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Moldovan Value REGIONAL ANALYSIS MOLDOVA MOLDOVAN VALUE Poor harvests elsewhere in Europe have opened doors for Moldovan wines, as Caroline Gilby MW explains. 5/18 MEININGER’S WBI 5/18 MEININGER’S he tiny country of Moldova lies on the edge of Europe and also on the fringes of T most wine buyers’ awareness. Yet it has more vines per person than anywhere else Map of Moldova on earth and its huge economic dependence on wine has given the industry serious motivation to improve wine quality. Recent 13%, Poland difficult harvests in Western Europe, with 13%, the Czech rising prices and short supply, have sent Republic 10% and buyers on the hunt for new sources of wine of Russia 10%. China the right price and style. pays an average of €1.51 per bottle while At a glance Russia only pays €0.90, indicating price is still a Moldova is deep into an industry audit, key driver in this market. registering vineyards and tracking exactly In Poland, Moldova is the sixth what is planted where, and researching native largest supplier and sales volume grape varieties and regions. The register is increased 5% in 2017. Wojciech not yet complete but 2017 figures show a Gogoliński, editor of Czas Vina, says semi- total of 81,000ha of commercial vineyards sweet Moldovan wines remain popular and planted with Vitis vinifera, of which 78,000ha 85% of consumers are looking for wines are in production. A total of 1.8m hl of wine retailing below zł30 ($8.20). He has noticed was produced in 2017 and the 2018 forecast an increasing range of Moldovan producers is 1.5m to 1.7m hl. There are also another appearing on the Polish market. 9,600ha of hybrid vines (largely Isabella) plus Sales to China were up more than 73% 15,000ha of table grapes. This area of noble by volume in the first quarter of 2018, grapes puts Moldova second only to Romania according to China Customs data. Min in Eastern Europe, but unlike Romania, its Cho of Beijing LingQi Trade Company domestic market is tiny, and export has notes that while total imports rose 9.6%, always been a major focus. In 2005, Russia EU wines saw a decline of close to 10%. what is grown in Moldova bought about 85% of its production but two “The number of domestic wine consumers nor what is being sold for Russian bans in 2006 and 2013 left it seeking continues to increase and consumer tasting export. International grape other opportunities. capabilities are gradually increasing. varieties accounted for the bulk Data from the National Office for Vine Chinese consumers are increasingly willing of the 2017 wine harvest, with and Wine (ONVV) shows Moldova is less to try wines from other countries besides local varieties comprising just dependent on a single market and in 2017 France.” Red wines are still the strongest 47,000hl of wine. exports reached 1.44m hl. Bulk wine sector in China, notes Doina Borş, commercial There’s growing interest in Moldovan accounted for 71% by volume at an average director of Moldovan winemaker Doina-Vin: wines in some less established European price of €0.52 per litre, and was sold largely “We have to admit it is a struggle to convince markets such as the UK and Netherlands, to former Commonwealth of Independent Chinese consumers to give a chance to white and this is driven by international varieties States countries and Romania. The share or rosé wines.” at value price points. Kathryn Glass of of exports in bottle rose 5.2% by volume, independent UK supplier Kingsland Drinks achieving an average price of €1.15 ($1.35) The varietal mix explains that: “The very first conversations per bottle. Leading export destinations by Kingsland had with our trade customers volume are Poland 14%, China 12%, Romania There appears to be a lot of press interest were centred specifically around Pinot Grigio, 12%, Russia 12% and the Czech Republic 11%. in indigenous grape varieties from Eastern mainly due to short harvests in Italy but Share by value is led by China 17%, Romania Europe, but this does not reflect the realities of also rising pricing due to changes to Italian 44 appellations. The quality versus price ratio of do not expect such high quality wines from Wine of Moldova is very important at this Moldovan Pinot Grigio was hard to ignore.” Moldova.” stage. It is the importers who are introducing Victoria Mason of Waitrose has recently It seems that challenges in sourcing wine inexpensive entry-level wines to the market, listed Radacini Sauvignon Blanc from Cimişlia in Western Europe have also given Moldova but they cannot be blamed. Moldova needs Wineries and says that: “In terms of quality a boost. Speet explains that poor harvests in to encourage and focus its promotions more versus value for money on key