Required Report - public distribution

**Date:** 10/12/2004

**GAIN Report Number:** GR4027

GR4024

**Greece**

**Exporter Guide**

**Annual**

**2004**

**Approved by:**

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

U.S. Embassy Rome

**Prepared by:**

Danae Synodinou

**Report Highlights:**

Greece is an import dependent country with total CY 2003 agricultural
imports from the U.S. of \$127.5 million. Significant market
opportunities exist in a number of areas such as frozen products, tree
nuts and dried fruits, snack foods, wines and spirits.

This report prepared by the FAS/Athens Office for U.S. exporters
provides information on Greece's economic situation, market structure,
exporter tips and best prospects for high-value food and agricultural
products.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Rome \[IT\]

\[GR\]

Table of Contents

[**SECTION I. MARKET OVERVIEW 3**](#section-i.-market-overview)

[SECTION II. EXPORTER BUSINESS TIPS
5](#section-ii.-exporter-business-tips)

[SECTION III. MARKET SECTOR STRUCTURE AND TRENDS
7](#section-iii.-market-sector-structure-and-trends)

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

[SECTION V. KEY CONTACTS AND FURTHER INFORMATION
11](#section-v.-key-contacts-and-further-information)

[GREEK GOVERNMENT AGENCIES 12](#greek-government-agencies)

[A. KEY TRADE AND DEMOGRAPHIC INFORMATION
13](#__RefHeading___Toc85347920)

[B. CONSUMER FOOD AND EDIBLE FISHERY PRODUCT IMPORTS
14](#table-b.-consumer-food-and-edible-fishery-product-imports)

[C. TOP 15 SUPPLIERS OF CONSUMER FOODS AND EDIBLE FISHERY PRODUCTS
16](#table-c.-top-15-suppliers-of-consumer-foods-and-edible-fishery-products)

# SECTION I. MARKET OVERVIEW 

Greece, a member of the European Union (EU) joined the EU Economic and
Monetary Union (EMU) on January 1, 2001.  The Euro was introduced on
January 1, 2002.  Greece\'s participation in the Eurozone was the result
of the implementation of a six-year convergence program designed to meet
EMU entry requirements.  However, a real convergence of the Greek
economy with the other EU countries has not yet been achieved and the
government aims to meet that target by 2010.

Greece is an import dependent country (\$4.2 billion of agricultural
products in 2002) with a population of 11 million people. A new
government elected in March, and hosting the Athens Olympic Games in
August were the milestones for the country in 2004. The growth prospects
of the Greek economy remain positive, although a slowdown is expected in
2005 since the rate of increase in investment expenditure will weaken
compared to the high increase rates registered over the past two years,
according to reports from National Bank of Greece. This same source
reports that the Greek economy's prospects remain favourable and its
growth rate is expected to reach 4 percent in 2004 and 3-3.5 in 2005,
which are almost double the figures expected for the eurozone. Services
make up the largest and fastest growing sector of the Greek economy,
accounting for 69.0 percent of GDP, followed by trade and financial
services (21 percent), transportation and communications (7.5 percent),
and health and education (9.0 percent). 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 labour costs and second round effects
from oil price hikes. Inflation in August 2004 fell to 2.8 percent from
3.1 percent in July, recording the third highest inflation rate (2.3
percent eurozone average) in the eurozone 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 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's financial measures including
reduction of public spending compared with 2004, and implementation of a
stability pact on fiscal discipline. The weaknesses in the
competitiveness of the Greek economy are also recognized by the
government. The GOG is expected to announce measures to boost economic
activity and to attract investment through the revision of the
development law.

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 €2.5 billion, approx \$3 billion. According to
banking officials, around €1.2 billion, approx \$1.4 billion, or 8
percent of a total of €14.5 billion, approx \$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%.
The supermarkets are the top employer in the trade sector with a share
of 27%, followed by transportation means with 9% and clothing-footware
with 7.6%. Per capita GDP in 2004 is estimated at \$17,780.

According to financial reports, the Greek commercial sector continued to
grow during 2002. Consumer demand kept rising due to the increase in
disposable income and the expansion of credit. Thus, the volume of
retail sales expanded by 4.5%, matching the respective volume of 2001.
The business confidence index for the retail sector improved by 1.2%. As
regards tourism, although no final data has been published yet, 2002 was
a year of recession for the tourism industry. This was mainly due to the
deceleration in the growth of the international economy and the events
of 9/11. Sales in 2002 reached €3.6 billion, approx \$3.9 billion.

