Nautical charter companies According to number, age demand for high-tech vessels the current state of the fleet gives little hope for the future
Šime Klarić, President of the National Association of Small and Family Hotels (OMH) Small and family hotels have become most popular with tourists
Worsening balance of trade figures Exports down 20.7%, trade deficit rising to 31% per annum
NAUTICAL TOURISM PAGES 2-3
INTERVIEW PAGE 4
ECONOMY PAGE 6 2008 2009 2010 2011
Croatian Business & Finance Weekly Established in 1953 Monday / 11th June / 2012 Year V / No 0203 www.privredni.hr
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THE DEPARTURE OF ŽELJKO ROHATINSKI
New governor but same policies According to analyst Žarko Primorac it is possible the kuna could deflate due to the departure of Željko Rohatinski but only slightly and short-term. Rohatinski was the mentor of Vujčić, and he will surely continue his policies but with milder rhetoric Igor Vukić, Drago Živković ustainable economic growth with low inflation and a stable exchange rate - this was the message of now former Governor of the Croatian National Bank, Željko Rohatinski. Boris Vujčić, his successor and closest associate for the past 12 years, has so far shared his opinions. Nothing has changed, and nothing will change, said Vujčić in his first statement, after Prime Minister Milanović had officially confirmed he would succeed Rohatinski. Independent analyst Žarko Primorac agrees this alternation will probably not change HNB monetary policy, which is why he does not anticipate the exchange rate policy will change since any devaluation of the kuna would be too risky. In the short term, the state must boost exports by decreasing public spending and costs of financing the economy. In the longer term, everything depends on whether the government will hold on to the present economic model. He considers it possible the kuna would deflate due to the departure of Rohatinski. However, if that does hap-
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Željko Rohatinski
Boris Vujčić
pens it will be insignificant and only short-term.
Bank to preserve price stability. This has to change and provision should be introduced according to which HNB is also liable for the influence of monetary policy on total economic policy. However, political will and courage to make these changes are lacking, concludes Ferdelji. Ivan Miloloža, President of the Croatian Employers’ Association, believes there will be no changes to the exchange rate policy at the moment. Any drastic slide could be an additional blow to public standards. Many companies that would no longer be able to repay their loans would also be at risk, according to Miloloža. Economic analyst Ljubo Jurčić thinks Rohatinski held to his principles in his implementa-
No playing with exchange rate The President of the Association of Managers (Croma), Vladimir Ferdelji, also does not anticipate any changes. Rohatinski was mentor to Vujčić, and he will certainly continue his policies, but with milder rhetoric in terms of the adversity of any overall effect, suggests Ferdelji. According to him, this would be catastrophic for local production, even though it undoubtedly gives results in relation to the financial sector and kuna stability. He warns the key problem is not the governor of HNB, but the HNB Act that obliges the
tion of monetary policy, which could have been justified in the beginning. However, later, when it became clear the government had poor overall fiscal policy he did not adjust it accordingly. Since his successor is from HNB, Jurčić says the same policy will continue. Economist and consultant, Velimir Šonje, adds that no reasonable governor would dare to “experiment” with monetary and exchange rate policy. Total costs would be far greater than any short-term benefit from kuna deflation. The exchange rate has been fluctuating 4.2% somewhere around HRK7.42/€1, which is why slight oscillations are possible, normal and sometimes even desirable. The main task of the Governor relates to the stability of banks and overall financial system. Šonje believes we must stop expecting monetary policy to perform miracles in terms of boosting economic growth. Under our conditions, growth can result only from structural reforms and productivity growth, not from stimulating demand through monetary experiments with uncertain outcomes, said Šonje.
