Sec and Rai take Murfatlar 60% higher in H1

Murfatlar Romania, one of the main players on the Romanian wine market, has reported 60% higher sales for the first half of the year.

“The ranges of wines that saw higher growth were generally those in the super-premium and premium segment,” says Daniel Negrulescu, brand manager with Murfatlar Romania.

Traditionally, explained Negrulescu, high sales volumes normally occur on the medium segment for traditional wines, a category in which Merlot is the most popular variety among consumers.

“There was also strong sales performance on the premium segment: Sec de Murfatlar, Rai de Murfatlar and Lacrima lui Ovidiu,” continued Negrulescu.

For the second quarter of the year, the company saw its sales grow by 35% against the corresponding period last year.

The first quarter also saw the company announce large sales increases compared with the corresponding period of 2004, with best performing wine, Trei Hectare, tripling its sales.

“It should be explained that wine sales have a seasonal character, with the peak coming in the September-December period,” added Negrulescu. “As a result, around 50% of total sales for this year are from during this period.”

This month saw the company launch an image campaign, involving a total investment of around 5 million euros (rate card).

According to Negrulescu, the second half of this year will see wine prices increase, confirming the tendency of recent years.

Market data show the average price of a 0.75-litre bottle of wine to have risen from 1.7 dollars in 2002 to 2.9 dollars last year. “We believe price increase will continue. Whatever the price by the end of the year, producers need to be aware that consumers will only pay more if they get more for their money. Otherwise the market will move toward alternative products,” warned Negrulescu.

Murfatlar Romania is part of the Euro group, which recently paid around one million euros (as well as taking on debts of over 9 million euros) for Bibco Biborteni, a mineral water producer.

Murfatlar”s shareholders are Romanian investor. They also took over the majority stake in charcuterie producer Principal Construct Prahova, a business developed by the Romanian entrepreneur, Claudiu Ciuciureanu.

The National Inter-professional Winegrowing Organisation estimated the Romanian wine market at 310 million euros in 2004. Murfatlar”s main competitors are Jidvei, Cotnari, Vincon Vrancea and Vinia Iasi.

The market is shifting towards a higher consumption of red wine, as opposed to white and rosewines, with a similar move being seen away from dry and sweet wines toward semi-dry and semi-sweet wines.