep their hotel prices unchanged in comparison to the previous years and raised therefore the interest for vacations spent by foreigners in Bulgaria.

The biggest interest has been shown by the Russians, according to the News Agency novinite.com. Data from the Association of Tour Operators of Russia show that about 70.000 Russian tourists have chosen Bulgaria as their holiday destination. That means, Bulgaria welcomed about 25% more Russian tourists in 2010 in comparison to last year, according to novinite.com.

"The higher interest in Bulgaria has been recorded not only by our company, but also by our colleagues from other tour companies," said Elena Andrievska, responsible for Bulgaria in the Russian "ICS Travel", quoted by the News Agency novinite.com.

The Russian tourists usually choose the Northern Black Sea as their vacation destination. Nevertheless, in 2010, they showed a growing interest for the Southern Black Sea Coast, said the representative of the Tourism Agency, according to the same news agency.

The Association of Tour Operators of Russia believes that the main reason for the high interest towards Bulgaria is the fact that the Bulgarian hotel owners have not increased the prices this year, despite the positive signals for improvement in the sector. Another reason is the promotion package for early bookings that have been extended this year.

According to novinite.com, most of the Russian tourists who stay in a hotel prefer "all inclusive" packages and first line position of the hotel. The second option for accommodation are luxurious apartments in apart- hotels.

Adina Olaru

Photo: ISIFA