Wine to Greece

(Last updated: 16 Jul 2007)

Trends and opportunities

The market

Wine consumption in Greece is considered to be in its growth phase and there is a widespread belief that international brands will become more popular. Foreign wines, including a small number of Australian brands, are available in Greece but consumption is limited to about 20 per cent of the total market.

It is also worth noting that food and beverage consumption in Greece is tending towards more diverse tastes evident by the growing interest in international cuisine and Western-style food. Tourism is a major industry in Greece and there is expected to be demand for a more diverse range of food and beverage products, including alcoholic beverages.

Industry overview:

• White wine holds 70 per cent, rosé 10 per cent and red wines hold the remainder of the market. 
• Per capita wine consumption in Greece is approximately 30 litres (the European Union average is 37 litres).
• Seventy per cent of wine consumed in Greece comes from local wineries.
• Wine imports are growing at around three per cent annually.
• Of bottled wines sold, 60 per cent is the low to medium price (A$5–$18); 30 per cent is the higher priced varieties; and 10 per cent is prestige wines.
• Famous Greek wineries include Spiropoulos, Lazaridis, Boutaris, Vassiliou. Greeks have traditionally preferred domestic wines that are perceived to be of good quality and closer to consumers’ taste preferences. However, the consumption of international brands is increasing as consumer tastes become more sophisticated.

Opportunities

Feedback from wine importers/distributors about opportunities for Australian exporters in the Greek wine industry include the following:

• There is potential in the market for new foreign brands with the appropriate promotion and pricing strategies.
• The overall feeling in the industry is that the Greek wine industry has not yet matured and there is growing interest in foreign wines in addition to the usual local fare. Consumer preference appears to be more towards the white 'sec' varieties. While the low to mid-price range presents the best opportunities, there is still demand at the premium end of the market.
• Although the market for foreign wines is smaller than for local products, a wide range of products, including foreign brand is required to keep consumers satisfied. Demand for wine at the retail sector is growing.

Competitive environment

Australian wines have started to do quite well in Greece and, in general, consumers are choosing foreign brands over French wines since the palate and price is closer to their preference. French wines are considered to be too costly and have a strong flavour.

A big segment for foreign brands is the food services sector - mainly the upmarket restaurants and hotels. Local consumers and the inexpensive eateries including 'tavernas' have tended towards domestic brands mainly due to consumer preferences/habit and their lower cost. Lately there has been an increasing preference for bottled medium priced wine instead of traditional barrel wine (around 50 per cent of wine consumption, but this segment is decreasing).

Tariffs, regulations and customs

There are no restrictions on the importation of wine. Customs duty/VAT is 18 per cent for wines up to 15 per cent w/v (alcohol content).

Marketing your products and services

Market entry

Greece has specific and sometimes traditional consumption patterns. Careful planning is required for market entry strategies since the industry is highly competitive, and there are sometimes many categories within a single market segment. The following should be taken into consideration:

• Competitor analysis
• Segmentation and identification of a specific target market
• Advertising and promotional activities
• Retail price
• Packaging (label in Greek is an important element)
• Distribution channel
• Product itself (complying with the tastes of Greek people)

The biggest food and beverage exhibition is:

International Food and Drinks Exhibition (held annually every January/February)
45 Michalopoulou Street
Athens Greece 115 28
Tel: +30 210 724 3416
Fax: +30 210 724 3503
Organisers: Ad & E S.A. Advertising, Promotion & Exhibitions

Distribution channels

Eighty per cent of wine imported into Greece is through importers/wholesalers. This wine is then on-sold to supermarkets, restaurants, hotels, ships and specialty liquor stores. The remaining 20 per cent of wine is imported directly, mainly by supermarkets. The biggest retail segment is supermarkets that sell a wide variety of alcoholic beverages in all price ranges. Specialty liquor stores are scattered throughout Greece but volume of sales is less than in supermarkets.

Links and industry contacts

Government, business and trade resources for Greece

Athens Chamber of Commerce and Industry - www.acci.gr
Department of Trades - www.gge.gr
Greece Statistics - www.statistics.gr
ICAP - www.icap.gr - Research company in Greece with specific industry information