The failing influence of retsina has left the way open for wine. But short termism could harm the drink's long-term opportunities. Constantine Stergides reports

The question: 'Is there life beyond retsina?' is used as an introduction to so many articles on Greek wine, that it's become a wine writer's cliché.

Clichés, however, die hard and the image of Greece as a retsina-producing country is proving hard to shed. Even Vassilis Kourtakis, the undisputed world wide brand leader of retsina and president of the Greek Wine Federation, regrets its influence in shaping an image of Greek wine, which he claims is as false as it is sticky.

Retsina is produced in Greece in ever decreasing quantities. According to Kourtakis, retsina is losing about 15% of its market share annually. His company, which dominates retsina sales in Southern Greece, is now selling about 850,000 cases in the domestic market, compared to 3 million cases 15 years ago (retsina is mostly sold in 0.5 litre bottles, ten to a case).

'We are experiencing a renunciation of retsina by the average Greek consumer that is unexpected in its ferocity', says Kourtakis. This is a surprising development, especially in Athens and the region of Attika, historically retsina's stronghold. Sales are somewhat more stable in Northern Greece, which is controlled by the Malamatina Winery, but there, retsina has evolved into a lighter style which bears little resemblance to the traditional taste.

But the real problem is not retsina's eroding market share but its replacement by an even greater foe of quality wines-cheap bulk wine. This wine, always strong in Greece but on the defensive during the late 1980s and early 1990s, has staged a come back which is upsetting established bottlers.

'For every two units of retsina sold, there are eight of dry white or pale red bulk wine sold', says Kourtakis. Until a few years ago, consumers bought wine in bulk only through traditional outlets, such as small neighbourhood wine merchants, tavernas or even at the wineries themselves, leaving the lucrative supermarket shelves and specialty shops to the likes of Demestica, Lac de Roches, Apelia and other established brand names. But this is no more.

Nowadays, bulk-quality wine is widely found in supermarkets, either in 5 litre demi-johns or even dispensed on the spot thanks to refrigerated, bag-in-box type machines. Its selling price of Dr220 ($0.79) per litre makes it a hit as an everyday wine. Never mind that it is often made from 3rd and 4th pressing, or even illegally from table grape varieties. The easy-to-please Greek consumer will not be daunted. Even upscale restaurants are turning to bulk wine, which also has the added advantage of abetting tax evasion, one of the country's national sports.

'The turnabout of the Greek market has to be seen to be believed', admits Stelios Boutaris, who is in charge of sales for Boutari Emboriki, a commercial company that distributes the wines of the Boutari's wineries.

'The market has polarised, with cheap bulk wines at the lower end and expensive boutique wines at the higher end. Very little is left in the middle', adds Kourtakis.

One of the brands that continues to flourish in this category is Tsandalis's Makedonikos, the top selling wine in Greece, with 3.5m bottles (red and white). In the meantime, speciality shop (i.e. high street cellars) are either stocking estate wines and imports, or going out of business altogether.

Naturally, companies are now scrambling to produce limited-release wines marketed either as estate wines or varietals. The huge Tsantalis winery (annual production 24m bottles) has just come out with a Tsantalis Vineyards' Sauvignon, while even Kourtakis (33m bottles), a mass-market producer par excellence, also plans a series of upmarket Greek varietals and new country wines such as the 'Vineyard of the Winds' from the islands of Aegean.

Both are following in the steps of the Boutaris family which has been very successful with its Agiorgitico, Xinomavro and Moschofilero varietal range (see varietals box, below).

Of course, as in every other country with a long viticultural tradition, there is an ongoing debate concerning the use of international varieties. Although their plantings are still limited, their impact has been considerable (surprisingly no figures exist, but Vassilis Mihos, director of the Viticulture Research Institute, estimates that they do not exceed 3% of Greece's total).

'International varieties have been instrumental in opening doors for us abroad', says Vangelis Gerovassiliou, Greece's most respected oenologist. 'Thanks to Cabernet and Chardonnay, wine professionals all over the world are appreciating Greece's potential. Now it's the turn of the indigenous noble varieties which are gaining acceptance in such sophisticated markets as the UK'.

The quality quest

The big and, at times, insurmountable problem facing many of Greece's innovative winemakers is locating excellent quality grape. The region of Nemea, for example, which is the only source for the fashionable Agiorgitico, is notorious for its over-the-top yields, head-strong grape-growers spoiled by a sellers' market, and a co-operative that will buy every grape produced.

The 1998 vintage, for example, should have brought in excellent quality grapes (as indeed the region's few estates such as the Papaionannou and Gaia wineries did). However, due to inordinately high yields, the vast majority of farmers still had problems getting mature grapes. Yet, prices of grapes went up by 15to 20%. 'This situation is dangerous', declares Kourtakis. 'Our importers will not accept increases. It Greek red wines come out at more than DM5.00 ($3.12) retail in Germany, we will lose 70% of our sales'.

It is hardly surprising then, that some of the country's leading winemakers have been driven, in exasperation, to create their own vineyards in the region. Diogenes Harlaftis, for instance, has just planted 6 hectares of Agiorgitico in the heart of Nemea and plans to built a new winery for a total investment of about $33.8m.

Using viticultural consultants from Bordeaux and Montpellier, he is applying high-density formations and expects to get 50% less grapes than the norm. Local growers were flabbergasted when the French consultants, during a tour in early July, suggested they practice a little green harvesting.'

In such a context it is the various estate wines that have the wind in their sails. With an assured supply of quality grapes, and enviable upmarket image and wines that are technologically impeccable, they have created a niche for themselves in domestic and export markets (see box) at prices that have astonished observers.

The Costa Lazaridis estate in Drama, Northern Greece, is probably the best example, with their popular Amethystos range, based essentially on Cabernet and Sauvignon Blanc. Total production is expected to top 650,000 bottles with the 1998 vintage.

All in all, Greek wine has definitely entered a new phase in its long history. So what is the biggest challenge facing the Greek wine industry now? Not international recognition, as most growers would be quick to answer. Rather, the price of success. 'What I fear most', says Maria Koveou who was in charge of the Wine Federation for many years and has an exceptional inside Knowledge of the industry, 'is that Greek growers will content themselves with their well-earned success and remain stagnant. We missed the train once, we can't afford to miss it again.