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Privredni vjesnik Year V No 0203
Enes Hodžić, Owner Director of Me-dent, Umag
Creativity an imperative Top quality services and acceptable prices a recipe for success edical tourism has been developing significantly, irrespective of a large number of problems. The most critical issue is institutional disarray and minimal assistance provided to doctor’s offices and polyclinics in marketing. Irrespective of huge potential, cooperation between tourist boards and other state-owned institutions on one side with the private sector and health institutions on the other, is fundamental. Consequently, a highly detailed planned joint appearance on foreign markets is needed, primarily through participation at specialised fairs. Secondly, we need to develop an effective strategy, since medical tourism is on a remarkable global rise as it is the most rapidly developing tourism area. Stomatology has seen amazing development and is certainly the most developed area of medical tourism. Croatian stomatologists have the necessary expertise and are able to provide top quality services on a par with colleagues in most developed European countries. Acceptable costs are our principal competitive advantage in addition to our high quality services. The services of Croatian stomatologists are up to 50% cheaper than those in neighbouring countries. We focus on bone regeneration in order to place the implants in cases where we were not able to do it prior to the use of current methods, which have gained us a more agreeable market position and contributed to an increase in demand for our services. I have to point out the fact that I have
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
( 1,583 chartering companies in 2011
CHARTERING COMPANIES
Increasing decreasing
According to number, age and increasing customer demand Jozo Vrdoljak ccommodation facilities on vessels or the rental of boats has been one of the fastest growing activities for the past ten years. The total number of chartering companies increased from 85 in 2002 to 1,583 by the end of 2011. The number of boats available for charter increased accordingly, from 950 in 2002 to over 4,300 in 2011. According to Ivica Jurišin, President of the Association of the Providers of Accommodation Services on Vessels at the Croatian Chamber of Economy, such a large number of chartering companies resulted from extremely liberal legislation. “Our laws enabled companies, which once specialised in other activities, to buy vessels without duties, customs payments and VAT. If we consider there are only around 100 serious charter companies, it becomes clear what the motives are behind establishing over 1,000 chartering companies that own one or two vessels. With the financial and economic crisis, this trend led to an imbalance between supply and demand”, Jurišin points out.
A extensive experience of work in local medical centres and was educated abroad. Croatian stomatologists are far more creative than their European colleagues who rely exclusively upon technology. Our polyclinics are currently located in Rovinj and Metković and we are planning to expand our activities to other towns. Top quality services and acceptable prices are a recipe for success. Our principal objective is to open a regional professional centre for stem cell research and molecular medicine and use the knowledge to meet the needs of the general public, patients and medical institutions. We have been trained to promote high quality stem cell therapy and molecular medicine research.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr
TRANSLATION Lučana Banek lucanab@gmail.com Mirjana Cibulka mirjana.cibulka@gmail.com
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr
Four-month season Failure to complete the new berths and marinas, as envisaged by the Nautical Tourism Development Strategy, led to the monopolistic formulation of prices for berths in marinas. They increased from an average of €2,000 in 2002, to €7,000 in 2012. At the same time, due to too large a supply, basic prices of boat accommodation
dropped 20% on average, with a decreased number of booked charter weeks. The crisis in those countries from which tourists come, together with unfair competition as the result of this excess, shortened the charter season to four months, from June to end September, thereby decreasing company income. An additional blow to sustainability in this area was caused by the introduction of yacht categories, resulting in high expenditure for boats over 12 metres, and a considerably longer and more complex registration process. Concessions paid to counties, even though they are already paid through marina berth prices, are also expenditure lacking any level of rational explanation. Other numerous fiscal and parafiscal charges, a burden to the entire economy, including chartering, should also be considered, Jurišin highlights. As there is no income, the liquidity of chartering companies has
