Vincon Vrancea, the fourth most important company on the market for high quality wines, has reported first-quarter sales of 7.6 million euros (291 billion ROL), twice the level achieved in the corresponding period last year, thanks to the almost 160% growth of its high quality wines grouped under the Beciul Domnesc brand.
"This is the outcome of the image campaign we ran for our Beciul Domnesc range. We have also boosted distribution, and sales are much better as well," said Sorin Ichim, Vincon Vrancea"s marketing manager.
The company also reported gross profits of almost 500,000 euros (18.5 billion ROL), up from just over 200,000 euros (8.7bn ROL) in the same period the year before. Vincon Vrancea has invested 300,000 euros in promoting its Beciul Domnesc wines.
Inchim added that the company"s alcoholic spirits division also witnessed growth - 55% growth for Triumf brandy on the medium segment, and 140% for its Milcov mass market brandy.
The higher sales of alcoholic spirits were helped by increases in excise duties, a move that pushed many distributors and traders to build up their stock.
Vincon also leads the market for table wine and has reported a 50% overall increase in sales on this segment, which included a 100% increase for PET bottled wine sales.
Last year the company generated sales of 23 million dollars (20.5 million euros), 30% higher than in 2003. Forecasts for this year indicate average growth of 20%.
Vincon owns more than 1,000 hectares in the Cotesti, Odobesti and Panciu vineyards. It has an annual grape processing capacity of 83,000 tonnes and has storage capacity in its own cellars for more than 80 million litres of wine.
Vincon is controlled by Gica Popescu, a former football star and currently a FIFA manager, who owns a stake of 76.033%, and by Luchi Georgescu, the girlfriend of the Dinamo football club vice president, Gigi Netoiu.
According to data released on Wednesday on the Rasdaq, the Vincon shareholder structure now has a new member: Stanciu Gelu Mihai, with a 6% stake. Vincon is listed on the Rasdaq and last traded for 1,260 ROL, giving it a market capitalisation of 4.2 million euros.
stelian.negrea@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
