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Success Story SUCCESS STORY BIG STEP FROM WINE GRAPE GROWER TO HIGH QUALITY WINE PRODUCER Back in 2003, Mihai Sava borrowed money to plant a “Timeless Friendship Blend” hectare of Cabernet grapes, with the intention of selling He is also taking advantage of the rapidly growing them to the local soviet-era wine factory. A few years Mihai Sava, a small winemaker in Moldova, market for wine tourism in Moldova and has later, “I delivered 5 tons of amazing grapes to the enlarged and arranged a dedicated wine tasting set up his own wine label with USAID and factory, but I did not see a penny from it”, he says. The Sweden support in pursuit of financial stability room, using MCP-provided expertise to design the factory went bankrupt as a result of the Russian tourism space and attract visitors. In May 2018, and a business with jobs for his daughters at home embargoes, leaving Mihai without his grapes, or the cash in Moldova. Mihai hosted the Assistant Administrator for to pay back his creditors. Faced with mounting debt, he USAID's Bureau for Europe and Eurasia, and USAID travelled to Cyprus to find work, like the many “Three years ago, I was producing peasant wines, then a Moldova Moldova Mission Director Karen Hillard in this new thousands of Moldovans who migrate each year in Competitiveness Project specialist suggested that we took a step forward. tourism space. The visitors made a carefully curated search of a reliable income. blend of his high-quality wine and bottled it with the Now we produce and sell quality, bottled wine I think can persuade my older credit: Anatol Tomsa, MCP Photo caption: Small winemaker Mihai Sava Photo daughter to stay here in Moldova and work with us”. But Mihai the entrepreneur was determined to return to label “Timeless Friendship Blend”, signing their names for posterity. Mihai Sava, small winemaker his home. “One kilogram of grapes costs 3-4 lei (20 cents), but when you turn the grapes into the final For Mihai, his 16-hour work days are not for his product and you make a good wine, you can count on Shifting to a higher value-added production own benefit. Although he returned home to much bigger return, up to 3-4. So, I decided to never Moldova from Cyprus, one of his daughters is now Mihai Sava is not a man who gives up easily, despite what “Now we produce and sell quality, bottled wine I think deliver another kilogram of grapes to a wine factory: we part of the wider Moldovan diaspora, living and life has thrown at him. “It was always my intention to can persuade my older daughter to stay here in would produce the wine ourselves”. working in the UK. Mihai labors to make the make quality wines”, he says, but “three years ago I was Moldova and work with us” business successful enough to be able to keep the producing peasant wines and selling them out of my cellar. Mihai’s wine is now sold under his own name, “Mihai rest of his family united. Then, a Moldova Competitiveness Project Specialist Mihai Sava, Sava”, in a bottle with a label that depicts his life’s work: suggested that we take a step forward”. small winemaker his home. Wine accounts for 5% of all Moldovan exports and is the only export product with the entire value chain completed in-country, serving as a And what a step forward. Following a $20,000 grant from USAID and Sweden support for the source of revenue for over 200,000 people. The Moldova Competitiveness Project builds on the success of two previous USAID-funded the USAID and Sweden-supported Moldova projects to support the wine industry following the shocks of the two Russian trade embargoes and resulting industry recession. With USAID Competitiveness Project, Mihai was able to invest in three winegrowing industry secures rural jobs assistance, the industry the industry implemented a dramatic reform of wine legislation to liberalize the business environment and enable the stainless steel fermentation tanks and a refrigeration unit, USAID, and later Sweden, began investing in emergence of small wine producers. The MCP ASW Mentorship Program, SEED grants, Product Quality Upgrade (PQUP) and Wine Tourism both vital for producing quality wine. He also joined the Moldova’s wine industry in to counteract the effects programs all work to support and strengthen these rural entrepreneurs, developing high-value, export-oriented SMEs which can provide good quality jobs in rural areas and contribute to mitigating the migration crisis. MCP-supported Association of Small Winemakers of two Russian embargoes