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The Wine Market in Romania Essay

Introduction Romania is an important wine producing European country, which has a long history with many cultural traditions – many of which are related to wine. Wine is considered to be the divine drink, in Romania. The beginning of viticulture in Romania dates back at least 400 years ago. The legend has it that Dionysos, the god of wine, was born in Thracia, in the region of modern day Romania. Dacia had a wide knowledge of wine.

The abundance of grapes and the renowned wine produced by the Daci people was so well known and tempting that the King of Dacia, Burebista, ordered the vineyards to be destroyed as to end the repeated invasions of the migrating populations. 1. Market area Wine is an alcoholic drink which is consumed on the whole Romanian territory. A specific area or geographical territory cannot be marked out as am region where there are absolutely no consumers or relatively no consumers.

Wine is commercialized on the whole territory of Romania, since before the year 2005. However the commercialization of wine takes place in the most populated areas, in both the rural and urban regions. The rural region in Romania represents about 40% of the total population and is specialized in natural economy, where the producers are also the consumers. Here wine is produced in household conditions, barrel wine or table wine, which in terms of quality, taste and fragrance is not far behind from the one know as “quality wine”.

In the urban regions, wine is sold in glass bottles or other forms of packaging. The total sales of wine in the Romanian counties, in the year 2005, litres of wine: |Alba |10. 161. 200 | |Arad |12. 528. 600 | |Arges |17. 875. 200 | |Bacau |18. 806. 200 | |Bihor |15. 960. 000 | |Bistrita- Nasaud |8. 299. 200 | |Botosani |12. 023. 200 | |Brasov |15. 696. 660 | |Braila |9. 948. 400 | |Buzau |13. 220. 200 | |Caras Severin |8. 857. 800 | |Calarasi |8. 645. 000 | |Cluj |18. 699. 800 | |Constanta |19. 045. 600 | |Covasna |5.

931. 800 | |Dambovita |14. 417. 200 | |Dolj |19. 551. 000 | |Galati |16. 494. 660 | |Giurigu |7. 982. 660 | |Gorj |10. 374. 000 | |Hargita |8. 671. 600 | |Hunedoara |12. 901. 000 | |Iasi |21. 705. 600 | |Ilfov |7. 982. 660 | |Maramures |13. 568. 660 | |Mehedinti |8. 139. 600 | |Mures |15. 430. 660 | |Neamt |14. 632. 660 | |Olt |12. 770. 660 | |Prahova |22. 051. 400 | |Satu Mare |9. 762. 200 | |Salaj |6. 596. 800 | |Sibiu |11. 198. 600 | |Suceava |18. 300. 800 | |Teleorman |11. 597. 600 | |Timis |18. 008. 200 | |Tulcea |6.

836. 200 | |Vaslui |12. 103. 000 | |Valcea |10. 985. 800 | |Vrancea |10. 294. 200 | |Municipiul Bucuresti |53. 226. 600 | 2) Market Structure An empirical analysis will reveal that the highest sales of wine are in the historical-geographical areas of wine production, close to the wine-growing districts, where grapes, the raw material for wine production, is most easily obtained. The wine-growing districts map: The historic-geographical regions are: Moldova, Muntenia and Oltenia, the West region, Transilvania, Dobrogea

Culture vine can be performed in Romania, almost in every corner of the country, starting from the Danube in the South, through the counties Botosani and Maramures in the North. Only a few counties located in areas of higher altitude (Brasov, Covasna, Harghita) and one county in the extreme North of the country (Suceava) does not provide conditions favourable for viticulture. According to a recent study of the zone of wine production in Romania there are 37 vineyards, of which 123 are part of the viticulture centers, to which 40 independent wine-growing centres are added, placed outside the vineyards.

The number of wine areas is very high; the word “areas” meaning a somewhat restricted region located on the same form of relief, on which quality and homogeneous wine is produced. Moldova wines. Vineyards, in Moldova, stretch more than 90,000 hectares, which is the third part of the vineyard area of the country. The wine plantations extend on the entire length of the province, starting from Botosani in the North, to the Vrancea, in the South and the entire width, from the hill area of Eastern Subcarpathian to the river Prut.

