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Greek
wine sales to the UK suffered a surprise fall last year as buyers played
safe, yet many remain convinced that better times are just around the
corner. Constantine Stergides reports
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Factfile:
Greece |
| * 70% of Greek wines sold
in UK are sold under 3.50 UK pounds ($5.60)
* Greece is one of the few
traditional wine producing countries to have stable wine
consumption, estimated at 35 litres/capita.
* Greece produces around 4mhl of wine
a year, the 14th highest in the world. |
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Top
Greek producers in the UK by volume |
| cases |
| Kourtakis |
90,000 |
| Boutaris |
20,000 |
| Tsantalis |
12,000 |
| Achaia
Clauss |
8,000 |
| Source:
Industry estimates |
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Is Greece an ugly
duckling? This is the question many Greek growers are asking, following an
unexpected drop in exports to the UK over the past year. Although official
figures are not yet available, exports to this country for 1999 are now
estimated at 180,000 cases, down by about 20,000 cases on the previous
year.
Despite the excitement
generated by Oddbins' decision to list Greek wines in a major way, overall
share of the UK market remains negligible.
'Yes, we have had
unprecedented press coverage and many people are now talking about the
quality revolution that has produced some exciting Greek wines, but
overall, we have yet to become a part of the British consumer's everyday
choices, as is the case in Germany, where Greece exports 1.2 million cases
and is number four', says Vassilis Seitanides, UK export manager for
Boutaris.
Greece's predicament is
not dissimilar to that of Germany. Just as the latter is burdened with
Liebfraumilch, so Greece's main listing and sales champion continues to be
retsina, something which can drive serious Greek winemakers up the wall.
'Consumers tend to
identify Greek wine with retsina, therefore they are reluctant to try it',
says Perikles Drakos, European export manager for Tsantalis, the third
biggest Greek wine producer in the UK market.
It's a classic Catch 22
situation since for all the harm retsina does to the image of
'straight' wine, it is not easy to let go of a product that, wine critics
notwithstanding, is, in fact, quite successful.
'We have found that
retsina and mavrodaphne (the sweet fortified wine) are holding their own
very nicely because they cannot be copied', says Graham Blake, export
manager of Kourtakis.
The obvious response here
would be the implementation of massive educational campaigns vaunting
'life beyond retsina', but Greece is probably the only wine producing
country to the western hemisphere that is spending next to nil on the
generic promotion of its wines. It is entirely up to the producers and
their agents to keep the pressure on and raise sales, and there is only so
mach they can do without state support.
The second problem facing
Greek wine, according to many sources, is that you can't go directly from
retsina to Gerovassiliou - one of Greece's foremost winemakers. There is
an obvious absence of exciting, fruit-driven wines in the mid-price range,
which is damaging Greek sales in the supermarkets.
At 3.99 UK pounds ($6.58)
- the average price for Greek wine - 'you are only getting what you would
expect. I would like to find Greek wines that would startle the consumer
at that price, but I can't', admits UK agent Demetri Demetriou.
A limited range
Thus, at the supermarket
level, Greece is unable to capitalise on the publicity that Oddbins has
generated to sell inexpensive, mass-market wines that would boost its
volumes. Buyers are maintaining the already limited ranges, changing only
suppliers, if need be.
'They are not extending
the range and they are even delisting wines that no longer correspond to
price points that are entrenched in their minds'. says one dissatisfied
producer.
Furthermore, and this is
problem number three, there seems to be a reluctance among other
specialists to invest in Greek wine while Oddbins is still so heavily
involved in this area. 'Everyone has adopted a wait-and-see attitude',
says Jordan Petrides of the Greek Wine Centre.
Surprisingly, Achilles
Lampsides of the Strofilia winery sides with the UK retailers. 'I would be
just as conservative were I a wine buyer', he says. 'We've only been in
the market for three years. Australia didn't take off right away either'.
Of course, the upside of
this is Oddbins' phenomenal success - the specialist has sold and
estimated 50,000 cases in two years. 'We are breaking the misconception
that Greeks can't make wine', says chief buyer Steve Daniel.
Store managers are also
standing behind Greek wines which, on the whole, are doing very well. 'For
us, the UK is Oddbins', says Stelios Boutaris who markets the
Yannis Boutaris range.
However Tsantalis has
plans to explore other channels: 'There is potential for new listings in
major supermarkets and multiples', says Drakos. "Together with
Ehrmanns we plan to create a powerful, good value for money brand'.
Greece is facing some
important problems, mostly in the way its vineyard is structured, that
will take some time to resolve. Until then, sourcing premium quality
grapes at competitive prices will make or break a producer aiming at the
international market.
When everything does come
together, though, Greek wine has a lot to offer. Greek varieties are,
indeed, different and are slowly gaining recognition, despite the
aggravation of remembering and pronouncing their names. Multi-varietal
styles (more to the international taste), are already a success, while the
arrival in Greece last year, for the first time ever, of flying
winemakers, is bound to generate more interest among wine buyers and other
professionals.
If things go well, then
it is surely only a matter of time before the ugly duckling image is
banished for good and buyers take to Greek wine like ducks to water.
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