Romania brings lower than average volume growth for Coca Cola, but still third largest emerging market

Growth was barely registered by bottling company Coca – Cola Hellenic in Romania last year, with marginal growth reported in the fourth quarter, and a 1 percent increase for the full year, according to the company. “Coca-Cola grew by low double-digits in the quarter and Coca-Cola Zero posted strong double-digits growth. […] Volume in our tea category increased marginally, benefiting from the recent launch of Nestea Plum,” Coca Cola Hellenic reported. The company sold 162 million unit cases in Romania in 2012, one percent more than the year before, but 4 percent down on 2010. The growth in Romania was half the growth reported at a worldwide level, of 2 percent year-on-year. The volume sold in Romania was however the third largest among Coca – Cola's emerging markets, after Russia, with 371 million unit cases, and Nigeria, with 181 million. In the Eastern European region, the sales volume in Romania were comparable to Hungary, where the bottling company sold 172 million unit cases. The Polish market saw a 1 percent decline year-on-year, but sold volumes there were higher than in 2010. Out of Coca-Cola's established markets, Italy had the highest sold volume, 309 million unit cases, but that was down 4 percent year-on-year, still ranking second after the Russian market for volume. Romania is included among Coca Cola Hellenic's Emerging Markets reporting group (also includes Russia, the Ukraine and Nigeria, but not EU neighbors Hungary, the Czech Republic and Poland). The bottling company posted a drop of 12 percent in comparable net profit in 2012, to EUR 285 million across all its markets. The decline in profit was steeper in the fourth quarter of the year, down 22 percent to EUR 22 million. “We anticipate that in 2013, disposable income will remain under pressure, resulting from continued austerity measures and high unemployment, particularly in our established markets. We will remain focused on delivering on our strategic priorities: further strengthening our leadership position in the marketplace, driving revenue growth ahead of volume, executing our cost optimization and process efficiency plans, and continuing to generate strong free cash flow,” said Dimitris Lois, Chief Executive Officer of Coca-Cola Hellenic. In Romania, Coca Cola Hellenic runs four factories, in Iaşi, Timişoara, Ploieşti and Vatra Dornei, bottling Coca-Cola, Fanta, Sprite, Schweppes, Cappy, Nestea, Dorna, Poiana Negri, Burn and Illy. Corina Chirileasa, corina@romania-insider.com