Following the map of Moldova viticulture and down on it from North to South, there are several famous vineyards. In the county Iasi first there is the vineyard Cotnari. Second, here there is also the Iasilor vineyard, with its wine-growing centers Copou, Bucium, Uricani and Comama and independent wine centres Plugari and Probota. Starting in the South and crossing the county to Vaslui, throughout its entire length, there is a large vineyard, Husilor, with the viticulture centers: Bohotin, Averesti, Husi, Vutcani and Murgeni.

In Vaslui we find the vineyard Colinele Tutova, composed of centers Lana, and Tutova Balabanesti (the latter located in Galati). In county Bacau there is the Zeletin vineyard, with the Zeletin centers, Dealul Morii Paricea, Tanasoaica and Gohor. Galati County, in south-eastern Moldova, has become a major wine-growing area in which there are four vineyards: Dealul Bujorului (vine centers Bujoru, Smulti, Oancea and Beresti); Nicoresti (Nicoresti centers and Buciumeni); Ivesti (vine centers Ivesti, Tecuci and Corod) and Covurlui (vine centers Baleni, Scanteiesti, Pechea and Smardan).

In the south-west of Moldova, in Cotul Carpathians, we meet with great vineyards of Vrancea, respectively Odobesti, Panciu and Cotesti which include a series of wine centers of great reputation. Oltenia and Muntenia Wines. The two southern provinces of the Meridional Carpathians, Oltenia and Muntenia, together own a vineyard area of nearly 104,000 hectares.

Vineyards are located here especially in the hill area, the last mountain ratifications, towards the plains, where there large and important vineyards were planted, but they also meet in the sands of southern Oltenia, and in some areas near Danube. Going through Muntenia from East to West, first there is the Buzau HIlls vineyard, with its wine-growing centers in Ramnicu-Sarat, and Zarnesti Cenatesti, and then with the large vineyard in Big Hill, with its famous vinyard centers located in Zoresti, Merest, Pietroasa, Breaza-Buzau, Cricov, Tohani, Ceptura, Urlati,Valea Calugareasca and Boldesti.

Further, is the Stefanesti Arges vinyard, planted from the viticulture centers: Stefanesti, Topoloveni and Valea Mare – Dambovita, and then in the Samburesti. Passing the Olt River, in Oltenia, there is the old Dragasani vineyard, with its vineyards centres Dragasani, Gusoeni, Cerna and Iancu-Jianu. In the South, in the county Dolj and Mehedinti, we find the Dealurile Craiova, Severinului and Plaiurile Drancei vineyards, as well as the independent Segarcea wine centre.

The vineyards situated on the sands near the Danube, on the southern part of Oltenia, cannot be skipped, namely the vineyards Sadova-Corabia, Calafat and from vineyard Dacians, the county Gorj (wine centers Targu-Jiu and Poiana Crusetu) as well as those few areas producing good quality wines ,occupying restricted areas, in Braila county (Ciresu, Jirlau, Ramnicelu), Calarasi (Ulmu), Giurgiu (Greek), Dambovita (Bucsani,Valea Voievozilor), Arges (Costesti) , Teleorman (Furculesti and Mavrodin) Olt(Draganesti).

The area is advantaged by its climate conditions, namely the excess of light and heat, higher compared to those in Northern Moldova and Transylvania. Due to the climate, the best red wine Romanian is produced here, coloured and stout, but also superior white wine, many with designation of origin, full of attraction. Transylvanian wine. The importance of the wine-growing region of Transylvania does not stand in the vineyard stretching, which does not exceed 14,000 hectares, but in the quality wines produced here, and the many possibilities offered by this region for the expansion of viticulture.

