Birthplace of Eastern culture and democracy, Greece was also the first country on the northern coast of the Mediterranean to produce wine. Today, it produces and imports wine whose distinct characteristics justify the high price tags.

Regime: Parliamentary Republic
President, Head of State: Károlos Papoúlias (until 2010)
Prime Minister: Kóstas Karamanlis

Capital: Athens
Population: approximately 11 million
Surface Area: 131 990 km2

The cultivation of vines in Greece dates back to 1500 B.C. Since then, vines have spread throughout the country to become a key element in local economy. This is confirmed by the increase in images of Dionysus, who started off as the god of wild vegetation, and later became also the god of vines. During the Ancient Greece era, the Greeks were the principle wine producers in the Mediterranean basin and introduced wine production into the south of Europe, in particular France, Spain and Italy. Then, in 770, Greek colonies from the Isle of Euboea landed on the island of Ischia, just north of Naples. They planted vines on the island, in the region that was to become ‘la Campanie’, the birthplace of Italian wine.

Production is listed by each of the nine departments. More than one hundred grape varieties are cultivated in Greece. Local white grape varieties include: Athiri, Aidani, Assirtiko, Batiki, Debina, Monemvasia, Moschato blanc, Moschato d'Alexandrie, Roditis, Robola, Savatiano, Verdea, and Vilana. Local red grape varieties include: Aighiorghitiko, Kotsifali, Krassato, Liatiko, Limnio, Mandilaria, Mavrodaphni, Moschophilero, Negoska, Xinomavro, and Stavroto.
The most common foreign grape varieties are Chardonnay and Sauvignon Blanc in white, and Cabernet Franc, Cabernet Sauvingnon, Cinsault, Grenache, Merlot and Syrah in red. Since 1981, when Greece entered the European Union, there has been an overall increase in the quality of Greek wines.

During this time the country was able to receive help to modernise wine production and decrease yields. About 130 000 hectares of land is used for the growing wine grapes. The volume of wine produced each year varies according to climatic conditions. The average annual production, since 2000, is between 3 and 3.5 million hectolitres, depending on the wine. This figure represents a decrease when compared to the figures for the early 1980’s, when average production was around 5.5 million hectolitres per year. In 2007, global yields were generally quite low. This was certainly the case in Greece; where yields were over 50% lower than average. As a result, prices went up by around 40% on average. However, some vintages saw prices increases of around 80%.
60%of the harvest is used to make white wine, and 40% for red wine. 90% of wine produced falls into the table wine category (around 3 million hectolitres). Furthermore, about 30% of wine is produced on a small-scale, and consumed directly by the producers.

Map of wine growing regions in Greece.

Peloponnesia
Area cultivated: 60 400 ha
Volume of wine produced: 1 525 500 hl
Grape varieties: Aghiorgitiko, Korinthiaki, Moschato blanc, Moscho philero, Refosco, Roditis, Soultanina

Crete
Area cultivated: 50 500 ha
Volume of wine produced: 959 500 hl
Grape varieties: Vilana, Kotsiphali, Liatiko, Mandilaria, Romeiko

Central Greece and the Isle of Eubee
Area cultivated: 28 850 ha
Volume of wine produced: 1 988 800 hl
Grape variety: Savatiano Macedonia and Trace
Area cultivated: 15 500 ha
Volume of wine produced: 514 500 hl
Grape varieties: Asirtiko, Athiri, Roditis, Limnio, Xinomavro, Negkoska, Cabernet Sauvignon, Cabernet Franc

Macedonia area

Area cultivated: 15 500 ha
Volume of wine produced: 514 800 hl
Grape varieties: Asirtiko, Athiri, Roditis, Limnio, Xinomavro, Negkoska, Cabernet Sauvigon, Cabernet Franc

Thessaly
Area cultivated: 8 700 ha
Volume of wine produced: 514 800 hl
Grape varieties: Krassato, Mavro Messenikola, Moschato d'Hambourg, Batiki, Xinomavro, Stravoto

The Ionian Islands
Area cultivated: 8 700 ha
Volume of wine produced: 215 840 hl
Grape varieties: Vertzami, Mavrodaphni, Moschato blanc, Robolla

The Aegean Islands
Area cultivated: 9 131 ha
Volume of wine produced: 151 300 hl
Grape varieties: Aidani, Assirtiko, Limmo, Mandilaria, Monemvassia, Moschato d'Alexandrie

Dodecanese
Area cultivated: 3 438 ha
Volume of wine produced: 128 850 hl
Grape varieties: Athiri, Mandilaria, Moschato blanc.

