Aerial photo of a vineyard on a hill overlooking a green landscape.

Strengthening the Moldovan Wine Sector from Grape to Glass .

January 15, 2016

The Moldovan wine sector is attracting more foreign investment and becoming more competitive on the international market, thanks to improvements in regulation, quality, and promotion strategies.

The wine sector holds a unique distinction in Moldova: Wine is one of the only products exported with its full value chain completed in-country. From grape to glass, wine is produced, processed, and packaged in the small eastern European country, an approach that has cemented the sector’s role in economic growth and job creation. As of 2015, the wine industry represented 7 percent of Moldova’s exports worldwide and employed more than 200,000 citizens.

But this success comes after a serious setback. Following a Russian embargo of Moldovan wines in 2006 — a blow that caused wine’s gross domestic product contribution to drop from 9 percent in 2005 to 2.3 percent in 2013 — the country was faced with an uphill climb to rejuvenate the sector. How would producers bounce back and keep the sector competitive?

Rather than focus solely on the vineyard, the Moldovan government, aided by the USAID-funded Competitiveness Enhancement and Economic Development (CEED) I and II programs, took this opportunity to enact legislative changes and business reforms to strengthen the entire sector. That strategy cultivated a national identity and brand around wine that has helped Moldova better position itself in the international market today.

Higher-Quality Wine

It’s a simple truth: Good wine sells better. Following the Russian embargo, there was a renewed emphasis on wine quality in order to seek out new markets. A first step in diversifying export destinations to favor European Union markets was to modernize the winemaking process in Moldova and make the product more appealing to buyers in Europe.

To improve the quality of wine, CEED worked with six Moldovan wineries from 2005 to 2010, improving grape crushing, fermentation, storage, treatment, and bottling processes. One of these wineries, Asconi increased sales to the Czech Republic to almost 2 million bottles by the end of 2008. And as quality rose, so did the price; from 2011 to 2014, the price of bottled wine exports increased by 15 percent.

Legislative Reform

To ensure that future improvements to the sector would be consistent nationwide, the Moldovan government passed Law 262/12 in November 2012 that amended the Vine and Wine Law. The new regulations, facilitated by the CEED II program, set up the National Office for Vine and Wine (ONVV) and the National Wine and Vine Fund, a public-private partnership supported by national funding to promote the country’s new brand: Wine of Moldova.

Since the launch of Wine of Moldova in 2013, an event facilitated by U.S. Secretary of State John Kerry, the ONVV has taken a lead role in implementing policies for the wine industry, establishing regulated quality standards and streamlining procedures around winemaking and licensing. For example, the 2015 Wine Law has helped Moldovan wine regulations better align with international standards. And the Vine and Wine Register Project has established geographic indicators for wine to meet EU “place of origin” requirements.

“The professional sommelier trainings that I participated in have been really valuable for me and helped me develop my professional skills in terms of serving, selling, and promoting wine to tourists.”

Lilia Ciotca, a sommelier and tour guide at the Milestii Mici winery

“Moldova’s wine industry is thriving and alive ... While it took an outside motivating force — two brutal embargoes from Russia — to bring along the changes, the industry has embraced its new life and made radical changes to everything, from its vineyards straight through to its packaging … Moldova is a winemaking legend that is crafting a new story.”

Christy Canterbury, an expert in eastern European wines

A Better Business Environment

ONVV assistance to Moldova’s wine sector has resulted in more international companies taking notice of the wine industry and its business value. From 2010 to 2015, 20 companies invested in the wine sector, totaling €21 million. As of January 2016, there were three officially registered protected geographical indications in Moldova — Stefan Voda, Valul lui Traian, and Codru — a distinction that allows the wines to sell better in EU markets.

Another goal of CEED I and II was to show local populations how lucrative the sector can be. Since its establishment in 2011, the Moldova Sommelier Association has gone a long way toward improving domestic awareness of the sector through seminars and training. More than 40 wine professionals, including 33 new sommeliers, participated in this training. The project also helped officially register sommelier as a profession in the country.

Lilia Ciotca, a sommelier and tour guide at the Milestii Mici winery, said, “The professional sommelier trainings that I participated in have been really valuable for me and helped me develop my professional skills in terms of serving, selling, and promoting wine to tourists.”

A National Community and Identity

Beyond paving the way for economic growth and education about Moldovan wine, the systemic renovation of the sector during the last 10 years has helped a stronger national identity to flourish. Cultivating indigenous grape varieties helps the wine stand apart from the competition; it also instills in the more than 70,000 Moldovan farmers involved in the sector a stronger national pride in their product.

7

percent of Moldova’s exports represented by wine

200,000

citizens employed by Moldova’s wine industry, as of 2015

Nowhere is this national identity best encapsulated than in the national wine brand — Wine of Moldova — which CEED established based on the formation of wine brands in other countries such as Austria and Australia. The brand was launched internationally in March 2014 at the ProWein trade show, an event that was attended by 30 international wine journalists and that catapulted the brand into global awareness. Beyond its role at formal events, the national brand’s use of blended traditional and contemporary elements makes it appealing to the broader community. This community has also burgeoned with events such as the annual National Wine Day.

Christy Canterbury, an expert in eastern European wines and one of 10 women who hold the Master of Wine qualification in the United States, is optimistic about the future of wine in Moldova: “Moldova’s wine industry is thriving and alive … While it took an outside motivating force — two brutal embargoes from Russia — to bring along the changes, the industry has embraced its new life and made radical changes to everything, from its vineyards straight through to its packaging … Moldova is a winemaking legend that is crafting a new story.”