Viticulture has an advantage in these places for a relief that seems is especially designed, consisting of endless hills planted with too little help and just waiting to be covered with vineyards. The current viticulture map of Transylvania, five vineyards are most important. In the forefront is the Tarnavelor vineyard, with its wine-growing centres in Blaj, Jidvei, Medias, Tarnaveni, Zafar andValea Nirjanului. Very near this settlement and fame is Alba vineyard, which divides the vineyards and wine-growing centres between Alba Iulia and Ighiu, a little to the South there is the Sebes-Apolda vineyard, and in the North is Aiud.

Finally, situated in the North part, there is the Lechinta old vineyard, with its renowned wine-growing centre of Lechinta, Teaca,Bistrita and Batos. No Transylvania vineyards are wide, but the wine acquired here, is well known and appreciated, and has become high demand products for exporting and for the internal market. Of great importance are the wines from Blaj and Jidvei with sparkling wines of Alba Iulia and Apolda. The wines of the area west. On the Western side of the country there are two wine-growing regions: Banat, in the Southern half and the Crisana and Maramursului, in the North.

Between them there are the Arad vineyards. The viticulture of this area lies on a length of 325 km, which puts it under the influence of various conditions of climate and soil, which cause a pronounced diversification of the sorts of varieties and quality of wine. Areas in the South region of Banat vineyard, benefit from the influence of a favourable climate with light Mediterranean influences, while in Crisana and Maramures the vineyards are influenced by the climate of Central Europe. There are vineyards throughout the entire area from Danube, in the South, to Halmeu, near the Northen border of the country.

They spread over 17,000 hectares. Banat vineyards are concentrated in five viticulture centres that climb up North: Moldova Noua, Tirol, Silagiu, Recas and Teremia. Arad County has one of the most famous vineyards of the country, Minis-Maderat, situated between the rivers Mures and Crisul Alb. Crisana and Maramures meet Diosig vineyard, and then Valley of Mihai towards the North, in the East there is Silvana, as well as several other viticulture centres: Biharia and Tileagd, in the South, and Halmeu Seine, in the North. Dobrogea Wine. In Dobrogea, the vines can be grown anywhere.

At each step, there are good places for the vineyards. The relief of the region is composed of a succession of hills and flat lands, large wave, that do not raise any problems for viticulture; light and heat are everywhere in abundance, the soil has a very good structure and fertility and contains all the chemical elements that the vines need. Water from rainfall is not in the least in surplus, which constitutes an important must for obtaining high quality wine. It is not surprising that, having such conditions, the Dobrogea viticulture has developed so rapidly, reaching presently to occupying a place of first importance.

Dobrogea’s vineyards occupy a area little over than 25,000 hectares. The region is cut from across, a little below its half, is the famous vineyard of Murfatlar, lying on the route to Carasu Valley formed by three viticulture centres: Murfatlar, Medgidia and Cernavoda. Climbing up onto the North side of Eastern territory, there is the Istria –Babadag vineyard. In the North, on the banks of the Danube, there is the old Sarica-Niculitel vineyard, which gathers its vineyards in three viticulture centers: Tulcea, Niculitel and Macin. In the West side of the region, close to the Danube, are the vineyards from Ostrov, Oltina and Aliman.

From this list, the vineyards from Daieni and Harsova, from Adamclisi and Baneasa and those of Mangalia and Chirnogeni cannot be omitted. In Dobrogea, wine is produced with distinct characteristics of quality. The Murfatlar vineyard is included, along with Cotnari and Pietroasa, in the Romanian group of areas from which can be obtained natural sweet wines from grapes picked when the grains are dry. Everywhere in this region there can be produced red wines of great brand, rich and intensely coloured, as well as dry white wine or semisweet, which can be distinguished through their personality.

Generally, wine addresses the following categories of customers: natural persons, over the age of 18 and the horeca market ‘players’ which serve the final consumer. As a result of the development of the horeca segment, the consumption of wine has increased significantly in this sector. From the standpoint of a producer or a distributor, the Romanian horeca market still has many shortcomings: the lack of specialized personnel to ensure optimum storage of the wine, the lack of a professional serving method and a correct recommendation, as well as a defective management of the merchandise on stock.

