About Loel
COMPANY PROFILE
| Registered Name : | LOEL LIMITED |
| Firm Type: | Public limited liability company, member of LAIKO group of companies |
| Address: | Acropolis str., No 18, P.O. Box: 50139 |
| City: | Limassol, Postal Code: 3601 |
| Country: | Cyprus |
| Main Phone: | 00357 - 25202020 |
| Fax No: | 00357 - 25564042 / 25877228 |
| e-mail address | info@loel.com.cy |
| Employees (Company Information) : | 85 |
| Revenue (Estimate) : | $25 mill |
| Fiscal Year End: | 31.12.2005 |
| Trade Registration No. & Town | 156 - Nicosia |
| Year Founded( Date of registration): | 23/06/1943 |
Overview
LOEL is one of the three biggest wineries in Cyprus dedicated to the production of premium bottled wines utilizing only mountain grown grapes from Paphos and Limassol district. Before becoming a full member of the European Union huge amounts of bulk wines were produced that were exported to Germany as Sangria and other aromatic wines. The main winery is located in the town of Limassol, while other two smaller wineries are located on mountains, one of them at Polemi, Paphos and the other at Lania, Limassol for the production of Commandaria liqueur wine.
LOEL company, apart from the production of wines and spirits, produces fruit juices that are packed in TP bricks.
History of LOEL
LOEL LTD was founded in 1943 and it was the first winery in Cyprus that was organised in the form of public company having thousands of shareholders, who in their majority were viticulturists. In the initial stages of its operation, LOEL produced spirits and fortified wines as the only quality products that could be produced from the indigenous grape varieties of those times, as Mavro, Xynisteri and Muscat of Alexandria, from which a unique Cypriot wine was produced, famous abroad and known under the name “LOEL Muscat”.
When the Ministry of Agriculture imported and planted in Cyprus new grape varieties in order to enrich and upgrade the Cypriot vineyards, LOEL was the first winery that accepted with enthusiasm this new qualitative upgrade, producing very soon after that, high quality table wines with fresh and fruity character, as was Palomino, St Hilarion, Riesling, Muscat etc. Simultaneous, LOEL developed its own vineyards, in order to ensure its needs in superior quality grapes.
The efforts of LOEL were very shortly crowned with success by signing contracts with the Soviet Union for the sale of big quantities of bottled Muscat, bottled Commandaria and red dry wine in bulk. During this period, LOEL was equipped with machinery and storage tanks in such a quantity that could receive and process up to 30 millions kilos of grapes.In addition, the company in 1988 had also installed two Tetra Pack packing lines and it was the first one in the Eastern Mediterranean to present table wines and Sangria, under the trade name VINOTHEQUE, along with Fruit Juices in Tetra Brik.
After the events that had changed the Soviet Union and led to the loss of this market, LOEL achieved to maintain its exports with the sale of big quantities of aromatized wines in bulk to Germany, lasting up to 2004. During those times the major part of the winery's production, about 75% - 80%, was exported to Europe, mainly to Germany and on a smaller scale to other countries. The rest of the winery's production was sold locally on wholesale as well as on retail basis, to supermarkets, restaurants, hotels, groceries, pubs, etc. After the integration of Cyprus into the European Union (May 2004), the state of Cyprus could not continue to subsidize the exports of aromatized wines, prices therefore had been kept high, a fact that led to the loss of this market too.
When exports of bulk wines were lost, LOEL winery focused its efforts in the production of superior quality bottled products, both spirits and wines for the local market and for exports to the following countries: Russia, England, Estonia, Greece, Singapore, Canada, Zambia, Malta etc. The main bottled wines and spirits that LOEL produces today are the following:
- Wines VQPRD: Commandaria ALASIA
- Regional wines:
- Red: Cabernet Sauvignon
- White: Palomino, Muscat, Chardonnay
- Table wines:
- Red: Hermes, Orpheo Black, Nectaria, Anthea med. red
- White: Amathus, Anthea, St. Hilarion
- Vinotheque wines: Red dry, Red med dry, White dry, White med. dry, Sangria.
