Bacardi-Martini, number two on the world spirits market has recently given up bottling the Martini vermouth sold on the Romanian market in Romania and started importing it from Italy. The vermouth used to be brought from Italy in bulk and bottled at a facility located in a depressed area in Valea Jiului (Jiu Valley).
Sources in this industry say the decision was prompted by the Romanian Martini consumers' lack of confidence in the famous Italian vermouth, which, for two years, used to be bottled in Petrosani by a company controlled by the current importer and sole representative on the Romanian market, Bucharest-based Lerida.
Lerida is the leading importer of foreign wines in Romania. The same sources say Lerida is waiting for the Cabinet to make a decision to drop customs duties for imports of liquor, as they are being dropped for still wines, for instance. The elimination of the customs duties will narrow the price gap between local and international brands.
Bacardi-Martini makes the Martini vermouth in Italy; Romania and Hungary were the only countries outside Italy where this drink was being bottled. Martini is obtained from a dry white wine made of grapes cultivated in Romagna, Puglia and Sicilia that are subjected to a maceration, distillation and ageing process.
The vermouth market stood at about 4 million bottles (8-10 million euros) last year, and the main competitors of Martini, which accounted for nearly 30% of the market, are Cinzano - held by Italy's Campari Group, Garrone - held by a number of Italian investors operating as Romanian Drinks Service, Angelli - controlled by Astese Production, recently acquired by Henkell & Soehlein (Germany) and a more recent player, Cin-Cin of Karom Drinks, owned by another German group, Schloss Wachenheim.
The market has kept constant over the last two years and is expected to do the same this year. Romania has a vermouth consumption tradition, as this is a drink that holds a special appeal for women. Lerida has been also importing the ready-to-drink Bacardi Breezer products since last year. The market is small, but competition is fierce, now that strong brands like Smirnoff Ice, Campari Mix and Gordon Spice have come along.
stelian.negrea@zf.ro
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