Romania: Heineken Romania foregoes temporary employees and sells non-core assets

The crisis management strategy of Heineken Romania, a major player on the local beer market with a 29% market share, focuses on cutting costs, as the company has decided to forego temporary employees, and is considering selling non-core assets, Business Standard communicated on August, 4.

Salaries have not been affected by changes, and bonuses continue to be granted, according to Heineken officials.

“We are not changing Heineken’s development strategy for the local market, in spite of the crisis. Our goal is to sell beer,” Heineken Romania’s General Manager, Jan Derck van Karnebeek, said.

Moreover, Heineken is trying to sell the plots of land on which the former factories in Arad and Bucharest’s Grivita area are located, for which negotiations have already been initiated, and the former Militari central office.

“We are in talks with several parties for the land of the former Grivita factory, in which businesspeople are interested, because it is located downtown,” van Karnebeek said.

The Dutch producer has five beer factories in Romania (Craiova, Constanta, Hateg, Miercurea Ciuc, and Targu Mures), after closing three units in Arad, Reghin, and Grivita-Bucharest.

The official said that Heineken did not resort to any special cost-cutting programs, and has not modified salaries, but forewent temporary employees. At present, the company has some 1,300 employees.

Locally, Heineken’s strategy focuses on five brands, namely Heineken, Golden Brau, Ciuc Premium, Neumarkt, and Bucegi, of which four are national, the latter making up over 90 percent of the sales of the Dutch producer’s local subsidiary in terms of value.

05 August, 2009