Required Report - public distribution

**Date:** 2/28/2008

**GAIN Report Number:** GR8001

GR8001

**Greece**

**HRI Food Service Sector**

**Annual**

**2008**

**Approved by:**

![](media/image1.wmf)Robin Gray

U. S. Embassy, Rome

**Prepared by:**

Stamatis Sekliziotis

Elena Mouzakiti

**Report Highlights:** With Greece's current economic climate and
changing demographics there are likely to be increasing market
opportunities for U.S. exports. In particular, convenience foods,
products for the restaurant and tourism sectors, ethnic foods, and
organic and health food alternatives have promising market openings.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Rome \[IT1\]

\[GR\]

Table of Contents

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

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

[B. Market Structure 3](#b.-market-structure)

[C. Sub-Sector Profiles 3](#c.-sub-sector-profiles)

[SECTION III. COMPETITION 3](#section-iii.-competition)

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

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

#  Section I. MARKET SUMMARY

**1.1 General**

Hellenic Republic (2005 est. pop. 10,668,000), 50,944 sq mi (131,945 sq
km), SE Europe. It occupies the southernmost part of the Balkan
Peninsula, with extensive coastlines and islands in the Aegean, Ionian,
and Mediterranean Seas. It shares borders in the north with Albania (282
km), the Former Yugoslav Republic of Macedonia (246 km), Bulgaria (494
km) and Turkey (206 km). Furthermore, it\'s a geographically appealing
place to visit, with a mountainous mainland and idyllic island beaches.
The Aegean Sea lies to the east and south of mainland Greece, while the
Ionian Sea lies to the west. Both parts of the eastern mediterranean
basin feature a vast number of islands. Greece has a presidential
parliamentary system and is governed under the constitution of 1975.
There is a 300-member unicameral parliament, which elects a president
for a five-year term. The executive branch also includes a premier and a
cabinet. The country is divided into 13 administrative regions,
subdivided into 52 prefectures or *nomoi,* which are responsible for
most local government.

![](media/image2.png){width="5.663888888888889in"
height="5.413888888888889in"}

+------------------------------------------------+---------------------+
| **[Demographics]{.underline}**                 |                     |
+------------------------------------------------+---------------------+
| **Total Population**                           | 10.9 million        |
+------------------------------------------------+---------------------+
| **Growth Rate**                                | 0.163%              |
+------------------------------------------------+---------------------+
| **Age Breakdown**                              |                     |
+------------------------------------------------+---------------------+
| 0-14 yrs                                       | 14.5%               |
+------------------------------------------------+---------------------+
| 15-64 yrs                                      | 67.0%               |
+------------------------------------------------+---------------------+
| Over 60 yrs                                    | 22.0 %              |
+------------------------------------------------+---------------------+
| 65 yrs and over                                | 18.6%               |
+------------------------------------------------+---------------------+
| **Life Expectancy**                            |                     |
+------------------------------------------------+---------------------+
| Total                                          | 78.9 yrs            |
+------------------------------------------------+---------------------+
| Male                                           | 76.4 yrs            |
+------------------------------------------------+---------------------+
| Female                                         | 81.5 yrs            |
+------------------------------------------------+---------------------+
| Unemployment rate (in %)                       | 9.2 (2006)          |
|                                                |                     |
|                                                | 8.8 (2007)          |
+------------------------------------------------+---------------------+

**1.2 Consumer Market**

Greek consumer needs are continuously evolving, with purchasing patterns
ever-changing. The average household is comprised of 2.6 persons, with
22% of the population over the age of 60 years. Increases in disposable
incomes, increased occurrences of dual income households as well as an
increase in single parent homes have resulted in a trend toward
convenience goods.

Households spend roughly 17% of their incomes on food and non-alcoholic
beverages, 17% on rent & housing expenses, while dining out and
hotel/travel expenses account (including vacation expenditure) for 18.5%
of income expenditure. A Greek consumer on average shops 3.5 times per
month - and looks for quality, convenience and ease of purchase as
opposed to focusing on price.

+---------+---------+---------+---------+---------+---------+---------+
| **C     |         |         |         |         |         |         |
| onsumer |         |         |         |         |         |         |
| Direct  |         |         |         |         |         |         |
| Spe     |         |         |         |         |         |         |
| nding** |         |         |         |         |         |         |
| (in %   |         |         |         |         |         |         |
| of      |         |         |         |         |         |         |
| income) |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| Food &  | Al      | Rest    | C       | Housing | Fur     | Transpo |
| non     | coholic | aurants | lothing | &       | nishing | rtation |
| al      | bev     |         | &       | energy  | &       |         |
| coholic | erages, | &       | f       |         | ho      |         |
| be      | tobacco | Hotels  | ootwear |         | usehold |         |
| verages |         |         |         |         | eq      |         |
|         |         |         |         |         | uipment |         |
+---------+---------+---------+---------+---------+---------+---------+
| 17.0    | 4.6     | 18.5    | 10.1    | 17.0    | 6.2     | 8.5     |
+---------+---------+---------+---------+---------+---------+---------+

Greek eating habits emphasize a traditional diet comprised of foods such
as barrel feta, Greek yellow cheeses, local desserts, olives, wine,
traditional pasta products, butter, fish, oil, plenty of fresh fruit,
vegetables and tree nuts and salt preserved products, all which still
represent a large part of purchases. However, eating habits outside the
traditional realm are continuously changing, creating a growing demand
for more convenient foods and diverse eating opportunities outside of
the home. Expenses related to dining out represent roughly 19% of Greek
household income. More than 50% of Greeks purchase ready-to-eat meals
for consumption at home. The most popular ready-made meals are pizza,
souvlaki, chicken, hamburgers/fast food, Chinese, pasta, and Greek
cooked food. Greeks between the ages of 18 and 40 are most likely to
purchase ready-to-eat meals.

In addition, current food trends show an increase demand for organic
goods and healthy alternatives. These products meet the Greek consumer's
perception of better quality, taste and health. Although the Greek
organic farming industry is developing fast, the potential for exporters
to penetrate this market exists. Nevertheless, convenience and frozen
foods, as opposed to fresh products, will experience a continuous and
increasing demanded as lifestyles become busier. Moreover, their added
shelf life is of benefit to food distributors. Frozen foods are one of
the fastest growing markets in Greece, especially frozen vegetables,
French fries, fish, and meat.

  ------------------------------------------- ---------------------------
  **[Main Cities]{.underline}**               

  Athens & Piraeus                            4.5 million

  Thessaloniki                                1.2 million

  Patras                                      300,000

  Larissa                                     271,000

  Iraklion                                    265,000
  ------------------------------------------- ---------------------------

Domestic demand for poultry experienced a considerable drop as a result
of a series of regional and international AI scares. Additionally,
increased efficiencies in domestic poultry farming negatively affected
the prices of poultry. Currently, the demand for poultry seems to be
recovering and the domestic demand for red meat remains high. More than
50% of the red meat consumed in Greece is imported from abroad. There is
good potential for a growth in the import market for red meat as Greek
incomes continue to grow. High quality beef has great potential for
sales to increasingly affluent consumers, mainly within the hotel and
restaurant sector. New trends in the meat market favour higher quality,
labeled products, while organic meat and dairy products are also gaining
in popularity. However, only a small portion of the population views
this as a realistic regular purchase given the price premium.

