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Wine production regions
There are two main wine production regions:
1. The coastal area, which is divided into four sub-divisions (Istrie and Primorje, Dalmatie and the Northern islands, central Dalmatia and Dalmatie and the Southern islands), best known for red and rosé wines.
2. The continental area, which is divided into seven sub-regions. In the Northeast of the country are Plesivica, Zagorje-Medjimurje, Prigorje-Bilogora, Moslavina and Pokuplje, and in the East are the regions of Slavonie (Kutjevo) and Podunavlje (on the Danube). This region produces mostly white wine.
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Main wine production zones.
It is wine from central and southern Dalmatia, Istria and Slavonie that is currently most representative of the Croatian offering.
Dalmatia
The vineyards of Primošten, covered with the Babić grape variety, form a protected cultural wine landscape. They are made up of small sections of red soil, bordered by dried stones, which go down in terraces. These vineyards once covered an area of 200 hectares. However, despite the fact that it is the most prestigious wine production site in the coastal zone between Zadar and Trogir, its surface area is continuing to decrease.
All of northern Dalmatia, especially the undeveloped areas of Zadar, has great potential for wine production. The white grape variety maraština is very popular and widely cultivated in Benkovac and in the surrounding areas of Zadar and Biogra. In the 1980’s, producers started to grow Grenache and Syrah grapes, and to produce and bottle wine of the same name.
The war greatly affected Zadar, Šibenik and their rural areas, preventing development of wine production in this region. Due to the boom in tourism over the last few years, it is expected that the region’s wine industry will be rejuvenated.
The most important wine regions in Croatia are the islands of Hvar, Brač, Korčula and Vis and the peninsula of Pelješac. The land is poor and rocky and therefore difficult to work. However, these areas have the ideal climatic conditions for vine cultivation. It is the most popular native grape variety, Plavac mali, that is grown here, producing wine which looks likely to become a prestigious export product. The estates that produce the most original wines, some of which are amongst the best Croatian wines, are also the most popular tourist sites.
The private wine production sector in central and southern Dalmatia has only experienced significant growth in the last seven or eight years, although it did previously obtain good results. Apart from a more and more diverse range of Plavac, in which the quality of wines from the islands of Hvar Brač and the peninsula of Pelješac shines through, this part of Dlamatia produces several superior quality white wines, mainly using the native grape variety pošip and also grk and vugava grapes. Prošek is a very original Dalmatian wine; it is a dessert wine produced from dried grapes and/or boiled rape.
Continued investment in the vines, as well as improvements in production standards should allow Central and Southern Dalmatia to become world-renowned wine regions.
Istrie / Hrvatsko primorje
Istria is a triangular shaped region where wine has always been important for its residents. Once considered to be a magic potion, because women claimed that regularly drinking a glass of wine brought them longevity, today wine is considered as an integral part of life.
During the 1970’s and 1980’s, Istria was a mass tourist destination, and still attracts foreign tourists today. As more than 50% of wine produced in Istria is sold directly to tourists, the development of the local wine industry followed the tourist boom. As a result, there are now more than eighty private wine businesses and independent producers in this relatively small area, which has a population of less than two hundred thousand.
The quality of Istrian wines has improved greatly over the course of the last five years. Since 2000, some of the best Istrian wines have become known around the world. This trend looks set to continue, because wine producers and merchants have heavily invested in their vineyards, cellars and in the promotion of their products. However, despite the rise in wine production over the last few years, the most popular wines are still not available in sufficient quantities. Stocks often run out before the end of the tourist season. The most important grape variety in Istria is Istrian Malvoisie (istarska malvazija), but Muscat blanc, called ”momjanski muškat“ in Istria, which produces very good dessert wines, and Chardonnay are also successful.
The island of Krk is the only larger wine production site in Hrvatsko primorje, it stretches from the city of Opatija to Northern Dalmatia. Wine production on the island of Krk boomed around ten years ago, when žlahtina, the local indigenous grape variety that produces light wines, which are low in alcohol and relatively fresh, became very popular in Croatia. Five or six large žlahtina producers appeared on the market at the same time, whilst consumption of žlahtina in restaurants, on the coast as well as in Zagreb, rose above that of all other bottled wines. Zlahtina gradually went out of fashion, although some large producers such as PZ Vrbnik, Katunar and Toljanić still produce it successfully
Another important wine production site in the Hrvatsko Primorje zone is the island of Susak, with a surface area of 375 hectares, which, around fifty years ago, was covered with 288 hectares of vines. At the start of last century, more than 300 hectares, equal to 87% of the total surface area of the island, were planted with vines.
Slavonia
Slavonian wines were served in many European courts during the 19th Century, especially in the Hasbourg court. Slavonia has ideal conditions for producing large quantities of exceptional white wine. The most exceptional terroirs in Slovonia are the vineyards in Srijem and Baranja in the Danube valley, the vineyards of Dakovo to the east of Slavonia and those in Kutjevo in the centre Slavonia, an area which is currently undergoing more development than any other wine zone of Slavonia. By constantly experimenting with new grape varieties, producers have ended Slovonia’s reputation as a monoproducer of graševina, as it was only six or seven years ago. Along with Dalmatia, Slavonia could become the second largest Croatian exporter of international grape variety wines.
Other wine production zones
The wine production zone around Zagreb comprises the Zelinsko vinogorje, Plešivičko vinogorje and Vukomerečke gorice vineyards. These vineyards produce relatively large quantities of wine and producers from this region are sometimes said to be the main producers in the country.
The majority of wine produced in the outskirts of Zagreb is of fairly low quality and is produced from less prestigious grape varieties such as kraljevina and potugizac. These wines can be used to make gemišt (a mixture of wine and soda). In general, they cannot compete with wines from other Croatian wine regions. However, certain exceptions prove that this region can produce quality wine.
Another region in Central Croatia that merits mention is Međimurje. During socialist rule, this region had a reputation as one of the best wine regions of continental Croatia, thanks to its Pinot Blanc from Štrigova. The vineyards of Međimurje still produce quality wine today, wines which are fruity, with low acids and moderate alcohol levels. With modern production methods, the natural potential of this zone can be exploited more efficiently.
