The leader of the domestic wine market, Murfatlar Romania, has posted a 50% first-quarter growth in sales from the same period in 2004. Most of the growth came from the Trei Hectare range, which saw its sales triple.
"The highest increases in the first quarter were seen for the Trei Hectare range, which tripled its sales, followed by Rai de Murfatlar and Lacrima lui Ovidiu. These wines also won recognition at international contests," said Gabi Darie, communications manager with Murfatlar Romania.
Murfatlar Romania''s wine brands include Lacrima lui Ovidiu, Trei Hectare, Sec de Murfatlar and Rai de Murfatlar. It also makes Zaraza brandy.
In 2002 Murfatlar had a market share of 23.7% for wine sold in 0.75l bottles. This increased to 28.6% in 2003 and again last year to 31%, confirming the company''s market leader position.
"Murfatlar Romania''s goal for this year is to achieve at least the same rate of growth as we had in 2004," Darie said.
"Last year Murfatlar made sales of 28 million euros. If 2004 meant concentrating on four major projects - that of Ferma Noua, Zaraza, the new Sec de Murfatlar collection and the by-the-glass wine serving system - then 2005 will see the company invest in the image of its Rai de Murfatlar range of sweet wines."
This change in focus was adopted based on the results of a number of market surveys and will be seen on the wine shelves as the "Noul Strai de Rai" concept, said Darie. This year will see Murfatlar Romania allocate more than 1.5 million euros to the promotion of its products. Euro Group, which controls Murfatlar Romania, was last year''s biggest advertising spender in the spirits industry with 18.5 million euros (rate card price) of investments.
Euro Group recently acquired mineral water producer Bibco Biborteni in a deal of around one million euros that includes a commitment to settle over 12 million dollars in debt. Murfatlar Romania''s shareholders are domestic investors, who recently acquired the controlling interests in processed meats producer Principal Construct, a business developed by Romanian entrepreneur Claudiu Ciuciureanu.
The average price for a 0.75l bottle of wine has risen constantly over the last two years, from 1.7 dollars in 2002 to 2.9 dollars last year. The dry and sweet wine segments lost ground to medium-dry and medium-sweet wines in 2004 after the move by some major players on the market from dry and sweet wine to the medium-dry and medium-sweet segment. At the same time, consumption of red wine has increased to the detriment of white wines and rosé.
According to estimates by the National Organisation of Inter-professional Viticulture and Viniculture (ONIV), which represents the main players in the industry, the wine market was worth some 310 million euros last year. Murfatlar Romania''s main competitors are Jidvei, Cotnari, Vincon Vrancea and Vinia Iasi. stelian.negrea@zf.ro
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