Required Report - public distribution

**Date:** 11/15/2004

**GAIN Report Number:** GR4031

GR4031

**Greece**

**Retail Food Sector**

**Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Ann Murphy

U.S. Embassy Rome

**Prepared by:**

Danae Synodinou

**Report Highlights:**

The retail sector in Greece is still growing and concentrating,
especially in metropolitan Athens. There are about 3,200 supermarkets in
Greece, 687 of which are located in the Athens metropolitan area. The
top 10 supermarkets account for 84% of total supermarket sales. The top
six supermarkets had combined sales of \$4.4 billion. These businesses,
importers themselves, offer marketing opportunities for U.S. suppliers.
Products with best prospects include frozen foods, fish, tree nuts,
meat, wine and beer and snack foods.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Rome \[IT\]

\[GR\]

Table of Contents

[**SECTION I. MARKET SUMMARY 3**](#section-i.-market-summary)

[Greek Economy Overview 3](#greek-economy-overview)

[Consumer Trends and Retail Sales 4](#consumer-trends-and-retail-sales)

[SECTION II. ROAD MAP FOR MARKET ENTRY
7](#section-ii.-road-map-for-market-entry)

[SECTION III. COMPETITION 10](#section-iii.-competition)

[SECTION IV. BEST PRODUCT PROSPECTS
11](#section-iv.-best-product-prospects)

[SECTION V. POST CONTACT AND FURTHER INFORMATION
12](#section-v.-post-contact-and-further-information)

# SECTION I. MARKET SUMMARY

# 

## Greek Economy Overview

Greece, a member of the European Union (EU) has also been a member of
the EU Economic and Monetary Union (EMU) for more than three years.  The
Euro was introduced on January 1, 2002.  Greece is an import dependent
country (\$4.2 billion of agricultural products in 2002) with a
population of 11 million people. National Bank of Greece sources report
that the Greek economy's prospects remain favorable and its growth rate
is expected to reach 4 percent in 2004 and 3-3.5 percent in 2005, which
is almost double the figure expected for the eurozone. Services make up
the largest and fastest growing sector of the Greek economy, accounting
for 69 percent of GDP, followed by trade and financial services,
transportation and communications, and health and education. Real
property management (16.5 percent) and tourism are the largest service
sectors.\
 

Inflation in 2005 is expected to be slightly higher than 3 percent due
to strong domestic demand, high labor costs and second round effects
from oil price hikes. The inflation rate in October was 3.2 percent (2.8
percent in September, 3.1 percent in July), higher than the eurozone
average (2.3 percent), according to Eurostat data. Greece's fiscal
deficit is reported to reach 5.3 percent of Gross Domestic Product in
2004, reflecting increased spending related to the Athens Olympic Games,
compared to the fiscal deficit in 2003 which totalled 4.6 percent of
GDP. However, it is expected to fall below 3% of next year's GDP as a
result of government financial measures to reduce public spending
compared with 2004, and to implement the stability pact on fiscal
discipline. The GOG is expected to announce measures to boost economic
activity and to attract investment through a revision of the development
law. The aim is to increase the competitiveness of the Greek economy.

Wage increases of around 3-3.5 percent in real terms and rising
household borrowing will continue to maintain private consumption in
2005, as was the case in 2004. Greek banks' unpaid debt from housing and
consumer loans totals approximately \$3 billion. According to banking
officials, around \$1.4 billion, or 8 percent of a total of
approximately \$17.7 billion of the country's outstanding consumer
credit, was showing delay in repayment. The annual growth rate of
consumer loans ended 2003 at 25.4 percent, and reached 37 percent in
June 2004. The unemployment rate in 2004 is 8.4%. Supermarkets are the
top employer in the trade sector with a share of 27%, followed by
transportation with 9% and clothing-footwear with 7.6%. Per capita GDP
in 2004 is estimated at \$17,780. Despite the high economic growth rates
of recent years, Greece's per capita income is still at 73 percent of
the EU-15 average and at 91.2 percent of the EU-25. Productivity in
Greece was at 90.3 percent of the EU-15 average and employment at 57.8
percent of the EU-15. According to the National Statistical Service,
83.4% of the per capita disposable income covers consumer needs of the
Greek family, while 16.6% goes towards savings and investment.