Fish consumption in Greece has been increasing since 1995, primarily due
to the promotion of the healthful aspects of eating fish. Fish is
increasingly being seen as a protein replacement for beef. Approximately
120,000 MT of fresh fish are consumed in Greece annually. About 70,000
MT of fish are produced in fish farms and are readily available.
However, the majority of these fish are exported. Greeks continue to
prefer open-sea fish, as opposed to aquaculture or frozen fish meat.

Greeks rank among the biggest cheese consumers in the world with an
annual per capita consumption exceeding 26 kg. Feta cheese is the most
popular type of cheese with annual sales totaling 140 000 metric tons.
Feta cheese is a traditional Greek product made from a mixture of goat's
and sheep's milk. It has an exceptional taste, a low fat content and a
nice white color, which occurs naturally, without artificial whitening
agents.

Many opportunities for U.S. exporters exist within the Greek market.
Niche markets could include an increase in exports of tree nuts, as well
as dry beans and lentils. Dry beans and lentils have a strong potential
in the Greek market, with declining domestic production and their appeal
to the consumer as a healthy food. Domestic production of pulses total
68,000 MT, of which 30,000 MT are imported (beans, lentils, peas,
garbanzos, black-eyed beans, other). Other products with good sales
potential include frozen foods, frozen and salted fish, meat, alcoholic
beverages, organic foods, dairy products, some exotic fruits, common
fruit in seasons of shortage, a variety of non-GMO food ingredients for
the domestic food preparation and processing industries and the
well-developed confectionary and ice cream sectors.

Commodity: AGRICULTURAL, FISH & FORESTRY TOTAL EXPORTS

  ------------ ------- ------- ------------- ------------- ------------- ------------- ------------- -------- ----------------- ------------ -----------
  **GREECE**                   **JANUARY -                                                           **\|**   **JANUARY -                    
                               DECEMBER**                                                                     MARCH**                        

                               **Values IN                                                           **\|**   **COMPARISONS**                
                               1000                                                                                                          
                               Dollars**                                                                                                     

  ** **                        **2002**      **2003**      **2004**      **2005**      **2006**      **\|**   **2006**          **2007**     **%CHNG**

                                                                                                                                             

  **TOTAL**    ** **   ** **   **119,932**   **127,572**   **127,083**   **167,978**   **142,348**   **\|**   **37,705**        **44,413**   **17.79**

                                                                                                                                             
  ------------ ------- ------- ------------- ------------- ------------- ------------- ------------- -------- ----------------- ------------ -----------

> Commodity: AGRICULTURAL, FISH & FORESTRY TOTAL IMPORTS

  ------------ ------- ------- ------------- ------------- ------------- ------------- ------------- -------- ----------------- ------------ -----------
  **GREECE**                   **JANUARY -                                                           **\|**   **JANUARY -                    
                               DECEMBER**                                                                     MARCH**                        

                               **Values IN                                                           **\|**   **COMPARISONS**                
                               1000                                                                                                          
                               Dollars**                                                                                                     

  ** **                        **2002**      **2003**      **2004**      **2005**      **2006**      **\|**   **2006**          **2007**     **%CHNG**

                                                                                                                                             

  **TOTAL**    ** **   ** **   **171,067**   **178,642**   **179,359**   **219,242**   **203,821**   **\|**   **58,268**        **87,148**   **49.56**

                                                                                                                                             
  ------------ ------- ------- ------------- ------------- ------------- ------------- ------------- -------- ----------------- ------------ -----------

**1.3 Economy**

Greece has a small but open and well-established economy. The economy
has been growing steadily in recent years and like other smaller EU
members (i.e. Ireland) has benefited a great deal financially from EU
inclusion. The country's recent economic performance has shown real
promise. The government is currently engaged in a privatization program,
which is working towards lessening the government's role in the
country\'s activities. The GOG seems to be determined to continue
promoting reforms in order to safeguard the future performance of
Greece's economy. The GOG's primary objective is to achieve balanced
budgets by 2010. This includes the reform of the pension system and the
improvement of the efficiency of the public sector.

To date Greece is developing an outward-looking approach, and through
the implementation of bold reforms has already achieved positive
results. Fiscal consolidation has progressed successfully. A reduction
of the budget deficit was managed from 8% in 2004, to less than 3% in
2006 and 2007. As a result, the public debt is on a steadily declining
path, falling from 108.5% of GDP in 2004 to 101.9% of GDP this year.
Moreover, Greece experienced economic growth as a direct result of the
major projects and infrastructure development spurred by the Olympic
games of 2004.

Greece has established a strong international economy in shipping,
transport and tourism. Due to its geographic location, Greece has long
been an important shipping route and one of the most popular tourist
destinations in the world. Nearly 15 million visitors visit Greece each
year, and the number of tourists continues to increase at a pace of
about 6.8 - 7.0 percent per year.

The Greek economy has been growing at a rate of twice that of the EU.
And, although negative macroeconomic indicators, such as inflation rates
of 3.7%, exist, the indicators have improved markedly from the double
digit burdens seen a decade ago. Furthermore, this improvement seems to
indicate an overall trend toward economic improvement. Greece has
managed to maintain high growth rates, despite soaring oil prices and
the expectations of an economic slowdown after the Olympic games in
2004.

In the first quarter of 2007, exports, which include tourism and
shipping, expanded 9.5 percent, according to official statements. That
is the fastest growth since the fourth quarter of 2004, the year of the
Athens Olympics.

  --------------------------- ------------ ------------ ---------- ------------ ---------- ------------ ------------
  **[Demographic and economic                                                                           
  indicators]{.underline}**                                                                             

                              **2004**                  **2005**   **2006**     **2007**                **2008**

  Population aged 65+:        1,970.57     2,006.98                2,059.80                2,069.23     2,084.17
  January 1st (\'000)                                                                                   

  Population density (people  83.67        83.99                   84.31                   84.64        84.96
  per sq km)                                                                                            

  GDP measured at purchasing  318,552.00   341,114.00              367,153.00              391,395.00   412,521.00
  power parity (million                                                                                 
  international \$)                                                                                     

  Real GDP growth (% growth)  4.70         3.70                    4.30                    3.90         3.60

  Annual rates of inflation   2.89         3.56                    3.20                    3.00         3.20
  (% growth)                                                                                            

  GDP by sector:                                                                                        

  Agriculture                                                                              8%           

  Industry                                                                                 22%          

  Services                                                                                 69%          

  Consumer expenditure (US\$  191,757.48   204,991.90              221,200.80              236,721.47   243,824.80
  million)                                                                                              

  Online shopping expenditure 238.69       299.08                  355.57                  519.26       
  (US\$ million)                                                                                        

  Annual gross income (US\$   195,107.26   207,575.14              221,813.25              234,213.12   238,965.32
  million)                                                                                              

  Annual disposable income    150,767.02   161,869.19              174,395.93              186,858.42   194,860.21
  (US\$ million)                                                                                        
  --------------------------- ------------ ------------ ---------- ------------ ---------- ------------ ------------

*Source: World Economic Factbook*

**1.4 Investments**

Greece's growth and investment climate is dynamic as a result of a key
policy measures taken:

-   corporate tax rates were reduced from 35% in 2004 to 25% this year

-   generous investment incentives, up to 60% of an investment project

-   a well targeted policy for the promotion of exports

-   the reduction of bureaucratic procedures

-   substantial acceleration of projects funded by the European Union

The last measure is considered of particular important because these
projects are essential to achieve convergence with the European Union.
Further, it is essential that Greece continue to modernize
infrastructure, to improve and maintain the competitiveness of its
economy.