The tourism sector in the Olympic year was affected by competition from
neighboring countries and increased uncertainty internationally. A
seven-month survey carried out by a private company among 11 European
cities in the period before the Olympic Games showed that Athens had the
lowest occupancy rate (60.7 percent), the fourth lowest average price
per room at €117.5, approx \$145, and the lowest yield per room, despite
providing the most complete range of services in Europe. With record 95
percent occupancy rates in August, this average was pushed up to 85
percent. According to a recent international survey, Athens is included
in the list of the 100 most expensive cities ranking 50^th^, now with
the Olympics, from the 71^st^ position before the Olympics. Brussels,
Madrid and Lisbon remain cheaper than Athens according to this survey.

According to a bank market report, the favourable impact of the Athens
2004 Olympics on the country's gross domestic product is likely to total
more than €25 billion, approx \$30.5 billion, in 2000-2008, if domestic
firms seize opportunities offered by Greece's exposure during the Games
and the infrastructure that has been built in connection with the Games.
Exports in 2004-2008 are expected to rise by an annual average of
4.5-5.5 percent due to the Olympics against an increase of 2.2-2.5
percent in normal times. At the same time, growth in imports of goods
will rise but not as high as exports. Tourist arrivals could rise to
18-20 million annually towards the end of the decade from 14 million at
present as a result of improvements in infrastructure and accommodations
made for the Games, especially in the Attika area. This optimistic
scenario will counterbalance the impact of the final cost of the
Olympics, estimated to be close to €7 billion, approx \$8.5 billion,
versus the €4.6 billion, approx \$5.6 billion, initially projected.

The National Statistical Service (NSS) data show CY 2002 total imports
at €33 billion, approx \$36.3 billion, with EU countries being the main
suppliers. CY 2002 total exports were €10.9, 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.

Greek/EU food safety concerns over biotech, hormone‑treated beef, and
poultry processing methods limit U.S. imports for the Greek market
(imports for international cruise lines are not subject to the EU
regulations). Demand for soy and corn products, and cotton seed are
being constrained because of cumbersome import requirements for GMO
products and a reluctance by the retail sector to market a product that
is labeled as containing GMOs. The U.S.‑EU hormone dispute and the
current exclusion of the U.S. processing methods for poultry under the
Veterinary Equivalence Agreement are long‑term issues that need to be
resolved so U.S. exporters can take advantage of growing demand for U.S.
high quality beef (estimated to be \$ 2 million) and U.S. poultry in the
retail market (historically \$ 2 million prior to the import ban),
particularly in the resort areas.

Despite the poultry ban, an estimated \$18 million in U.S. poultry
products are transhipped from Greece to the Balkan countries annually.
However, as of on Jan 1, 2005, Greece in accordance with EU Reg
(EU/79/542, amended by 2004/212, 2004/372 for meat products and
EU/94/984, amended by 2004/436 for poultry products), will prohibit
transits by land to products of US origin destined to Balkan countries,
resulting in dramatic decrease of transshipments through Greece.

Socio-economic changes have significantly affected food trends in
Greece. Trends show that Greek consumers although bombarded by many
products, state control mechanisms and consumer organizations, are more
conscious than ever about food safety matters, demanding food industry
to be more precise on labeling information. Higher incomes allow room
for higher quality foods. In addition, the working population has no
time to prepare meals. Consequently, preferences are moving toward
easy-to-prepare meals and foods delivering more health benefits.

Advantages and Challenges facing U.S. exporters

+-----------------------------------+-----------------------------------+
| ###### Advantages                 | **Challenges**                    |
+-----------------------------------+-----------------------------------+
| Greek per capita income is        | A limited number of importers and |
| increasing                        | distributors are aware of the     |
|                                   | variety and innovative U.S. food  |
|                                   | products that can be exported to  |
|                                   | Greece.                           |
+-----------------------------------+-----------------------------------+
| Increased demand for food         | Educate the catering sector       |
| products due to the increase in   | representatives about the high    |
| tourism expected in the aftermath | quality, variety and availability |
| of the Olympics.                  | of U.S. food products.            |
+-----------------------------------+-----------------------------------+
| HRI and 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. EXPORTER BUSINESS TIPS

Eighty per cent of Greece's import trade is handled through sales agents
or distributors. Sales agents operate as brokers without taking legal
possession of product or making imports on their own account. Agency
agreements are not required to be exclusive and can cover any time
period. Distributors operate on a wholesale (and in some cases, retail)
basis with exclusive sales rights for certain districts or for the
entire country. Retail and wholesale trade is characterized by small,
family-owned and operated businesses, each of which deals in a narrow
range of goods. There are 300,000 trading establishments in Greece.
There are 7,000 corporations and limited liability companies engaged in
wholesale trade and 3,200 corporations and limited liability companies
handling retail trade.