According to financial reports, the the Greek commercial sector
continues to grow, with rising consumer demand, increasing disposable
income and the expansion of credit. The volume of retail sales expanded
by 4.5% in 2002, matching the respective volume of 2001. The business
confidence index for the retail sector improved by 1.2% in 2002. More
recent figures are not available, but the trend is confirmed.

The National Statistical Service (NSS) data show CY 2002 total imports
at approx \$36.3 billion, with EU countries being the main suppliers. CY
2002 total exports were approx \$11.9 billion. Total imports from the
U.S. were almost \$2.1 billion, of which \$123 million being
agricultural and food products, compared to \$115 million in 2001. CY
2003 imports of U.S. origin agricultural and food products were \$127.5
according to FAS data.

  ----------------- --------------- --------------- --------------- ------------ ------------ ---------- ---------
  **AGRICULTURAL,                                                                                        
  FISH & FORESTRY                                                                                        
  TOTAL Imports                                                                                          
  from All                                                                                               
  Suppliers**                                                                                            

                    **Avg Annual    **Annual Import **Avg Annual    **Relative   **Absolute              
                    Imports\        Growth\         Imports\        U.S.\        U.S.\                   
                    from All        from All        from U.S.**     Market       Market                  
                    Suppliers**     Suppliers**                     Share**      Share**                 

                    **2002-2003**   **1999-2003**   **2002-2003**   **2003**     **1999**     **2003**   **Chg**

                    **\$1000**      **%**           **\$1000**      ** **        **%**        **%**      **%**

  **Greece**        4,221,146       4.18%           122,911         NC           3%           NA         NC
  ----------------- --------------- --------------- --------------- ------------ ------------ ---------- ---------

Source: UN Data

Greece's major trade partners are the member states of the EU-15
countries. In 2002 they supplied the majority of imported food products
(approx \$3.1 billion), with the Netherlands the biggest supplier with
exports amounting to approximately \$719,000. Consumer-oriented food
products imported in 2002 totaled \$2.4 billion compared to \$1.9
billion in 2001.

The following table provides data on major Greek imports of food
products.

Major Greek imports of Food Products and U.S. Market Share (2000-2002)

+-----------------------------+-----+-----+------+-------+------+-----+
| In US \$million             | **  |     | **20 |       | **20 |     |
|                             | 200 |     | 01** |       | 02** |     |
|                             | 0** |     |      |       |      |     |
+-----------------------------+-----+-----+------+-------+------+-----+
| # Product                   | **T | *   | *    | **    | *    | *   |
|                             | ota | *US | *Tot | USA** | *Tot | *US |
|                             | l** | A** | al** |       | al** | A** |
+-----------------------------+-----+-----+------+-------+------+-----+
| Red Meats                   | 620 | 1   | 542  | 1     | 666  | 1   |
+-----------------------------+-----+-----+------+-------+------+-----+
| Dairy Products              | 258 | 0   | 257  | 0     | 282  | 0   |
+-----------------------------+-----+-----+------+-------+------+-----+
| Snack Foods (excl. nuts)    | 108 | 1   | 98   | 1.1   | 139  | 1.3 |
+-----------------------------+-----+-----+------+-------+------+-----+
| Veg Oils                    | 48  | 1   | 57   | 2     | 86   | 3   |
+-----------------------------+-----+-----+------+-------+------+-----+
| Processed Fruits and Vegs   | 108 | 1.6 | 116  | 1.7   | 154  | 3.3 |
+-----------------------------+-----+-----+------+-------+------+-----+
| Tree Nuts                   | 37  | 7.5 | 45   | 7.9   | 65   | 1   |
|                             |     |     |      |       |      | 4.2 |
+-----------------------------+-----+-----+------+-------+------+-----+
| Fresh Fruits                | 90  | 1   | 106  | 1     | 124  | 1   |
+-----------------------------+-----+-----+------+-------+------+-----+
| Seafood products            | 258 | 7   | 262  | 5     | 316  | 3   |
+-----------------------------+-----+-----+------+-------+------+-----+
| Poultry meat                | 55  | 0   | 68   | 0     | 86   | 0   |
+-----------------------------+-----+-----+------+-------+------+-----+
| Wine and Beer               | 45  | 1   | 54   | 1     | 98   | 1   |
+-----------------------------+-----+-----+------+-------+------+-----+

