Davino, a producer positioned on the premium and super-premium segment, is selling only to HoReCa (hotels-restaurant-catering) clients.
“It’s a small cellar for red wine. We are not increasing production, but moving red wine production in a new cellar,” said Dan Balaban, who owns 90% of stock. Balaban, an extremely discreet businessman, partnered up in the Davino business with enologist Bogdan Costachescu.
Davino’s current cellar has a capacity of around 450,000 liters. For the new project, the company will access EU funds, likely to cover half of the needed sum.
Davino owns over 70 hectares of vine and has leased another 16 hectares, while its over EUR2.5 million revenue makes it a medium-sized player on the wine market.
Exports reached 10% of revenue once the winemaker tapped new markets such as Switzerland and Great Britain and resumed sales in the US.
“Domestic revenue rose by 26% in January-June 2014 against the same period of 2013,” added Balaban.
In 2013, Davino entered China and Australia and with the new destinations added this year it now exports to over 10 states.
In Europe, there is a favorable context for Romanian wines, says Davino owner, who has noticed a rising interest for them. On the other hand, growth on the local market comes from improved distribution.
In terms of domestic consumption, Davino owner says he can feel a slight increase, but one cannot speak of a “miracle”.
In Romania, there are around 200,000 hectares of vineyard and output is largely absorbed by the domestic market.
(English version by Catalina Apostoiu)