All of these imperfections have repercussion on the quality of the wine and also on the credibility of the producer. Distrust between consumers and producers, is still a barrier to any. Although the horeca market is far from perfect, the knowledge of wine, the producers and the distributors of this beverage have come to the conclusion that they can no longer be important players on the wine market unless they play an important role on the horeca market as well. Consequently, the total sales in this sector have increased, especially the super premium wine, and there still is an important growth potential.

The owners and managers show interest in wine, especially for its quality, mindful that satisfying the final customer contributes substantially to profits. Another specificity of consumption of wine is that when people go out, they usually consume something different than they would at home. On the horeca market, customers want what they cannot purchase from stores or supermarkets. In the case of newly entered wines on the market, Romanian consumers are more reticent, a barrier which is avoided through direct communication, allowing the consumers to get informed about the product.

Another method is the “wine in a glass” strategy. Consumer perception depends greatly in the brand’s ability to offer what is expected. Another feature represents the brands of wine. More and more limited editions appear, each bottle being given a number and bearing the signature of its producer. For example, La Putere contains two assortments of white wine baroque: Chardonnay and Feteasca, these also being a limited edition (12,000 bottles each, the series mentioned on the label).

The Romanian consumer no longer drinks only sweet wine, with a high content of sugar and mixed with cola, or white wine mixed with water – the so-called spirit. A slight change in consumer habits is noted in the case of wine, i. e, the crossing from sweet wines to semidry or even dry wines, as well as the crossing from white to red wine. In Romania, according to the law in force – The law of the vineyard and of wine, nr. 67/1997 and HG nr. 314/1999 give the following categories of wine products: – Sticto-sensu wines (wine itself) A) Wine for day to day consumption:

– Table wine, with alcoholic strength between 8. 5% vol. and 9. 5% vol. – Superior table wine with alcoholic strength above 9. 5% B) Quality wine: – Superior quality wines – which have an alcoholic strength gained by at least 10% vol. – Wines with origin names, which have an alcoholic strength gained by at least 10. 5% vol. Superior quality wines –can be exported under the generic name of Landwei , Vin de Pays , Country Wine or other similar names, with the geographical indication recognized. For such wines, the minimum amount of alcoholic strength must be 10% vol.

, while the alcoholic strength gained must be at least 9% vol. Wines with origin names may be: 1) Wines with names of origin controlled – they must come from grapes that contain a sugar level of at least 180 g/l; 2) Wines with names of origin controlled and with level quality – picked at full maturity: wine resulting from grapes that contain a sugar level of at least 196 g/l; – picked late: wine resulting from grapes that contain a sugar level of at least 220 g/l; (For producing dry red wines in this category, the gathering of grapes can be done with a content of at least 204 g/l of sugar. )

– picked when they become noble: wine resulting from grapes that contain a sugar level of at least 240 g/l with an attack of “noble must” or gathered when the grapes start to dry. According to the residual content, wines can be: dry, semidry, semisweet and sweet. C) Special wines: – Sparkling wines – Perl wines – Flavoured wines – Liqueur wines The volume of sales of wine in the period between August 2005 – July 2006: 3) Market capacity The wine market registered a total turnover of 350 million euro in 2005, and the consumption represented 26. 6 litres per capita, being expected to grow in 2006 to 30 litres per capita.

The potential consumers of this market represent persons with the age of 18 and older. In Romania there are approximately 14 million such persons. The actual consumers on the wine market represent the entire population with Romanian nationality, that have reached the age of 18, as well as other nationalities, whose religion and tradition do not forbid alcohol consumption. According to the census done in 2002, the largest part of the population, about 18 million persons, is of a religion that does not prohibit the consumption of alcoholic beverages.

