The strong inflow of foreign wines on the domestic market starting last year, when imports tripled, will further widen the gap between the low-price and high-price segments.
The trend that started in 2006 will become more visible this year as the elimination of custom duties for wine imports will put even more pressure on prices.
"Like domestic wines, import wines also cover the entire price range. However, I believe the battle will be fought on the low and high segments and less on the medium ones, where a large part of our wines, which are wines with a controlled appellation of origin (DOC), are positioned," stated Laurentiu Anghel, marketing manager with Cotnari.
In 2006, there was a boom in imports of wine, which took the market to some 400 million euros, from 350 million euros in 2005. Imports increased about three times last year, to 22.1 million euros, topping exports both in terms of value and volume. This is the first time Romania has seen a deficit in wine trade.
Imports may witness sustained growth this year, too, given the shrinking prices of imported wines in the wake of custom duty elimination.
Wine sales domestically will rise by around 10-15%, below last year's level.
"EU integration will bring market fragmentation as several brands and niche products arrive onto the market, though they are a lever for growth, too," explained Laura Musat, PR Manager with Murfatlar.
Thus, both import and domestic wines will stand to gain.
"There will be two market growth directions, through the inflow of foreign wines and through rising consumption.
"Therefore, I believe both domestic wines and foreign ones will witness growth.
"There will be a clearer differentiation between DOC and PET wines," explains Laurentiu Anghel.
Practically, the market will take a step toward maturity and will catch up on the other EU members in terms of consumption.
Annual domestic consumption of wine is still relatively low compared with the European average.
"Unfortunately, bottled wine consumption stands at only 3 litres per capita, much lower compared with France, 59 litres, or Spain, 47 litres. However, annual consumption of bottled wine is rising and this is due to constant consumer education," explains Laura Musat.
However, she believes custom duty elimination will not be domestic producers' only problem.
"Given the tightening competition, small producers are going to cope with some problems. However, these problems will not be triggered only by the decision to drop custom duties, but also by the steps producers will have to take to face competition: investments in noble vineyard replantation and retooling," Musat says.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
