Local wine faces a dry period
Tough competition from the EU and the new world hreatens the
domestic wine market, especially as Europe lacks a sweet tooth
Local wine producers could
experience a bitter harvest in
2007, as the opening of the
European Union borders means greater
competition at home and further
challenges abroad.
This is further troubled by the
European palate's favour for young, dry
and fruity wines, while the Romanian
variety is, on the whole, sweet. “Many wine producers who are not
using modern technology will fail,” says
trade association National Master of
Vineyards and Wines (NMVW) general
manager Ovidiu Gheorghe.
Development of Romanian wine is
patchy due to the lack of investment and
modernization, argues Stuart Walton,
British wine critic and author of the
World Encyclopedia of Wine'.
But it is not a lack of industrial ability
that is a problem, says Catalin Paduraru
of Vinexpert. “Whoever says we don't
have modern technology is a liar,” he
adds, “maybe we have better technology
than other European countries.”
For Romanian wine, the chief export
markets include the ex-Soviet Union,UK
and Germany, says Paduraru. The USA
may be a highly competitive market, but
it is also a viable place to do business.
Red wines are popular worldwide but in
Romania now, older white wines are the
most popular.
But expanding into these
export markets will not be easy. “Romanian wine hasn't a hope of
competing on the UK market against the
likes of Australia and Chile,”Walton tells The Diplomat but some of the red wines are frankly better than much of what is
coming out of Bulgaria now, and given
the climate, should be able to match those
of southern France.”
Walton says Romania excels in
Cabernet Sauvignon and Merlot and also
in Pinot Noir: “Some of which are as
good as many a mid-priced burgundy.”
Such views have inspired traditional
white winemakers, such as Jidvei, to enter a new phase. "We intend to produce
red wine and rose,” says Dr. Bula Ioan,
manager of Jidvei, who has created a
Pinot Noir - a red and sweet wine with a
high quantity of alcohol.
The biggest domestic producers, such
as Murfatlar, Tohani and Reces, are also
trying to follow the trend of producing
young, fruity and dry wines and Tohani
says exports for the first nine months of
this year have risen by 25 per cent.
On the domestic market, Paduraru
says most of the imported wines are “no
name, brought in Romania on price
criteria. In a few years maybe
competition will exist.”
But it is hard to tell what will happen
in 2007 as he says the market is confused. “What the Romanians chose as wine is
humiliating,” he adds. “Of course there's
a certain group of Romanians who are
obtaining good wine, but the majority are making disappointing choices.”
White wine is where Walton and his
international critical fraternity cite as
Romania's weakness.
This could be hard for companies
such as Jidvei, the leader on dry white
wine, and Cotnari, the leader on sweet white wine, as the advent of the European
Union could mean a flood of similarly
priced brands from southern Europe onto
the market, as well as little hope of strong
export potential.
“We don't have a fear regarding the
EU,” says Jidvei's Ioan, who, on the
whole, is sticking to the white side. “We
don't have to follow the trend, because we
are guided by what is grown on our vineyards. 20 years ago the
world's preference for wines
was semi-sweet, so we started
producing it and we will
maintain the white grape
predominantly."
There are also other
money-making solutions. “It would probably pay (and I
say this with a heavyish heart)
to develop Chardonnay for its
cash-crop potential,” says
Walton . “Also, i f the
winemaking can be cleaned
up and the price is right, there
may just be a niche market for
those rotted dessert wines we
have all heard of. If Austria
and the southern hemisphere
can sell these wines at
affordable prices, why not
Romania?"
Local firms have attracted
EU financial interest, such as
German company Schloss
Wacheniheim, which bought
out Bucharest-based sparkling
wine firm Zarea in spring
2004.
An infusion of German
discipline hopes to give the
firm better leverage in foreign
markets, and the first step is
exporting the fizzy wine to
Poland. Emil Popescu,
general manager of the firm,
says that Zarea has no
competitors in Romania, but
has to look our for threats from
France, Italy and Spain. But
he does not see that 2007 will
be problematic. “Big things
won't happen because the
customs tax for wine no
longer exists and the markets
are open,” he says.
A producer that has found
success abroad is Carl Reh
Winery, with its premium
brand La Cetate. Reh
Kendermann, the owner of the
brand and one of the largest
players in Germany's wine
market has invested in the first
organic wineyard in Romania.