In Greece there are several department stores, supermarkets and chains.
There are about 3,100 supermarkets, of which 2,010 belong to supermarket
chains, while 687 of them are located in the Athens metropolitan area.
Supermarket sales in 2002 reached €6.8 billion, approx \$7.5 billion,
compared to €6.0 billion, approx \$6.7 billion, in 2001. Of the total
\$6.8 billion, €5.7 billion, approx \$6.3 billion, were achieved by the
10 largest groups. The \"shop-within-a-shop\" concept is applied to
successful department stores.

As Greek consumers' needs evolve, their food purchase patterns are
changing. The average size household is 2.6 persons, compared to 3.5
persons 10 years earlier, while 22% of the population is over 60 years
old. Increased disposable income, larger numbers of dual-income
families, an increase in one-member households, and an increase in
single parent households have resulted in expanded demand for
consumer-ready products and restaurant meals.

A Greek consumer goes shopping 3.1 times on average per month and
spends, on all consumables, approximately 600 euros and his main
criterion in choosing a store is not product price, but quality,
convenience and the speed of purchasing. Food and beverage items
represent 22.7% of total household expenditures. Milk and yogurt are
purchased on average 14 times per month, followed by bread (13.8),
snacks (6.1), fruits and vegetables (5.5), soft drinks, juices (5),
cheese, processed meat products (4.8), meat, and fish (4.6 purchases per
month). The study on shopping behavior surveyed 753 women aged 18-64,
who are responsible for doing the household shopping. Over 80% had
visited supermarkets and hypermarkets in the last three months, 7% of
the sample shop twice a week, 39% once a week, 22% twice a month, 7%
every ten days, and 21% of the sample shop once a month.

<table>
<colgroup>
<col style="width: 6%" />
<col style="width: 5%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 14%" />
<col style="width: 11%" />
<col style="width: 9%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11"><strong>Changes in Consumer Spending</strong></td>
</tr>
<tr class="even">
<td colspan="11"><strong>1999/2000, 2000/2001, 2001/2002 (% change in
difference between increase and reduction of spending)</strong></td>
</tr>
<tr class="odd">
<td><p id="years" class="heading">Years</p></td>
<td><strong>Food</strong></td>
<td><strong>Beverages, Tobacco</strong></td>
<td><p><strong>Clothing,</strong></p>
<p><strong>Footwear</strong></p></td>
<td><strong>Housing</strong></td>
<td><strong>Seasonal goods</strong></td>
<td><strong>Health</strong></td>
<td><strong>Transportation, Communications</strong></td>
<td><p><strong>Recreation,</strong></p>
<p><strong>Hotels,</strong></p>
<p><strong>Restaurants</strong></p></td>
<td><strong>Education</strong></td>
<td><strong>Other</strong></td>
</tr>
<tr class="even">
<td>99/00</td>
<td>15.3</td>
<td>-0.5</td>
<td>2.3</td>
<td>4.9</td>
<td>2.2</td>
<td>5.2</td>
<td>7.2</td>
<td>-8.8</td>
<td>4.2</td>
<td>1.6</td>
</tr>
<tr class="odd">
<td>00/01</td>
<td>16.8</td>
<td>1.9</td>
<td>2.8</td>
<td>4.6</td>
<td>1.2</td>
<td>2.7</td>
<td>9.3</td>
<td>-13.5</td>
<td>3.2</td>
<td>0.7</td>
</tr>
<tr class="even">
<td>01/02</td>
<td>22.7</td>
<td>1.6</td>
<td>4.1</td>
<td>5.0</td>
<td>3.1</td>
<td>3.4</td>
<td>8.9</td>
<td>-8.3</td>
<td>3.9</td>
<td>0.1</td>
</tr>
</tbody>
</table>

Source: Money and Tourism Magazine, Jan 2004

Consumer loyalty to well-known brands, which have dominated the market
for a number of years, seems to be weakening due in part to economic
recession and also to an increase in lower-priced private label
products. Packaging appears to be the secondary factor affecting demand,
followed by special offers for various products.

