Andreas Seemuller, General Manager of Interbrew Bulgaria, talks to Velina Nacheva about the brewing market in this country and his conception of the South Eastern European business climate.
German Andreas Seemuller, General Manager Interbrew Bulgaria, said that he is extremely optimistic about the development of the beer industry in the country this summer. Beer is a very seasonal product and the sunshine in July and August has made him feel quite optimistic.
Kamenitza AD, owned by Belgium's Interbrew, occupied second place in the market with 30 per cent. Interbrew's local product basket also includes Burgasko, Pleven, Slavena, Stella Artois, Astika and very soon the Beck's brand.
Seemuller said there is a growth trend in the brewing industry in Bulgaria, even if it is not as dynamic as in neighbouring countries. According to the Union of Bulgarian Brewers, beer consumption totalled 4.3 million hectolitres last year. In Bulgaria the average person is estimated to drinks 50 litres of beer per year, Seemuller said, comparing to Germany whose consumption per head averages at 120 litres. "We have to educate people about creating a new culture like in the Czech Republic and Germany and we are quite doing that," he said.
The beer culture in Bulgaria is in a formative process, starting from younger adults, and is an alternative to rakia and wine, he said.
He finds that this business is quite competitive, which is beneficial for consumers, with improved product quality, but added that this tension makes life harder for the brewing industry players.
Seemuller has had a long experience working in Eastern Europe, having spent nine years in Russia, two years in Ukraine and was prepared to discuss I some depth what Eastern Europe is like, and that business in Bulgaria resembles the way things are done in other emerging economies.
He separates Eastern Europe into two clusters of countries, those which have recently joined the EU - the Czech Republic and Hungary featuring better developed business environment, and on the other sides those who want to join the EU like Bulgaria and Romania.
According to Seemuller, Bulgaria's EU accession is a double-edged sword - the up side is border that are open for imports and exports to the EU, but the down side is possible product dumping on the local market. Hungary opened its borders to the EU and 1000 over capacity breweries in Germany. "Those German brewers were dumping a huge amount of product into the Hungarian market," Seemuller said, adding that they as brewers have to be prepared for the day after 2007's EU accession.
In terms of executive search, he considers that Bulgaria is a smaller market, which means that if you are looking for staff, there is a much smaller base for you to choose from. He explained that people are not less qualified in Bulgaria, but selection is restricted by the smaller size of the work force, so there is effectively less choice. "It is challenging to find the right qualifications in order to grow your business further," he said.
After one year in Bulgaria, Seemuller is satisfied to point out the many changes that he has seen implemented. Construction is one part of it, the amount of restaurants and the number of office buildings is also growing, and not just in Sofia but also in other big towns.
Seemuller thinks Bulgaria's great tourist potential is not being fully exploited. He thinks another potential growth industry for Bulgaria is growth, which he believes needs to change it's image and market itself properly. "It is a great industry," he said.
He recommends shopska salad, grilled chicken, and steak as great food accompaniments for beer connoisseurs in Bulgaria.
German Andreas Seemuller, General Manager Interbrew Bulgaria, said that he is extremely optimistic about the development of the beer industry in the country this summer. Beer is a very seasonal product and the sunshine in July and August has made him feel quite optimistic.
Kamenitza AD, owned by Belgium's Interbrew, occupied second place in the market with 30 per cent. Interbrew's local product basket also includes Burgasko, Pleven, Slavena, Stella Artois, Astika and very soon the Beck's brand.
Seemuller said there is a growth trend in the brewing industry in Bulgaria, even if it is not as dynamic as in neighbouring countries. According to the Union of Bulgarian Brewers, beer consumption totalled 4.3 million hectolitres last year. In Bulgaria the average person is estimated to drinks 50 litres of beer per year, Seemuller said, comparing to Germany whose consumption per head averages at 120 litres. "We have to educate people about creating a new culture like in the Czech Republic and Germany and we are quite doing that," he said.
The beer culture in Bulgaria is in a formative process, starting from younger adults, and is an alternative to rakia and wine, he said.
He finds that this business is quite competitive, which is beneficial for consumers, with improved product quality, but added that this tension makes life harder for the brewing industry players.
Seemuller has had a long experience working in Eastern Europe, having spent nine years in Russia, two years in Ukraine and was prepared to discuss I some depth what Eastern Europe is like, and that business in Bulgaria resembles the way things are done in other emerging economies.
He separates Eastern Europe into two clusters of countries, those which have recently joined the EU - the Czech Republic and Hungary featuring better developed business environment, and on the other sides those who want to join the EU like Bulgaria and Romania.
According to Seemuller, Bulgaria's EU accession is a double-edged sword - the up side is border that are open for imports and exports to the EU, but the down side is possible product dumping on the local market. Hungary opened its borders to the EU and 1000 over capacity breweries in Germany. "Those German brewers were dumping a huge amount of product into the Hungarian market," Seemuller said, adding that they as brewers have to be prepared for the day after 2007's EU accession.
In terms of executive search, he considers that Bulgaria is a smaller market, which means that if you are looking for staff, there is a much smaller base for you to choose from. He explained that people are not less qualified in Bulgaria, but selection is restricted by the smaller size of the work force, so there is effectively less choice. "It is challenging to find the right qualifications in order to grow your business further," he said.
After one year in Bulgaria, Seemuller is satisfied to point out the many changes that he has seen implemented. Construction is one part of it, the amount of restaurants and the number of office buildings is also growing, and not just in Sofia but also in other big towns.
Seemuller thinks Bulgaria's great tourist potential is not being fully exploited. He thinks another potential growth industry for Bulgaria is growth, which he believes needs to change it's image and market itself properly. "It is a great industry," he said.
He recommends shopska salad, grilled chicken, and steak as great food accompaniments for beer connoisseurs in Bulgaria.
