Sorin MASLO: "The year 2022 was a turning point for the "Cricova" Wine Combine, the turnover increased by almost 25%"
Interview by InfoMarket Agency
Although 2022 was an extremely difficult and challenging year, the "Cricova" Wine Combine S.A. recorded solid results. In addition to the fact that the sales volume increased, mainly due to exports, the management started several projects that will revitalize the company's activity. Sorin Maslo, the Interim Director of the company, spoke about all these in an interview with InfoMarket.
InfoMarket: Mr Maslo, the Cricova Combine ended 2022 with impressive figures. Share with us some details...
Sorin MASLO: Yes, it was a good year for the Combine, even if the tragic situation of our neighbors in Ukraine has cut our optimism. However, we mobilised and managed to end the year with good results. Basically it was a turning point year for us. The final results will be ready in March, 2023, however, already now I can tell you that the turnover for 2022 has increased by about 25% compared to 2021, reaching 360 million lei. Moreover, we made a profit of 11 million lei, which is 20% more than in the previous year.
An extremely important result for 2022 is also the processing of 10 000 t of grapes and providing the company with wines of sufficient quality and quantity. This result is the merit of the whole team, it is a response to our effort and mobilization in a year that has been extremely difficult.
InfoMarket: On account of what did you achieve this increase in turnover?
Sorin MASLO: We substantially increased exports in 2022, a sign that our wine products are increasingly appreciated abroad. Moreover, I can tell you that "Cricova" sparkling wines are number 1 in terms of volume of sparkling wines from Moldova delivered abroad! Our bottled wines, for the first time, are on the third place by the exported volume. We are extremely proud of this result, of regaining the trust of our partners, considering that in previous years, "Cricova" products exported abroad ranked VII-VIII by volume. I can also tell you that we have had significant increases in volumes on such markets as Germany, Great Britain, Scandinavian countries, Cyprus. These are new markets, but they have accepted and appreciated "Cricova" products in a surprising way. We are motivated to continue to conquer new markets in 2023.
InfoMarket: Turnover, profit - it also means new opportunities for the company's development. What are your plans in this respect?
Sorin MASLO: Yes, we want and, thanks to the support of the Public Property Agency, we plan to invest in several strategic projects, which are decisive for the quality of "Cricova" wine products. More specifically, we are already working on a project aimed at modernizing the bottling and bottle-finishing equipment so that the products meet the most demanding requirements of consumers from all over the world. We want this process to be fast, qualitative and in line with international standards.
We are also planning to expand our vineyard areas, which in time will allow us to significantly increase the supply of our own grapes and the quality of our wines.
Moreover, by summer we will have vineyards with state-of-the-art irrigation systems, which will lead to a constant productivity of the vines, regardless of the weather conditions.
InfoMarket: By the way, as for the irrigation, do you mean the plantations in the Criuleni region, where 8 million USD have been allocated under the COMPACT Programme?
Sorin MASLO: Yes, exactly. There, thanks to the support provided by the US Government, two irrigation systems were rebuilt and modernized. Our vineyards will be connected to this irrigation system by this summer. This effort will be carried out from our own financial sources, as well as from the funds received under the EIB's "Livada Moldovei" (the Fruit Graden of Moldova) programme. This project is a relevant example of how, thanks to joint efforts, we can have tangible projects leading to the economic development of the country.
InfoMarket: What other actions would you like to take to streamline the work process in Cricova?
Sorin MASLO: In 2022, with the support of USAID, the Combine underwent a sustainability audit on grape and wine production. The audit was conducted by a well-known company from Germany and we are proud of this fact. Moreover, with the support of the US Government, over the years "Cricova" has received a variety of assistance, including the presentation of products on various international platforms, for which we are grateful to the American people. Also last year we started implementing the Sustainability System. In addition to the development of organic vineyards and the production of organic wines, with the support of the Agency for Intervention and Payments in Agriculture, a photovoltaic park was also created - a first here at the company, which has already managed to produce energy, enabling us to recover more than 65% of the invested value. By the way, also because we tend to be sustainable, in 2023 we will put even more emphasis on renewable energy production. Basically we want to increase even more the volume of renewable energy production and I am sure we will succeed. A project is already being finalized that will increase alternative energy production to at least 40% of total electricity needs in the immediate future.
We have ambitious plans to make our business more efficient. For example, we are in the process of building a modern warehouse on the Combine's premises. Currently the logistics chain involves additional costs for transport and maintenance at a warehouse located far from the company. The new space will be modern, well insulated and will save us time and money.
Similarly, we are shortly planning to complete the wastewater pre-treatment plant, an extremely important process that fits in with our sustainability concept.
In total, by 2023, from our own sources and those obtained under the "Livada Moldovei" programme, we plan to invest around 65 million lei to modernize the Combine.
InfoMarket: We know that you have launched the "WILD" series of organic wines. Are they successful?
Sorin MASLO: Yes, of course! Eco wines, organic products are increasingly in demand in the world, but also in Moldova. And we, the "Cricova" team, want to offer our consumers the whole range of products, including organic wines, for those who really militate for sustainability.
"Cricova" is the first enterprise in the Republic of Moldova to obtain the European CERES Certificate, which allows us to export our organic products to the European Union market. I’d like to tell you that the first batch, launched in 2022, has already been sold in full on the territory of Moldova. Now another batch is being bottled and a large part is destined for export. Besides, in March "WILD" wines will be presented at the biggest international wine exhibition - "ProWein", then we will also make our official debut on the European market with our organic wines.
InfoMarket: "Cricova" Combine has been operating for over 70 years. How do you see the development of the company in the next 5-10 years?
Sorin MASLO: The general objective for the next 5 years of "Cricova" S.A. Wine Combine is to increase its competitiveness and sustainability, offering - through its performance in terms of efficiency, quality and social responsibility - a model of excellence for the national wine sector - an important prerequisite for its sustainable development and strengthening its role in the local economy and world oenology.
In its more than 70 years of activity, the "Cricova" Wine Combine, with the transformations that the country has gone through, has developed, resisted and become a genuine brand of the country. Our mission is to preserve and develop this state treasure, declared by law - National Cultural Heritage. To this end, we have elaborated the Development Strategy of "Cricova" S.A. for 2022-2027. An ambitious document, with concrete projects and well-defined directions, which with the support of the Public Property Agency, the Government, once realized will transform the company into a prosperous one, delivering benefits to the state //17.02.2023 - InfoMarket.
