URBB: the cost-cutting measures saved the company an estimated 3mln
United Romanian Breweries Bereprod (URBB), one of the country’s largest brewers, has reassessed its personal finances last year, and made the necessary money-saving measures and cost-cutting steps.
“The economic crisis pushed us to rethink business strategies, which includes many changes I consider necessary to preserve the “health” of the company. The biggest challenge was cutting costs, for which we outlined a plan that consists in several steps, such as renegotiation with suppliers (raw materials, logistics, energy-saving, media, etc), minimize fuel consumption, improve productivity, and avoid wasteful spending, to be more precise, to adopt a cost-conscious approach in order to keep providing competitive prices to clients and avoid price markup”, said Shachar Shaine (photo) chairman of URBB&Carlsrom Beverage.
The cost-cutting program saved the company an estimated €3 billion, amount that partially compensates the currency exchange loss. Furthermore, URBB managed to keep prices at the same level as 2008 and avoided the reduction of marketing spending for 2009.
URBB divided all expenses in two categories: “must-have” and “nice-to-have”. “We are trying to spend money only on must-haves. I think ad spending in case of our brands is a must-have. We have strong brands known across the world and we must keep consumers’ interest alive”, said Shaine.
“The economic crisis pushed us to rethink business strategies, which includes many changes I consider necessary to preserve the “health” of the company. The biggest challenge was cutting costs, for which we outlined a plan that consists in several steps, such as renegotiation with suppliers (raw materials, logistics, energy-saving, media, etc), minimize fuel consumption, improve productivity, and avoid wasteful spending, to be more precise, to adopt a cost-conscious approach in order to keep providing competitive prices to clients and avoid price markup”, said Shachar Shaine (photo) chairman of URBB&Carlsrom Beverage.
The cost-cutting program saved the company an estimated €3 billion, amount that partially compensates the currency exchange loss. Furthermore, URBB managed to keep prices at the same level as 2008 and avoided the reduction of marketing spending for 2009.
URBB divided all expenses in two categories: “must-have” and “nice-to-have”. “We are trying to spend money only on must-haves. I think ad spending in case of our brands is a must-have. We have strong brands known across the world and we must keep consumers’ interest alive”, said Shaine.