- Sparkling wines: Mediterranean Breeze, Champino
- Spirits:
- Cypriot brandy: VO43
- Brandy: Master's XO, VSOP-Loel, Gemini
- Zivania
- Ouzo
- Liqueurs
LOEL today
Today LOEL possesses over twenty hectares of vineyards in Limassol and Paphos. Vinification, stabilisation, storage and ageing are taking place in three wineries:
a) The central winery in Limassol, which can receive and process up to ten million kilos of grapes. It has a complete system of receipt, vinification, storage, stabilisation, ageing and bottling of wines and spirits, as well as juices. Within 2005 a new modern and full automated filling line, having output 7000 bottles per hour, will be installed.
b) The country winery in Polemi Paphos can receive and vinificate up to five million kilos of grapes. This winery will be shortly upgraded, new systems for reception and vinification will be installed in order to produce superior quality regional wines.
c) The winery of Commandaria at Lania in the district of Limassol, produces every year eighty thousand litres of superior quality Commandaria. It is equipped with high technology machinery for the production of Commandaria (VQPRD).
At the same time, LOEL prepares the construction of a new regional winery at Kissousa in Krasohoria area for the production of Appellation of origin wines.
In parallel, distillates are produced at LOEL’s own installations, whilst in the TETRA PAK packing house five types of wines alongside with grape and other fruit juices are packed. Bulk wines, grape concentrates and grape alcohol are also available.
Vineyards
LOEL vineyards include over 20 hectares of vines, most of which are now producing. These include:
| Cabernet Sauvignon | 5,00 hectares |
| Cabernet Franc | 2,00 hectares |
| Riesling | 1,00 hectares |
| Sémillon | 0,50 hectares |
| Sauvignon blanc | 3,50 hectares |
| Marathevtiko | 4,00 hectares |
| Chardonnay | 4,00 hectares |
| Shiraz | 1,00 hectares |
The topography of LOEL vineyards consists of a north-trending valley bordered on the east and west by gentle ridges. Maximum local relief is about 850 meters. This varied topography produces several distinct microclimates in which optimum growing conditions for differing varieties can be found. Chardonnay and Sauvignon Blanc are planted high on north facing slopes for maximum protection from spring frosts and the hot summer sun; Riesling and Semillon (frost tolerant) thrives on west and southwest facing slopes with maximum sun exposure. Cabernet Sauvignon and Marathevtiko prefer cooler conditions, so they are planted on north-facing slopes with excellent air drainage for spring frost protection. Sloping vineyards also promote complexity in wines, as growing conditions vary from the top to the bottom of the slope, thus producing a broader range in the flavour and acid content of the grapes than is possible in flat-land vineyards.
All of LOEL vines are provided with drip irrigation, which is critical when vines are young or during periods of abnormally low rainfall. Most rows are planted on 10'x7' spacing, except for Cabernet, which is on 12'x8' spacing. All pruning and harvesting is done by hand.
Future Plans
A new country winery is planned to be constructed soon having capacity of 4 million kilos of grapes, that is to say 3 million litres of wine. The wines, which will be produced here, will be preceded from the vineyards that the company owns close to the Kissousa, in Malia and in Vouni villages, as well as from grapes that will be received from the region. Wines of all categories will be produced, that is to say appellation of origin wines, regional wines and common table wines. For this purpose Cypriot indigenous varieties will be used, such as Mavro, Xynisteri, Marathevtiko, Muscat, Promara etc, blended with the new grape varieties, such as Cabernet Sauvignon, Merlot, Chardonnay, Palomino etc
The wine factory in the Kissousa is programmed to start operation in five years roughly. It will be equipped with the highest technological machinery and instruments, in order to produce high quality wines, based on controlled vinification techniques at low temperatures. By this way a better utilization of aromatic character of varieties will be effected, and wines with fruity character and typical aromas will be produced. The winery will invest in underground modern cellars where the wine will be aged in oak barrels, for the production of superior quality wines.
At the initial stages, in the winery of Kissousa, the receipt of grapes, the vinification, the stabilisation-filtration and the ageing of wine will be processed. Afterwards the wine will be transported to the winery of Limassol for bottling. Next, the wine will be bottled in the winery Kissousa or in another winery that will be founded by the company, when the winery in Limassol will break off.
The winery in Limassol has a lot of installations for the receipt and the treatment of big quantities of grapes that after the change of physiognomy of the company will be out of use. On the other hand, this winery is founded in a region of premium pricing, and it is not in our interest to continue working there, keeping these high value places for industrial purposes. Our interest is to exploit the place in a different way and to create wine factories in the countryside. Thus the winery in Limassol will be gradually abandoned and the work will be transferred to the new wineries of Limassol (Kissousa) and Pafos (Polemi).