Epirus
Area cultivated: 1 022 ha
Volume of wine produced: 30 620 hl
Grape varieties: Debina, Cabernet Sauvignon

In 1971 and 1972 Greece adopted an AOC (appellation d'origine contrôlée) system, following the example of the majority of wine producing countries in Europe. Members of the Wine Institute, a service within the Agricultural Ministry, established the technical details of this legislation. At the moment, KEPO (central committee for the protection of wine production) manages the programme, still as part of the Agricultural Ministry. Varied criteria determine the delimitation of production zones and the style of products. These include the use of the traditional grape varieties of each region and the introduction of varieties more suitable for different microclimates. They also take into account the effects of soil, yield, and winemaking techniques. This system encourages the preservation of traditional grape varieties in Greece.

At the moment wine production in Greece can be divided into four categories:

O.P.A.P. (Onomasia Proelefseos Anotéras Piotitos)
This corresponds to ‘Appellation d'Origine de Qualité Supérieure’ dry wine category in France. There are 25 designations in this category for red and white wine, which include most of the best wines in Greece.
In Northern Greece, you can find Zitsa, Amyndaio, Goumenissa and Naoussa. In Chalkidiki, there is Plagies Melitona, and in Thessaly you can find Anchialos and Rapsani wines. Near Athens, Kantza wine is produced, and in Peloponnesia, Patras, Madinia and Nemea wines are produced. In the Ionian Islands, you can find Robola de Céphalonie, whereas the islands of Lemnos, Rhodes and Santorini are known for Paros, Limnos, Rodos and Santorin wines. Finally, Crète produces Archanes, Peza, Sitia and Dafnes wines.

O.P.E. (Onomasia Proelefseos Eleghomeni)
This category is also concerned with wines of ‘Appellation d'Origine de Qualité Supérieure’, but only for sweet wines. OPAP and OPE manufacturers can also add ‘Reserve’ to their white wines if they have been aged for two years (at least six months of which must be in barrels and six months in the bottle) and red wines that are at least three years old, and also respect the requirements outlined above. The name of ‘Grand Reserve’ can be given to white wines at least three years old, with a minimum of one year in a barrel and one year in a bottle, and red wines older than four years, with a minimum of two years in a barrel, and two years in a bottle. Most of these are fortified wines.

Topikos Inos
This is the Greek equivalent of “vins de pays”. IT includes 139 products, and as a result of the flexibility in the legislation, winegrowers are able to innovate and produce original wines, as well as traditional ones. These can be commercialised using the following references – Ktima (region), Monastiri (Monastery), Archondiko (Castle) and Villa – depending on the place where the wine is produced. Within this category there is a special subsection for Traditional Appellations such as Retsina and Verdea. This was created to ensure the quality and durability of wines that have a distinctive local character.

Epitrapezios Inos
Table wines are encompassed by this category. The flexibility of the legislation means that increasing numbers of wine producers also use this category for premium wines. Table wine producers can display "Kava" (matured in cellars) on their white wines that have been aged for two years (6 months in a barrel and 6 months in a bottle), and on red wines aged more than three years (which have spent at least 6 months in fresh oak or a year in a barrel, and two years in the bottle).