The horeca market played a specific role in the formation of the actual wine market in Romania. 4) Market dynamics: “The Romanian people have caught the taste of good wine. In 2003, sales of wines of origin have increased against the backdrop of the population’s increasing purchasing power. In the years 1997-1998, consumption dropped to 19 liters per capita and last year, we each drank about 27 liters of wine. Besides, the wine market in Romania is estimated at some 220 million euros in 2003. In Romania, before the Revolution, a glass of wine didn’t lack of any table.

In 1989, consumption per capita reached 28 liters of wine. The suppression of IAS’s privatization, more or less successful, questionable quality of products and competition with beer producers threw wine in a cone shadow. After the collapse in 1997, due to strong investments both in equipment and quality brought, the wine back into the top preferences of Romanians. In 2000, consumption per capita increased from 23. 2 liters to 25. 5 liters in 2001,and in 2002 and 2003 stabilized at 27 liters per capita.

Furthermore in 2003, there was an increased demand for bottled wine. If in the past, most were consuming cheap wine, packaged in pet sites or wine purchased from villagers, while in 2003 sales of such products fell considerably. “Last year was registered a growth of sales of wine quality and a decrease of the table wine,” said Basil Zarnoveanu, president of the Association of Exporters and Producers in Romania (PROVINUM). Moreover, 80. 9% of consumers preferred to drink bottled wine, choosing the quality as an important characteristic.

Men are the biggest wine drinkers. On the opposite side are the retired persons who are not mad about packaged wine. Men prefer semi-dry wine, while women would rather drink a sweet one. 61% of Romanians love to drink white wine, while the consumption of “red grape juice” reached 30. 1%. In fact, it seems that red wine is a taste of city youth (18-24 years). “(Source: www. jurnalulnational. ro ) Wine market recorded a total turnover of 350 million euros in 2005 and is expected to grow in 2006, according to the representatives of wine producers in Romania.

“Last year total turnover of the sector was around 350 million euros, from our data, and recorded a growth of sales and market share for the big players,” said the general director of the National Patronalului of Vine and Wine (PNVV), Ovidiu Gheorghe. Tacking into account some preliminary data, the first four players, Murfatlar, Cotnari, Jidvei and Vincon had to increase sales and , in this way, the market share too even though the weather had decreased the production with a half in 2005. Murfatlar has a market share of about 29-30 percent, Cotnari – 18.

7 percent, Jidvei – more than 17 percent and Vincon – about 10 percent. However, manufacturers were able to cover demand through imports of wine in bulk and existing stocks. For 2006, manufacturers estimate a growth market more moderate compared to this year, but emphasized by the emergence of new producers outside. In 2004, the market has been coded to 300 million euros, production reached 7. 1 million hectoliters from 3. 5 million hectoliters in 2005. In order to analyze better the dynamics of wine market , we may take into consideration the average variation rhythm of the total sales of wine during the period 2002-2005.

|YEAR |Average variation rhythm | |2002-2003 |7,407047 | |2003-2004 |8,866210 | |2004-2005 |9,0355436 | During the period 2002-2004 a strong growth is recorded , while between 2004-2005 , despite the fact that the production decreased due to bad weather conditions , a small growth is encounted too. Computing the average variation rhythm of sales for wine market between the years 2003-2005 , we have n=3, Y3=total sales in 2005 = 350 mil euro , Y1=total sales in 2003=220 mil euro and R= [sqrt(350/220)-1]*100 = (sqrt(1,59)-1)*100= (1,2613-1)*100= 0,2613*100=26,13 which represents a strong growth across years.

5) Market evolution: Wine market has developed quite high. Due to the integration of Romania into the European Union, the biggest players in this market developed their production capacities, new research institutes and other developments in the wine sector. Still more often held presentations, wine fairs, where the main producers on this market presented their production capacity, the last of their final products, and offered for tasting their best wines possessing. During the period of 2002-2004 , the wine market developed intensively.

It is well known the fact that during one year, you cannot open the production capacity of wine because of the vines plantations that need years to grow and develop their fruits. (butasii de vita de vie). An important factor in the development of wine market in the last years is the Romanian horeca market, one of the sectors with the fastest growth. There are many links between the wine market and horeca sectors due to the large amount of wine consumption at this level on the market. According to specialists this field leaves much to be desired for today as for the last years.

