On the other hand, Prodvinalco of Cluj, a Romanian-held company, operating particularly on the low-price segment, expects flat revenue in 2014 against 2013.
The three companies are some of the most important ones on Romania’s spirits market, whose value amounts to some EUR630 million, according to market research company IWSR.
BDG Import, Romania’s largest spirits importer by revenue, with 178 million lei (EUR40 million) in revenue last year, while Jack Daniel’s, one of the company’s leading brands, leads on the whisky segment, with over 955,000 liters in 2012.
On the other hand, Prodal ’94, whose Stalinskaya brand competes with Finlandia brand of BDG Import’s portfolio, expects revenue to rise by a mere 3% this year. Stalinskaya is the best-selling vodka brand in Romania, with sales of 2.3 million liters last year.
The spirits market was in 2013 hurt by the move to hike alcohol excises by 33% to EUR1,000 per hectoliter. The move also fueled the black market, which had already reached a worrying level.
Andi Dascal, the general manager of Prodvinalco, previously explained the price increases that followed the excise hike drove sales down, as consumption declined and people have shifted to cheaper products or other beverage categories.
Prodvinalco Cluj is the only major player in the spirits industry that is listed on the Bucharest bourse. The company, owned by Romanian entrepreneurs, had a bourse capitalization of around RON51.9 million (almost EUR12 million) yesterday.
The company’s revenue hit RON36 million in 2013. Prodvinalco’s portfolio is largely made up of low-price products, but in 2013 the company launched Carpathia premiums vodka.
After this year’s stagnation, Prodvinalco expects revenue to go up next year. Stalinskaya producer also has better outlooks for 2015, expecting a 5% advance.
On the other hand, BDG Import projects 10-12% revenue growth in 2015.
(English version by Catalina Apostoiu)