Convenience and other small stores that cater to every day needs exist
throughout the neighborhoods of Athens and its suburbs. These are
branches of convenience shop chain, recently introduced in Athens,
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.

During the last year sales of private label brands have spread very
rapidly and are expected to occupy bigger shares in the current year.
Practically all chains have their own private labels on their shelves.
It is estimated that private labels cover 10% of total sales. The Greek
consumer, according to marketing executives, has not yet fully accepted
their quality, therefore, the development rate by which private label
codes contribute to the chain's turnover does not exceed 1% per year.
According to a recent study, seven chains that were surveyed carried two
thousand private label items and they had plans to develop another 670
private labels. It is estimated that all big chains together carry more
than five thousand private labels.

Food safety, although not neglected by the average consumer, is still
not as big an issue in Greece as in some other EU countries. The
Hellenic Food Authority (HFA), is the authority which has full
responsibility for setting and implementing a control system for
companies producing, manufacturing and processing food products as well
as companies trading and distributing them up until the point they reach
the consumer. Food products including biotech ingredients should
indicate the presence of genetically modified organisms on their labels,
based on EU rules. Bulk ingredients, such as vegetable oil sourced from
GM crops, must be accompanied by certification by the exporter that the
product includes only EU-approved varieties. If the exporter makes a
good faith effort to exclude GM entirely, this too should be certified.
Non EU-approved GM varieties are not admissible. The GOG will conduct
its own testing to verify exporter certification.

Greece, as a member of the European Union (EU), follows about 90% of EU
regulations. Labeling and ingredient legislation for all food and
agricultural products is based on EU rules and regulations.
Additionally, Greece maintains specific labeling and ingredient rules
for some food products under the Greek Food Code. Greece requires that
labels be in the Greek language. Multi-language labels are accepted.

Specific agricultural and food products which are subject to inspection
and to Greek trade restrictions include:

-   **Poultry, Meat, Fish, Dairy, Egg**: Products of third country
    origin must originate from plants included in the list of EU
    approved plants.

-   **Enriched/Bleached flour**: Greek regulations prohibit the import
    of any products made or including enriched/bleached flour.

-   **Nuts**: Imported nuts are subject to a random aflatoxin test at
    entry stage or at selling points. At port, usually one out of ten
    containers are sampled to be tested for aflatoxin. Phytosanitary
    certificates for row nuts imported into Greece are required in
    accordance with EU legislation in effect.

-   **Seeds:** Greek authorities require non-presence of transgenic
    material for imported cotton seeds, while for corn seeds the
    tolerance level set is 0.5% for EU approved corn varieties. Wheat
    seeds are checked for Karnal bant.

> \- **Products derived from genetic modification**

Exporters are advised to have an experienced agent or joint venture
partner, with a suitable background, experience and extensive
sales/service network, who can offer full support to the end-user.

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 transhipped 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, as all EU member states, is responsible for carrying out
inspections on a regular basis. Random checks are performed at import or
at later stages of trading. Imported foods are not subject to
registration.

# SECTION III. MARKET SECTOR STRUCTURE AND TRENDS

The food and beverage industry retains a leading position among Greece's
sectors as regards profits, productivity, innovation and dynamism. Greek
companies in the sector are characterized by high standards regarding
production processing, safety, packaging, and certification. Undertaken
investments in machinery and modernization in general have placed them
higher than other sectors. The sector's contribution to the growth of
the Greek economy is therefore significant. However, compared to their
international competitors, they are still behind, showing a number of
shortcomings as regards export marketing, distribution networks abroad,
promotion of their products, and prestige. The end result is that the
international competitiveness of the sector's products remains low. Food
and beverage exports represent 25% of total Greek exports. Greece's main
export products are olive oil, processed fruits, grapes and raisins, and
fresh fish.

The retail sector in Greece is rapidly increasing and concentrating,
especially in metropolitan Athens. The sector is facing rapid changes
and competition as a result of the emergence of new international
grocery store chains and mergers of existing companies and food
processors. Aggressive takeovers, coalitions with multi-national giants,
and mergers within the domestic industry characterize continuing trends
in the coming years. 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 and new
techniques and tools is another goal of food enterprises.