The volume of wine imported is between 60 000 and 70 000 hl per annum. France and Italy are the main suppliers, producing 60% and 23% respectively of the total volume imported. A large percentage of these imports comprises of sparkling wine.
In 2002, Greece imported 34.6 million euros worth of wine, mostly from France (26.2 million euros) and Italy (3.6 million euros). In Greece there is no excise duty on wine and VAT is currently fixed at 18%. Given that the Greek market is relatively saturated, it is the export market that offers the most opportunities. More than 28 million litres of wine are exported, a figure that has increased in the last five years. These are mostly table wines exported to Germany.
In 2002, exports of table wine reached 13.9 million litres, which corresponds to 49% of all exports. Exports to France and Italy each accounted for 2 million litres of wine. 60% of exports are wines sold in bottles, the majority of which are red wines. In the United Kingdom, the off licence chain "Oddbins", introduced a selection of almost 40 Greek wines.
Elsewhere the selection of Greek wines is limited to a few fortified wine appellations – Movrodaphne and Retsina. Many of the wines exported are premium wines produced by the group "vedette". Achaia Clauss, Boutari and Kourtakis are the other large wine export operators.
The majority of consumers of Greek wine abroad are of Greek origin. The second largest client group is Greek and Mediterranean restaurants. Greek wines face competition from New World wines, due to them offering lower prices and better readability than Greek wines. For example, in the United Kingdom, the retail price of a bottle of Greek Chardonnay is £6.99, compared to £4.49 for a bottle of Australian Chardonnay. In the present economic climate, the only wines likely to succeed abroad are local speciality wines.
Furthermore, many retailers report that foreign consumers are put off Greek wines due to the pronunciation of certain grape varieties.

Greek wine producers – merchants and cooperative wineries – sell their wine in large retail outlets, the traditional sector, hotels, restaurants and cafés, and wholesalers. It is the same for foreign wine, with the addition of an importer in the chain. Some companies do however import wine directly. Sales in wineries and supermarkets account for 33% and 65%, respectively, of wine sold in Greece.

The Greek wine market is worth 350 million dollars, the equivalent of 310 million litres of wine. After years of decline, the industry is now recovering ground. However, following the same trend as in other European countries, consumption of wine in Greece is falling. In the past, annual consumption of wine was 44 litres per head, but in 2002 it was just 27 litres. However these figures do not include wine made for direct consumption.
According to Euromonitor, in 2002, Greeks spent on average 301 euros on wine, putting them in third place behind France and Switzerland who spent 329 euros and 309 euros respectively on wine, per person. Sales of bottled wine corresponded to about 105 million litres, of which 80% is white wine, notably Retsina. The Greeks remain very attached to their local wines, leaving little room on the market for imported wines. However, given the high price of bottled Greek wine (more than 10 euros a bottle), imported wines of around 5 euros a bottle can find a place on the medium and small scale retail market. There is also a gap in the market for sparkliing wines as very little of this type is made in Greece. Only well-known brands such as Veuve Clicquot and Moët and Chandon are available and therefore, the door is open for other Champagne producers. At the moment, imported wines, taking into account all categories, represent only 4% of the market.
The main consumers are affluent males between 30 and 44 years old. 42% of consumers prefer bottled wine. The majority of Greeks buy their wine in specialist shops (63%) and supermarkets (52%). They prefer red wine (54%) to white (40%) and rosé (6%). In cafés, hotels and restaurants, mostly wholesale wine (64%) is consumed.

At the moment there is no generic promotion of Greek wine, or an agency to support exporters. In 1991, a Greek wine agency was opened in London, where tasting sessions were organised. However, due to the finances of the Greek Government, the office closed in 1997. The Olympic Games in Athens were seen by Greek wine producers as an opportunity to acquaint people with their local wines. In the year prior to the games, businesses and associations, in partnership with the State, organised promotional activities to showcase Greek wine to people coming to the games from abroad. It was thought that 25 million people would watch the games.

http://www.fas.usda.gov/gainfiles/200308/145985658.pdf
http://www.greekwinemakers.com/articles/031125.shtml
http://www.euromonitor.com/article.asp?id=2047
http://www.missioneco.org/grece/

Vaeni Naoussa was created in 1984 and is the Cooperative for wine production in Naoussa. It is situated around 100km from the city of Thessalonika. The business comprises of 200 members who own an average of 10 hectares of vines each. Altogther, these vines cover half of the local ‘quality wines produced from specific regions’ zone.

