Romanian Entrepreneurs Take On Multinationals With New Soft Drinks Brand

12.15.2011 By Ioana David

Violeta Moraru and her husband Valerii Moraru who control the mineral water business Azuga Waters says that production of a new soft drinks brand, Santiago, will begin in January 2012. This is the company’s first brand on this market.

"We are now in talks with [retail] networks to have this product carried in stores," said Violeta Moraru, who added the new beverage would be sold in three flavors: orange, lemon and raspberry.

The Morarus had announced their plans to go into the soft drinks business at the beginning of this year, but no one knew the name of the brand intended to compete with multinationals in this industry nor the exact date when it was to be launched.

The soft drinks market is dominated by such giants as Coca-Cola and PepsiCo.

The largest Romanian companies in this business are European Drinks and Romaqua. Their sales volumes are in the range of hundreds of millions of euros. Coca-Cola HBC Romania, the US giant's bottler posted 1.74 billion lei (EUR400 million) revenue in 2010, according to Trade Registry data.

Violeta Moraru said Santiago would be a value product; there are also plans for a premium brand, but she did not provide any details about it.

The mineral water business of the company will generate RON34-RON35 million (EUR8 million) this year, while next year's target in the budget is RON50-RON55 million (around EUR12 million).

The results can be considered good, since this is a recent business of the Morarus, who are better known for their Azuga beer business.

The two exited the beer business they had been involved in since 2001 in 2009. They sold the company to Ursus, the leader of the beer market. Ursus closed the Azuga plant shortly thereafter but rented out the facilities to the Morarus who started bottling still and carbonated water.

(English version by Loredana Fratila-Cristescu)