swot 2006_15[1].09.2006

CUSTOMER ANALYSIS

Trend in the Romanian market

JUL 2006CUSTOMERS

TOTAL URBB % NUMERIC % WEIGHTED

OFF PREMISE 60,300 37,500 62% 84%

ON PREMISE 27,700 18,900 68% 78%

URBAN 57,600 40,800 71% 87%

RURAL 30,400 15,600 51% 67%

TOTAL MARKET 88,000 56,400 64% 82%

Trends in the Romanian beer market

JAN - JUL2006 VS 2005

total Hl sales/client Hl no of clients

TOTALROMANIA

total market 106.2% 104.4% 101.7%

URBB 118.6% 111.0% 106.8%

OFFtotal market 111.1% 108.6% 102.3%

URBB 137.9% 121.8% 113.2%

ONtotal market 96.2% 95.9% 100.3%

URBB 89.1% 91.5% 97.4%

URBANtotal market 107.8% 105.1% 102.6%

URBB 117.8% 112.7% 104.5%

RURALtotal market 101.7% 101.5% 100.2%

URBB 122.8% 106.4% 115.4%

MEMRB beer market research

JULY2006 VS 2005

total Hl sales/client Hl no of clients

TOTALROMANIA

total market 129.8% 115.2% 112.7%

URBB 566.4% 278.9% 203.1%

OFFtotal market 121.3% 118.9% 102.0%

URBB 590.4% 284.2% 207.7%

ONtotal market 178.9% 101.5% 176.3%

URBB 383.5% 284.6% 134.8%

URBANtotal market 136.7% 116.2% 117.6%

URBB 569.3% 300.0% 189.8%

RURALtotal market 110.2% 102.6% 107.4%

URBB 534.1% 131.7% 405.5%

Trends in the Romanian SD market

MEMRB SD market research

Market Share Total Market Beer Total Romania Urban Rural

MEMRB Market, 2006 jan-jul 5,736,168 4,274,920 1,461,248


106.2% 107.8% 101.7%

Total Tuborg, 2006 jan-jul 10.1% 11.5% 6.0%


Total Interbrew, 2006 jan-jul 22.4% 23.0% 20.4%


Total South African Breweries (S.A.B.), 2006 jan-jul 22.4% 21.9% 24.2%


Total Brau AG, 2006 jan-jul 22.9% 22.2% 25.0%


Total European Drinks, 2006 jan-jul 11.2% 10.9% 11.9%


Total Bere Mures, 2006 jan-jul 7.6% 8.0% 6.4%


Weighted Handling Total Market Beer Total Romania Urban Rural



106% 108% 102%













Market Share Total Market SD Total Romania Urban Rural

MEMRB Market, Jul06 947,600 741,714 205,887

MEMRB Market, Jul05 729,908 542,960 186,948

130% 137% 110%

Total Carlsrom, Jul06 0.7% 0.8% 0.2%

Total Carlsrom, Jul05 0.2% 0.2% 0.0%

Total ROMAQUA GROUP, Jul06 1.0% 0.8% 1.5%

Total ROMAQUA GROUP, Jul05 1.0% 0.9% 1.3%

CORPORATE COCA-COLA, Jul06 43.7% 45.4% 37.7%

CORPORATE COCA-COLA, Jul05 46.7% 49.3% 39.2%

CORP.PEPSI COLA, Jul06 31.7% 33.9% 23.8%

CORP.PEPSI COLA, Jul05 21.8% 23.9% 15.4%

TOTAL EURO DRINKS, Jul06 15.6% 13.4% 23.2%

TOTAL EURO DRINKS, Jul05 19.9% 17.4% 27.2%

Weighted Handling Total Market SD Total Romania Urban Rural

MEMRB Market, Jul06 947,600 741,714 205,887

MEMRB Market, Jul05 729,908 542,960 186,948