Greece was developed into a major foreign investor in Albania and FYROM,
and ranks among the top three foreign investors in Bulgaria, Romania and
Serbia. Food trading, processing, flour milling, supermarket chains,
real estate, and construction are among the leading activities in these
regions. With Greece's easy access to the emerging markets of Southeast
Europe, the Middle East, and North Africa, and the strong cultural and
business ties in the entire region, Greece is strategically located as
these other regions experience growth and development. More than 3,300
Greek companies and more than 2,000 branches of Greek banks operate in
the region. Greece is a strong maritime and shipping hub, with a large
fleet. In conjunction with, it is fast becoming an energy hub,
especially for the transport of oil and natural gas.

The investment climate in Greece is highly favorable, with cash grants
of up to 60% of overall investment costs and tax breaks of up to 100% of
overall investment costs. Additionally, subsidies are available for
priority sectors and industries. In 2006, Foreign Investment net flows
were 4.3 billion EURO, nine times greater than 2005.

At present, more than 35 projects with a value exceeding \$1 billion are
underway. These projects are within a wide range of industries,
including: leisure and entertainment, financial services, business
services, communications, software and IT services, hotels and tourism,
textiles, real estate and golf real estate, food and consumer products,
beverages, biotechnology (mostly medical), semiconductors, warehousing
and storage. In particular, attractive investment opportunities exist in
the tourism sector in:

*Integrated Resorts\
Convention Centers\
Holiday Homes & Agrotourism\
Marinas\
Golf Resorts and Spas\
Commercial Real Estate\
Leisure and Entertainment*

The Food & Beverage sector is the most dynamic and high growth sector in
Greek manufacturing. Twenty-five percent of the most profitable Greek
companies are food & beverage companies. The production growth rate
experienced in this sector is almost double that of the entire
manufacturing industry.

Even with EU expansion, Greek production costs remain among the most
competitive, while still maintaining high standards. Greek-based
companies have developed an extensive import-export network which covers
Southeast Europe and the Middle East. Multinationals such as Nestle,
Coca-Cola, Pillsbury, and Barilla manufacture in Greece to supply both
the domestic and emerging regional markets.

*Greece's Competitive advantages include:*

-   Availability of quality raw materials

-   A large cluster of suppliers and advanced know-how

-   Untapped regional markets

-   Worldwide recognition of Mediterranean diet and its products

-   High Greek consumer awareness of international brands

-   Competitive labor costs

-   R&D infrastructure

-   Generous investment incentives

*Investment opportunities in the food sector include:*

-   Mediterranean food products

-   Organic food

-   Ready made meals

-   Frozen food

-   Small fruit

-   Selective subtropical products

-   Baby food

-   Chocolate & confectionery

  ------------------------------------------------ -------------------- ----------
  **Greek Imports (2006) (€ and %)**                                    

                                                                        

   Food and live animals                           4,409,077,957         8.69%

   Beverages and tobacco                           718,979,612          1.42%

   Crude materials, inedible, except fuels         1,225,395,818        2.41%  

   Minerals, fuels, lubricants, etc.               9,714,815,666        19.15% 

   Animal and vegetable oils and fats              165,524,020          0.33% 

   Chemicals                                       6,926,693,790        13.65%

   Manufactured goods classified mainly by raw     7,163,220,080        14.12%
  material                                                              

   Machinery and transport equipment               14,475,587,461       28.53%

   Miscellaneous manufactured articles             5,772,856,821        11.38%

   Commodities and transactions, not classified by 162,030,505          0.32%
  category                                                              

  ** Total**                                       **50,734,181,730**   **100%**
  ------------------------------------------------ -------------------- ----------

***Source:** National Statistical Service of Greece.*

  ------------------------------------------------- -------------------- ----------
  **Greek Exports (2006) (€ and %)**                                     

                                                                         

   Food and live animals                            2,333,840,816        14.01%

   Beverages and tobacco                            508,204,552          3.05%

   Crude materials, inedible, except fuels          1,061,712,539        6.38% 

   Minerals, fuels, lubricants, etc.                2,170,488,713        13.03%

   Animal and vegetable oils and fats               480,434,372          2.89%

   Chemicals                                        2,177,448,771        13.08%

   Manufactured goods classified mainly by raw      3,412,346,224        20.49%
  material                                                               

   Machinery and transport equipment                2,092,497,916        12.57%

   Miscellaneous manufactured articles              1,962,468,256        11.78%

   Commodities and transactions, not classified by  452,215,576          2.72%
  category                                                               

  ** Total**                                        **16,651,657,735**   **100%**
  ------------------------------------------------- -------------------- ----------

***Source:** National Statistical Service of Greece.*

**1.5 Tourism Standing**

Greece ranks 24^th^ place among 124 countries in the overall rankings
for the Travel and Tourism Competitiveness Index, according to the Union
of Greek Industries (SEB) and the Association of Greek Tourist
Enterprises (SETE). The country is behind competitors in its immediate
neighborhood, such as Spain (15^th^ place), Cyprus (20^th^ place) and
Portugal (22^nd^ place), though ahead of nearby Croatia (38^th^ place),
Turkey (52^nd^ place) and Egypt (58^th^ place). Among Greece's
strengths, according to the World Economic Forum, are maintenance of
hygiene (3^rd^ worldwide), high level of security (18^th^ worldwide),
abundance of cultural resources (23^rd^ worldwide), as well as positive
attitude of Greeks toward tourists (23^rd^ worldwide). Augmenting these
factors, the GOG has placed a high priority to tourism in government
action (22^nd^ worldwide).

The tourism sector's contribution to the Greek Gross Domestic Product
reached 18.2 percent after a recent GDP revision according to the
Association of Greek Tourist Enterprises (SETE). Tourism's direct
contribution to the Greek economy was 7.27 pct in 2005, while the
contribution of tourism economy was 16.35 pct before the GDP revision.
Based on the average per capita spending by foreign tourists, Greece
ranked 10^th^ in the world tourism league with 1,072 US dollar tourist,
while the country ranked 24^th^ in the general economic competitiveness
list. Tourism accounted for 6.1 pct of per capita GDP in Greece, while
total tourism revenues accounted for more than 1,200 US dollar per
capita. These figures rank Greece 5^th^ and 9^th^ in the world league,
respectively.