Source: UN Data

## Consumer Trends and Retail Sales

Socio-economic changes have significantly affected food trends in
Greece. Although Greek consumers are targeted by promotions for many
products, state control mechanisms and consumer organizations are more
conscious than ever about food safety matters, demanding that food
industry be more precise on labeling information. Higher incomes allow
room for higher quality foods. In addition, the working population has
little time to prepare meals. Consequently, preferences are moving
toward easy-to-prepare meals and foods delivering more health benefits.
A recent study showed a 22.4% average yearly increase in the period
2000-2003 in the consumption of easy-to-prepare meals. An increase of
9-10% is projected for this year and an increase of 10% is projected for
2005. Canned ready-to-eat food increased by 12.3% last year.

Total sales of food and beverage industries in Greece in 2001 was \$7.2
billion dollars, accounting for 25.6% of total industry sales. The 1100
largest domestic food and beverage industries reported gross profits
amounting to approximately \$3.3 billion in 2001.

In Greece there are about 3,187 supermarkets, 687 of which are located
in the Athens metropolitan area. With a Greek population of 11 million,
each supermarket serves, on average, about 3,500 people. One hundred
twenty eight new outlets opened in 2003, 30 of them in Athens. The
following table shows the development of supermarkets in Greece:

+------------------+-------+------+-------+------+------+-------------+
| ###### DEVEL     |       |      |       |      |      |             |
| OPMENT OF THE GR |       |      |       |      |      |             |
| EEK SUPERMARKET  |       |      |       |      |      |             |
| SECTOR 1998-2003 |       |      |       |      |      |             |
+------------------+-------+------+-------+------+------+-------------+
|                  | **1   | **20 | **2   | **20 | **20 | **Change    |
|                  | 999** | 00** | 001** | 02** | 03** | 2002/2003   |
|                  |       |      |       |      |      | %**         |
+------------------+-------+------+-------+------+------+-------------+
| Total of Greek   | 2,740 | 2    | 3,049 | 3    | 3    | 5.36        |
| supermarkets     |       | ,919 |       | ,187 | ,025 |             |
+------------------+-------+------+-------+------+------+-------------+
| Total            | 1,719 | 1    | 1,919 | 2    | 2    | 6.12        |
| supermarkets     |       | ,862 |       | ,010 | ,133 |             |
| belonging to     |       |      |       |      |      |             |
| chains           |       |      |       |      |      |             |
+------------------+-------+------+-------+------+------+-------------+
| Number of Chains | 1,235 | 1    | 1,540 | 1    | 1    | 0.32        |
| with 16+         |       | ,408 |       | ,569 | ,574 |             |
| supermarkets     |       |      |       |      |      |             |
+------------------+-------+------+-------+------+------+-------------+
| Number of        | 1,021 | 1    | 1,130 | 1    | 1    | 3.84        |
| independent      |       | ,057 |       | ,015 | ,054 |             |
| Supermarkets     |       |      |       |      |      |             |
+------------------+-------+------+-------+------+------+-------------+

Source: Panorama of Greek Supermarkets, 2004

The year 2003 was reported by trade sources as a good year for
supermarkets, without important buy-outs, mergers or expansions, a
balanced year for the sector's growth. Expansion of business initiatives
towards franchising and the creation of organized convenience-store
networks were also noticed in 2003. In 2003, two convenience-store
groups (OLA STORES and TO MIKRO S.A.) were introduced in the Greek
market.

Supermarket sales increased by 9.38% in 2003 compared to 13.14 in 2002,
reaching approximately \$8 billion. The 10 largest groups achieved sales
of approximately \$6.7 billion. Profits grew by approx \$180 million.
The following table provides sales data, individually by company, for
the 10 leading supermarkets.