130% 137% 110%

Total Carlsrom, Jul06 40% 46% 16%

Total Carlsrom, Jul05 21% 27% 5%

Total ROMAQUA GROUP, Jul06 29% 29% 28%

Total ROMAQUA GROUP, Jul05 26% 27% 24%

CORPORATE COCA-COLA, Jul06 96% 97% 93%

CORPORATE COCA-COLA, Jul05 96% 97% 91%

CORP.PEPSI COLA, Jul06 89% 91% 80%

CORP.PEPSI COLA, Jul05 86% 89% 78%

TOTAL EURO DRINKS, Jul06 80% 79% 82%

TOTAL EURO DRINKS, Jul05 86% 85% 89%

UNIVERS OF CUSTOMERS 2006 Off premise outlets = slight increase ( + 2.0%), due to the “General Store” segment On premise outlets = constant

Urban customers = slight increase ( + 2.6%) Rural customers = constant

2007 Off premise outlets = same slight increase, due to the general economic increase On premise outlets = possible slight decrease, due to the European legislation regarding food service industry and decreasing of the black market

Urban customers = same trend Rural customers = possible slight increase

KA CHAINS

2006

Outlets 2006 = + 15% Volume 2006 BEER = + 188% (URBB = + 178%) Volume 2006 SD = + 263% (URBB = + 729%)

According MEMRB, supermarket channel had the highest growth in volumes 2006 vs 2005 75% of the beer market growth came from this channel 38% of the SD market growth came from this channel CBA (trade association) failed to unify the small outlets New chains 2006:

Real = 7 hipermarket Auchan = 1 hipermarket Spar = 10 small supermarket (< 1000 m2)

TIP 2006 2007 %HIPERMARKET 25 65 260%

SUPERMARKET 82 117 143%

GAS STATION 871 965 111%

DISCOUNT 71 146 206%

CASH & CARRY 35 39 111%

TOTAL 1084 1332 123%

2007

Outlets 2007 = + 23% Volume 2006 = + 195%

New chains 2007: Tesco ? (to buy Cora) Casino ?

Local & regional chains have the same development trend Romanian regional chains started to expand their business (Pic, Trident, Fidelio, Cip Savin, Mara, Ethos etc.)

Market Share On Premise Beer Total Romania Horeca Bar Restaurant

Other Horeca

MEMRB Market, 2006 jan-jul 5,736,168 1,712,194 313,453 260,547 1,138,194

MEMRB Market, 2005 jan-jul 5,401,015 1,780,494 343,842 290,141 1,146,511

106.2% 96.2% 91.2% 89.8% 99.3%

Total Tuborg, 2006 jan-jul 10.1% 10.1% 11.9% 14.3% 8.6%

Total Tuborg, 2005 jan-jul 9.1% 10.9% 13.9% 16.3% 8.6%

Total Interbrew, 2006 jan-jul 22.4% 21.3% 24.0% 23.8% 20.0%

Total Interbrew, 2005 jan-jul 22.0% 23.6% 24.8% 27.4% 22.3%

Total South African Breweries (S.A.B.), 2006 jan-jul 22.4% 35.8% 33.1% 32.5% 37.3%

Total South African Breweries (S.A.B.), 2005 jan-jul 20.0% 27.6% 24.8% 23.2% 29.5%