In 2006, there were over 867,000 jobs in the Greek tourist economy,
accounting for 20 percent of the total labor force. By the year 2016,
direct and indirect employment in the tourist economy is expected to
increase by 349,000 jobs, amounting to almost 21 percent of total
employment.

The government intends to promote winter tourism in Greece, potentially
increasing international arrivals further. The Central Macedonia Region,
northern Greece, is focusing on alternative forms of tourism like
agrotourism, religious and sports tourism to become an all-year-long
tourist destination. The region's proximity to the Balkan states
increases the tourist flow from those countries. Government's goal is to
create "Tourist Charters" in each of the country's regions, making
tourism a top priority.

The numerous forms of tourism, such as congress, marine, cultural,
gastronomic, ecological and health-spa tourism, are the pillars for the
development of Greece's new tourist product. Over the last ten years,
35,000 conference events have been organized at an international level.
More than 60% of congresses are held on European territory, and more and
more they tend to be combined with exhibitions. One of the additional
benefits to Greece in becoming a location for congress tourists, is that
it prolongs Greece's tourist period. Tourism is the only fast-developing
sector of global economy in which Greece has a leading part.

**1.6 Traffic Development**

Private and public infrastructure improvements made for the 2004 Olympic
Games in Athens, have helped attract more visitors to Greece. These
improvements have fostered a perception among travelers that Greece is a
safe destination.

For the 5^th^ consecutive year, Athens International Airport has
experienced a healthy passenger traffic growth -- an increase of 5.6% in
2006. In fact, in that year, with a total of 15.08 million passengers,
Athens International Airport (AIA) broke a new passenger traffic record.
It is now among the "family" of the biggest European airports, with an
important position in the market. Domestic passenger traffic grew by
5.8% and international traffic marked a 5.5% increase.

In 2006, Athens International Airport had scheduled direct connections
with 110 destinations in 48 countries. Passenger traffic reached 14.3
million in 2005, surpassing the 2004 "Olympic" record by 4.5% while
passenger traffic in 2004 reached 13.7 million passengers, a historical
passenger traffic record for Athens. The most popular destinations for
passengers were Thessaloniki (+22.9%), Heraklion (+8.4%), and Rhodes
(+13.2%), whereas domestic flights to/from Athens International Airport
increased by 10%. In the past four years, changes have been observed in
the ranking of the top domestic destinations, with Mytilini, Kos and
Chios islands presenting significant passenger growth and market share
increase, winning market share from "traditional" tourist destinations,
such as Corfu, Santorini and Mykonos.

**1.7 Hotel/Restaurant Industry**

The hotel sector in Athens and Greece is already initiating changes in
order to tackle the challenges of the post-Olympic tourism period. These
challenges include confronting the seasonal nature of Greek tourism,
enhancing Greece's competitive advantages in tourism and advancing other
tourism fields. Large hotel units in the country have already invested
and implemented strategic plans aiming at new tourism trends. Noteworthy
cooperation can be seen among the Athens' hotels, as well as investment
decisions by multinational companies regarding Greek hotels. These
factors are likely to lead to a deeper penetration of the Greek tourism
market. The significance of these developments include not only the
possible prolongation of the Greek tourism season, but also an increase
among the business and investment interests that the Olympic Games
brought to the hotel sector in Athens and Greece. Businessmen actually
realize that Greece has moved well beyond the period where it was
exclusively considered as a "sea-sun-sand" destination and look forward
to alternative opportunities to raise capital and to extend their
development plans further.

The Hotel/Restaurant Industry (HRI) food service sector grew rapidly in
conjunction with the Olympics. The related "tourism bubble" lasted for
2-3 years following the games. The size of the overall HRI food service
sector in 2006 was over €600 million (\$890 million).

-   The commercial catering sector accounts for nearly 58 percent of the
    whole catering market

-   Institutional catering accounts for 21 percent and

-   Airline catering for 27 percent

While this sector is highly competitive, it offers opportunities for
U.S. food ingredients, particularly tree nuts, a variety of dried fruit
products, snacks, frozen foods, single packaged foods, wines, and
seafood. Innovations and rising health awareness continue to drive
demand in 2007. Greek consumers show a growing interest in both local
and foreign cuisine. Ethnic foods, mainly Mexican, are showing potential
in the sector.

The key trends and gradual developments in food preferences are
summarized as follows:

Healthier image of local produce remains a barrier for packaged food
players

Localization - tradition as the main selling point

Packaging innovations - the 'same, but different' trend grows stronger

Private label products gain greater acceptance among Greek consumers

Consumer foodservice remains a major competitor for packaged food

Fortified/functional products are a driving force of innovation

Market Consolidation provides both a problem and a solution for minor
players

The polarization trend squeezes mid-priced products

Demand for more exotic flavors and ethnic food products grows stronger

The HRI sector will need to increase food service supplies to meet the
increase in the flow of tourists expected in the next couple of years.
While this presents exciting opportunities for U.S. agricultural
products, unfortunately, only a limited number of Greek importers and
distributors are aware of the variety of U.S. food products (ready to
consume and/or ingredients). This constraint extends to the HRI sector,
which relies predominantly on domestic products and imports from other
EU countries.

**1.8 Advantages, Opportunities and Challenges Facing U.S. products in
Greece**

U.S. exporters need to work closely with the industry, focusing on the
importers and distributors who can best promote U.S. products to the
Greek HRI sector. Certain issues should be taken into consideration
regarding the Greek food and beverage sector for
producers/retailers/distributors:

-   Greece is an import dependant country.

-   The majority of food suppliers in Greece experience annual growth in
    sales.

-   Establishing a representative office in Greece is often less costly
    than in other European Union (EU) markets. However, it can be a
    time-consuming and bureaucratic endeavor.

-   Many companies in the industry both produce and distribute their
    products.

-   Greece also serves as a \'bridge\' to the Balkans, Africa and Asia
    Minor.

-   Greece has experienced a consolidation of supermarket chains.

-   Many competitive products exist within the same category.

-   The food companies tend to have a concentration of distribution
    networks.

-   There is a focus on producing better quality at lower prices.

-   Many Greek companies are cooperating with multinationals to expand
    their exports and enhance their position in the Greek market.

-   Discount supermarkets stores have increased their sales of private
    label products.

-   Hotels and restaurants do not import in their own right.

-   Strict custom controls and document inspections take place.

-   Food of animal origin must be produced in a European Union
    (EU)-approved establishment.

-   Sampling and testing of imported food items and of food ingredients
    take place on random basis, approximately every 1 out of 10.

-   Emergency and more frequent sampling and testing take place in
    special cases.

-   Greece follows European Union regulations with respect to food and
    beverage products.  In some circumstances Greece instigates its own
    national laws and regulations with respect to certain food and
    beverage items.

-   A phytosanitary certificate (for plants) and a sanitary certificate
    (animal products) are required. When a food product is entering the
    country for the first time a sample must be tested by the State
    Laboratory.

-   In some situations, retailers impose their own standards on
    suppliers that are relevant to local market preferences.