Advances in production mean
that Romania must speed up
its development of wine in
order to retain a competitive
edge in markets abroad,
particularly on massproduced
and popular brands
from the new world.Gheorghe says only 50 of
the thousands of Romanian
wine producers on the market
are strong. And as the
competition thrives and the
turnover and the exports
become more significant, only
ten of them will become
important players.
In the rest of the world
succesful wine markets can be
established either in small or
large business formats, such
as the French method of
private producers maintaining
quality control on small plots,
and another is through large
landowners consolidating
vast areas of land under one
brand, such as in Australia and
California.
"To compete with the large
wine brands abroad small
producers will have to
organize in cooperatives and
invest in small vineyards of a
surface area over 20-30
hectares, in quality and
technology," says Gheorghe. He adds that profit can
come from smaller surfaces
that are producing a consistent
quantity that is sold at a higher
price.
Romania's neighbours are
also finding it less than easy to
compete abroad. Bulgaria,
with 400,000 acres of
vineyard, half of which is
black grapes and 25 per cent
Cabernet Sauvignon, has
found it hard to maintain its
position in the 1980s as one of
the top five wine exporters to
parts of western Europe,
particularly due to the New
World threat.
Hungary, with 110,000
hectares of vineyards, has also
witnessed a decline in its wine
production of one per cent,
year on year, between 1998
and 2003. However it is seeing
growing investment in its own
brand of sweet wine, Tokaji,
which thrives over a 4,000
hectare vineyard. This is,
however, an acquired taste
that could prove a template for
how Romania could market its
sweeter varieties.
Michael Bird
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Workers sacked
over electoral pressure
Workers at a factory owned by
the wife of a local Valcea
county PSD leader were sacked after
speaking out against a perception of
large-scale electoral fraud centred on
the factory staff.
Members of the board of the Uzina
Mecanica factory, Valcea County are
alleged to have asked up to 400
employees in the factory to act as
electoral observers”, but at the same
time encouraged them to vote PSD.
“We were told by the board to be at
the factory on the day of the first round
of elections and to vote for the PSD
because it's in the interest of our
factory,” fired worker Gheorghe
Prodescu told The Diplomat, following
the first vote.
“We were all given press badges from
three local newspapers, phone cards,
money for food and gas,” he added.
Then we were dispatched to different
towns and villages in Valcea, to present
ourselves as observers of the elections.”
Some of these “observers” were PSD
campaigners and were engaged in an
activity for which they were untrained,
it is alleged.
There are also concerns that these
observers” were not observers at all,
but were hired to make multiple votes.In the elections voters were able to
peel off a sticker that indicated one had
voted, thus enabling multiple voting to
take place.
When The Diplomat confronted
Maria Tudor boss of the Uzina
Mecanica factory and wife of local PSD
figure Ion Tudor, on the issue of
whether electoral fraud had taken place,
she chose to invoke her divine status.
“Maria Tudor is a religious person,”
she said of herself. “Maria Tudor goes
to the monasteries and prays to God and
to Our Lord's Mother”.
“It is not true that the workers of
Uzina Mecanica influenced the
elections in any way, they are decent
people...”, argued Bogdan Hodoroaga,
general director of Monitorul de Valcea,
one of the three papers that donated the
press badges so that the machinists
could act as democratic observers.
“There was cooperation between us and
Ms. Tudor of Uzina Mecanica, as we
were both worried by the possibility of
defrauding the elections.”
After Prodescu voiced his concerns to
electoral watchdog Pro Democratia, his
boss fired him. Since then another
worker has also been sacked.
Anca Pol
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Journalists clash with
bosses over right to write
A well-renowned investigative reporting team has been
ripped apart by claims of editorial interference.
Swiss media group Ringier has hit
back at allegations that it interfered
in the editorial direction of its
investigative daily Evenimentul Zilei,
following the departure of its editor and
35 of its staff over the issue of journalistic
independence.
Since 1992 Evenimentul Zilei(EZ)
has built up a reputation as a crusading
anti-establishment paper that has seen it
capture around 85,000 daily readers,
while owner Ringier has a large swathe of
Romanian press, including tabloid Libertatea
, business weekly Capital and Pro Sport.
“They wanted journalists who can be
manipulated,” ex-EZ staffer Andreea
Pora said of the Ringier management, “who answer to orders without putting
any questions and ask for no
explanations. I think that removing us
was part of a script that concerned the
modification in the structure and line of
the paper.