CY 2002 Greece's total imports of food and agricultural products
amounted \$4.2 billion, of which \$123 million were of U.S. origin
(latest data available). Greece's imports of U.S. origin
consumer-oriented products continued to increase reaching \$60.3 million
in 2003 (USDA data), compared to \$39.6 million in 2002. During the
period of January-July 2004, U.S. exports of consumer-oriented products
reached \$32.9 million, compared to \$26.1 in the same period of 2003.
This trend is believed to be a boost from the Olympics.

The Hotel and Restaurant industry, in addition to the food and beverage
sector, is also one of the fastest growing sectors, representing
earnings of \$6.3 billion in 2001 (latest available data). Greece is
among the most popular tourist destinations, ranking 15^th^ in the
world. Nearly 14 million tourists visited Greece in 2003. Although data
on tourist arrivals during the Olympic year have not been published yet,
the anticipated increase in tourism in conjunction with the Olympics was
not materialized. The newly established Ministry of Tourism is preparing
a draft bill to improve the tourism policy of the country. According to
sources in the sector, the sector needs restructuring and renovation as
well as improving its efforts in tourism attraction and tourism
development.

Greek food habits in the home are mostly traditional with a heavy
emphasis on the Mediterranean diet. Traditional foods, barrel feta,
Greek yellow cheeses, local desserts, olives, wine, traditional pasta
products, butter, cod, oil and salt preserved products are still a large
part of chains' sales. On the other hand, other trends are transforming
eating habits outside the home and are replacing the traditional
tavernas. There are changes in diet, more women working outside the home
(40% of women are in the work force), and there is more disposable
income, altogether combining to create a growing demand for convenience
and new and diverse eating opportunities outside home.

Ready meals in urban centers have in many cases replaced the traditional
way of preparing lunch or dinner at home. According to a recent survey
published in a food magazine, more than 50% of those included in the
sample (1,200 men and women, aged 18-64 years) , buy ready meals to eat
at home, with men leading with 62%. Of those consumers buying ready
meals, the majority (69%) prefer pizzas, followed by souvlaki (Greek
traditional food) (45%), chicken (22%), hamburgers/fast food (9%), pasta
(8%), and Greek cooked food (5%). Ordering take out food for home is
common in urban areas and especially in Athens. People of middle to
upper income, aged 18-40 are the peak take out consumers. In addition,
the survey showed that fresh food is preferred to frozen food, since the
majority of people believe it is of better quality, better taste and is
preservative-free. Nevertheless, the advantages of frozen foods such as
their shelf life, economy, and availability compared to fresh foods were
admitted by the survey participants. Another point of the survey,
mentioned in the above paragraph, was that the majority of the
population believe that olive oil is an essential part of their diet.
Olive oil comes first among consumer preferences with 96%. It also
should be noted that percentages for consumption between Athens,
Thessaloniki and urban centers show a big diversification.

Demand for frozen foods, a market which is favoured by modern lifestyle,
characterized by shortage of free time, is in an upward trend,
especially among consumers with restricted purchasing power. Time
required for shopping leads households to seek long-life foodstuffs
which are quick and easy to prepare and usually cheaper compared to the
fresh product. The frozen foodstuffs sector in Greece is a growing
sector and highly competitive. Frozen meat, fish and seafood products,
vegetables, dough, bakery products, french fries and finger foods are
favoured by Greek consumers. Sales of frozen vegetables in 2002 amounted
€46.4 million, approx \$51 million, compared to €39.5, approx \$44.12
millon, in 2001 with supermarkets been the major selling point. The
dough category shows a 8% annual increase in sales reaching €61.9
million, approx \$68.09 million, in sales in 2002 compared to €55.7,
approx \$62.21 million, in 2001. French fries market remains stable the
last couple of years with annual sales amounting €5.6 million, approx
\$6.16 million, in 2002. The frozen meals market is estimated at €6
million, approx \$7.2 million, with a 15% annual increase anticipated
the next couple of years. Greece's per capita consumption of ready meals
is the lowest in Europe, less than 1 kg.