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( 4,300 boats for charter in 2011
expenditure, g income
d for high-tech vessels and equipment the current state of the charter fleet gives little if any hope for the future
deteriorated seriously, especially in the post-season period, whilst servicing costs and preparing for the new season increases year by year. Soaring costs and reducing income has not only led to losses, but the future of many companies has also been put at risk. According to number, age and increasing customer demand for high-tech vessels and equipment, the current state of the charter fleet gives little or no hope for the future unless immediate measures are taken to turn it into profitability and long-term sustainability, opines Jurišin. He believes a decision must be made to relieve chartering companies paying tax at the 25% rate. If this should happen, it would mark the end of a massive round of bankruptcies of charter companies. It should be remembered that most of them would leave this business today if it were possible to sell their fleet at a reasonable price. Authorised in-
stitutions should enable Croatian companies to have equal or better conditions compared with competitors, stresses Jurišin. Required measures However, he continued, this will only happen if concessions for constructing new berths are issued immediately after drafting the strategy for tourism development, and if charter companies are allowed to optimise their activities in terms of berth expenditure. Furthermore, the categorisation of charter boats should be harmonised with the laws of most EU countries that do not recognise the category of yachts, instead having a unique category of boats up to 24 metres. Also, concessions for charter activities per vessel should be cancelled since this discourages others from venturing into this area. Jurišin points out that Croatia has failed to protect local companies during the transitional
period when it negotiated standards regulating this activity. It is necessary to legally define the technological and technical conditions required for charter vessels as well as the criteria for obtaining a licence with the goal of protecting local companies from competition, especially unfair competition from neighbouring EU Mediterranean countries. For example, during the past two years Italy has built 5,000 new berths between Trieste and Venice, and there are currently 25,000 berths waiting to be used on the eastern Adriatic coast, an easy transit from Croatia whether they are private or charter vessels, explains Jurišin. Better promotion According to the Association of the Providers of Accommodation Services on Vessels it is necessary to develop a new marketing plan for promoting Croatian nautical tourism with special a
accent on chartering and a previously drafted study TOMAS Nautika, as research methodology for primary tourism markets. According to Jurišin, it is necessary to secure funding to be able to define the budget for promoting the nautical sector in accordance with the daily personal and vacation boat tax of nautical tourism, especially charter. It does not make any sense that past investment in promoting nautical tourism is around €0.13 million annually, whilst income from vacation tax totals around €3.2million, pointed out Jurišin. To prolong the season and accommodate more of the sailing community, the association finds it necessary to use special measures to stimulate low-cost airline companies to offer new flights to potential markets. To secure service standards and additional offers for visitors, the association considers it extremely important to prolong the tourism season.
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INTERVIEW
Privredni vjesnik Year V No 203
This is an invitation for local tourists to stay in our hotels during their summer holidays and throughout the year.
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Šime Klarić, President of the National Association of Small and Family Hotels (OMH)
Amongst the top European hotels Small and family hotels have become most popular with tourists Sanja Plješa here is a high degree of co-operation amongst members of the National Association of Small and Family Hotels (OMH), as they reconstruct hotels, expand their programme(s) and make considerable investment into staff and facilities. Šime Klarić, President of OMH, believes that the new credit lines provided by the Croatian Bank for Reconstruction and Development (HBOR) with acceptable long-term interest rates will enhance new investment and promote quality tourism. Croatian small and family hotels are held in high regard internationally, there is a view within the National Association of Small and Family Hotels that owners need to boost their competitiveness.
