Philip Cox, Recas: The wine glass is agitated right now
In Western Romania, in Banat, respectively at Recas, a group company with British and Romanian investors, Cramele Recas established at the end of the 20th century but the vineyards in the area are dated back in 15th century, as the company history profile shows. 2014-09-22 09:48:27
Now, the company plans a turnover between 26 and 28 million Euro, compared to 23.5 million achieved last year. According to the company data, it employs 250 professionals.
Philip Cox, shareholder and export manager of the Cramele Recas company talked with The Diplomat-Bucharest and offered the management view on the specific wine market within the larger perspective of Romanian business environment. According to him, the wine glass seems agitated these days: "The Romanian wine market is going through a turbulent period right now. A large amount of investments over the past five years in both new wineries, wine companies and vineyards is causing changes on the market with some changes in the balance between vineyard regions and a fragmentation of the market. There has been a dramatic increase of vineyard area - around 30,000 hectares in the last 7 years-mainly in the south-Dobrogea, Muntenia and west- Oltenia and Banat regions, whilst the eastern regions like Vrancea have not had so much new plantations and the older vineyards are going out of production," he says.
As he noticed, even if the vineyards benefited from EU funds, they lack now of proper technology and have not been properly planted and farmed. "So nobody is quite sure what the overall effect will be on grape volumes," Cox says. "One thing is for certain, the market in Romania is fairly stagnant or slightly decreasing at the moment, so any new surge of production means additional competition and probably will lead to lower prices in the medium term," he adds.
According to the company data, many of the new investments have been in smaller vineyards and wineries-between 20 and 8O hectares, so they are not really able to compete in the mainstream market (aprox 80 per cent of the market is entry level wines with a shelf price under 18 Ron per bottle) and are trying to enter the premium market which has become very crowded, so for the moment I think there are more opportunities in the mid market area of wines from 12 to 17 Ron shelf price (3-4 euro for exports).
Read more in the upcoming analysis of The Diplomat-Bucharest featuring in September the wine produvction market in Romania after agitated times.
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