The 10,000 Billion Lei Water

The Romanians drink an average of 40 liters of mineral water per year, a quarter of the water consumption in the countries of the European Union. The companies that bottle mineral water battle for a market estimated at approximately 10,000 billion lei. The bottled mineral water consumption remains at a low level, even though it is slightly increasing. Last year, the Romanians consumed an average of 40 liters of mineral water per head, 33 liters more than in 1991, according to the data offered by the National Society of Mineral Waters in Romania (NSMW). The mineral water consumption dramatically decreased after 1993, when the smallest consumption was recorded, 5.5 litters per head respectively.

In 2004, the mineral water production reached 994 million litters, which is approximately five times greater than in 1991, when the production was 2.5 million litters. The mineral water production is mainly destined to the internal consumption; only 2-3% is exported. From the 994 million litters bottled last year, 75% is represented by the natural mineral water. From the remaining 25%, only 10% is represented by the still mineral water, 15% being the sparkling mineral water. "As a particularity, we notice that the French prefer the still mineral water, and the Germans the natural mineral water. The Romanians remain consistent. They consume, mainly, natural mineral water ", says Peter Elek, the director of the National Society of the Mineral Waters.

The consumption recorded in Romania last year is inferior in comparison to the European countries. For example, Germany had a consumption of approximately 150 litters per head", Peter Elek completed.

EXPLOITATION The National Society for Mineral Waters delivers more than 90% of the water from the exploitation sources to 30 bottling companies. Besides them, NSMW also delivers water to several balneary tourism centers. The price is 70 lei per litter. Borsec, Izvorul Minunilor, Perla Harghitei, Dorna, Biborteni are the brands that cover approximately 60% of the total mineral water production and were the ones the Romanians preferred.

POSSIBILITIES To start a deal in the area of producing and bottling mineral water, one needs time and money, according to Peter Elek. The people that want to manage their own mineral water source have to take a first step by submitting an exploring request to the National Agency for Mineral Resources. But the next step, obtaining an exploitation license, can be taken only after the intensive observation of the water source for two years. The water needs to be stable from the quality point of view, which means no fluctuations of the mineral salts have to be recorded. After that, the license is obtained. Another cheaper solution is to contract a mineral water supplier, NSMW in our case.

DEVELOPING MARKET The lack of trust in the tap water, the concern for a healthy organism and the change in mentality led to the quick development of the mineral water consumption in the past years. Although inferior to the majority of the European states, this development shows a continuous progress of the market. According to the data that the NSMW provided, an annual 5% - 6% increase is expected. The mineral water consumption varies a lot during the year. If 70-80 million litters is the consumption for a normal month, 110 million litters of mineral water is the consumption for the summer months. For an average price of 10,000 lei for one litter of mineral water, we can say that the value of the mineral water market in Romania is approximately 10,000 billion lei.

THE PRICE INCREASES "The price of the mineral water might grow with 10% at most in the following months, as a follow-up of the customs duty of 3%, which was introduced at the beginning of this year, Octavian Cretu, the Romaqua Group president, stated. The duty is for the import of the PET grains that are used for producing the plastic bottles. This duty will have a smaller influence for the great economic agents that import PET, 3% - 3.5% probably. However, the price increase will reach 10% at the smaller importers", Cretu stated. "This tax, together with the increase of the rates for electrical current, fuel and transportation will lead to the increase of the mineral water price, probably from February", Cretu also said.