The Greek food and beverage industry offers opportunities for the
following products:

-   Grocery products: Dairy products, snack food, confectionary,
    cereals, bakery products, pulses, tree-nuts, frozen foods.

-   Fresh fruit and vegetables: Apples, grapes, pears, oranges, exotic
    fruits, vegetables such as broccoli, potatoes, Chinese lettuce,
    celery, baby corn, mushrooms, cherry tomatoes and chilli peppers.

-   Seafood: Almost every size and kind of fish and especially mollusks,
    crustaceans, shellfish, larger multi-serve fish varieties.

-   Meat: High demand for beef, lamb, pork, game meat, poultry. Greece
    remains import reliant for meat products because local supply is too
    low to meet demand.

-   Organics: High demand for organic foods and low domestic production.

-   Beverages: Wine, beer, all fruit juice types and soft drinks appear
    to have the best potential.

# 

# SECTION II. ROAD MAP FOR MARKET ENTRY

**A. Entry Strategy**

It is highly recommended to have a business partner in Greece in order
to import food and beverage products. Usually an importer falls into one
of the following categories:

-   Importer: can be an agent or a distributor, or a wholesaler.

-   Agent: Usually have the responsibility of promoting products.

-   Distributor: usually has the capability to cover the whole country.

-   Supermarkets: Note that some supermarkets also import in their own
    right and distribute the products they are importing to their
    branches only.

-   Point of sale: supermarkets, restaurants, hotels, grocery stores,
    etc.

Wholesalers are only used when it comes to supplying grocery stores. 
Restaurants and hotels do not generally import in their own right. U.S.
exporters should give priority to identifying a suitable distributor,
partner or agent that can deliver direct to the point of sale. The role
of wholesalers is diminishing and distributors are becoming the most
important link in the food and beverage supply chain. Most distributors
are well established in the market and have the expertise to promote the
products effectively. Personal relationships are important in Greece and
for best results, suppliers should spend time developing their ties with
local partners. Greece is also a cost effective place to establish a
European presence. The government provides incentives to foreign
companies wishing to establish a business in Greece.

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)

Even though Greece is dynamic and is experiencing rapid growth, it is
quite competitive. Niche marketing into new segments appears to deliver
good success. When choosing and deciding on a distribution partner or an
agent, it is good to explain the profile and positioning of the product,
since they can guide U.S. traders through the Greek market and give them
the correct advice for marketing the product.

Online purchasing is not popular in Greece at present. There is still
much skepticism about online buying.  Although the big supermarkets are
offering their products online with home delivery, the service has not
experienced much uptake to date. Greek consumers prefer to see, touch
and examine what they are buying and use shopping as a means of
entertainment and personal interaction.

## B. Market Structure

+-----------------------------------------------------------------------+
| Hotels                                                                |
|                                                                       |
| Catering Services                                                     |
+-----------------------------------------------------------------------+

Food products are usually imported by an importer or agent, who may also
be a wholesaler and/or distributor. Big hotel chains and catering
services have their own central buying departments and act as importers
too.

Most of the distributors have nationwide distribution channels.

"Cash and Carries" sell to retailers and restaurants at more competitive
prices. METRO S.A., with 24 outlets, is the major "Cash and Carry" in
Greece.

The wholesalers/distributors buy from the local processing industry in
addition to importing.

## C. Sub-Sector Profiles

**1. Hotels and Resorts**

There are 106 hotel chains operating in Greece with over 700 high class
hotels. There are over 9,000 hotels in Greece with over 350,000 rooms.
In recent tourism surveys, Greece has moved from a "popular" destination
to a "preferred" destination. The growth of holiday homes has added a
powerful boost to the industry, resulting in a sharp increase in both
supply and demand for high-quality tourism services throughout the year.

Hotels in the greater Athens area reported a 9.1 percent increase in
occupancy rates in March 2007, compared with the same month the previous
year, according to Athens Hoteliers Association. Four-star hotels
recorded the biggest percentage increase in March (12.3 pct), followed
by three-star hotels (9.3 pct), two-star (7.1 pct), with five-star
hotels increasing (6.9) pct. A total of 407,209 travelers arrived at the
Athens International Airport in the first quarter of 2007, up from
341,293 last year. Fifteen percent of these travelers hailed from the
UK, 12 percent from Germany, 10 percent from the United States, 9.0
percent from Italy, 6.0 percent from Cyprus, 5.0 percent from France and
4.0 percent from Romania. During this period 39 percent of the travelers
reported that they were visiting Athens for both holiday and
professional reasons.

![](media/image3.wmf)

**Top 20 Greek Hotel and Restaurant Companies 2005**

**Ranked by Total Assets**

(€ ' 000)

  -------------- --------------- --------------- -------------- ------------- ------------ -------------
  **Rank         **Assets**                      **Turnover**                 **Pre-tax    
  Company**                                                                   profits**    

                 **2004**        **2005**        **2004**       **2005**      **2004**     **2005**

  1\. IONIAN     257.442         247.805         47.290         43.220        -784         532
  HOTEL                                                                                    
  ENTERPRISES                                                                              
  S.A.                                                                                     

  2\. ASTIR      187.475         184.896         22.675         22.366        462          -6.103
  PALACE                                                                                   
  VOULIAGMENI                                                                              
  S.A.                                                                                     

  3\. HELIOS     168.754         180.660         24.419         32.357        4.031        7.540
  S.A.                                                                                     

  4\. ALDEMAR    137.361         154.277         23.818         27.304        473          1.970
  S.A.                                                                                     

  5\. ATTIKOS    149.267         153.808         14.218         17.995        -3.898       -3.830
  ILIOS S.A.                                                                               

  6\. KIPRIOTIS, 106.796         115.594         18.115         18.906        143          524
  G. & SONS S.A.                                                                           

  7\. ELLINIKI   23.446          115.093         6.970          35.965        -1.505       -10.566
  TOURISTIKI                                                                               
  S.A.                                                                                     

  8\. MARIS      103.567         105.330         25.578         28.789        -834         1.209
  HOTELS TEAB                                                                              
  S.A.                                                                                     

  9\. TOURISTIKA 108.000         105.210         8.007          11.466        -3.145       -1.422
  SYNGROTIMATA                                                                             
  ELLADOS S.A.                                                                             

  10\. LAMPSA    101.710         103.385         30.498         31.001        4.299        4.398
  HELLENIC                                                                                 
  HOTELS CO.                                                                               
  S.A.                                                                                     

  11\. MAHO S.A. 101.269         102.110         7.472          8.216         101          -172

  12\. LOUTRA    101.153         97.742          8.700          14.804        -2.829       -2.028
  KYLLINIS S.A.                                                                            

  13\. LOUIS     76.141          88.431          27.562         34.517        -648         -4.198
  HOTELS S.A.                                                                              

  14\. FAIAX     69.350          76.582          20.367         21.095        1.014        -326
  S.A.                                                                                     

  15\. E.P.T.E.A 65.327          70.288          8.236          10.852        -490         -1.002
  S.A.                                                                                     

