Domestic wine producers are beginning to think of expansion and are buying vineyards, after having chiefly focused on investments and, more recently, on image.
Halewood Romania, the company controlling Cramele Prahova, acquired two vineyards in Podisul Transilvania. Dan Muntean, general manager of the company and a stakeholder in Halewood International, which owns the Romanian branch, said the two vineyards had some 1,500 hectares each, while their acquisition price was worth several thousands of euros.
Muntean would not disclose the exact amount paid for buying the vineyards from Aiud and Sebes Apold, but added the price could go up to 1,500 euros per hectare. The Tarnave vineyard, where Jidvei brands come from, can be found nearby. Jidvei is a traditional player on the market.
To replant grapevine, the company has to invest about 15,000 euros for each hectare, which means over 4.5 million euros that Halewood is willing to invest in the next five years, Muntean said.
"We might have wanted to buy more, but it is quite difficult, as the situation concerning the property deeds is still unclear," he added. "We are prepared to invest, as quality stems from the grapevines."
Halewood Romania expects sales to increase 15% in 2003 as compared with last year, to more than 8.5 million euros.
The company was set up in 1997, aiming to export wines to Great Britain, where Halewood International is headquartered. In 1998, the company took over from the State Ownership Fund (SOF) the main stake in the former Vinalcool Prahova, renaming it later Cramele Prahova, where it is currently controlling over 80%.
The company used to have 80 hectares of grapevine for its own use, also buying grapes from the private producers in areas such as Ceptura, Tohani, Valea Calugareasca, Urlati and Medgidia.
Cramele Prahova has ten producing units and seven wine cellars accounting for 90,420 hectolitres.
Some 45% of the output goes to Great Britain, where the red wine is preferred. claudia.covaci@zf.ro
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