Murfatlar's targets €50 mln worth of business in 2008

"One of our main objectives for next year is strengthening our position as leaders on the wine market in Romania. As such, Murfatlar will continue in 2008 to do everything in its power to be the best sold wine in Romania," Murfatlar's Brand Manager, Daniel Negrescu, told Business Standard.

Company sales in the first nine months of 2007 were up 12.2 percent year-on-year, in the context of introducing new brands on the market, and increased sales of already existing products.

"The increase came from new brands, such as Conu Alecu, as well as from higher sales of Lacrima lui Ovidiu, Trei Hectare, and Zaraza," added Negrescu.

Murfatlar posted total turnover of €36 mln last year, and company forecasts for this year stand at €42 mln. Murfatlar's profit margin is 10 percent, and company officials have indicated that all profits were reinvested.

The Romanian wine market is valued at some €450 mln. Main producers are Murfatlar, with a market share (in volume) of 27.8 percent, followed by Jidvei - 14.5 percent, Cotnari - 13.1 percent, and Vincon, with 7.8 percent, according to the Wine Exporters and Producers Association (APEV).

Murfatlar representatives estimate that the company has a 50 percent share of the red wine market. Murfatlar exploits some 2,600 hectares of vineyard and produces an annual 15 million liters. Murfatlar brands include Rai de Murfatlar, Sec de Murfatlar, Lacrima lui Ovidiu, Premiat, Zaraza and Conu Alecu. This fall, Murfatlar launched two new wines, Zestrea and Arezan, exclusively dedicated to the HoReCa industry.

Average annual domestic wine consumption amounts to some 27 liters, according to data from the National Institute of Statistics (INS). Worldwide wine consumption in 2006 reached some 240.8 million hectoliters, 1.4 percent more year-on-year, according to the International Organization of Vine and Wine (OIV). The highest annual wine consumption is in France, at 32.8 million hectoliters - 55 liters per capita.