Main grape varieties
In the past, the number of grape varieties cultivated in Croatia was much higher than today. The indigenous grape varieties were much more fertile and produced a better quality wine because they were more suited to the climate than later species (in the 19th Century, Croatian vines were damaged by phylloxera, which led to the importation of European grape varieties). Although fewer in number, traditional grape varieties still play an important role in local wine production.
The main grape varieties grown in Croatia are:
Babić – an indigenous grape variety from central Dalmatia that produces a red wine, sometimes of exceptional quality.
Bogdanuša – a white indigenous grape variety, which most likely originates from the island of Hvar, and is used in the production of Prošek.
Cabernet sauvignon – this grape produces a good quality red wine in Istria.
Cabernet franc – grape grown almost solely in Istria.
Chardonnay – produces excellent wines in Istria and Slavonia.
Crljenak – a grape which is no longer grown in Croatia, but which is known around the world. Crljenak Kaštelanski is an old, and pretty much forgotten, Croatian grape variety. It has been established that this grape and American Zinfandel have an identical genetic profile, meaning that they are in fact the same grape variety. In fact, Crljenak Kaštelanski, which comes from the imperial gardens of Vienna (which once contained grapes for the monarchy), was introduced to the United States (Long Island) during the 20’s in the 14th Century by the name of Zinfandel. In the 80’s, in the same century, it became the most commonly planted grape in America. Zinfandel is still popular today, especially in America, where it occupies almost 23% of the total surface area of vineyards.
Debit – white grape variety of Italian origin, widely planted in central Dalmatia.
Frankovka – gives a fruity and fresh wine. This grape is known by the name of Blaufränkisch in Austria where it accounts for around 5% of all grape plantations. It is also found in Hungary, under the name of Kékfrankos, in Germany under the name of Lemberger or Limberger and finally in Italy under the name of Frankonia.
Graševina – graševina or ”laški rizling“ is at the root of the modern wine industry in Slavonia. It is known under the name of Welschriesling in Austria, Italian Riesling in Romania, Riesling italico in Northeast Italy, Olaszriesling in Hungary and Vlassky riesling in the Czech Republic. Although it is sometimes sold under the appellation of Riesling, it has no relationship with the German or Alsatian Riesling. German wine producers associations want the wines to be sold under their own appellations. Graševina matures very late and produces a very large harvest. The grapes are susceptible to mildew and can be botryised. The vine is adapted to hot climates, tending to give very acidic wines in cooler climates.
Grk – a white indigenous grape variety from the island of Korčula, which can produce excellent wines.
Hrvatica – despite its name (”the Croat”), this grape variety originates from North Italy, where it has been grown since the 4th Century. It is a black grape.
Istarska malvazija (Istrian malvoisie) Also known as malvasia bianca, this grape variety originates from Italy and is used to produce dessert wine in the United States. It is the most important grape variety in Istria.
Kujunduša – this white grape variety is cultivated in a small part of the Imotska krajina region. The grapes are sweet (containing 17-19% sugar, up to 22% in some cases), and have a maximum acid level of 5g/l. Kujunduša is often mixed with other grape varieties. It produces quality wine, pale in colour and with a balanced flavour.
Maraština (Rukatac) – this white grape variety is believed to originate from Italy. It is grown on the Dalmatian islands, and is often used in the production of Prošek. The grape is of extremely high quality. Its rape contains around 22% sugar and only 4% acids. It produces very strong wine with a high alcohol level (13.3%). The wine is pale yellow in colour and has a distinct flavour.
Merlot – has been cultivated in Istria for many years, with average results.
Momjanski muškat – the muscat grapes cultivated in the west of Istria can be Muscat blanc or muscat à petits grains, and therefore the most sought after grape variety in the Muscat family. Momjanski muškat gives excellent dessert wines.
Bijeli pinot (Pinot blanc) – a fairly widespread grape variety in Istria, where it is blended with Chardonnay to produce excellent wines.
Sivi pinot (Pinot gris) – successfully grown in Istria and Slavonia.
Crni pinot (Pinot noir) – this grape variety has long been grown in Croatia, with excellent results.
Plavac mali – the most important red grape in Croatia, and particularly in Dalmatia. It is an indigenous Dalmation grape, which produces strong, slightly bitter wines with an intense garnet colour. There are two types of this impressive grape, Plavac mali veliki and Plavac mali sitni. The sugar level in these grapes is between 18 and 25%.
Plavina crna – this black grape variety produces good quality red wines. It is widely planted in Istria and Dalmatia.
Pošip – an indigenous white grape variety from the island of Korčula, which gives exceptionally good wines. It is close to the furmint grape, a Hungarian grape used mainly in the production of Tokay. The wine is very strong (12.5-13.5% alcohol) and yellow in colour with green hints, has a distinct flavour and high acidity.
Rizling (Riesling) – in Croatia, the adjective ”rajnski“ (from the Rhine) is added to the name Riesling, to distinguish it from ”Laški rizling“ or Graševina.
Rizvanac bijeli– the Croatian name for muller-thurgau. This relatively unimpressive grape variety, which is a cross between Riesling and silvaner, gives a large, early harvest.
Sauvignon blanc – this grape is successfully grown in Slavonia and Međimurje. In a few years, producers may try to grow it in Istria.
Škrlet – this indigenous white grape from Moslavina has been very fashionable with local people for many years.
Teran – the most important red grape in Istria. Its international name is Refosk or Refosco, although some specialists and wine growers highlight the differences between Teran and Refosk.
Traminac – a grape that can produce excellent wines in Slavonia, where it is very widely cultivated.
Trbljan bijeli – a white grape used to produce sparkling wines.
Vugava (bugava, ugava, viškulja) – this is an impressive and aromatic white grape from the island of Vis, which, with sufficient investment, could give excellent wines. It is used for table wiines, as well as Prosec. The wine is golden has a golden colour and a distinct, slightly bitter flavour.
Zelenac – a white grape brought back from oblivion
Žilavka – a white grape that originates from Herzegovinia. It is found all over the southern Dalmatian region, but the best plantation is found in Imotska krajina. It is used to produce a high quality wine with a very high alcohol percentage (12 –13.7%).
Žlahtina – an indigenous white grape from Hrvatsko primorje. It forms the basis of the wine industry on the island of Krk.
Zweigelt – a red grape that is a cross between Blaufränkisch (frankovka) and Saint Laurent (lovrijenac), produced in 1922 by Friedrich Zweigelt. It is mainly cultivated in Austria.