international France and Spain and low volume availability towards quality wines to build its brand varieties, Moldova has definitely have definitely been helpful to value.” WBI 5/18 MEININGER’S got a lot to offer.” Jonathan Butt Eastern Europe, where countries Diana Lazar, wine industry manager with of Butt Naked Wines has been including Moldova have been the USAID Competitiveness Project, says: importing Moldovan wine since offering more consistent quality “Wine promotion is becoming more and more 2010 and says the key is offering and availability. Laithwaite’s visible. Our project aims at complementing quality wine at the right price Willard says that Moldova has the ONVV at two levels: we’re joining Wine and building up a good following provided a great alternative of Moldova’s generic promotional activities with consumers, so volume source for key varieties which and giving direct support to exporters via is growing rapidly. He adds have been in short supply. our Export Support Program, as well as niche that: “Consumer preference “We added five new wines marketing for the small wine producers.” is for Pinot Grigio, Sauvignon from Moldova this year as a Blanc, Chardonnay and Merlot, “The biggest direct result of difficulties in The value proposition all varieties that we are able barrier for us is France and Italy.” Glass agrees: to supply in good volumes. to convince “Kingsland have been looking Moldova has several advantages in being Indigenous varieties are consumers to at sourcing from Central and able to offer value for money. Since signing available but in less demand in taste the wine for Eastern Europe for a couple a free trade agreement with the EU, there the UK, as consumers struggle the first time.” of years now. The landscape have been no tariff barriers to add costs. The to understand grape varieties of wine sourcing is changing relatively dry climate also means that input such as Fetească.” Ruxanda Lipcan, and particularly because of the costs for vineyard treatments should be Fautor Winery Quality certainly doesn’t seem recent difficult harvests in the lower and several producers are also working to be a concern for importers of west, it has become very clear towards sustainable and organic production. Moldovan wine. Beth Willard, buying manager that this is the right strategy to take.” Butt In addition, labour costs are low compared for Laithwaite’s, comments: “Our customers adds that it’s not just Western Europe that is to those in Western Europe, with an average are very accepting of our Moldovan wines and facing difficulties: recent forecasts of harvest monthly salary in agriculture reaching just at any of our customer events, the Moldovan problems and exchange rate challenges look $191.00 in 2016 in a country where almost producer stands are often among the most set to make South Africa less competitive. all vineyard work and picking is done by popular and the wines regularly pick up Wine Mirjam Van de Veen of Original Wine Classics hand. A recent ONVV project calculated the of Show medals (voted on by customers).” In sees Dutch consumers as very price-driven cost of grape production in Moldova at four the Netherlands, Joep Speet of Pallas Wines and believes that supermarket buyers are litres to seven litres per kg ($0.23 to $0.41), agrees: “Dutch consumers are open-minded simply looking to Eastern Europe “hoping to depending on crop levels and vineyard if quality is good enough, though they prefer find the next cheap alternative” but with no density. well-known grapes.” specific country in mind. Miranda Beems of Moldova’s wine industry has had a tough But as Elena Davidescu of Vinaria din Vale Pallas Wines adds that Moldova has to fight time over recent years, coming to terms with winery highlights, each market is different, for listings on the basis of quality and price a new era and dealing with sometimes brutal and she is seeing a particular interest in as Romania has done – no one is specifically political decisions. The industry has worked Fetească Neagră and Fetească Regală in looking for Moldovan wine. hard to find a better way forward. It’s now Japan, whereas in Canada their Crama Regala This gives Moldovan producers a challenge on a stronger footing and, given the number range of Cabernet Sauvignon and Sauvignon if they want to build a more premium, long- of Moldovans that rely on wine for a living, Blanc, retailing at C$7.05 ($5.44), has been term business over and above cheap wine. the country will be hoping this positive trend a success. In contrast, Ruxanda Lipcan of As Min Cho says: “Building an image for continues into a sustainable future. W Fautor Winery says local grape varieties are in demand.
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