The meat processing sector is also going through a transition to adapt
to new conditions. The Greek meat sector seems to be unable to met the
market's demand and consumers' increasing attention to matters of
quality. Almost 90% of beef consumed is Greece is imported. Considering
that meat holds an important place in the Greek diet, its demand
returned to normal levels after the 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. Pork meat is the leader in consumer's preference
with the annual consumption at 280,000 tons, followed by beef at 230,000
tons annually. Greek consumption of red meat is the highest among EU
countries, with a per capita average of 100 grams per day, followed by
Italy (71 grams). Consumption of poultry products is approximately
200,000 tons and goat and lamb meat consumption is 140,000 annually.
Organic meat is in an upward trend, although only a limited population
can afford it.

Frozen fish and seafood needs are mainly covered by imported products as
regards raw material. The frozen seafood market records a steady growth
in recent years as a result of new product introductions and higher
quality standards as well as consumers' preferences to healthier foods.
The frozen seafood market showed an increase of 6% the last 2-3 years,
mainly in squids, octopus, cuttlefish. CY 2003 Greek consumption of
frozen seafood exceeded 65,000 tons, of which 35,000 tons were processed
products, while 30,000 were products in bulk. The per capita consumption
of fish in Greece is 24 kg. First in preference is codfish. Fish in
tins, however, and especially tuna, followed by tinned sardines seem to
be in an upward trend with sales of €39 million, approx \$42 million,
and €10 million, approx \$10.8 million, respectively in 2003.

Dairy products hold a prominent place in the Greek foodstuff sector,
since dairy products represent a significant part of the Greek diet in
addition to their significant contribution to the Greek food and
beverage industry, with shares exceeding 15% of the total. Per capita
cheese consumption in Greece exceeds 26 kg. The turnover from cheese
corresponds to 52% of the total dairy product sales. Feta cheese is the
leader of the market, according to trade sources, with sales amounting
140,000 tons. The sales of the yogurt category have been increasing
dramatically. Its total sales reached €310 million, approx \$335
million, 65,000 tons recording an increase in sales of 11.5% and in
volume 5.4% compared to last year (2002). The sub-categories of dairy
desserts and children's yogurt have been showing the same trend. The
market share of the packaged white yogurt increased to 75.3% in 2002
compared to 73.1% in 2000. Dessert sales also increased to 5.2% from
4.8% in 2000. Milk, of all types, sales in 2003 amounted €529 million,
approx \$571.8 million, compared to €502 million, approx \$552 million
in 2002 with highly pasteurized milk having a share of 36.5% of total
sales. White milk has the biggest share (94.8% versus 5.2% of
chocolate-milk.

The market for packaged ice cream has in recent years shown a marginal
increase of 2-3% in both volume and value terms. The total value of
packaged ice cream at retail prices is at €350 million, approx \$426
million, translated to 300 million portions per year, and its market
share represents about 75% of the total market. Imports represent about
25% of the total market. The per capita consumption is relatively low
(5.5 liters) compared with other European countries (in excess of 10
liters).

The dried fruit and nut sector is also in an increasing trend. The
market favors companies that offer high quality products at fair prices.
Greeks are reported to be the largest consumers of tree nuts (and all
kinds of nuts) in the world (8 kg per capita), thus there is a potential
market for further development for high quality nuts, including almonds,
hazelnuts and pecans in particular. Greek consumers are beginning to use
nuts in cooking in addition to snack food which is expected to lead to
an expansion of the market. In CY 2003 U.S. origin tree nuts imported
into Greece amounted \$28.2 million, while during January - July 2003
U.S. origin tree nuts exported to Greece amounted \$9 million compared
to \$15.2 during the same period in 2004.

Sales of juices in Greece have been showing an increase, and are
expected to expand in the coming years, since the adoption of a
healthier diet has a beneficial effect on this category. CY 2003 sales
amounted €166 million, approx \$179.5 million, compared to €147 million,
approx \$161.7 million, in 2002 with long life juices dominating the
sector.

In the last two years, the chocolate market has shown an upward trend,
especially due to the new products and the considerable increase in
sales of multi-packs available at supermarkets. The change of sales
between 2002 and 2003 show an increase in value of 61%, and 51% of
chocolate is sold in supermarkets.

Greece is last among the European countries as far as production of
organic farming is concerned. However, while in 1993 organically farmed
land per producer was 35,780 square km, in 2002 it was 47,410 square km,
most of which was olives. Greece cultivates 1% of cultivated land with
organics, while the Ministry of Agriculture target for 2011 is the
organics to reach 5% of total cultivated area. 35% of consumers with
higher income and better education say they would buy organic products
if they could find a complete range of such products at a shop.