Production
Croatia is one of the top twenty wine producing countries in the world. It has 3.15 million hectares of farmland, 64% of which is cultivated. 81.5% of the cultivated land is privately owned.
Wine production is one of the most important agricultural sectors for the Croatian government because it is strongly linked to tourism. Due to its long coastline, Croatia is a popular tourist destination and wants to increase its vine plantations as soon as possible (before joining the EU).
Surface area of vineyards and grape production
There are many vineyards in Croatia, but they are modestly sized, at around 2 to 5 hectares per owner. The vineyards currently cover approximately 57 000 hectares of land (according to official statistics, although FAO statistics are lower, but because public records are not up to date it is impossible to know the precise figure). 86% of vineyards belong to small, domestic producers, whose production levels are used for direct consumption and are not always declared.

Vines in Croatia, apart from those recently planted by private producers, are, on average, 20 years old. Private producers have only been active on the market for around ten years, but provide serious competition for industrial producers, who, generally, prioritise quantity over quality. Now, the small producers face a race against time to ensure that their wines can be competitive on the European market when their country becomes a member of the European Union.
The number of private producers is constantly increasing in relation to cooperatives. In 1986, the number of cooperatives was estimated at 561 and the number of private producers at 2166, whereas now the respective figures are 67 and 1718. There are currently around 50 large private cellars and 30 cooperatives, owning a total of 4000 hectares of vines. Independent owners possess the rest of the cultivated land. Of these, around one hundred fairly large producers produce some 20000 hectolitres per year.
Grape production is decreasing, along with the surface area of vine plantations.

