Romanian organic wine producer plans to increase export sales after BVB listing

Vifrana, the largest Romanian producer of organic wine by cultivated area, will list its shares on the Bucharest Stock Exchange's AeRO market in the immediate future, under the BIOW ticker.

The company hopes to use the increased visibility offered by the BVB listing to increase its sales in foreign markets and expand to new markets. Vifrana raised RON 9.5 mln (close to EUR 2 mln) through a private placement of shares in December 2020. Local brokerage firm Goldring managed the private placement and now advises the company on its BVB listing.

The company used the money raised from investors to reimburse a CEC Bank loan, carry out a rebranding, and start the investment plan in new technologies.

"Consumption of organic wine is part of a global trend of increasing interest in certified organic products. It's a phenomenon that has been highly consistent during the pandemic. Customers are interested in consuming clean, unprocessed products. We were pioneers in certified organic agriculture in Romania, and we already have a history and experience of 12 years," said Octavian Vucmanovici, CEO and co-founder of Vifrana.

"For 2020-2030, the international organic wine market forecasts are showing an average annual growth of 8-12%. Developed European countries have a consumption of organic wine between 10-20%, while, in the Nordic countries, the share is even higher. In Romania, we believe that it has reached 2.5%, so Vifrana has significant growth potential," Vucmanovici explained.

In 2020, the company recorded a turnover of over EUR 1 million, an increase of over 30% compared to the previous year. For the first quarter of 2021, Vifrana reported a 41% increase in turnover compared to the same period last year.

"2020 was a year of growth in sales. However, we were operationally affected by the limited access to the workforce and logistical constraints. For 2021, we expect a sustained increase in turnover, considering the expansion of the products' portfolio and the increasing exports. We will focus on existing markets, such as Germany - the main export country for us, and new markets such as the United Kingdom and Japan. Currently, exports represent 25% of the company's revenue," added Octavian Vucmanovici.

The company sells its wines through HoReCa operators, retail chains, and its own online store.

(Photo source: the company)