  16\. SANI S.A. 53.584          69.685          23.079         31.388        3.529        4.329

  17\. MITSIS    66.477          67.923          21.380         28.126        -6.200       326
  CO. S.A.                                                                                 

  18\. OLYMPIC   67.009          67.312          9.398          9.392         -720         -3.512
  HOLIDAYS S.A.                                                                            

  19\. CAPSIS    61.843          64.447          15.761         17.841        196          -749
  TOURIST                                                                                  
  COMPLEX S.A.                                                                             

  20\. ATLANTICA 61.127          54.954          14.842         15.465        -2.268       -2.299
  HELLAS S.A.                                                                              

  **TOTAL**      **2.067.098**   **2.225.532**   **378.386**    **461.067**   **-9.072**   **-15.378**
  -------------- --------------- --------------- -------------- ------------- ------------ -------------

*Source: Icap*

######### The top- 20 Greek Companies in Food-Beverages: 2005

**Ranked by Total Assets**

(€ ' 000)

  ---------------- --------------- --------------- --------------- --------------- ------------- -------------
  **Rank Company** **Assets**                      **Turnover**                    **Pre-tax     
                                                                                   profits**     

                   **2004**        **2005**        **2004**        **2005**        **2004**      **2005**

  1\. COCA-COLA    2.692.700       2.726.200       596.000         584.200         92.600        128.300
  HELLENIC                                                                                       
  BOTTLING COMPANY                                                                               
  S.A.                                                                                           

  2\. ATHENIAN     455.229         469.179         374.312         376.645         57.699        81.231
  BREWERY S.A.                                                                                   

  3\. DELTA DAIRY  353.874         356.401         319.473         326.036         22.113        50.279
  S.A.                                                                                           

  4\. CHIPITA      243.492         297.830         105.686         114.819         2.446         2.423
  INTERNATIONAL                                                                                  
  S.A.                                                                                           

  5\. HELLENIC     171.600         293.457         247.949         208.806         5.978         9.723
  SUGAR INDUSTRY                                                                                 
  S.A.                                                                                           

  6\. FAGE DAIRY   246.365         284.810         352.799         319.301         16.096        -4.497
  INDUSTRY S.A.                                                                                  

  7\. ACHAIA       45.824          211.572         31.645          22.854          590           143
  CLAUSS S.A.                                                                                    

  8\. LOULIS MILLS 205.242         204.305         108.323         67.517          -3.060        216
  S.A.                                                                                           

  9\. HELLENIC     196.232         190.038         99.959          82.031          96            -867
  QUALITY FOODS                                                                                  
  S.A.                                                                                           

  10\. DELTA ICRE  191.515         186.595         72.625          68.348          5.548         2.899
  CREAM S.A.                                                                                     

  11\. CRETA FARM  150.027         156.312         79.339          78.874          3.112         3.773
  S.A.                                                                                           

  12\. NESTLE      151.304         146.752         349.617         360.487         85.006        70.428
  HELLAS S.A.                                                                                    

  13\. ELBISCO     57.010          144.196         82.259          82.927          -3.011        -541
  S.A.                                                                                           

  14\. CARDICO     129.518         140.839         60.920          80869           3.032         8.057
  S.A.                                                                                           

  15\.             131.912         134.774         219.015         226.355         43.952        36.103
  ELAIS-UNILEVER                                                                                 
  S.A.                                                                                           

  16\. EVGA S.A.   124.206         126.579         91.904          84.990          2.692         22

  17\. TYRAS S.A.  99.745          124.694         111.723         140.747         8.624         6.585

  18\. MEVGAL S.A. 121.059         122.204         173.289         176.007         1.101         2.209

  19\. HAITOGLOU   89.995          118.590         46.925          55.818          1.300         1.120
  S.A.                                                                                           

  20\. AGROINVEST  117.238         116.871         80.415          57.751          -602          -2.657
  S.A.                                                                                           

  **TOTAL**        **5.974.089**   **6.552.198**   **3.603.996**   **3.515.382**   **345.311**   **394.949**
  ---------------- --------------- --------------- --------------- --------------- ------------- -------------

*Source: Icap*

**2. Restaurants**

The nation\'s restaurant industry has grown in sophistication over the
past decade, and it is now possible to find excellent restaurants in
highly-touristed areas, particularly areas that are popular with Greek
tourists as well. The best restaurants will offer not only authentic
traditional Greek cuisine (along with regional specialties) but
Greece\'s latest culinary trends as well.

Demographic shifts in Greece have changed trends in consumer foodservice
sectors. The growth rate of the market stabilized over the 2004-2007
period, with value sales increasing according to inflation rates.
However, the decline in the number of household members, the
participation of women in the workforce and the increase in per capita
income shifted trends in the consumer foodservice sectors. Fast food
recorded a decrease in value, reflecting the maturity of key categories,
while other sectors such as full-service restaurants, saw rapid
development.

In Greece there is increasing demand for organic food and ingredients
and healthy alternatives, as these are perceived as providing better
quality and taste, with positive health benefits for the consumer.
Foodservice categories that have managed to associate themselves with
healthiness experienced high value increases. These included some
full-service restaurants and self-service cafeterias. On the other hand,
despite the need for convenience and timesaving solutions, categories
like burger fast food and 100% home delivery/takeaway with fast
food-related menus, significantly decreased in value by the end of 2007.

The increase in value of full-service restaurants (FSR) could be
considered as somewhat paradoxical since the fast-paced lifestyles of
consumers do not generally favor such services. Nevertheless, the sector
recorded significant development in response to consumers' need for
alternative tastes, cuisines and environments. As a result, the FSR
categories that increased the most were Asian, Middle Eastern and North
American. Reportedly, at the same time, value sales declined in
traditional Greek restaurants.

Specialist coffee shops, self-service cafeterias, fast food outlets and
casual dining full-service restaurants have benefited from the change of
scenery in the retail sector, with major shopping centers opening in
metropolitan Athens, the prefecture of Thessaloniki and in other major
cities and touristic locations (Crete, Rhodes, and Corfu). The
development of several new multi-store retail premises in those areas
has driven demand for retail-located foodservice outlets, with chained
operations of specific sectors particularly benefiting. The niche sector
of self-service cafeterias and the well-established chained specialist
coffee shops have gained the greatest advantaged from these new
developments.

The foodservice market as a whole is expected to continue developing,
under the influence of a number of trends related to demographics and
income. In particular, pizza consumer foodservice is one of the most
promising sectors, with pizza full-service restaurants set to experience
impressive growth. Multinational full-service restaurants are also
expected to perform well, reflecting the demand for diversification and
innovation. In addition, chained operations are expected to rise in
sectors such as full-service restaurants.

 

**3. Trend towards healthy food and Mediterranean diet**

As Greek consumers have extensive access to information regarding health
and dietary issues, as well as becoming better educated on their
nutritional needs, fast food products are viewed with growing
skepticism. This increasing trend towards healthier and high-quality
food led fast food companies to react promptly by adding new meals to
their menus, which included a variety of salads and low-fat products
such as vegetable sandwiches. Apart from being healthy and containing
low-fat ingredients, these new menus usually contain ingredients which
are part of the traditional daily diet, to which Greeks show a strong
preference, such as feta cheese, onions, fish and vegetables.