The production capacity of wine has not increased because of the number of plantings alive, but because of the increased quality management and marketing of the wine sector. However, intensive development did not occur between the years 2004 and 2005, in a big part due to the decrease in production. Production of wine in Romania has recorded a significant rebound, but manufacturers rely on increases in profits of 15 up to 100% Thus, we may say that 2005 was one of the hardest years for wine industry. Hail in the spring, floods in the summer has generated significant reduction of production, which led the producers to question their market.

The statistics speak for themselves. In 2005 were about 50% less wine grapes from the previous year, registered the only 442. 7 thousand tons, compared to 963. 2 thousand tones a year ago. Also, according to estimates, the quantity of wine produced was reduced to half from 2004, when it produced 6. 1 million hectoliters. 2005- The year of orientation toward consumers On account of the fact that this year producers have sold stocks in 2004, signaled recession of 2005 were hardly felt strongly in 2006, when they had to face some additional costs.

“2005 was a particularly difficult year, which questioned the technological and marketing environment for producing companies,” admitted Petre Mocanu, the executive director of the inter-national wine organizations (ONIV). According to it, in 2005, companies have focused primarily on consumers, trying to attract them and also those who normally are drinking alcohol or beer. Not in the last row, Mocanu claims that the wines were very diversified and could see an increase in the interest of producers to improve technology through significant investment. Higher profits

Whatever the situation was in wine production, manufacturers rely on profits and higher turnovers than in the previous year. Murfatlar, one of the biggest exporters of wine in Romania, estimates for this year (2005) a turnover of 30 million, compared to 25 million dollars as recorded a year ago. From the data company, the largest increases have recorded premium ranges, such as “Section of Murfatlar” and “Heaven of Murfatlar” and the super premium such as “Three Hectares” or ” Ovidiu`s tear. ” Taking into account the consumer habits of the Romanians, 70% of sales were white wines.

“I think the correct opinion regarding the year of 2005 we may have just at its end. This because the last four months of the year represent more than half of annual sales of wine. In any case, up to this point Murfatlar sales are 25% more than last year “, says Daniel Negrescu, brand manager Murfatlar. Prahova companys recorded increases too. “Growth was 15% compared to last year, for both sales and profit,” said Simona Mardle, export sales manager in the Halewood Romania. Approximately 75% of production from Prahova companies goes to export; importing countries are mainly in England, Estonia, Latvia and America.

Last but not least, sales of Carl Reh Winery have doubled. “It is a natural tendency for the place that we have right now on the market,” said Rodica CAPATINA, director in the company. 85% of the wine produced by Carl Reh is exported to markets in the Scandinavian States or Germany. Changes on the market On account of the 2005`s very low production, representatives of ONIV are expected to placement changes on the market profile for the next year. “Existing stocks until now have allowed the big companies to maintain market position. Next year, however, will alter the course of market share.

But I have to take into account the strategy that firms will lead in each market in order to exercise pressure on a certain segment that it leads,” explains Mocanu. At that time, the first player on the market was Murfatlar, which owned, according to a retail-audir what is done periodically on the wine market, 30% of the market. Followed by Jidvei, approximately 18% and 16% Cotnari. 6) Market conjuncture: Gross Domestic Product for 2005 was 287. 2 billion USD, the prices of 2005. 2005/2004 GDP growth was 4. 1%. In wine, are used mainly grapes, which are obtained from agriculture.

Agriculture share in GDP 2004/2005 was negative. However, the wine market is in the threshold of accession, so for the gross domestic product we can assign a favorable grade. Wine consumption per capita in 2005 was 26. 6 liters. The average annual increase of production for 2004-2005 was 2. 4%. Production was on the rise, catalizate efforts happened and a future growth of both consumption and the rate of average annual production occured. Thus, regarding the evolution of wine production, we can apply a very favorable grade. Inflation rate for 2005 was 8. 6%. There was noticed a growing wine market prices caused by inflation.