Total Brau AG, 2006 jan-jul 22.9% 25.8% 26.2% 27.2% 25.4%

Total Brau AG, 2005 jan-jul 24.7% 29.3% 29.7% 32.1% 28.5%

Total European Drinks, 2006 jan-jul 11.2% 2.8% 1.9% 0.4% 3.6%

Total European Drinks, 2005 jan-jul 11.8% 3.1% 2.0% 0.4% 4.2%

Total Bere Mures, 2006 jan-jul 7.6% 1.0% 0.6% 0.1% 1.3%

Total Bere Mures, 2005 jan-jul 7.9% 1.2% 0.8% 0.0% 1.6%

ON PREMISE CHANNEL

Weighted Handling On Premise BeerHoreca Bar Restaurant

Other Horeca

MEMRB Market, 2006 jan-jul 1,712,194 313,453 260,547 1,138,194

MEMRB Market, 2005 jan-jul 1,780,494 343,842 290,141 1,146,511

96% 91% 90% 99%

Total Tuborg, 2006 jan-jul 77.6% 82.7% 93.1% 72.7%

Total Tuborg, 2005 jan-jul 80.8% 82.0% 93.9% 77.2%

Total Interbrew, 2006 jan-jul 91.5% 93.9% 96.6% 89.6%

Total Interbrew, 2005 jan-jul 90.5% 91.7% 96.7% 88.6%

Total South African Breweries (S.A.B.), 2006 jan-jul 92.0% 87.1% 91.6% 93.4%

Total South African Breweries (S.A.B.), 2005 jan-jul 87.0% 85.9% 91.8% 86.2%

Total Brau AG, 2006 jan-jul 86.1% 89.9% 94.6% 83.1%

Total Brau AG, 2005 jan-jul 89.9% 93.5% 96.0% 87.2%

Total European Drinks, 2006 jan-jul 25.2% 15.5% 6.7% 32.2%

Total European Drinks, 2005 jan-jul 26.2% 18.5% 5.6% 33.7%

Total Bere Mures, 2006 jan-jul 12.7% 7.0% 3.4% 16.3%

Total Bere Mures, 2005 jan-jul 10.2% 6.4% 0.8% 13.8%

Market Share On Premise SD Total Romania Horeca

Fast Food Bar

Other Horeca

MEMRB Market, Jul06 947,600 192,771 27,262 87,673 77,836

MEMRB Market, Jul05 729,908 107,725 8,534 70,139 29,052

130% 179% 319% 125% 268%

Total Carlsrom, Jul06 0.7% 0.3% 0.7% 0.2% 0.2%

Total Carlsrom, Jul05 0.2% 0.1% 0.1% 0.1% 0.1%

Total ROMAQUA GROUP, Jul06 1.0% 0.4% 0.2% 0.9% 0.1%

Total ROMAQUA GROUP, Jul05 1.0% 0.7% 0.4% 0.9% 0.1%

CORPORATE COCA-COLA, Jul06 43.7% 33.9% 28.4% 46.6% 21.5%

CORPORATE COCA-COLA, Jul05 46.7% 61.7% 72.7% 58.3% 66.9%

CORP.PEPSI COLA, Jul06 31.7% 59.0% 70.1% 39.5% 77.1%

CORP.PEPSI COLA, Jul05 21.8% 23.4% 21.9% 21.2% 29.4%

TOTAL EURO DRINKS, Jul06 15.6% 4.9% 0.5% 9.8% 0.9%

TOTAL EURO DRINKS, Jul05 19.9% 10.2% 4.4% 14.0% 2.9%

Weighted Handling On Premise SD Total Romania Horeca

Fast Food Bar

Other Horeca

MEMRB Market, Jul06 947,600 192,771 27,262 87,673 77,836

MEMRB Market, Jul05 729,908 107,725 8,534 70,139 29,052

130% 179% 319% 125% 268%

Total Carlsrom, Jul06 40% 26% 63% 10% 32%

Total Carlsrom, Jul05 21% 12% 8% 10% 18%

Total ROMAQUA GROUP, Jul06 29% 6% 3% 8% 4%

Total ROMAQUA GROUP, Jul05 26% 9% 11% 11% 4%

CORPORATE COCA-COLA, Jul06 96% 94% 95% 91% 98%

CORPORATE COCA-COLA, Jul05 96% 93% 92% 93% 95%

CORP.PEPSI COLA, Jul06 89% 83% 76% 77% 91%

CORP.PEPSI COLA, Jul05 86% 70% 46% 71% 74%

TOTAL EURO DRINKS, Jul06 80% 27% 4% 50% 10%

TOTAL EURO DRINKS, Jul05 86% 42% 25% 50% 26%

2006

Outlets 2006 BEER = + 0% (URBB = 3%) Outlets 2006 SD = + 76% Volume 2006 BEER = 5% (URBB = 11%) Volume 2006 SD = + 79%

According MEMRB, for beer market, “Other Horeca” channel (including BODEGA, BIRT, FAST FOOD, COFFEE SHOPS) are responsible for 71% of the sales volume In this segment, URBB has the lowest market share!