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What is the main objective of the National Association of Small and Family Hotels (OMH)? The National Association of Small and Family Hotels has a high level of partnership with public and private institutions in Croatia, primarily with the Ministry of Tourism, the Croatian Bank for Reconstruction and Development (HBOR) and the Croatian Tourist Board (HTZ) to develop the lending infrastructure, to provide grants or loans and staff training, as well as to promote Croatian hotels. I believe we have been successful thus far due to more motivating lending facilities. HBOR is launching a new credit line to promote investment. We are
planning to penetrate international market in conjunction with the Croatian Tourist Board using the up-to-date technology and promote our achievements. Consequently, small and family hotels have become most popular with tourists. How do Croatian small and family hotels rank in Europe? According to our international colleagues and tourists staying in our hotels, Croatian hotels rank amongst the top European hotels
due to the quality of their services and varied programmes, their desirable destinations, as well as their compliance with quality standards. Small and family hotels within the OMH exchange experiences and expertise, and also jointly approach the market and co-operate in training programmes. We have been organising training for sommeliers and chefs for six years so they can prepare a wide variety of authentic gastronomic dishes. In addition, we organise training for
A more acceptable tourist season What do you anticipate for this tourist season? A 5% increase in arrivals was anticipated at the Association during the first five months and our anticipations were highly accurate. Nevertheless, tourist arrivals will probably see a slight increase over last year, as we are anticipating the return of regular tourists with higher purchasing power. I believe we are increasingly focusing on targeted tourist groups throughout Europe. We have consequently created e-brochures according to product types – wellness, heritage, adventure, gourmet to name but a few. If we continue to develop the possibilities for post-season tourism, we may anticipate a far more successful autumn and year-end results.
management, directors and owners of our hotels, as well as hotel staff training. We are currently introducing new technology, internet training and sales and distribution. How important for OMH was participation at the CroTour fair? The purpose of our participation at the CroTour fair was to address local tourists. Small and family hotels operate throughout the year and their programmes are tailored to the local market. Local tourists are normally businessmen and often weekend tourists and they opt for both activity and wellness holidays. Our hotels provide top quality food and menus appreciated by tourists. In addition, the quality/price ratio is acceptable, as they are adapted for local tourists. This is an invitation for local tourists to stay in our hotels during their summer holidays and throughout the year.
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( 4,000 bottles of winee exported to Great Britain
LAŠIĆ-BASED PILATO FARM, VIŽINADA
Malmsey in Marks & Spencer Contract signing with the British retail chain lasted 4 months due to price issues Jozo Vrdoljak he Istrian family Pilato will mark the 100th anniversary of its wine business by appearing on the shelves of the British retail chain Marks & Spencer that has over 1,000 stores in 40 countries. Pilato Malmsey will be sold in Marks & Spencer together with 15 new wines from 6 countries. “We exported our first 4,000 bottles after meeting a large number of criteria for appearing on Marks & Spencer shelves. This British
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chain store will expand its product range with wines from several Mediterranean countries. We were introduced at a wine fair in London during a presentation. This year grape harvest The contract signing with the British retail chain lasted 4 months, mainly as a result of the perceived excessive cost per bottle by Marks & Spencer”, stated Eliđo Pilato, owner of the Pilato farm. Pilato cultivates a 13 hectare vineyard in addition to a vineyard covering 4 hec-
tares of leased land. Malmsey accounts for some 60% of total production. White wines include Sauvignon, Chardonnay, Pinot Blanc and Muscat White and there are two red wines produced from Teran grapes and Cabernet Sauvignon. Their annual production is around 100,000 litres. “The harvest this year was exceptional and we will be able to provide excellent wines. Wine producers who did not succeed in producing excellence this year should go out of business”,
pointed out Pilato. The farm focuses primarily on exports and sells about 30% of its products in Great Britain, Switzerland, Austria, Slovenia and Serbia. “Our most important product is Malmsey, as it is a local variety. It is currently our most wellknown product on the international market. In addition, we export some Teran, which is also a well-known local red wine. We focus on exports primarily due to serious issues with the collection of payment locally”, he stated.