In his last editorial from 24 December
2004 called: 'Why?' outgoing editor-inchief
Dan Turturica attacked the paper's
own bosses in an unprecedented attempt
at newsprint hari-kiri: "Why do
[Ringier's] people say they will respect
editorial independence as long as they do
not believe the values the publication is
promoting?”
This followed the departure last
Autumn of the founding editor, Cornel
Nistorescu, although he is still under
contract to write columns for the journal.
Turturica later told The Diplomat that
his bosses did not censor, “But they put
pressure on the content.” The former
editor says that he was subject to bursts of
violence from the Ringier Romanian
boss Thomas Landolt, who would slam
his fists on the table if he was unhappy
with an editorial decision. “Landolt
reproached the tough critics of the PSD
on our paper,” added Turturica. “He said
that we attacked the PSD too much, but
he never explained to us when enough
was enough.”
However, when contacted by this
magazine, Landolt was defiant. "I don't
feel like I don't support my journalists, because I have done in front of lawyers.
They have independence in their stories.
Turturica always accused me of
interfering in the editorial, but he has no
proof.”
Ex-columnist at EZ Traian
Ungureanu fought back. “Is Mr. Landolt
suggesting that we step into a new era in
which Security cameras will be placed
into press offices? How else could it be
'proved'?”
However a consistent pro-Government policy was not the case
among other Ringier titles, argues
Razvan Martin, programme assistant at
the Media Monitoring Agency. He
believed the management neither
interfered editorially nor “carried out a
lobby campaign for the PSD”, because
there is criticism of this party in Ringier's Capital
magazine.
But he called the resignations of the
journalists in solidarity with their editor
'remarkable'. “They stepped into this
fight with good intentions,” he added.
“They can't be suspected of sabotaging
Ringier. Their only aim was to protect the
freedom of the press.”
New editor of EZ Razvan Ionescu, a
former editor of sports journals, said: “I
regret that EZ has lost
important people that we will always
need.
On whether the scandal would affect
the health of the paper he said: “Definitely… but how much we will find
out in a few months. It has created a kind
of confusion about what is really going
on here.
Allegations have also surfaced that
the paper wanted to capture more
Government advertising and an obstacle
to this aim was the journal's campaigning
stance.
“In 2003 we had half a million Euro
governmental advertising and, because
of our policy, including attacking the
PSD, the budget was retired, ” said
Turturica,“We lost a lot back then, but we
recovered with commercial advertising.”
There is also confusion over the terms
of Turturica's departure. Landolt told The Diplomat
that he did not fire Turturica and the two came to “a mutual
agreement”. Turturica says that he did
hand in his resignation. But this followed
an assignment in which he was sent to
Moldovan town Bacau for two months as
a chief editor of a local edition of his
paper, while Ionescu took his place. “I
refused to go to Bacau because this was a
way of estranging me from Evenimentul
Zilei”, he said.“It is Ringier's right to appoint its
editorial staff,” adds Martin. “But what
Thomas Landolt has done wrong is the
way he acted with Dan Turturica.”Aware
of the outcry at founding editor Cornel
Nistorescu's semi-departure in October,
Martin says Ringier should have better
justified its actions.
Ungureanu has seen this as part of a
wider campaign to change the focus of
the paper: “Ringier cannot possibly
admit what everybody in his right mind
sees as a mission to destroy the most
critical and well known journalistic team
in Romania,” he said.
In his near-suicidal editorial,
Turturica asked Ringier, a firm
specialized in tabloids, why the bosses
were “trying to destroy” a principled
newspaper.
In reply to whether EZ would “go
tabloid”, Landolt told The Diplomat EZ
will remain a reference news paper. “[Turturica] agreed with me regarding
the policy of the newspaper, so how can I
transform Evenimentul Zilei into a
tabloid? It is stupid!"
But an ex-member of the team said
that the appointed of Ionescu, with his
experience in tabloids, “strengthens” the
suspicions that the line of the paper will
adopt a more tabloid focus.
Evenimentul Zilei now has a new
team, while some former journalists and
Turturica have signed up with Global
Media, who run dailies Ziua and Independent, as well as Realitataea TV.
According to the Media Monitoring
Agency in 2004, Evenimentul Zilei was
the fourth largest newspaper after tabloid Libertatea
(265,000 copies per day),
Jurnalul National(130,000) and
Adevarul(120,000).
Ana Maria Smadeanu
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