McDonald\'s and Pizza Hut have made a significant presence in Greece
over the past decade. However, they face strong competition from popular
local chains.

Goody's is perhaps the most popular fast-food chain in the country,
offering a large variety of fast food meals, with several outlets
throughout the country. A more recent chain is Everest which specializes
in hand-held snacks. Flocafé is gaining popularity through its coffee
and dessert items. There are also many independently-owned fast food
businesses that offer typical fast food items, such as gyros. Many of
these small businesses tend to be open late at night, and are popular
with younger crowds on their way home from a night out.

**4. Specialist coffee shops**

Specialist coffee shops, with chained operations accounting for the
largest number, represent one of the most dynamic foodservice categories
in the Greek market. This expanding sector met consumers' demands for
steady quality and variety in coffee drinks, coupled with convenient
location and pleasant environment. This sector presents important growth
potential since, at the time of writing, only a few brands were
available in Greece with more expected to be launched in the short- and
medium-term future.

**5. Casual dining: a niche market with dynamic growth**

Casual dining, full-service restaurants continued to register
double-digit growth. This sector is still within its development stage,
with good prospects for continued expansion. Furthermore, Everest SA, a
leading Greek foodservice company, has recently announced the creation
of a Greek casual dining brand, which is anticipated to stimulate
competition further.

**6. Chained outlets**

In contrast to the moderate development of many independent foodservice
business units, in 2006 and 2007, chained operations continued their
good performance of the previous years, expanding in terms of outlets,
value and transactions. Chains' success derives to a large extent from
the highly organized operations behind the developing brands, the
strategies that involve prime outlet locations, steady high-quality and
new product development, as well as competitive pricing policies.
Overall growth was driven by the advancement of chained cafés/bars, and
in particular specialist coffee shops, which have been increasing in
popularity in Greece, and registering high growth rates.

**7. Catering**

The catering sector is broken down into three subcategories, banquet,
industrial and airline catering. All catering service companies operate
with ISO and HACCP quality certification. The total catering sector
shows an upward trend during the period 1998-2006 with an annual
increase at about 11.3%. The corresponding annual increase between 1994
and 1998 was at 21%. The sector is broken down into three subcategories:
banquet, industrial and airline catering. In 2004 the market grew by
21.2% due to the Olympic Games that year which increased demand sharply.
The banquet catering (including hotel and non-hotel catering) reached 47
percent in 2005 and is reported to be near 48 percent today. The
industrial catering sector was at 33 percent, while the airline catering
was at 20% (including the in flight catering), during the same period.
Companies active in industrial catering are better developed and better
synchronized, particularly after the experience gained during the
Olympic Games. The industrial sector as a whole, shows growth at a
higher speed compared to other catering activities in the country. This
is due to the fact that demand for catering service contracts is
significantly expanding among the private sector and the public sector
organizations. The banquet catering sector also shows an annual growth
rate of 2 to 3 percent. Developments in the airline catering sector are
stagnant and did not reach high expectations after the Olympic games,
despite the increases in tourist arrivals. It is thought that many
airlines have cut catering services in an effort to trim costs.

# SECTION III. COMPETITION

**[Greece]{.underline}**

U.S. products face competition mainly from EU suppliers and domestically
produced products in Greece. Today, the EU-27 share of the total food
products supply to Greece exceeds 84 percent of total imports.
Netherlands, France, Germany and Italy are the leading countries in the
Greek food trade. The agricultural trade balance for Greece is negative,
reported at U.S. \$ 3.3 billion in 2006 compared to U.S. \$3.5 billion
five years earlier, in 2001. The U.S. is listed 8^th^ among the food
suppliers to Greece with a spectrum of specialty foods, mainly consumer
-- oriented items. U.S. food imports totaled \$91.0 million in 2006,
excluding raw cotton, tobacco unmanufactured, hides and skins,
agricultural inputs and animal feeds. U.S. tree nuts are the leading
U.S. import, with a total value at \$55 million (\$69.5 million in CY
2005), followed by alcoholic beverages (excluding wine) at \$9.0
million. In 2003, imports of U.S. origin consumer-oriented products grew
sharply to \$60.3 million (approx €55.7 million) compared to \$39.6
million (approx €36 million) in 2002 and remain at higher levels today.
U.S. imports within the consumer-oriented category include products such
as snack foods, breakfast foods, meats, dairy products, fruits,
vegetables, tree nuts, beverages, pet foods and cut flowers.

Greece provides good opportunities for U.S. firms with European
subsidiaries, which enable them to complete on a more equal footing with
EU suppliers.

**[The Balkan Region]{.underline}**

The Balkans wider region includes the area formerly known as the
Yugoslav Federation, with a population of nearly 25 million people.
These countries, Albania, Bosnia and Herzegovina, Croatia, FYR
Macedonia, and Serbia and Montenegro, are currently seeking admittance
to the European Union (EU). Regardless of their success or failure in
this endeavor, this shows that each, together with Bulgaria & Romania
which are already full members of the EU, are in a state of rapid
advancement, economic growth and improvement, and are working to improve
the accessibility of their market to other countries. As they become
full members of the EU and continue their growth and advancement, each
individually, and as part of the entire region, will become a much more
attractive market. Moreover, Greece appears to be an excellent entry
point for many producers due to its higher trade volumes, developed
infrastructure (highways, port facilities and airports) and its
strategic location.

The countries in the Balkan region are still heavily dependant on each
other economically, with trade between these countries remaining quite
heavy. This means that once a U.S. exporter establishes successful entry
into one of these countries, that exporter will likely find the other
countries much more accessible.

# SECTION IV. BEST PRODUCT PROSPECTS

A.  **[PRODUCTS PRESENT IN THE MARKET WHICH HAVE GOOD SALES
    POTENTIAL]{.underline}**

**[Frozen foods]{.underline}:** According to FAFPAS (Federation of the
Frozen Products\' Producers Associations), the frozen foods with the
greatest potential include vegetables, potato products and fish/seafood,
particularly with Greece's large bakery industry. In fact, ready meals
are doing better in Greece than in any other western EU member states.
The Greek frozen food market seems to be a more evolved frozen food
market than in many other EU countries. The Greek frozen food market is
one of the fastest growing markets in Greece, particularly as
convenience and frozen foods are increasingly sought by urban Greek
consumers. Sales of frozen vegetables in 2006 came to approx \$68
million, with supermarkets serving as the major selling point. The
annual increase in frozen dough sales is approximately 8%, nearly
reaching \$80 million in 2007. Greeks consume about 43,000 tons of
frozen vegetables per annum, followed by about 42,000 tons of frozen
potato products and 33,000 tons of fish. Ready meal consumption (frozen)
is estimated at 45,000 tons/annum, pastries at 17,000 tons,
Mollusks/Shellfish 18,000 tons, and frozen meat at 5,000 tons and other
miscellaneous at 6,000 tons, totaling 210,000 tons of frozen food
(including about 5,000 tons of frozen poultry). Per capita consumption
is at 19.81 kg compared to 35.00 kg of Germany and 13.0 kg of Italy.