+-----------------+-----------------+-----------------+-----------------+
| ###### The      |                 |                 |                 |
|  10 Leading Sup |                 |                 |                 |
| ermarket Groups |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Name**        | **Sales (mln    |                 | **Change %**    |
|                 | dollars)**      |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 | **2002 2003**   |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Carrefour       | 1,396,135       | 1,867,384       | 12.47           |
+-----------------+-----------------+-----------------+-----------------+
| A-B             | 910,900         | 1,161,557       | 7.23            |
| Vassilopoulos   |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Sklavenitis     | 642,768         | 826,819         | 8.17            |
+-----------------+-----------------+-----------------+-----------------+
| Veropoulos      | 528,721         | 682,869         | 8.61            |
+-----------------+-----------------+-----------------+-----------------+
| Atlantik        | 437,986         | 565,805         | 8.63            |
+-----------------+-----------------+-----------------+-----------------+
| Masoutis        | 407,235         | 520,654         | 7.51            |
+-----------------+-----------------+-----------------+-----------------+
| Metro           | 333,313         | 457,029         | 15.30           |
+-----------------+-----------------+-----------------+-----------------+
| Pente           | 262,993         | 344,948         | 10.30           |
+-----------------+-----------------+-----------------+-----------------+
| Arvantidis      | 160,346         | 212,378         | 11.38           |
+-----------------+-----------------+-----------------+-----------------+
| INKA Chania     | 79,080          | 108,627         | 15.51           |
+-----------------+-----------------+-----------------+-----------------+
| Total           | 5,159,482       | 6,748,072       | 9.98            |
+-----------------+-----------------+-----------------+-----------------+
| All Others      | 1,023,700       | 1,294,525       | 6.34            |
+-----------------+-----------------+-----------------+-----------------+
| GRAND TOTAL     | 6,183,182       | 8,042,597       | 9.38            |
+-----------------+-----------------+-----------------+-----------------+

Source: Panorama of Greek Supermarkets, 2004

A recent survey conducted on a sample of 25 supermarket businesses,
including the largest chains, concluded that in 2003 the businesses'
main economic sizes have positively changed as regards profits. 2003 in
general is characterized as a relatively good year for the sector.

Most of the supermarkets belong to the Association of Greek Supermarket
Enterprises, SESME, which actively participates in trade and retail
policy.

**How the sector's big players did in 2003 compared to 2002:**

\* Careffour Marinopoulos: Turnover growth of over 10% reaching \$1.4
billion.

\* A-B Vasilopoulos Group: Sales increase of 7.7% reaching \$974.64
million and increase of unified net profits of 65.3% reaching \$10.29
million

\* Veropoulos Group: Revenue increase of 10.6% reaching \$764 million

\* Atlantik Group: Sales increase from \$438 to \$566 million.

\* Metro: Sales increase from \$332 million to \$457 million and profit
increase from \$11.4 to \$14.5 million.

\* Dia: Profitable for the first year. Net result of \$2.4 million
before tax compared to a

> loss of \$1.7 million in 2002. Sales of \$290 million in 2003.

\* Commercial Groups: Elomas: \$1.4 billion, KEA \$634 million, Asteras:
\$383 million.

There are several buying groups active in Greece, of which the most
important are:

♦ ELOMAS -- The group has 49 supermarket members, total 576 outlets all
over Greece. Its sales in 2003 reached approx \$1.4 billion. During the
last year the group invested a total of \$648,648 in a warehouse
management system in order to cover needs of its members.

♦ ELETA -- Group of Greek Supermarkets Ltd. The group has 383
supermarket members. 2003 sales amounted to approximately \$432 million.
In 2003 ELETA together with ASPIDA group created KEA buying group.

♦ ELLINIKI DIATROFI -- 1,600 members. 50 new members were added to the
group's network in 2003; they recorded sales of \$778 million, compared
to \$590 million in 2002. Projected sales for 2004 are \$1.06 billion.

To conclude, the retail sector in Greece is very dynamic, facing
competition as a result of the emergence of new international grocery
store chains and mergers of existing companies and food processors. The
family structure of many Greek companies adapt to new, advanced forms of
organization to better exploit the opportunities of the market. The use
of electronic trade presently is in its infant stage in Greece and new
techniques and tools are among the goals of supermarkets and retailers
to meet competition. Normal services that supermarkets provide include:

 Home Delivery: The traditional way that grocers attract customers is
coming back in its electronic version. Orders are now received through
telephone, fax and internet.

 Establishment of Cash and Carries: More than half of cash and carries
established in the last two years belong to supermarket chains.