WORK PRODUCTIVITY FALL-OFF IN INDUSTRY
Biggest fall in mining Three years of continous negative employment in industry ccording to data provided by the Central Bureau for Statistics for March, the total number of employees in companies decreased by 0.4% in relation to March 2011; within industry the number decreased by 2.9%, excluding those working in the industrial sector but who perform non-industrial activities. Considering those employed in the processing industry account for 90% of the total number employed in industry, a 3% decrease in employment contributed mainly to the overall fall in industrial employment. Employment in the processing industry has been
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showing negative annual rates since January 2009, and during this period employment has fallen by 13.6%. The highest fall of employment fall within industry was in mining and excavation (-9.5% in March year-on-year). In relation to the beginning of 2009, employment in this area decreased by almost 3,000 people (about 30%). During this period, employment in power supply saw the smallest fall (-2.4%). Since the physical volume of industrial production during the first four months of this year dropped slightly more than in-
dustry employment in relation to the same period of 2011, work productivity (calculated cumulatively since the beginning of the year) decreased by 3.9%. After 2010 and 2011, when industrial productivity saw growth due to a high level of decreased employment, during the first four months of this year it saw a further fall. According to the National Classification of Activities, the largest productivity fall was in mining and excavation (-8.3%) between January and April, followed by power supply (-5.6%). The processing industry showed a 3.7% decrease.
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Privredni vjesnik Year V No 0203
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.575
5,967734 5,865998 7,65659 6,305765 9,36774 6,057511 7,570071
6.080
5.6.
6.6.
CHF
6.310
7.570
6.075
6.305
7.565
6.070
6.300
7.560
6.065
6.295
7.555
6.060
6.290
7.550 4.6.
WEEK JUNE 7, 2012
::: news
USD
6,055 4.6.
5.6.
6.6.
6.285 4.6.
5.6.
6.6.
WORSENING BALANCE OF TRADE FIGURES
Danieli buys Sisak Metal Company Acciaierie Bertoli Safau, an Italian company and a branch of large industrial holding Danieli, is the new owner of Sisak Metal Company. The contract was signed in Zagreb, and the former owner, the American Commercial Metals Company, stated the agreed price was $30.4 million. ABS bought the entire property, steel plant, rolling mill, but not the plant for cold steel processing for which CMC is still looking for a buyer. CMC estimated the conditions offered by ABS are better than those from other competitors, Podbrezova from Slovakia and CIOS, owned by Croatian entrepreneur Petar Pripuz. AIG wants Croatia osiguranje American insurance company American International Group is ready to consider the possible purchase of Croatia osiguranje and the Slovenian insurance company Zavarovalnica Triglav, according to a statement from Board President, Robert Benmosche. At the beginning of the year, the Croatian government announced the privatisation of Croatia osiguranje according to which it would retain a 25% ownership stake. The Slovenian government is also considering reducing its share in Zavarovalnica Triglav to around 25%. The American government holds a 92% share in AIG after rescuing it in 2008 through its financial aid programme.
Exports down 20.7% A rapid rise in the reduction of imports and exports shows trade deficit rising to 31% per annum he latest data provided by the Central Bureau for Statistics confirm negative trends in foreign trade during April. Goods exports totalled €728 million during that month, which is 20.7% less compared with April 2011. Goods imports totalled €1.35 billion, a 3% fall year-on-year. A rapid rise in the reduction of imports and exports shows trade deficit rising to 31% per annum, totalling €623 million. The import/export ratio dropped to 53.9%. During the first four months of this year, exports were 5% down compared with the same period of 2011, whilst imports showed mild growth of 0.7%. The deteriorating trends of foreign trade are mainly the result of weak foreign demand and the restructuring of the most important export
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branches (shipbuilding and petrochemical industry), confirmed by data according to National Classification of Activities. Exports almost halved Exports of other transport items (mainly shipbuilding) almost halved during the first four months compared with the same period in 2011, whereas exports of coke and refined oil products decreased by 21%. On the other hand, in 2011, imports decreased radically, and due to weak local demand, stayed below the pre-crisis level, continuing to stagnate during the first four months of this year. Over the next several months, RBA analysts do not anticipate any intensity in the growth of exports due to slower economic activity within Croatia’s most important trade partners (EU coun-
tries) and the resulting decrease in the level of foreign demand. The Italian economic downturn will have an especially negative effect on exports.
