SABMiller's Romanian subsidiary, Ursus Breweries, is to close its recently acquired Bere Azuga brewery and move production of the Azuga beer brand to other facilities in the country.

Poor equipment at the brewery, which is located near the city of Brasov, is believed to be one of the reasons why Ursus has decided that the facility is not financially viable.

A spokesperson for SABMiller told just-drinks today (15 May): "Following Ursus Breweries' acquisition of Bere Azuga in January this year, we have now begun the process of transforming what was a local beer into a national brand.

"Given the current technical state of the brewery and the small production capacity, we have taken the decision to cease production at Azuga brewery and brew the brands at our other facilities in Romania."

Financial details of the Azuga takeover were not disclosed.

SABMiller's beer sales by volume rose 18% in the year to the end of March, against a national beer market up 3% in the same period, the firm said in its full-year results statement this week.

"Our Timisoreana brand has continued to be the key growth driver, consolidating its leading market position and growing volumes 27%," said the group.

SABMiller's global like-for-like beer volumes were flat against the prior year.