“Most of our attention has to go towards to the domestic market, which is not vulnerable to decisions or circumstances beyond our control as winemakers,” Necsulescu told ZF in an interview.
“You can have trouble on domestic market only if you, as a winemaker, make mistakes, otherwise there is no problem. The international market can always be vulnerable to political circumstances, to attitudes, to diplomatic mistakes. This is why Jidvei has been focusing on the domestic market, because you can’t lose here unless you make mistakes.”
The winemaker’s brands include Castel, Tezaur, Nec, Grigorescu and others. It launched the Owner’s Choice and Mysterium ranges in 2012, both of which super premium brands.
Although Jidvei exports to Japan, US and China, its owner believes the focus should remain on the home market, because it is the safest. Exports account for up to 8% of the company’s sales.
“The major focus for Romanian winemakers should remain the domestic market, which is the safest. Wine is a product with a strong connection to the country image and as long as our image abroad does not reflect reality, the wine will be penalized not because of quality or price but because of origin and image. It’s a product that cannot be separated from the place it was made in because you are required to specify the origin on the label.”
The winemaker entered the rose wine segment in 2011 and sales have been better than expected. The rose segment has skyrocketed on the entire market, because it is a product suitable for consumption during summer or other occasions, when sales of white or red wine were usually weaker.
“We sold more than 100,000 bottles of Nec and Mysterium rose wine, on the super premium segment alone. We ran out Mysterium stocks, both vintage 2012 and vintage 2013.”
Rose is a wine whose sales start in February (the following year after it is made). The market absorbed the entire amount of rose wine. The trend on the market is to buy rose wine especially during late spring and summer. Romania did not have traditional rose wine producers until five years ago, Necsulescu added.
“Hopefully rose wine will account for 5% of sales this year, 300,000 bottles.”
Jidvei expects 115 million (EUR26 million) revenue this year, therefore reverting to the 2008 level, Claudiu Necsulescu says. Its best-selling product range is Traditional, and Necsulescu says the company did not feel as much a volume decline as a migration of consumers from one segment to another.
“Consumption did not go down that much. It was more of a migration from one level to another rather than anything else. There were no declines in terms of units.”
The company completed a new winery in Tauni (Alba County) last year, following a EUR6 million investment, EUR2 million of which EU funds. The start of the operations of this new winery helped Jidvei achieve a bumper year.
Jidvei is one of the major winemakers in Romania, along Murfatlar, Vincon, Cotnari and Halewood. (EUR1=RON4.4474)
(English version by Loredana Fratila-Cristescu)