 Sale of 'new' products: Big supermarkets have opened special
departments with \"shop-in-shop\" arrangements selling mobile phones,
electronic and electrical equipment.

 Development of ready-meals department: These departments have been
expanded in many supermarkets with a variety of meals offered.

 Entrance into the travel and leisure market: Carrefour Marinopoulos
introduced this activity with the opening of 2 travel agencies called
Carrefour Travel, operating in two hypermarkets. Other Carrefour stores
plan to follow suit.

Greek importers and consumers favor U.S. products because of their good
quality and wider variety. However, existing constraints limit the U.S.
market share of U.S. food and agricultural products to 3%.

Advantages and Challenges facing U.S. exporters

+-----------------------------------+-----------------------------------+
| ###### Advantages                 | **Challenges**                    |
+-----------------------------------+-----------------------------------+
| Greek per capita income is        | Only a limited number of          |
| increasing                        | importers and distributors are    |
|                                   | aware of the variety and          |
|                                   | innovative U.S. food products     |
|                                   | that can be exported to Greece.   |
+-----------------------------------+-----------------------------------+
| The top 10 supermarkets account   | Price wars are strong pressure on |
| for 84% total supermarket sales.  | suppliers. U.S. suppliers need to |
| Several are importing directly.   | be price-competitive. Educate the |
|                                   | sector representatives about the  |
|                                   | high quality, variety and         |
|                                   | availability of U.S. food         |
|                                   | products.                         |
+-----------------------------------+-----------------------------------+
| Retail trade is expanding         | U.S. exporters are not fully      |
|                                   | aware of the existing market      |
|                                   | opportunities in the Greece       |
|                                   | market.                           |
+-----------------------------------+-----------------------------------+
| Greek importers favor U.S.        | Average tariff levels remain high |
| products because of good quality  | increasing products' price. GM    |
| and wider variety.                | labeling requirements on the      |
|                                   | other hand result in consumer     |
|                                   | concern.                          |
+-----------------------------------+-----------------------------------+

# SECTION II. ROAD MAP FOR MARKET ENTRY

*A. Super Stores, Supermarkets, Hypermarkets or Other Center, Club and
Warehouse Outlets*

Entry Strategy

Eighty per cent of Greece's import trade is handled through sales agents
or distributors.  Distributors operate on wholesale (and in some cases,
retail) basis with exclusive sales rights for certain districts or for
the entire country. There are over 300,000 trading establishments in
Greece, often small, family-owned and operated businesses, each of which
deals in a narrow range of foods. There are 7,700 corporations and
limited liability companies engaged in wholesale trade and 3,200
corporations and limited liability companies handling retail trade.

Food and beverage products of U.S. origin complying with EU rules and
regulations would not require special permits (nor they are subject to
special rules or regulations) for commercialization in Greece. However,
biotech products are handled quite strictly. If a U.S. food product,
other than food supplements, conforms to any single EU member state's
rules and regulations it can then be transshipped and sold in any other
EU member state. For additional information on trade restrictions food
standards and regulations, please refer to Athens Food and Agricultural
Import Regulations and Standards Report (FAIRS), available on internet
website: [http://www.fas.usda.gov](http://www.fas.usda.gov/), and to
EU-25 FAIRS report available on:
[www.useu.be/agri/label.html.]{.underline}

Greece is as a member of the European Union (EU). Greece follows about
90% of the EU's food regulations. Additionally, Greece maintains
specific labeling and ingredient rules for some food products under the
Greek Food Code. Labeling and ingredient legislation for all food and
agricultural products is based on EU rules and regulations. Greece
requires that labels be in the Greek language. Multi-language labels are
accepted. New to market food products require prior approval by the
General Chemical State Laboratory. Products complying with the terms,
regulations and provisions of the current Food Code do not require
special permits in order to be imported and marketed in Greece.

To enter the Greek market, it is very important to have an agent or
joint venture partner, with a suitable background, and the ability to a
service network, providing full support to the end-user. The FAS Office
in Athens maintains a list of potential importers and distributors. Most
hypermarkets and supermarkets act as importers/agents for some products.

Market Structure

♦ Products are usually imported by an importer or agent, who may also be
a wholesaler and/or distributor. The importer is responsible for the
delivery of products to their distribution center.

♦ As mentioned above, supermarkets act as importers too.