**[Frozen and Salted Fish]{.underline}**: Fish consumption in Greece has
been increasing since 1995, in line with public awareness that seafood
is healthy and together with other white meats can substitute for red
meat consumption.  Greek fish and seafood product imports accounted for
\$350 million in 2006. Per capita seafood consumption is 24 kilograms. 
Consumption of frozen fish and seafood products reached 65,000 MT in
2005, of which 33,000 MT consisted of processed seafood products. U.S.
exporters supply Alaska Pollack, Pacific Salmon, squid, shellfish
and dogfish (in dried, salted or in brine and frozen fillets) valued at
about \$5.0 million in 2006 with a growing demand. 

**[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.
Demand in the snack food sector remains stable, with a likely future
increases following the problematic domestic crop production over the
past few years.  Good quality tree nuts are mostly used as snack food
(almonds, walnuts, hazelnuts, peanuts, mixed nuts). Consumption figures
include snack, confectionary, ice cream and bakery uses. One of the more
popular tree nut products among Greek consumers is almonds. Greek almond
imports reached 9,500 MT in CY 2006, compared to 9,700 MT in CY 2005 and
8,650 MT in CY 2004. Most imports are from the U.S. During CY 2006,
imports from the U.S. totaled more than 7,350 MT (compared to over 7,500
MT a year earlier). Greece's largest volume of U.S. almond imports was
reached in CY 2004, totaling almost 7,600 MT. Greek imports from Spain
have reached peaks of 1,500 MT. Moreover, U.S. almond imports into
Greece may actually be larger than reported because many U.S. origin
almonds enter Greece via Germany, The Netherlands, UK and other EU
member states. For CY 2006, these U.S. origin amounts, entering Greece
through Europe, are estimated to be somewhere between 300-400 MT. Trade
sources expect tree nut imports from the U.S. to continue to grow in the
coming years due to a variety of reasons, including abundance of U.S.
stocks, value from the fall in the U.S. dollar against the Euro, and the
enforcement of EU aflatoxin requirements which make purchases from other
third countries more prohibitive than from the U.S. Annual consumption
of almonds in Greece is roughly 19-21,000 MT and is steadily increasing
from year to year. Almond consumption represents 35% of total nut
consumption. 

**[Pulses]{.underline}:** Especially beans and lentils have good
potential in the Greek market. Declining domestic production, plus
demand spurred by the reputation of pulses as healthy food, favor
imports. Greece produces approximately 45,000 tons of all kinds of
pulses, which meets only about 60 percent of their demand.

B.  **[PRODUCTS NOT PRESENT IN SIGNIFICANT QUANTITIES BUT WHICH HAVE
    GOOD SALES POTENTIAL]{.underline}**

**[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 kg per capita average meat consumption.
Almost 90% of beef consumed in Greece is imported.

**[Wine - Beer - Juices and Soft Drinks]{.underline}:** Greece is a \$
500 million wine market with wine consumption trending upward. Per
capita consumption reaches 26 liters. There are more than 130 imported
beer brands, which cover 6% of the market. Beer sales in 2006 amounted
to approx \$150 million.

**[Soft drinks:]{.underline}** This market also has been characterized
by continual growth over the past decade. CY 2006 sales of juices
amounted \$180 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 with over 4% of Greek farmland
devoted to organic crops in 2007. Organic agriculture has rapidly
expanded since its official establishment, with annual growth rates of
between 50 percent and 120 percent; slowing down to 20-30% since 2000.
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 spreads to show strong
growth.

**[Dairy Products:]{.underline}** Dairy products constitute one of the
most important categories of foodstuffs in domestic consumption. Their
share of total food consumption exceeds 19% and is increasing annually.
Cheese products also hold a noteworthy position in Greek supermarkets,
accounting for about 13% 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]{.underline}**

**[Turkey and Other Poultry products:]{.underline}** EU member states
still do not import poultry products of U.S. origin due to lack of
agreement on the slaughtering practice equivalency issue.

**[Beef meat & Products:]{.underline}** Although recent figures have
shown an increase in U.S. beef exports into the European Union, the
industry has already lost millions of dollars worth of potential trade
due to the United States and the European Union (EU) dispute on the
safety of growth promotants used in cattle. U.S. beef imports must meet
hormone-free requirements.

**[Processed food products containing biotech
ingredients:]{.underline}** soya & corn products

**[Low volume high value food ingredients:]{.underline}** for the food
processing industry (particularly cereal extracts, corn flour, corn
syrups, etc, originating in GMO crops)

**[Corn oil:]{.underline}** for the domestic vegetable fat and margarine
industry for the same reason as above.

**[U.S. milling wheat:]{.underline}** due to restrictions on Karnal Bunt
disease

# 

# 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

91, Q. Sofia Avenue

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/)

**[GREEK GOVERNMENT AGENCIES]{.underline}**

Agency responsible for Greek labeling/product ingredient regulations:

**General State Chemical Laboratory**

Directorate of Foods

Ms. Dionysia Stefanitsi , 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. John Vlemmas, President

5, Karystou Str., GR-115 53 Athens

Tel. ++30-210-6971-500

Fax: ++30-210-6971-501

Email: <info@efet.gr>

**[Greek National Tourism Organization]{.underline}**

**Head office\
**7, Tsoha street\
GR-11521 Athens\
Tel.: +30 210 8707000\
Working hours: Weekdays 08.00-15.00

Website: [www.gnto.gr](http://www.gnto.gr/)

[Contact the Central
Services:](http://www.gnto.gr/pages.php?pageID=43&langID=2)

**Information desk\
**26, Amalias\
Tel.: 210 3310392, 210 3310716, 210 3310347, Head: 210 3310529 \
Fax: 210 3310640\
Working hours: Monday - Friday: 09.00 - 19.00,\
Saturday, Sunday, holidays : 10.00 - 18.00\
E-mail: [info@gnto.gr ](mailto:info@gnto.gr ) \
E-mail: <info_central@gnto.gr> (Head Office)

**Information Desk at \"Eletherios Venizelos\" airport (arrivals hall)\
**Tel. 210 3530445-8\
Fax: 210 3532334\
Working hours: Monday - Friday: 09.00 - 18.00\
Saturday, Sunday, holidays : 10.00 - 15.00\
E-mail: <venizelos@gnto.gr>

######### Hellenic Chamber of Hotels

######### 24, Stadiou Street

######### Athens, GR 105 64

######### Tel: +30.2103310022

######### Fax: +30.2103225449

######### E-mail: [**info@grhotels.gr**](mailto:info@grhotels.gr)

######### 

######### [OTHER AGENCIES]{.underline}

######### Hellenic American Chamber of Tourism (HACT) 17280 Newphone street suite 18 Fountain Valley California 92708 USA Tel : 646-485-1086 Fax : 714-641-0303 URL : [www.hact.us](http://www.hact.us/) E-mail : <chamberoftourism@aol.com> 

#