Moldova’s Purcari Wineries Public Company Limited (earlier Bostavan) saw a rise in wine sales in Ukraine in January-September 2017, to RON 3.29 million ($870,000), the company has said in a prospectus for the initial public offering (IPO) posted on its website.
According to the document, sales of more expensive wine under Purcari trademark grew by 54.2%, to RON 1.8 million.
Purcari said that these results became possible thanks to the economic recovery in Ukraine, the growing popularity of wine in the region and the increase in the share of organized retail trade.
The company said that in the reporting period Ukraine accounted for 5% of its sales in bottles and in money terms – 4%, while in 2016 – 4%.
According to the prospectus, in 2014-2016, the average annual reduction of the wine market in Ukraine was 1%, while the markets for strong alcoholic beverages and beer fell by 19.1% and 13.9%, respectively.
Purcari said that the consumption of wine in Ukraine – 4 liters per year – is way below the neighbors: Poland – 6.4 liters, Slovakia – 14.9 liters, Romania – 16.4 liters, the Czech Republic – 20.5 liters, not to mention such countries as Italy – 33 liters and France – 43 liters.
The company, citing Euromonitor data in the prospectus, expects an average annual growth of the wine market in Ukraine in 2016-2020 by 2.9% compared to the growth of the beer market by 1.1%.
Euromonitor estimated the wine market in Ukraine in 2016 a 168 million liters, or EUR600 million with a share of premium and super premium brands of 25%. The leading companies were three companies: Logos (the Inkerman brand) – 13.4%, Bayadera (Koblevo) – 12.1% and Shabo 10.2%.
Experts also said that the share of dry wines in 2016 was 54% in bottles and 40% in money, sparkling wines – 32% and 28%, fortified – 13% and 30% respectively.
Purcari said that the average annual growth of its cash sales in Ukraine in 2014-2016 was 9%, while in bottles, a decline by 11% was recorded. The company mainly relies on third-party distributors to cover the market, but it directly delivers wine to Fozzy Group, one of the largest supermarket chains in the country.
“The Group’s near-term strategy is to focus on building out the Purcari and Bostavan brands in this large, high-potential market and expanding its presence to the sparkling segment, with particular focus on the HoReCa segment, navigating a structurally changing industry following the annexation of Crimea, which accounted for circa a half of Ukraine’s vineyards,” the company said in the prospectus.