♦ The agents usually undertake promotional campaigns for the products
they import.

Most of the distributors have nationwide distribution channels.

Following table provides information on the major retail outlets that
are established in Greece:

+-----------------+------------+------+--------+----------+----------+
| ###             |            |      |        |          |          |
| ### Major Super |            |      |        |          |          |
| market Profiles |            |      |        |          |          |
+-----------------+------------+------+--------+----------+----------+
| **Retailer Name | **O        | *    | **No.  | **Loc    | **Purc   |
| and Outlet      | wnership** | *Sal | of     | ations** | hasing** |
| Type**          |            | es** | Out    |          |          |
|                 |            |      | lets** |          | **Agent  |
|                 |            | **20 |        |          | Type**   |
|                 |            | 03** |        |          |          |
+-----------------+------------+------+--------+----------+----------+
| A-B             | Bel        | \    | 106    | All over | Importer |
| Vassilopoulos/  | gian/Greek | $974 |        | the      |          |
|                 |            | mil  |        | country  |          |
| TROFO/ENA       |            | lion |        |          |          |
+-----------------+------------+------+--------+----------+----------+
| SKLAVENITIS     | Greek      | \    | 36     | Attika   | Importer |
|                 |            | $825 |        |          |          |
|                 |            | mil  |        |          |          |
|                 |            | lion |        |          |          |
+-----------------+------------+------+--------+----------+----------+
| VEROPOULOS      | Greek      | \    | 193    | All over | Importer |
| GROUP/          |            | $683 |        | the      |          |
|                 |            | mil  |        | country  |          |
| CHALKIADAKIS    |            | lion |        |          |          |
+-----------------+------------+------+--------+----------+----------+
| ATLANTIK        | Greek      | \    | 192    | All over | Importer |
|                 |            | $581 |        | the      |          |
| (Supermarket &  |            | mil  |        | country  |          |
|                 |            | lion |        |          |          |
| Cash & Carry)   |            |      |        |          |          |
+-----------------+------------+------+--------+----------+----------+
| MASOUTIS        | Greek      | \    | 159    | Northern | Importer |
|                 |            | $521 |        | Greece   |          |
|                 |            | mil  |        |          |          |
|                 |            | lion |        |          |          |
+-----------------+------------+------+--------+----------+----------+
| METRO (Cash &   | Ge         | \    | 63     | All over | Importer |
| Carry)          | rman/Greek | $457 |        | the      |          |
|                 |            | mil  |        | country  |          |
| My Market       |            | lion |        |          |          |
+-----------------+------------+------+--------+----------+----------+

*B. Convenience Stores, GAS Marts, Kiosks*

Entry Strategy

Convenience and other small stores that cater to every day needs exist
throughout the neighborhoods of Athens and its suburbs. These are
beverage shops, mini markets, and kiosks, most of which have grown into
small general stores. The main reason for their existence is to cater to
the emergency needs of an area's inhabitants for products of everyday
consumption, particularly when big stores are closed or when it is
impractical to pay a visit to the supermarket. These shops can be called
\"small points of sale\" and constitute an integral traditional part of
the Greek market. In 2003 seven-eleven type stores opened in the Athens
metropolitan area, under the OLA convenience store chains and the TO
MIKRO chain. No financial data are yet available.

Market Structure

The same local representatives (importers/agents) who supply the
supermarkets supply the convenience stores either directly or through
wholesalers. The last couple of years, and especially last year,
hypermarket and supermarket chains started establishing proximity
stores.

-   Convenience stores usually sell dairy products, sodas, beverages,
    some dry grocery products, juices and a limited range of non-food
    products.

-   Gas station mini markets sell newspapers and magazines, tobacco,
    snacks, dairy products and ice cream, and some dry grocery items.

-   Kiosks sell tobacco, newspapers, snacks, and ice cream.

C. Traditional Markets -- "Mom and POP" Small Independent Grocery Stores
and Wet Markets

The wholesalers who supply the convenience stores supply the traditional
market shops as well. Most of the products sold in traditional markets
are locally produced.

*D. Internet Sales of Food Products and Beverages*

Internet sales of food products is not a common practice in Greece. One
supermarket only offers this service, though not popular.