According MEMRB, for SD market, the huge increase came mainly from “Fast Food” channel – 320% - and from “Other Horeca” (including Restaurants, Coffee Shops and Cafeteria) – 268% “Bar” channel increase too with 124%

Market Share Off Premise Beer Total Romania

Off Premise

Supermarket

Large Grocery

Small Grocery Kiosk

General Store

MEMRB Market, 2006 jan-jul 5,736,168 4,023,974 462,819 521,878 2,284,230 446,986 308,062


106.2% 111.1% 288.5% 100.8% 102.6% 97.0% 120.6%

Total Tuborg, 2006 jan-jul 10.1% 10.1% 17.9% 11.6% 8.6% 9.8% 8.0%


Total Interbrew, 2006 jan-jul 22.4% 22.8% 19.9% 22.5% 23.6% 22.9% 21.4%


Total South African Breweries (S.A.B.), 2006 jan-jul 22.4% 16.8% 11.2% 17.5% 18.3% 14.4% 16.0%


Total Brau AG, 2006 jan-jul 22.9% 21.7% 21.1% 24.2% 21.1% 20.1% 25.5%


Total European Drinks, 2006 jan-jul 11.2% 14.7% 20.6% 12.1% 13.9% 16.1% 15.1%


Total Bere Mures, 2006 jan-jul 7.6% 10.4% 5.3% 9.8% 11.1% 13.4% 9.4%


OFF PREMISE CHANNEL

Weighted Handling Off Premise Beer Total Romania

Off Premise

Supermarket

Large Grocery

Small Grocery Kiosk

General Store



106% 111% 288% 101% 103% 97% 121%













Sales Volume Off Premise SD Total Romania

Off Premise

Supermarket

Large Grocery

Small Grocery Kiosk

General Store

MEMRB Market, Jul06 947,600 754,829 133,411 87,040 369,891 104,113 60,374

MEMRB Market, Jul05 729,908 622,183 50,783 94,188 347,275 83,327 46,611

130% 121% 263% 92% 107% 125% 130%

Total Carlsrom, Jul06 0.7% 0.8% 1.5% 1.0% 0.7% 0.3% 0.9%

Total Carlsrom, Jul05 0.2% 0.2% 0.5% 0.2% 0.1% 0.0% 0.1%

Total ROMAQUA GROUP, Jul06 1.0% 1.1% 0.8% 1.0% 1.4% 0.7% 0.8%

Total ROMAQUA GROUP, Jul05 1.0% 1.1% 1.4% 1.0% 1.1% 0.4% 1.7%

CORPORATE COCA-COLA, Jul06 43.7% 46.2% 50.4% 43.2% 44.5% 52.2% 41.7%

CORPORATE COCA-COLA, Jul05 46.7% 44.1% 41.6% 43.7% 43.1% 53.0% 39.0%

CORP.PEPSI COLA, Jul06 31.7% 24.8% 22.1% 29.2% 23.7% 29.4% 22.5%

CORP.PEPSI COLA, Jul05 21.8% 21.5% 34.5% 23.2% 19.8% 22.1% 14.7%

TOTAL EURO DRINKS, Jul06 15.6% 18.3% 13.1% 18.0% 20.6% 14.0% 23.2%

TOTAL EURO DRINKS, Jul05 19.9% 21.6% 7.2% 20.8% 24.0% 17.4% 28.6%

Weighted Handling Off Premise SD Total Romania

Off Premise

Supermarket

Large Grocery

Small Grocery Kiosk

General Store

MEMRB Market, Jul06 947,600 754,829 133,411 87,040 369,891 104,113 60,374