Wine production
For the 2004-2005 campaign, annual wine production was 1.5 million hectolitres (Source: OIV). This estimate takes into account the large part of production that had not yet arrived on the market and was not therefore counted in official statistics.


In terms of quality, 43% of wines produced are table wines, 46% are quality wines and 11% are high quality wines and dessert wines.
White wines account for 65% of total production, and red wines 35%, whilst the rest are rosé and sparkling wines. In the North, on the fertile plains of Pavonnia and Slavonia, white wines reign, accounting for 93% of production. In Dalmatia, red wine represents 60% of production and white wines 40%.
Most wine production and ageing takes place in stainless steel equipment. Wooden casks are rarely used.
Croatian wines undergo quality control tests conducted by a committee of experts who class the wine according the mark obtained. The classification system for quality regional wines is similar to the French AOC system.
Over the last few years, wine growers have made a great effort to improve production. In 1996, 477 Croatian wines were AOC wines, 74 of which were superior quality wines.
On June 30th 2007, 643 producers in the Republic of Croatia were registered as producers of AOC wines, producing 1873 wines in total, compared to 605 producers and 1711 wines on December 31st 2006.
Spirit production.
Since the beginning of the 1990’s, the spirit industry followed a decreasing trend until 2004. During the 1990-1995 war, it fell 66% and another 11% over the following five years. Since 2004, the sector has shown an upward trend (136 000 HL in 2006).

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Croatia is a relatively small market. On average, housewives spend 30% of their budget on food and non-alcoholic beverages. Farm and food produce represent around 18% of the country’s international business.
In 2003, wine was still one of the products to have a positive balance of trade. However, in 2004 imports increased in terms of value and volume. The balance of trade for spirits is still negative. In 2004, exports decreased by 27% in terms of quantity, whilst there was little change in terms of value.

Graph. 9. The wine market in Croatia (Grapes growing, wine trading and wine price competitiveness in international markets in Croatia), 1992 – 2004.


Sales
Wine is available in specialist shops (each importer has opened one), restaurants and hotels. Hotel and restaurants sell mainly top of the range wine. Large retail outlets have started to offer specialised, well-stocked ranges of averagely priced imported wine, mainly of French and Italian origin. Due to the development of this sector, imported products are becoming more and more freely available. Around fifteen businesses share the wine and spirit import market. They import mainly expensive products, to which they can apply higher profit margins. Tax is very high, the price of imported wine triples between leaving the port and arriving for sale in Croatia.
Wine and spirit imports.
During the socialist years, Croatian people only drank local wines. After the separation of Croatia and ex-Yugoslavia and the opening of the wine market, foreign wines began to arrive in the country. Although the Croats are very proud of their wine, the imported wine market is developing. This is particularly true for the superior and average quality market segment, which is aimed at consumers in the capital, where income is higher and people like to try new wines. The wine import market consists mainly of bulk red and rosé table wine, as well as quality bottled white wine.
In 2004, Croatia was amongst the 30 biggest importers in the world (26th place) with 0.34% of the world market.
The main countries that supply the Croatian import market are Slovenia, Macedonia, Bosnia Herzegovina, Italia and the New World countries (Argentina, Australia, Chile, New Zealand).


French wines represent 7.4% of all wine imports. The most frequently imported products are sparkling wines and AOC wines, for example, Alsace, Bordeaux, Burgundy, Chablis, various Champagnes, Languedoc Roussillion wines and Beaujolais. Imports of Beaujolais have increased ten fold over the last ten years.
In terms of imported spirits, the majority are whiskies, vodkas, gins and other international brands. The main countries of origin are Italy, Austria, Germany, the United Kingdom and Slovenia.
Wine and spirit exports
Croatia is a net exporter of wine. Export development is stable, but weak in terms of volume; with less than 200 000 hl exported each year. The surface area of vines (2 to 5 hectares per owner) is not sufficient to be able to export at competitive prices.
Superior quality wine makes up the largest part of the wine export market. Exports of average quality wine are decreasing, but are compensated by table wine exports. The main exported wines are those made from Plavac, Malvazija and Grasevina grape varieties.
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