in 2006 and 2013. (ASW), gaining access to the association’s shared wine Grape-growing and wine production have long been making and bottling equipment, and benefitted from two the backbone of the Moldovan rural economy, with seasons of mentoring from Moldovan wine experts - the majority of production exported to Russia and learning not only new winemaking techniques but also former CIS markets. This economy was decimated new insights into how to run a wine business. In the three by the two embargoes, resulting in estimated direct short years since he began working with the Moldova losses of $200 million, and a knock-on effect on the Competitiveness Project, he has gone from producing over 200,000 Moldovans who receive income from 3,000 liters of bulk wine a year, which he sold for $1 a the industry. liter, to making 8,000 liters of high quality, bottled wine, which he now sells at $4 a bottle. 70 | PAGE ANNUAL REPORT YEAR 3 | WINEGROWING INDUSTRY Photo credit: Anatol Tomsa, MCP Photo caption: Moldovan small winemaker Mihai Sava guides the Assistant Administrator for USAID's Bureau for Europe and Eurasia in the wine blending process “Timeless Friendship Blend” proudly made, signed and bottled by the USAID Assistant for Europe and Eurasia Brock Bierman, USAID Moldova Mission Director Karen Hilliard and ONVV Director Gheorghe Arpentin Back in 2003, Mihai Sava borrowed money to plant a “Timeless Friendship Blend” hectare of Cabernet grapes, with the intention of selling He is also taking advantage of the rapidly growing them to the local soviet-era wine factory. A few years market for wine tourism in Moldova and has later, “I delivered 5 tons of amazing grapes to the enlarged and arranged a dedicated wine tasting factory, but I did not see a penny from it”, he says. The room, using MCP-provided expertise to design the factory went bankrupt as a result of the Russian tourism space and attract visitors. In May 2018, embargoes, leaving Mihai without his grapes, or the cash Mihai hosted the Assistant Administrator for to pay back his creditors. Faced with mounting debt, he USAID's Bureau for Europe and Eurasia, and USAID travelled to Cyprus to find work, like the many Moldova Mission Director Karen Hillard in this new thousands of Moldovans who migrate each year in tourism space. The visitors made a carefully curated search of a reliable income. blend of his high-quality wine and bottled it with the But Mihai the entrepreneur was determined to return to label “Timeless Friendship Blend”, signing their his home. “One kilogram of grapes costs 3-4 lei (20 names for posterity. cents), but when you turn the grapes into the final For Mihai, his 16-hour work days are not for his product and you make a good wine, you can count on own benefit. Although he returned home to much bigger return, up to 3-4. So, I decided to never Moldova from Cyprus, one of his daughters is now deliver another kilogram of grapes to a wine factory: we part of the wider Moldovan diaspora, living and would produce the wine ourselves”. working in the UK. Mihai labors to make the Mihai’s wine is now sold under his own name, “Mihai business successful enough to be able to keep the Sava”, in a bottle with a label that depicts his life’s work: rest of his family united. his home. Wine accounts for 5% of all Moldovan exports and is the only export product with the entire value chain completed in-country, serving as a source of revenue for over 200,000 people. The Moldova Competitiveness Project builds on the success of two previous USAID-funded projects to support the wine industry following the shocks of the two Russian trade embargoes and resulting industry recession. With USAID assistance, the industry the industry implemented a dramatic reform of wine legislation to liberalize the business environment and enable the emergence of small wine producers. The MCP ASW Mentorship Program, SEED grants, Product Quality Upgrade (PQUP) and Wine Tourism programs all work to support and strengthen these rural entrepreneurs, developing high-value, export-oriented SMEs which can provide good quality jobs in rural areas and contribute to mitigating the migration crisis. At the Mihai Sava winery, May 5, 2018. From left to right: Diana Lazar, MCP DCOP, USAID Assistant for Europe and Eurasia Brock Bierman, winemaker Mihai Sava, USAID Moldova Mission Director Karen Hilliard, oenologist Nadejda Mardari, ONVV Director Gheorghe Arpentin. MCP COP Doina Nistor and USAID Senior Manager Sergiu Botezatu.
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