# SECTION III. COMPETITION

The retail sector, the most dynamic sector in the Greek economy,
includes some of the biggest and most advanced companies and provides
good potential for the U.S. food items. The main competitor in Greece is
the European Union. EU-15 countries supplied in 2002 agricultural and
food products amounting \$2.9 billion, of the total of \$4.2 billion. As
shown in the following table, Netherlands, Germany and France are the
leading country suppliers in the food and agricultural trade.

+-------------------------------------+--------------------------------+
| **Greek food imports by Country of  |                                |
| Origin - 2002**                     |                                |
|                                     |                                |
| **(in million dollars)**            |                                |
+-------------------------------------+--------------------------------+
| **Country of Origin**               | **\$Value**                    |
+-------------------------------------+--------------------------------+
| Holland                             | 589,220                        |
+-------------------------------------+--------------------------------+
| Germany                             | 431,140                        |
+-------------------------------------+--------------------------------+
| France                              | 419,632                        |
+-------------------------------------+--------------------------------+
| Italy                               | 419,010                        |
+-------------------------------------+--------------------------------+
| Belgium                             | 177,861                        |
+-------------------------------------+--------------------------------+
| Spain                               | 148,337                        |
+-------------------------------------+--------------------------------+
| Denmark                             | 127,486                        |
+-------------------------------------+--------------------------------+
| Russia                              | 122,306                        |
+-------------------------------------+--------------------------------+
| U.S.                                | 111,737                        |
+-------------------------------------+--------------------------------+

Source: UN Data

In 2002, the U.S. ranks 9^th^ in the list of food and agricultural
suppliers with imports totaling \$123 thousand, of which \$40 thousand
is in the consumer-oriented category. CY 2003 consumer-oriented products
of U.S. origin imported into Greece account for \$60.4 million.

Other than the U.S., Russia, Romania and Turkey are included in the non
EU-15 leading country suppliers.

# SECTION IV. BEST PRODUCT PROSPECTS

A.  PRODUCTS PRESENT IN THE MARKET WHICH HAVE GOOD SALES POTENTIAL

[Frozen foods]{.underline}: One of the fastest growing markets in Greece
is the frozen food market, especially frozen vegetables, french fries,
fish, meat and dough. Now that about 25% of Greek families, especially
in the big cities, have microwaves and freezers, the demand for
convenience foods is increasing. Frozen foods are increasingly sought by
urban Greek consumers. Sales of frozen vegetables in 2002 amounted to
approx \$51 million, with supermarkets being the major selling point.
The dough category shows a 8% increase in sales reaching approx \$68
million. The French fries market remains stable the last couple of years
with annual sales amounting approx \$6.16 in 2002.

[Frozen and Salted Fish]{.underline}: Fish consumption in Greece has
been increasing since 1995, in line with public awareness that seafood
is healthy and can substitute for meat consumption.  Greek fish and
seafood products imports accounted for \$316 million in 2002. Seafood
consumed per capita is 24 kilograms.  Consumption of frozen fish and
seafood products reached 65,000 MT in 2002, of which 32,000 MT consisted
of processed seafood products. *** ***U.S. exporters supply Alaska
Pollack, Pacific Salmon, squid, and dogfish. 

[Tree Nuts]{.underline}: Greeks are among the largest per capita tree
nut consumers in the world.  Tree nut *c*onsumption trends in Greece are
gradually increasing in the food and confectionery industry while demand
in the snack food sector remains stable.  Good quality tree nuts are
mostly used as snack food.  Consumption figures include snack,
confectionary, ice cream and bakery uses. One of the more popular tree
nut products among Greek consumers is almonds.  In CY 2003 the value of
imported almonds amounted to \$33 million, of which \$28.2 were of U.S.
origin. Annual consumption of almonds in Greece is roughly 19-21,000 MT
and it is steadily increasing from year to year.  Almond consumption
represents 35% of total nut consumption. 

[Pulses]{.underline}: Mainly beans and lentils, have good potential in
the Greek market. Declining domestic production, coupled with the fact
that pulses are considered a healthy food, favor imports.

