Rodica Capatana, general manager of winemaker Carl Reh Winery says she has no intention of dropping exports, even though sales on foreign markets have dived 8% in the first half of this year.

"We do not intend to give up exports, even though overproduction in Europe affects us at this moment. We want to maintain a balance between the domestic market and exports, because it is healthier to have a way out, should one of the two markets fall," says Rodica Capatana.

Carl Reh Winery, the Romanian branch of the German Carl Reh producer estimates turnover to overshoot the 3 million-euro mark this year, an increase of 20% on 2005.

"After the first half of the year, sales on the domestic market doubled, while exports fell 8%," she says.

Whereas in 2001, when production started, the company would sell on foreign markets exclusively, the structure of sales has changed lately, with the domestic market coming to account for 40% of the turnover.

To avoid losing its growth momentum, the company chose to add the importation of wines to its business, selling brands made by the German branch on the domestic market at first.

"We then expanded our portfolio with Australian brands we distribute exclusively. As of next year, once customs duties have been eliminated we will expand imports of wine and are thinking of other brands from Europe, Chile and Australia," Carl Reh Winery's general manager says.

The company produces the Val Duna and La Cetate brands, with most of the sales on the domestic market generated by the bag-in-box packaging segment.

"This is a concept that is still selling below the market potential but the Romanian consumer is starting to appreciate it, especially since it can be found both in the hotel-catering-restaurant and in the retail segment," she adds.

The general manager of the company says that Carl Reh Wi