During the first four months of this year, exports were 5% down compared with the same period of 2011 On the other hand, imports remain limited by weak local demand from households and companies. However, considering Croatia’s high degree of energy dependence, nominal import growth is potentially threatened by any price increase of energy and related products.
www.privredni.hr Business & Finance Weekly
WE PRESENT
OPG JUG, NIZA
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KOROŠ USLUGE, ZAGREB
Maričin sok as eco trade mark
Vodka is not brandy Organic apples and plums processed into fruit juices, jams and baby food
Brandy cocktails made mainly from homemade Istrian brandy
he OPG Jug farm owned by Marica Jug, is located some 40 kilometres from Osijek. It grows organic fruit (apples, pears, apricots and plums) over 6.1 hectares. On average, they produce between 150,000 and 180,000 kgs. of eco-certified apples, 25,000 kgs. of plums and several tonnes of apricots and pears, depending on the season. Their business is based on processing organic fruit into juice, jams and baby food. They have a small, but modern processing unit and refrigera-
kalčićeva Street in Zagreb is a well-known tourist destination since it is swarming with al fresco coffee shops attracting a large number of tourists during sunny days. Bar 45 is located at 45 Tkalčićeva Street and has recently expanded its range of drinks with original brandy cocktails based on homemade brandy. The Bar 45 cocktail menu includes Biska Sour rather than Whiskey Sour and Croatian Ice-T instead of the extremely popular Long Island Ice-T, whilst globally known spirits (vodka, white rum, tequila and gin) are replaced by homemade brandies – Šljivovica (plum brandy), Viljamovka (pear brandy) and Yellow Malmsey. Double Herb Brandy is the principal ingredient of the “peasant Martini”, rather than the usual ‘Wybor’ vodka. Brandy types and flavours are supplied by a company that purchases them direct from local producers, mainly in Istria, whilst other non-alcoholic ingredients of well-known cocktails, such as mint or lime, are not replaced. This original concept occurred to Dražen Koroš when he founded his company Koroš Usluge. He was trained in London, where he opened some 10 coffee shops and pubs for several investors over the past 15 years. He believes a range of original drinks is fundamental and thus decided to use his extensive ex-
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Eco-product demand in constant decrease so OPG Jug will expand production tors with a capacity of 300,000 kgs. Processing capacity is 1,200 kilograms per hour. To fill this capacity, they also offer processing services to other farms. They started in 2003, when 1,000 litres of apple juice was produced under the trademark Bioprodukt, including beetroot juice and apple vinegar. These were the first local eco-certified products in stores. Since then, market demand has been constantly increasing, and they produced around 100,000 litres of juice in 2011. Now, they are associating with many ecoproducers to increase production.
Associations for better marketing “Associated producers will be better marketed since we will be constantly in the market, complementing each other. Currently, there are seasons when there is no organic fruit on the market, small producers cannot market their apples after harvesting, and they are unable to preserve it for longer periods. We will adjust to the demand for organic produce, and if we fail to meet it through association, we will probably re-plant the fruit”, suggests Marica Jug. Despite the crisis, it can be said that the demand for organic produce, slightly more expensive than the conventional, is showing constant increase. The biggest buyer and distributer of OPG Jug’s produce is Biovega. They distribute juices and vinegar under the trade mark Eko Zona. As a result of production prearranged with Biovega and our customer loyalty, we managed to survive on the market this year, continuously improving our product quality. Our goal is to continue in that direction, increasing production through association, as well as improving quality with the help of experts from the Faculty of Food Technology from Osijek and to our customer satisfaction, stated Marica Jug. (A.Š.)