MEMRB Market, Jul05 729,908 622,183 50,783 94,188 347,275 83,327 46,611

130% 121% 263% 92% 107% 125% 130%

Total Carlsrom, Jul06 40% 43% 97% 51% 32% 11% 33%

Total Carlsrom, Jul05 21% 23% 77% 40% 16% 7% 7%

Total ROMAQUA GROUP, Jul06 29% 35% 86% 32% 26% 13% 20%

Total ROMAQUA GROUP, Jul05 26% 29% 73% 37% 24% 12% 29%

CORPORATE COCA-COLA, Jul06 96% 96% 97% 99% 97% 90% 91%

CORPORATE COCA-COLA, Jul05 96% 96% 100% 99% 96% 95% 92%

CORP.PEPSI COLA, Jul06 89% 91% 100% 93% 89% 85% 86%

CORP.PEPSI COLA, Jul05 86% 89% 100% 96% 90% 80% 81%

TOTAL EURO DRINKS, Jul06 80% 93% 99% 95% 93% 88% 86%

TOTAL EURO DRINKS, Jul05 86% 94% 98% 99% 93% 86% 98%

2006

Outlets 2006 BEER = + 2% (URBB = +13%) Outlets 2006 SD = + 2% Volume 2006 BEER = 5% (URBB = 11%) Volume 2006 SD = + 21%

According MEMRB, for beer market, “Small Grocery” channel are responsible for 57% of the sales volume In this segment, URBB has the lowest market share (excepting “General Store” channel)!

According MEMRB, for SD market, the increase came mainly from “Kiosk” channel – 125% - and from “General Store” channel – 130%

PORTER ANALYSIS - BUYERS

KA average cost 2006 URBB for national chains = 15.8% due to the high competition between chains and to the very fragmented market, the bargaining power of the KA is just slightly increasing although, high competition for additional placements will increase the total expense, in fix amounts decreasing power for Cash & Carry

Off premise bargaining power not existing competition for shelf space and POS placement may lead to some additional costs – especially in SD business

Top Horeca average cost 2006 URBB for exclusivity contracts = 22.0% decreasing bargaining power for beer market (competition decrease the exclusivity budgets) increasing bargaining power for SD market (due to the fight between Coca Cola and Pepsi)

Traditional On Premise increasing bargaining power for beer market needs for: POS materials, trade marketing activities, special prices huge competition in mainstream segment

Wholesalers decreasing black market leads to less power increasing distribution capacity for wholesalers in Bucharest and other big cities is leading to increasing power not powerful in the SD business

