"Murfatlar" looking to increase its exports to 20% of its turnover this year

Exports of wine maker "Murfatlar" amounted to 15% of its turnover in 2008, the year when the first signs of the financial crisis appeared. The company plans to increase its exports to 20% of its turnover in 2009. However, strengthening its leading position on the domestic market remains the company"s main goal remains for the year. Last year, the company"s turnover was 47 million Euros, up 14% over 2007.

Laura Muşat, PR manager of "Murfatlar", provided us with more details: "The markets we focused on in 2008 were the United States (one of our traditional markets, on which we have been present ever since before 2000) and China (which is the largest market in the world for any type of product). Exports to Israel, Finland, Germany and England increased over the previous year. We are focusing on increasing exports, because Romanian communities are an important niche of consumers for us. It is worth mentioning that wines produced by Murfatlar are now sold in the Makro (Metro) network in Poland".

The best selling wines on the foreign markets are those in the Zestrea, Muscat Ottonel and Pinot Noir product lines, with 75% of the volume sold going to communities of Romanians in the USA, Israel, Spain, Italy, and England. Other brands of wine - Trei Hectare, Ferma Nouă, Conu Alecu, Sec, sell very well in other European countries, as well as in the US.

Laura Muşat said: "Murfatlar is the leader of the wine market in Romania, a position which it consolidated further in 2009. As such, its evolution tracked closely mimicked the overall market evolution. Some of our brands have increased significantly (50% of last year"s sales), while other stagnated. Even though we have evolved to match the market, some of our brands have experienced growth this year (Zestrea Murfatlar, Premiat Eticheta Neagra, Lacrima lui Ovidiu and Babanu). According to our previous experience, summer is a rather slow period when it comes to the wine market. Sales of wine in the last four months of the year usually equal those in the first eight months of the year, which is why we are getting ready to launch new products in the near future".

Discussing the impact of the economic context, managers of the company say that a noticeable trend between 2008 and 2009 is consumers are visibly turning towards less expensive wines and cheaper products in general. Laura Muşat: "The fact that the wine market didn"t experience significant increases in the previous years, worked to our advantage as there were no significant sales pullbacks. The second element that worked in our favor is that the wine market has not yet reached maturity and we therefore have the opportunity to keep growing, even though it may happen at a slower pace. The wine market increased 3-5% over the previous year".

• "Murfatlar" continues its investments in vineyards and technology

"Murfatlar" Romania is the largest investor in the wine industry, having invested over 12 million Euros so far. The upgrade of the technologies we use, of the cellars and the production lines, has made us the winemaker which uses the most advanced technology on the market.

Three years ago, the company began a vast project which is still ongoing, for the rejuvenation of the red grapes vines, and has replanted 335 hectares of vineyard. In spring 2009, the company replanted approximately 175 ha, for an investment of 2.8 million Euros.

The company has a 2.2 million investment under way for an investment of 2.2 million Euros, which will increase the capacity for the fermentation and storage for white and red wines at a controlled temperature, in stainless steel containers, thus increasing the company"s total storage capacity by 9.4 million liters. Once the investment is completed, the company"s total storage capacity will equal 42.5 million liters.