Octavian Vucmanovici, CEO and co-founder of Vifrana: The listing of shares gives us visibility and strengthens the company’s position in relation to external customers
Over 1 million euros turnover in 2020, a growth of over 30% compared to 2019
- 41% increase in turnover in T1 2021, compared to the same period of the previous year
- Expanding distribution in Germany and the Netherlands while entering new markets, the United Kingdom and Japan
- Investments in technology worth approximately 400,000 EUR
- Launch of sparkling wines and a new premium range
The shares of Vifrana, the largest Romanian producer of organic wine by cultivated area will be traded on the AeRO market of the Bucharest Stock Exchange in the immediate future, under the BIOW symbol.
The listing is supported by Goldring brokerage company, “the mediator of Romanian entrepreneurial companies” – a title conferred by BVB in 2018 and reconfirmed in 2021.
The financing worth 9.5 million lei, obtained by Vifrana in December 2020, through private placement of shares, was used to reimburse a CEC Bank loan, rebranding the company, and starting the investment plan in new technologies.
The visibility offered by the listing at BVB supports Vifrana’s efforts to increase sales in foreign markets and to expand into new markets, which allow higher profit margins, in the context of investments in technology and the development of new products.
“Consumption of organic wine is part of a global trend of increasing interest in certified organic products. It’s a phenomenon that was 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. For 2020-2030, the forecasts referring to the international organic wine market are showing an average annual growth between 8% – 12%. Developed European countries have a consumption of organic wine between 10-20%, while in the Nordic countries is even higher. In Romania, we believe that it has reached 2.5%, so Vifrana has a significant growth potential “, says Octavian Vucmanovici, CEO and co-founder of Vifrana.
Over 30% turnover increase in 2020
In 2020, the company recorded a turnover of over 1 million euros, an increase of over 30% compared to the previous year. For the first quarter of 2021, Vifrana reports 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, but also by 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 – which is the main export country for us, but also on new markets such as the United Kingdom and Japan. Currently, exports represent 25% of the company’s revenue”, adds Octavian Vucmanovici.
Natural-Raw Wines, a new world trend in winemaking
Vifrana is the first producer in Romania to sell traditionally vinified wines, without yeasts or industrial additives, from organic grapes that are harvested by hand. Draculette Blanc – Sauvignon Blanc and Draculette Rose – Cabernet Sauvignon are permanently listed in major retail networks.
“These are very sensitive, unfiltered wines made from hand-picked grapes. World-famous wine bars have specialized and dedicated to this trend in Northern Europe but also in Madrid, London, and New York. It is a trend more common in HoReCa, but we managed the outstanding performance of positioning these wines also in major retail networks. We hope to retain customers in Romania and to launch them successfully in HoReCa as well “, says Octavian Vucmanovici.
Starting in March, Vifrana wines can also be ordered online, directly from the winery. Orders are processed the same day and are delivered free of charge to any customer in Romania. “We already have a portfolio of extremely active customers who give us hope that this line of business will cover a significant percentage of our total sales,” says manager Vifrana.
Vifrana introduces the Nutrinform nutrition labelling system
Starting May, the company introduced the Italian Nutrinform Battery nutrition labelling system that is addressing food as an energy source. It is a voluntary compliance decision meant to clearly explain the energy intake of Vifrana wines.
In 2021, the company’s management also aims to launch a range of sparkling wines and a new premium range.