B.  PRODUCTS NOT PRESENT IN SIGNIFICANT QUANTITIES BUT WHICH HAVE GOOD
    SALES POTENTIAL

[Meat]{.underline}: The sector has a very important role in the Greek
market, since meat constitutes one of the most basic foodstuffs for
Greeks, with around 88.4 kgs per capita average meat consumption. Almost
90% of beef consumed in Greece is imported. The market for meat has
returned to normal levels, after various food crises, with consumers
paying more attention to matters having to do with safety and hygiene
and in general requesting products labeled by HACCP and ISO quality
control certificates.

[Wine - Beer - Juices and Soft Drinks]{.underline}: Greece is a \$430
million wine market with wine consumption in upward trend. Per capita
consumption reaches 26 liters. There are more than 130 imported beer
brands, which cover 6% of the market. Beer sales in 2003 amounted to
approx \$145 million. The soft drink market also has been characterized
by continual growth over the past decade. CY 2003 sales of juices
amounted \$162 million, with long life juices dominating the sector.

[Organic foods]{.underline}: Organic foods made their appearance 4-5
years ago and the trend is continuing. The European food crises of
recent years have made consumers turn to organics as they look for
\"safer\" foods, since they perceive that risk lies in commercial, mass
production. Because it is perceived to be \"healthy\", demand for
organic food products is forecast to rise.

[Dairy Products:]{.underline} Dairy products constitute one of the most
important categories of foodstuffs in domestic consumption. Their share
of total food consumption exceeds 17% and is increasing annually. Cheese
products hold also a noteworthy position in Greek supermarkets,
accounting for about 12% of sales. Greeks rank among the biggest cheese
consumers in the world. Ice cream, although seasonally consumed, is at
an average per capita consumption of 5 liters.

C. PRODUCTS NOT PRESENT BECAUSE THEY FACE SIGNIFICANT BARRIERS

[Turkey and Other Poultry products]{.underline}: EU member states still
do not import poultry products of U.S. origin.

# SECTION V. POST CONTACT AND FURTHER INFORMATION

For additional information and lists of private sector contacts,
available from our office to exporters of U.S. food products, please
contact the Foreign Agricultural Service Office in Athens at the
following address:

Foreign Agricultural Service

American Embassy

8, Makedonon Str.

GR-101 60 Athens

Tel. ++30-210-720-2233

Fax: ++30-210-721-5264

[Email:AgAthens@usda.gov or]{.underline} <fasgr@ath.forthnet.gr>

FAS home page: [http://www.fas.usda.gov](http://www.fas.usda.gov/)

U.S. Embassy Athens home page[:]{.underline}
[http://www.usembassy.gr](http://www.usembassy.gr/)

A list of Food and Agricultural shows taking place in Greece as well as
promotional activities organized by our office are available on
FAS/Athens page of the U.S. Embassy Athens web page.

For more information on exporting U.S. agricultural products to other
countries, please visit the Foreign Agricultural Service home page[:
hppt://www.fas.usda.gov]{.underline}

**GREEK GOVERNMENT AGENCIES**

Agency responsible for Greek labeling/product ingredient regulations:

**General State Chemical Laboratory**

Directorate of Foods

Ms. Asimina Papathanasiou, Director

16, A. Tsoha Str, GR-115 21 Athens

Tel.: ++30-210-6479-251

Fax: ++30-210-6467-725

Email: <gxk-foodiv@ath.forthnet.gr>

Agency responsible for controlling food quality:

**Food Control Agency (EFET)**

Mr. Nikos Katsaros, President

5, Karystou Str., GR-115 53 Athens

Tel. ++30-210-6971-500

Fax: ++30-210-6971-501

Email: <info@efet.gr>

# OTHER CONTACTS

# Hellenic Association of Frozen Food

226 Pireos Str.

GR-177 78 Tavros, Athens

Tel. ++30-210-3423-287

Fax: ++30-210-3452-098

Email: <pasekt@ath.forthnet.gr>

# SESME -- Supermarket Association

Director

7 Andrianou Str.

GR-154 51 Neo Psychico, Athens

Tel. ++30-210-6756-618

Fax: ++30-210-67-56-389

Email:sesme@ath.forthnet.gr

**Exchange Rates Used:**

Average 2001: \$1.00 = €1.117

Average 2002: \$1.00 = €1.100

Average 2003: \$1.00 = €0.925

October 2004: \$1.00 = €0.802

Source: Charleston Financial Management Center (US Government)