Prices rose after price increase excise duties, but also as a cause of floods. Thus, the inflation rate had an unfavorable effect on the wine market. The unemployment rate for 2005 was 7. 2%. It is difficult to establish some connection between unemployment and market wine. Moreover, investigations are needed. Thus, unemployment can assign a grade: favorable or unfavorable. The exchange rate euro / leu as an average level of 2005, there were no major variations. So it did not influence the production of wine, and we can’t assign neither a favorable nor an unfavorable grade.

|Dynamics /Indicators |-2 |-1 |0 |+1 |+2 | |GDP | | | |0 | | |Industrial production | | | | |0 | |Inflation rate | |0 | | | | |Unemployment rate | | | 0 | | | |Exchange rate | | | 0 | | | 7) Demand and offer The wine market deserves a special atention, mainly because it is not regulated through governmental policies, based on instruments and ways of intervention that are specific to the other markets, but also because it has benefitted from several general measures of agricultural policy, such as the financial and credit policies, tariffs and intervention regarding the wine stocks and distilation.

The companies that operate on the wine market and the wine offer The competence and the exploitation of the wine products on the market are affected by the weathering of the vineyards, dependence upon the weather conditions, poor efficiency related to foreign producers, high costs for the maintainance and the exploitation of the vineyards, lack of a specific supervision. Another important factor is represented by lack of a comercial representation network on the interested market An importanta part in the wine offer is played by the wine distribution.

The distribution makes the link between the producer and the consumer and it influences through the satisfying of the needs of consumption . The distribution secures the movement of the human and material resources and it yields a high percentage in the final price of the product. The distribution systems are of the following types: 1 The great grape and wine producers -> Consumers ; 2. The great grape and wine producers -> Export; A feature of the great producers is that they detain a distribution network within the producing company and hereafter two destinations occur: Internal and External. 3.

The great grape and wine producers -> EN-Gross possessors; The great grape and wine producers -> Export Used by the farmers that produce the wine and afterwards distribute it through en gross networks – are of two types: Internal and External Market. 4. Small grape producers -> Grape collecting centers – >Great wine producers -> EN Gross networks-> Consumers. This method is used when the small grape producers do not transform the grapes into wine, but deliver them to a collecting centre that is endowed with specific distribution logistics, playing multiple parts, such as the collecting, transport and lodging.

The collecting centres further their grape production to wining units, where the production takes place and, afterwards the delivery of the wine to the consumers takes place with the help of en gross or en detail networks. The 5. The small grape producers -> wining units -> En gross networks (wine) -> Consumers. This type of distribution is rarely encountered in the economic practice. This method ought to be reconsidered, as small producers have poor economic possibilities. 6. Small grape producers – > Wining units- > Consumers.

While similar to 5, the difference is that the wine is being sold in en detail units (stores). 7. Small grae producers -> Home processing -> Consumers 8. Small grae producers -> Home processing -> Self consumption In this case, the wine producers detain both the producing, storaging, transmitting and selling functions of the grapes and, subsequently of the wine. The manual processing takes place in the household, having two special destinations: local market and self consumption. The producer-consumer circuit is specific to every food intermediation way in Romania.

In this case, the packing (the main distribution functions: packing, storing, transport, sales) is made under unproper conditions on the market, forbidden in the European Union and shall soon be abolished in Romania as well. The main specific types of grape and wine producers are: 1. Distribution circuits that are specific to the great wineing companies, that integrate all or many of the accessory types of company; 2. Collecting, processing and distributing circuits, that are yet to be fully completed in Romania, where the wine production is integrated on the same level with several home producing units;

3. Other distribution combinations, based on the grapes production in households, that sell only a fraction of their wine production, the rest being destined to self consumption. They can, however develop their business and sell their output to the great producers. From the Marketing policy point of view, it is very difficult to speculate and develop one of the two most favoured tendencies shown on the market for either the red or the white wine.

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