For wine to sell in Europe, it should be twice better and twice cheaper

IPN interview with Nichita Macovei, manager of “Casa Moldova” company based in Nantes, France

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After Russia imposed a ban, the European Commission’s call to open the European market for the Moldovan wine came like a hope for the producers. We discussed what should the exporters do to promote the Moldovan products on the European market with Nichita Macovei, a company manager who has sold Moldovan wine in France for five years.  A year ago, in another interview for IPN, Nichita Macovei said the sales in France are insignificant if you do not have an own distribution network.

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The ban imposed by Russia led to a twist that seems to be in the Moldovan wine producers’ favor. How do they look at this situation in France, where you have sold our wines for many years?

– This ban in France is perceived as any other ban. As to me, this is not a novelty. We are used to such positions of the Kremlin. It is definitely a political decision. I don’t know which company had products of a low quality. In such a situation, they should have penalized the producer, not the whole country. I recently discussed with a large winemaker who told me that he lost 25% of the sales. The Russian market is very important for the Moldovan wine. In fact, any market is important. However, we now have the possibility of separating ourselves from this market so as not to be dependent on it. We will certainly suffer the consequences, but things will return to normality in time. When Georgia experienced a similar situation, about 30% of the companies closed, but those that remained became stronger and now have much more diversified export markets.

Why did you choose to sell Moldovan wine in France?

– Because I’m Moldovan and because I know how to do it well. I like the wine and the competition.

Do the French people appreciate the Moldovan wine?

– The President of Russia Vladimir Putin said the Moldovans will sell no bottle of wine in France. There are two commercial organizations in France and we sell 50,000-60,000 bottles of Moldova wine. I have sold wine for five years. The French people buy Moldovan wine and appreciate it. There are wines of a poor quality everywhere, including in France.

The people I met didn’t know much about Moldova. But this is not necessarily something negative. The fact that they don’t know about the Moldovan wine can be an advantage as the people feel interest.

What will the Moldovan wine gain from the opening of the European market?

– There will no longer be export quotas and the wine exports to such countries as the Czech Republic, Slovakia, Poland, and Romania will probably grow. As to France, Germany and the Nordic countries, I don’t think we will see immediate results there. There are offered export possibilities, but who will buy the wine and where? The companies must have buyers and the buyers must be conquered. There are few exporters that realize how trade works in Europe. In order to sell in a European country it is mandatory to have distribution networks.

What are the chances of a Moldovan wine producer to enter the European supermarkets?

– For the wine to sell in Europe, it should be twice better and twice cheaper. For example, in France there is a kind of monopoly on wines in the large supermarket chains. Investments are needed to enter the supermarkets, where the wine is sold swiftly. In France, more than 80% of the population buys wine from supermarkets and only 15-20% buys it from specialized stores and wine fairs. In order to sell much, the wine must be present in these chains. But the place is bought and large investments are needed. I have tried to enter the supermarkets for five years and haven’t yet succeeded.

What should the wine producers do to conquer a European market?

– They should first of all change the mentality and then prepare to invest money and to advertise the products. I doubt that many will do it. They will probably reach a compromise with Russia.

What should the authorities do to promote the wine products, including on the European market?

– They should work out a strategic plan of action, with substantial investments, dynamic and professional specialists and strict control. It is imperative to create an executive body that would implement this plan. If the authorities do not want to take steps in this respect, the producers should undertake such a plan. We have wines of a high quality, folklore and century-old traditions that hold interest for the Europeans. However, a company finds it difficult to cope alone. Therefore, efforts should be joined. We need a state strategy. There is no other way. I think we spoke enough. Let’s get down to business.

Elena Bolshenko, IPN

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