12 million-euro revenues for Absolut Vodka importer

The Cristalex company, one of the top players on the market of imported spirits, last year posted a 33% growth in turnover, to 8 million euros, in the wake of a marketing and sales reshuffling process.

Cristalex imports Grant”s and Jim Beam whisky brands, Absolut vodka, Cinzano and Campari aperitifs and Remy Martin cognac on the Romanian market.

“Last year, we saw our business grow, but we also went through a reorganisation process in the context where the marketing and sales departments almost doubled their staff,” says Dan Ursu, general manager of the company.

Ursu says this process was part of a plan meant to prepare the company for European Union integration, and particularly for market modifications.

The market of imported spirits suffered major transformations last year, due to changing patterns of consumption behaviour, and the brand portfolio reorganisation among importers, after Allied Domecq”s takeover by Pernod Ricard.

“The market has changed as people have become more demanding, more careful about what they consume,” says Ursu.

Cristalex”s product portfolio has expanded this year after the takeover of the distribution for some new brands acquired by Cristalex suppliers internationally.

The brands Cristalex is going to distribute starting this year include Tullamore Dew, Carolans, Teacher”s, Sousa, Glen Grant and Old Smuggler, imported by Allied Domecq until last year. “We are distributing six new brands, which will take our turnover 45-50% higher this year,” says Ursu.

In his opinion, 2006 will be an extremely difficult year for importing companies amid the raise in excises for alcoholic products. “Everybody is expecting the market to boom after 2007, amid the custom duties decrease.

We must take into consideration, though, the fact that the excise duties raise would “eat into” custom duties decline,” explains Ursu.

In the context where the volumes registered by alcoholic drinks importers are covering around 20% of total consumption, increases derived every year are important, but do not effect major modifications on the market because they are posted against relatively small sales volumes.

“We have six months (since the excise raise to the elimination of custom duties i.e.) during which we will have to try and maintain prices even though we will pay bigger excises. Otherwise, we will be in the situation where we will increase prices in summer and cut them at the beginning of 2007, once custom duties are done away with,” says Ursu.

The market of imported spirits is estimated at around 40 million euros. The main competitors of Cristalex are Allied Domecq, Pernod Ricard Romania, Sollers and BDG Import. dana.ciriperu@zf.ro