OCCASIONS ANALYSIS

+/- +/+ +/+ -/-

Convenience stores

Trendybar/disco

Discotheque/nightclub

Fast Food Meal in restaurant

Cash&CarryPetrol stationsSpecialised drinks storesCash&Carry

Fashionable pub.town bar Local bar

Relaxed Outdoor

Relaxed Everyday

Upbeat Out

Meal Out

ValueSeekers

Meal home

Relaxed Home

Upbeat Home

Supermarket Trad.grocery stores

Supermarket

FunSeekers Experimenters Ambitious and responsible Quiet life

seekers

OPPORTUNITY

OPPORTUNITY

DANGER

TUBORG

OPPORTUNITY

OVER LESSSALES OVERINDEX LESS

BRAND FIT INDEX

STABLE STRONG POSITIONINSTABLE STRONG POSITIONLOST OPPORTUNITY LOW IMPORTANCE

+/- +/+ +/+ -/-

Convenience stores

Trendybar/disco





Relaxed Outdoor

Relaxed Everyday

Upbeat Out

Meal Out

ValueSeekers

Meal home

Relaxed Home

Upbeat Home


Supermarket


seekers

OPPORTUNITY

DANGER DANGER

SKOLOVER LESS

SALES OVERINDEX LESS

BRAND FIT INDEX

OPPORTUNITY

DANGER

DANGER

DANGER

DANGER


+/- +/+ +/+ -/-

Convenience stores

Trendybar/disco





Relaxed Outdoor

Relaxed Everyday

Upbeat Out

Meal Out

ValueSeekers

Meal home

Relaxed Home

Upbeat Home


Supermarket


seekers

DANGER

CARLSBERGOVER LESS


BRAND FIT INDEX

DANGER


+/- +/+ +/+ -/-

Convenience stores

Trendybar/disco





Relaxed Outdoor

Relaxed Everyday

Upbeat Out

Meal Out

ValueSeekers

Meal home

Relaxed Home

Upbeat Home


Supermarket


seekers

DANGER OPPORTUNITY

OPPORTUNITY

HOLSTENOVER LESS


BRAND FIT INDEX

OPPORTUNITY OPPORTUNITY


COMMENTS:

• The analysis take in consideration two dimensions:• brand fit • brand sales index vs market index

• There are 4 different possibilities for each cell:1. Strong stable position = over index sales / over index brand fit 2. Instable strong position = over index sales / under index brand fit3. Lost opportunity = under index sales / over index brand fit4. Less important areas = under index sales / under index

brand fit• There are 3 possible actions:

1 = to evaluate (to understand the benefits) and continue the present activities

2 + 3 = increase availability, develop trade marketing activities, sales aggressive

promotions, increase shelf space and additional placements, merchandising

4 = ensure the availability and shelf space • Red marked channels represent the first priority

TUBORG

• Stable strong position• specialized drink stores• cash & carry (relaxed out occasion)• fashionable pub• trendy bar, discotheque

• Instable strong position + lost opportunities • supermarket (for younger consumers)• cash & carry (for home consumption – younger consumers)• convenience store (for younger consumers)• petrol stations • local bar • fast food• restaurant

• Less important area• traditional grocery store

SKOL• Stable strong position

• local bar (for younger consumers)• Instable strong position + lost opportunities

• supermarket (for middle age consumers)• cash & carry• convenience store• traditional grocery store• specialized drink store• petrol station• local bar (for older consumers)• trendy bar, discotheque• fast food• restaurants

• Less important area• fashionable pub

CARLSBERG

• Stable strong position• petrol stations• specialized drink stores• cash & carry• fashionable pub• local bar• trendy bar, discotheque• fast food

• Instable strong position + lost opportunities • supermarket• convenience store • restaurant


HOLSTEN• Stable strong position = Ø• Instable strong position + lost opportunities

• supermarket• cash & carry• convenience store• specialized drink store• petrol station• local bar• trendy bar, discotheque• fashionable pub• fast food• restaurants


CHANNEL ACTIVITY MATRIX TUBORG SKOL CARLSBERG HOLSTEN

SUPERMARKET 2 2 2 2

TRADITIONAL GROCERY STORE 0 2 0 0

CONVENIENCE STORE 2 2 2 2

CASH & CARRY 2 2 1 2

SPECIALISED DRINK STORES 1 2 1 2

PETROL STATIONS 2 2 1 2

LOCAL BAR 2 2 1 2

FASHIONABLE PUB/BAR 1 0 1 2

TRENDY BAR 1 2 1 2

DISCOTHEQUE 1 2 1 2

FAST FOOD 2 2 1 2

RESTAURANT 2 2 2 2

1 = STRONG STABLE POSITION2 = INSTABLE POSITION – FIRST PRIORITY2 = INSTABLE POSITION0 = LESS IMPORTANT POSITION

S.W.O.T. ANALYSIS

S

Low distribution cost TOP HORECA Decreasing return Increasing wholesalers volumes Availability Market share Improving collection of debts