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perience in Zagreb to provide unique and exclusive products. Quality affirmed by colleagues He stated that the quality of his drinks is affirmed by colleagues from other coffee shops who are regular Bar 45 customers and appreciate local cocktails at an affordable price of €3.30. In addition to local customers, Bar 45 also attracts tourists who are always in search of new and local products. Bar 45 organises “After Work Parties” in conjunction with Jabuka, a popular night club. In addition, it organises business events that are usually held during other major events such as Rujanfest. Customers who visit Bar 45 more than 5 times and
Koroš uses his extensive experience to provide consulting services are recorded via the Foursquare internet service, are entitled to a free cocktail. In addition to catering activities, Dražen Koroš uses his extensive experience to provide bar consulting services, which can significantly improve start-up business results with advice, such as assistance in the creation of bar cocktail menu. (G.Š.)
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Privredni vjesnik Year V No 0203
( 33%
::: news ENT dividend from retained profit The Ericsson Nikola Tesla General Assembly accepted the Management Board proposal for the payment of a dividend of €2.66 per share and an extraordinary dividend of €20 per share, from retained profits from 2001and 2002 plus some retained profits from 2003. The dividend will be paid to all shareholders registered on 29th May on their securities account in the Central Depository & Clearing Company. The dividend will be paid by 5th July 2012. ENT profit for 2011 of €3.73 million will be retained. Zzzzapp winner at Startup Live Split The Startup Live Split conference was recently held at the Split-based Multicultural centre. The main aim is to encourage the Croatian IT scene and start-ups to present their ideas in conjunction with colleagues globally and interact with IT experts and potential investors. Startup Live Split was organised with the support of Start Europe, which organises similar conferences in 25 European cities. The winner was the Split-based company Zzzzapp and will consequently be given the opportunity to present its products at the Pioneers Festival in Vienna. Women in Business Workshop The Croatian Chamber of Economy in conjunction with project partners organised a three day workshop in Zagreb for women interested in entrepreneurship. The principal goal was to encourage unemployed women and students to start up their own business. The conference consisted of two modules each day covering: “From business idea to profits”, “Everything is marketing, marketing is everything”, “Business planning – where to start from”, “Organise your business”, “Entrepreneurs in e-business” and “Viable legal forms of entrepreneurial organisation and business responsibility”.
level of personal wine purchases
Fifth fth Graševina W Wine ine FFestival held in Kutjevo
Kutjevo attracts foreign tourists The Kutjevo Festival attracts several thousand visitors Jozo Vrdoljak his year’s 5th Graševina Wine Festival in Kutjevo included a music festival and attracted several thousand visitors filling all available accommodation in PožeškoSlavonska County and some in Slavonsko-Brodska County. The festival has transformed into one of the most important music and wine events in Croatia which has succeeded in meeting expectations irrespective of changing weather. The Kutjevo-based wine producers have turned the Graševina Wine Festival into a wine event to the same level as well-known European or German beer festivals. It may be premature to compare this event with the German Oktoberfest due to lower visitor numbers and fewer attractions. Nevertheless, participants and visitors expressed pleasure at the
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event. However, many of issues need to be addressed rapidly, such as insufficient accommodation in order to enhance its attraction to foreign tourists, with support provided by government and tourism organisations. Investment in wine at EU level Currently wine demand and supply in the EU mainly focuses on wines having a geographical origin. The European Union has been allocating around 3% or €1.4 billion for the grape and wine industry from a total annual EU budget for agriculture since 2006. “The situation for the Croatian market is currently extremely complex”, stated Đuro Horvat, Board President of Agrokor Wines. Some 33% of the general public purchases wine, which implies that one in three Croatians drink wine purchased in stores several times per month or perhaps more often, he stated.
“Wine consumption amongst younger generations, primarily those living in towns, is minimal. Both consumers and caterers’ understanding of wine varieties is superficial and the level of wine culture throughout the country is generally extremely low.
the Graševina Wine Festival is now a wine event to the same level as well-known European festivals Wine marketing is virtually nonexistent in addition to poor sales performance. In addition, wine is often noticeably more expensive, wine lists are often extremely limited and have high margins. There is also a substantial lack of innovation on such wine lists”, emphasised Đuro Horvat.