The vines in Naoussa are over 300 hundred years old and are amongst the rare few to have always produced wine. Vaeni Naoussa currently produces around 800 000 bottles of wine a year, but its production capacity is around 2 million bottles a year. Around 15% of their products are exported. We interviewed their exports manager, Lionel Le Gal, about Greek wine production and Vaeni Naoussa’s export policy.

1. What are your marketing strategies?

The wine produced by Vaeni Naoussa is made from an indigenous and noble grape variety called the Xinomavro, which we call ‘black acid’. This wine has the impressive characteristics of a ‘vin de garde’, due to its strong tannins. We advise our clients to wait 5 to 10 years after production before opening this wine. Aware that this type of wine can be difficult to sell, Vaeni Naoussa have created a new range of wines using different production and maturation processes and also by blending Xinomavro with Syrah grapes. We have complete faith in our grape and it is our weapon for educating the world about our area and about Greek wines.

Here at Vaeni Naoussa, we believe in quality. This starts with the grape, specially selected and grown on land that is carefully cultivated in an environmentally friendly way. Around 15% of our wines are exported to Germany, Canada, Japan, Belgium, Denmark, Cyprus, Austria and Ghana. We are now targeting the UK, the USA, China, South Korea, Russia and the new EU countries. Our objective is to be exporting 25% of our wines by 2005.

In its roles as cooperative, Vaeni Naoussa has very competitive prices, allowing us to penetrate new markets and to maintain business links. For example, we have been exporting to Germany for over 15 years. Future projects include; a second bottling line, a more structured marketing plan based on packaging (bottles and boxes) and a promotional campaign (press reviews, professional tasting sessions, contests, international exhibitions, gala dinners, promotional gifts etc). By doing this, Vaeni Naoussa hopes to make itself known in the world of wine amateurs and professionals.

2. Is it easy to export Greek wines?

Greek wines are present in all retail networks, 80% in the food service sector, notably in Greek restaurants (for reference, there are 8000 Greek restaurants in Germany), 15% in the super/hypermarket sector and 5% in the specialist sector. The main difficulties with exporting Greek wine come from the long-term lack of support from the Greek Government and promotional organisations. Greek wines are of an excellent quality but the prices tend to be high in comparison to wines from other countries. This is due to the way the vines are divided up and the accessibility of the vineyards, which are often in the mountains. In order to provoke global interest in Greek wines, they need to be more widely promoted.

3.Is your sales pitch partly based upon the Mediterranean system?

My sales pitch is not necessarily based upon the Mediterranean system, I hardly ever mention it. In terms of its geographical origins, Greece is completely different. Also, there are already many Mediterranean wines, so I’m really looking for something to set Greek wines apart.

4. Do you think that the complexity of Greek wines is something of a handicap?

Greek vineyards produce 28 different wines and have 300 indigenous grapes varieties. From my point of view, that is a great opportunity. I am an export manager in Greece because I believe in our wines, in the fact that they can provide an alternative to both new and old world wines. There are no problems with the quality of the wines, but there are however issues to be resolved in terms of marketing and promotion. The names of Greek grape varieties certainly are difficult to pronounce or read and therefore, we must try to resolve this ‘communication’ problem.

5. Do you think that Greek wines will benefit from the Olympic Games in Athens?
Interest in Greek products in general and Greek wines in particular has increased since the Olympic Games were organised and will grow even more in 2005. However, it is far from being the most important thing in such an international event. Promotional strategies were only put into place at the last minute, just like for the construction of Olympic villages. Now we are touching on distinct cultural characteristics, everything gets done here in Greece, just at the very last minute! It’s a fact, not just folklore! Greek wines are undergoing a qualitative revolution and commercialisation and promotion on the world market is a step that has not yet been reached. It is the marketing aspect which has really missed the boat with the Olympic Games, but nevertheless, Greek wines still have a good future ahead of them.