In Bulgaria there are over 30 types of natural mineral waters, and the imported ones are less than 1% of the total consumption and therefore are of no significant market importance. Accurate statistics on the market share of the bottling companies in the country however does not exist, but leading producers are Devin, Gorna Banya, Bankya and Hissar. Their concession fees make up 80% of the total that the state collects in this respect.
Largest company for bottling water in the country is Devin AD. At the end of 2009 the company created by businessman Stephen Sharlopov, according to unofficial data held about 35% of the market, was sold to private equity firm Advent International. The deal was for EUR29 million, and the new owner inherited debts of around EUR13 million. According to the Commercial Register now Devin is represented by Thomas Krenbauer, the board is still composed of Borislava Nalbantova and Maya Gerasimova, while the supervisory board consists if Albena Vassileva, Christian Mruck and Milan Kulich.
The company has a concession agreement to the well № 5 in field Devin since 14 April 1999, having authorization for the extraction of mineral water of up to 166 million liters. In November 2009, however, the former Prime Minister Boyko Borisov agreed volumes to increase and in 2014 they will reach 227 thousand cubic meters. Prolongated was also the term of the concession to 35 years, and the concession fee is USD2.5 per 1,000 liters of water. In 2011, when the latest official data was released, Devin extracted about 132 million liters, which paid the state more than 472 thousand levs. For this period, its revenue exceeded 62 million levs, while the profit was more than 2.3 million levs.
The subsidiary of Devin – Atlantic Divine AD also produce mineral water from the Smolyan field. For 2011 it bottled almost 37 million liters and has paid the concession fee of 106 thousand levs. Accordingly, its revenues were just over 4 million levs, and the profit – 135 thousand levs.
Since 1998 Gorna Banya Bottling Company has had a 25-year concession for three mineral springs in the eponymous Sofia suburb. On December 29, 2009 the GERB government extended its contract for another ten years and gave permission to increase volumes by 25 million liters to 187.8 million liters a year. The concession fee for the company is USD2.6 per 1,000 liters. At the end of October 2010 Gorna Banya Bottling Company, which is believed to hold about 30 percent of the market, became property of the Armenians Dzhavair and Gagik Tsarukyan, who paid 25 million for the company. For 2011 it extracted over 153 million liters of water, for which it paid 558,376 levs in fees to the state.
The company for mineral water Bankya, became in the beginning of 2005, part of the Greek manufacturer of soft drinks Coca-Cola Hellenic Bottling Company. The amount of the transaction was 13 million euro, and thus the Coca-Cola Company now holds about 15% of the Bulgarian market of mineral water. Otherwise, the concession contract of Bankya is from January 2001 and allows the extraction of 32.4 million liters of water. In 2009, however, it extracted more than 104 million liters, which was sanctioned. Nevertheless, this company received permission from former governors to increase volumes, which in 2010 was 120.6 million liters, but by 2014 will reach 182.7 million liters. A curious detail is that its owners pay the highest concession fee – USD4.32 per cubic meter of water. So in 2011 they transferred to the state 523 thousand levs for about 84 million liters.
At the beginning of 2010 the Plovdiv-based company Consul holding Bottling Company Hissar unite three companies, bottling water branded Hissar after buying for 2 million euro Moor-2000 Ltd. and acquired half of Hissar 21st Century LTD. Thus the combined business of Consul is already close to the big three, but still, its market share is about 10 percent. This company, too, was allowed by the Cabinet Borissov to increase volumes of production gradually to 125 million liters of water. Owners of Consul are Dimitar Konsulov and 2002 Business Group Ltd., which in turn is headed by Daniela Avdzhieva.
Although not among the lions of the sector, with concessions of mineral waters boast also several very popular among the business community personalities. Oil boss Mitko Subev manages Izvor Bottling Company, while Etap Address of Galia Topalova and Bayram Zeki manages well № 1 from the Barzia field. Water concession has also the company of Merry Kyuleva – Riviera. For the use of water resources of the deposit in the Golden Sands the company pays one of the lowest fees – USD0.5 per 1,000 liters.
The BANKER