The alcoholic beverage market was affected by the financial slump
remaining stable contrary to the promising prospects. The turnover of
the 21 biggest companies in the sector in 2002 was €686 million, approx
\$754.6 million, compared to €624, approx \$686 million, in 2001. Whisky
remains first in Greek consumer preferences by 62.1%, followed by votka
(19.4%). The sales of beer in the Greek market have been stable for a
number of years, while it shows a seasonal increase in consumption
during May and September (60% of total yearly sales). Sales in 2002 and
2003 amounted to €134 million, approx \$145 million, with a per capita
consumption of 42 liters, relatively low compared to other European
countries (72 liters in Spain). About 65-70% of beer consumption takes
place in the "cold" market (bar, cafes) and 30-35% is sold in the "warm"
market (supermarkets, hypermarkets).

Greece is a \$430 million wine market with wine consumption on an upward
trend. With limited local production and high production cost, Greece is
a promising market for imported wines. Per capita consumption reaches 26
liters with 86% of the Greek population drinking wine 3.2 times a week.
Greeks generally prefer red wine (54%) over white wine (40%) and pink
wine (6%). For additional information on the sector, please refer to
Post's Wine Market Brief, GR3017.

Pet food imports are steadily rising due to increased pet ownership and
improved pet care. In 2003, retail pet food imports totaled €65.4
million, imported mainly from European countries. Supermarkets are by
far the largest retailer of pet food products with over 85% sales. As a
result of this demand more pet supply stores and veterinary clinics are
opening, broadening the diversity of pet food retailers in Greece. For
additional information on this sector, please refer to Post's Pet Food
Market Brief, GR4015.

The selling factors and techniques that are applicable to Greece are
generally the same as those in other Western European countries.
Advertising and sales promotion are usually handled by one of many local
or locally stationed international companies. Advertising companies use
all types of media to reach target groups.

# SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS

The Greek market provides good potential for U.S. products in the retail
and HRI market. The following product categories and products are
considered to have the best prospects. Most of the product
categories/products were introduced in Section III of this report.

♦ Frozen products

Seafood

Dough

Convenience foods

Finger foods

Vegetables

♦ Nuts and dried fruits

♦ Dairy Products

♦ Meat

♦ Snack foods (sweet and salty)

♦ Wine

♦ Organic Products

♦ Breakfast cereals

♦ Pulses (beans and lentils)

# SECTION V. KEY CONTACTS 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:
[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

# 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>

# 

# 

# 

# 

# 

# 

# 

# 

**Exchange Rates Used:**

Average 2001: \$1.00 = €1.117

Average 2002: \$1.00 = €1.100

Average 2003: \$1.00 = €0.925

August 2004: \$1.00 = €0.820

Source: Charleston Financial Management Center

**APPENDIX I. STATISTICS**

[]{#__RefHeading___Toc85347920 .anchor}**TABLE A.** **KEY TRADE AND
DEMOGRAPHIC INFORMATION**

  ----------------------------------------------------------- -----------
  Agricultural Imports from All Countries (\$Mil) / U.S.      \$4,221 /
  Market Share (%) 1/                                         3%

  Consumer Food Imports from All Countries (\$Mil) /U.S.      \$2,463/ 1%
  Market Share (%)1/                                          

  Edible Fishery Imports From All Countries (\$Mil) /U.S.     \$ 316 / 1%
  Market Share (%) 1/                                         

  Total Population (Millions) / Annual Growth Rate (%)        11.0 / .5%

  Urban Population (Millions) / Annual Growth Rate (%)        7.0 / 0.2%

  Number of Major Metropolitan Areas 2/                       1

  Size of the Middle Class (Millions) 5/                      6.5

  Per Capita Gross Domestic Product (U.S. Dollars)            \$17,780

  Unemployment Rate (%)                                       8.4%

  Per Capita Food Expenditures (U.S. Dollars)                 \$2,800

  Percent of Female Population Employed 4/                    43.6

  Exchange Rate (US\$1 --EURO) 6/                             .925
  ----------------------------------------------------------- -----------

Footnotes

1/ Use FAS's web-enabled UNTrade database (HS -digit option; Import
Market Share BICO 3-Year format)

2/Population in excess of 1,000,000

3/ Middle Class Income: \$19,000-28,000 annual earnings

4/ Percent against total number of women (15 years old or above)