W

Less experienced sales management Fluctuation Less experienced sales force High number customers / sales agent Distribution constraints in some pick periods High cost for HORECA exclusivities (26%) Sales & availability Orangina & Holsten

O

New shopping malls Development of HORECA chains

T

Small outlets reduction (financial risk) Low unemployment (low professionalism for new employees) Aggressive competition ON PREMISE Long payment terms used by competitors

BUCURESTI

S Dedicated sales force (Bucuresti + 4 branches + Brasov) Market share (18% according MEMRB) Availability 100% Placements in the stores Draught exclusivity in gas station Portfolio Relatively low cost (16%) Market share in hypermarket channel

W 2 branches without dedicated KA sales agent (Craiova, Ploiesti) Lack of personal in Indirect Shelf share lower than market share – local and regional chains Merchandising (especially in week-ends) Package quality for 6 packs Lower market share in local KA Unattractive packages (8+CD) Not enough trade marketing Not enough cold space

O New chains (Real, Spar,

Kaufland, Auchan) Increase consumption habit Development of existing chains

(+ 23%) Central warehouse (Billa, Metro,

Kaufland)

T Aggressive competition (especially SD) Delivery constraints Price war between chains Customers fluctuation Financial risk (bad debts + discounts)

KA

S

KA national & local TOP HORECA (Timisoara, Iasi, partial Cluj and Constanta) SV Operations (distribution, fleet) Availability urban (except Craiova & Ploiesti) Distributors in Cluj si Prahova for rural area Stable management New branches (except Constanta) Trade Marketing (Arad, Craiova, Iasi, Seaside) Seaside 2006 (except partial Mamaia) Sales Orangina (except Iasi)

W

Fluctuation High number customers / sales agent Cleaning Logistic operations in the warehouses Not strong enough connection with Central Office High cost for HORECA exclusivities (24%)

O

New shopping malls Development of HORECA outlets Increasing consumption in rural areas (Timisoara, Cluj, Constanta, Ploiesti)

T

Competition (beer) uses distributors Aggressive competition in On Premise Long payment terms used by competitors

FILIALE

S- Stable and professional sales force- Low cost for HORECA exclusivities (16%)- Reduced financial risk (warranty letters)- Local festivals

W- Not enough sales force (uncovered areas, lack of KA structure)- Low availability (especially in rural area)- Lack of interest or professionalism of some distributors (Z Centrala, Bihor, Bacau, Galati, Arges, Caras) - Logistic problems at some distributors- Merchandising- Not enough trade marketing

O- Sibiu – European Cultural City- Tourism development (Danube

Delta, Prahova Valley, Maramures, Bucovina)

- Development of KA local/ regional

T- European legislation (transport, logistics)- Distributors fluctuation - Increasing costs (fuel cost increasing)

INDIRECT

S Sales management training program Program DPS Availability & market share national KA Availability & market share Bucharest Good trend in the branches (sales + operations) DSO decreasing Partnership with HORECA chains Trade marketing program Call Center for HORECA & KA customers Draught (image & market share – 10.7%) Forward stock higher than market share (11.9% vs 10.1%) Increasing average sales/customer in hl (+11% vs +4% total market)

W Not any program for distributors development Manual operating system for indirect orders Lack of data from distributors Availability rural & some urban areas Availability Holsten & Orangina Not enough coolers (especially SD) – “cold stock” decreasing (beer) or much lower than market share (SD) Lack of sales force trust in Orangina Merchandising Wrong launching for Granini Decreasing market share in On Premise channel High cost for exclusivity contracts (22%) Out of Stock higher than competitors (6% URBB vs 4% total market) Bonus system for sales force

O Increasing consumption (beer

and SD) KA development (288% sales

increase in SMKT, according MEMRB)

Increasing rural area consumption (beer & SD)

T Beer On Premise decreasing (95% 2006 vs 2005) Increasing low price PET consumption Unemployment Increasing costs in On Premise channel

TOTAL ROMANIA

swot 2006_15[1].09.2006

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