Marsovin preparing to face free market

Marsovin has been laying the groundwork to meet the challenge of a free market, which was promoted by both political parties, Marsovin chairman Anthony Cassar said yesterday.

Speaking during a visit by the prime minister to the winery, Mr Cassar said it was only natural to prefer protection to open competition. But Marsovin had invested so that it would be able to withstand competition whether Malta joined the EU or not, particularly in the light of the World Trade Organisation's decision to push for a free market.

He said Marsovin had found a way around the labelling issue which the three main wineries had raised with Foreign Minister Joe Borg last November.

Under EU law, a winemaker cannot market its produce as a quality product unless the grapes are grown locally. This would mean, for example, that Chardonnay or Cabernet Sauvignon could not be printed on the label.

"It would have been difficult for us had we not found a way out," he said without elaborating on what the company had done.

"Let us leave the political race to politicians. I understand wine but not politics. Marsovin has no official opinion on EU membership."

Prime Minister Eddie Fenech Adami said Marsovin had traditionally shown trust in workers and in the country.

"The company has undergone great changes and turned challenges into opportunities. Marsovin is a success story," he said.

Mr Cassar presented Dr Fenech Adami with five bottles of premium wines produced from grapes grown in five Marsovin estates: Marnisi in Marsaxlokk, Ghajn Rihana, Wardija Valley, Ramla Valley in Gozo and Cheval Franc in St Paul's Bay.

Marsovin, which currently has 350 tomna of land under vine, are planning to raise the land area for wine growing up to 2,500 by 2008.

Anthony Pace, shop steward on behalf of the management and 380 members of the staff, presented the prime minister with a silver tray to mark his 69th birthday today.

Marsovin, which was set up in 1919 by the late Anthony Cassar, reported a turnover of Lm10.4 million last year and has exported E1.75 million worth of Safari juices to 23 countries.

The company is looking into the possibility of setting up juice production facilities overseas.

Mr Cassar said the consumer would benefit most from a free market. Marsovin's main aim was to safeguard the interest of consumers and to maintain their loyalty.

Labour leader Alfred Sant, speaking to growers in Rabat on Wednesday, said it would have taken between seven and 13 years to have enough land under vine cultivation to produce quality wines.

However, this plan was disrupted by the way the government had carried out negotiations with the EU.

Wines from EU member states would be imported into Malta duty-free, thus being sold at a lower prices than Maltese wines which would cause local winemakers to lose their market share, Dr Sant said.