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Winery And Vineyards For Sale

Rekovac, Serbia
Asking Price:
$4,000,000 (USD) Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$1,000,000 (USD)
Cash Flow:
$1,000,000 (USD)

The winery is located in the heart of Sumadija (Serbia), in a region where quality wine has traditionally been produced for centuries.

Founded in 1952, it has large vineyards of its own and distributes complete quality equipment for the production of wine, brandy, fruit syrup and dried fruits.

The winery is reached by motorway from the direction of Belgrade and then from the city of Kragujevac in a good regional way.

The winery is registered in the form of a limited liability company and is 100% privately owned. It currently has 13 full-time employees.

Wine:
- riesling – 1l, 0.75l, 0.187l
- chardonnay - 1l, 0.75l, 0.187l
- sauvignon blanc – 0.75, 0.187l
- rose - 1l, 0.75l, 0.187l
- vranac - 1l, 0.75l, 0.187l
- merlot – 0.75l, 0.187l
- cabernet sauvignon – 0.75l, 0.187l
- strawberry fruit wine – 0.75l, 0.187
- blackberry fruit wine – 0.75l, 0.187l

Rakia (Brandy):
- sljivovica (plum brandy) – 1l, 0.7l
- lozovača (grappa) – 1l, 0.7l
- viljamovka (william pear brandy) – 0,7l

Property Information

Real Estate:

Real Property Included

Living Accommodation:

Serbia is a parliamentary democratic state in Southeast Europe. After the turbulent end of the last century, the political and economic situation has stabilized and today, as before the crisis of the 1990s, Serbia is a stable country with a growing economy, open market and strategic orientation towards full EU membership. For the most part, the Serbian legislative system is fully harmonized with EU laws.

According to the assessment of leading agencies, Serbia today has a stable and relatively high credit rating:

Standard and Poor’s Fitch Ratings Moody’s Investors Service
Rating BB + / stable outlook BB + / stable outlook Ba3 / positive outlook (reports from 1 May 2020).

The state makes significant efforts to attract foreign investors and any investment that increases employment is supported by subsidies and other forms of state support.

Investors can easily come to Serbia because the road infrastructure is well developed. Air traffic is very developed with flights to or from many world destinations.

Average annual growth rates are above 4%. In 2018, GDP per capita was $ 7,242, while per capita PPP was $ 17,617.

So, the conclusion is that the market of Serbia as a whole, and the wine market in particular, is expanding very dynamically faster than other countries in the region.

Location:

The winery is located in the vicinity of Rekovac (Serbia). Rekovac is located in Central Serbia, 25 km from Kragujevac, 30 km from Jagodina and 170 km from Belgrade.

Premises Details:

• Wine cellar 2076 m2
• Bottlers and warehouse 810 m2
• Administrative building 598 m2
• Distillery 126 m2
• Boilermakers 80 m2
• Old Admin. building 588 m2
• Repair shop 305 m2
• Warehouse 743 m2
• Garage 286 m2
• Other facilities 809 m2
• Total: 6421 m2

Business Operation

Expansion Potential:

The winery has potential for development because:
1. It has an excellent location which is between the main communication lines in Serbia;
2. Vineyards are spread on fertile land which is traditionally suitable for growing vines.
3. The land (vineyards, forests, other) is in pieces, which facilitates cultivation and use.
4. The winery has fixed assets (equipment, buildings, machines ...) that are fully ready for further expansion of capacity.
5. The Serbian market is developing and provides opportunities to increase revenues and profits with adequate investment.

Competition / Market:

Serbia has a very long tradition in wine production. However, the mentioned crisis that it went through significantly slowed down the development of this branch. In recent years, a large number of new wineries have been opened so that the domestic offer has become a quality and competitor to the world's best wines.

Serbia is taking important strategic steps to increase wine production and consumption and, in general, to improve conditions for this industry.

Special attention is paid to the renewal and production of indigenous wines that have a tradition in local grape varieties (Prokupac, Smederevka, Tamajnik, Morava, Neoplanta, Force, Regent ...). The production of organic wines is also growing.

Today, it can be said that the culture of production and consumption of quality wines is returning to Serbia.

The largest winery is Vršački vinogradi, with about 1,700 hectares. They are followed by Navip from Belgrade and Rubin from Kruševac, and then Negotinski kraj, Aleksandrovačka župa, Sremski Karlovci, Smederevo, Palić, Dzervin from Knjaževac, etc.

The wine market in Serbia is very dynamic and expanding, and the competition is getting stronger and better. It is estimated that about 10 liters per capita are consumed annually, or a total of about 70 million liters worth about 70 to 120 million euros. Serbia has a foreign trade deficit in the wine trade, and most wines are imported from Slovenia, Croatia, Montenegro, Italy, France and South America.

An important fact for investors is that Serbia has a free trade agreement with Russia and other CIS countries. Winemakers from Serbia place about 4-6 million liters on the Russian market. Significant exports are also to Bosnia and Herzegovina with 3.4 million liters.

The average price of Serbian wine in exports is growing and reaches 1.5 USD per liter

Reasons for selling:

The owners sell the winery only because they do not have enough working capital to function properly and develop at the moment.
The buyer will have almost ideal conditions for the development of this business. He will dispose of large vineyards that are in the best of years and with facilities and equipment that allow him to expand.

The buyer needs to invest around 500K in order for the company to further develop and realize an ambitious marketing plan.

Employees:
In this moment we have 13 full time employees. Winery hire from time to time part - time employees.
Years established:
Winery Levač from Rekovac is founded in 1952.

Other Information

Furniture / Fixtures value:
$130,000 (USD) - included in the asking price
Inventory / Stock value:
$689,000 (USD) - included in the asking price
Website:
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