Greek wine is among the best in the world, but has failed to crack international markets because of a lack of promotion, and now the country’s crushing economic crisis has made pre-tax profits fall by 17.65 percent this year, a survey has found.
The report came from the agency Hellastat which said 79 Greek wineries made only 24.2 million euros ($31.3 million) and produced 2.75 billion liters of wine this year, down 11.3 percent from the year before. Falling domestic sales have hurt the results as well as many Greeks have cut back substantially on buying beer, wine and spirits.
Wine producers blame falling domestic demand for the fall in production and profits. Hellastat says the vintners estimate that their sales to restaurants are down by about 25 percent as a result of customers spending less and as the government has slapped a 23 percent Value Added Tax (VAT) on restaurants and taverns. Exports of Greek wine were also down 12 percent in 2011, to 33,900 liters.
Despite having near-ideal conditions for grape growing and wine production, and a history of wine-making that goes back to Ancient Greece, and even before, some 6,000 years of tradition, the country today stands only 14th in the world, behind the likes of Brazil, Russia, Chile, Argentina and even China.
Visitors to Greece can discover the various specialties of regions throughout the country which produce many high-quality but generally affordable vintages. Domestically, a number of Greek winemakers and distributors have offered deals, such as 2-for-1 purchases, but others have not cut their prices despite lesser demand.
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