5/ Unofficial data

6/ Charleston Financial Management Center -- CY 2003 average

# TABLE B. CONSUMER FOOD AND EDIBLE FISHERY PRODUCT IMPORTS

  --------------------- ------------------------ ---------- ----------- ------- ---------- ------- ---------- ---- --- ----------- ----- ---------- ----- ---------- ---- --- ---------- ------- ---------- ------- ---------- ----
  **Greece Imports of                                                                                                                                                                                                          
  Agriculture, Fish &                                                                                                                                                                                                          
  Forestry Products**                                                                                                                                                                                                          

  **(In Millions of                                                                                                                                                                                                            
  Dollars)**                                                                                                                                                                                                                   

                                                                                                                                                                                                                               

                                                            **Imports                                                  **Imports                                              **U.S                                            
                                                            from the                                                   from the                                               Market                                           
                                                            World**                                                    U.S.**                                                 Share**                                          

  ** **                                                     **2001**            **2002**           **2003**            **2001**          **2002**         **2003**            **2001**           **2002**           **2003**   

                                                                                                                                                                                                                               

  **BULK AGRICULTURAL                                                   483                528                NA                   56               54               NA                  12%                10%                0%
  TOTAL**                                                                                                                                                                                                                      

                        **Wheat**                                       92                 165                NA                   1                1                NA                  0.04%              0.01%              0%

                        **Coarse Grains**                               93                 40                 NA                   1                1                NA                  0.59%              0.40%              0%

                        **Rice**                                        10                 13                 NA                   1                1                NA                  0.21%              0.14%              0%

                        **Soybeans**                                    77                 76                 NA                   39               37               NA                  50%                48%                0%

                        **Other Oilseeds**                              42                 44                 NA                   11               11               NA                  27%                24%                0%

                        **Cotton**                                      5                  3                  NA                   1                0                NA                  1%                 0%                 0%

                        **Tobacco**                                     93                 104                NA                   2                2                NA                  2%                 2%                 0%

                        **Rubber & Allied Gums**                        6                  5                  NA                   0                0                NA                  0%                 0%                 0%

                        **Raw Coffee**                                  28                 24                 NA                   1                0                NA                  0.02%              0%                 0%

                        **Cocoa Beans**                                 5                  8                  NA                   0                0                NA                  0%                 0%                 0%

                        **Tea (Incl. Herb Tea)**                        3                  3                  NA                   1                0                NA                  0.12%              0%                 0%

                        **Raw Beet & Cane                               1                  1                  NA                   0                1                NA                  0%                 0.65%              0%
                        Sugar**                                                                                                                                                                                                

                        **Pulses**                                      17                 29                 NA                   3                4                NA                  17%                13%                0%

                        **Peanuts**                                     9                  10                 NA                   1                1                NA                  0.49%              3%                 0%

                        **Other Bulk                                    3                  3                  NA                   1                0                NA                  0.52%              0%                 0%
                        Commodities**                                                                                                                                                                                          

                                                                                                                                                                                                                               

  **INTERMEDIATE                                                        466                490                NA                   20               22               NA                  4%                 5%                 0%
  AGRICULTURAL TOTAL**                                                                                                                                                                                                         

                        **Wheat Flour**                                 2                  2                  NA                   1                0                NA                  0.12%              0%                 0%

                        **Soybean Meal**                                46                 49                 NA                   5                2                NA                  11%                4%                 0%

                        **Soybean Oil**                                 1                  1                  NA                   0                0                NA                  0%                 0%                 0%

                        **Vegetable Oils (Excl.                         57                 86                 NA                   2                3                NA                  4%                 4%                 0%
                        Soybean Oil)**                                                                                                                                                                                         

                        **Feeds & Fodders (Excl.                        60                 47                 NA                   1                1                NA                  0.79%              0.75%              0%
                        Pet Foods)**                                                                                                                                                                                           

                        **Live Animals**                                68                 71                 NA                   1                0                NA                  0.01%              0%                 0%

                        **Hides & Skins**                               55                 49                 NA                   7                11               NA                  13%                23%                0%

                        **Animal Fats**                                 1                  1                  NA                   1                1                NA                  43%                32%                0%

                        **Planting Seeds**                              35                 34                 NA                   2                2                NA                  6%                 7%                 0%

                        **Sugars, Sweeteners, &                         20                 21                 NA                   1                1                NA                  0.03%              0.23%              0%
                        Beverage Bases**                                                                                                                                                                                       

                        **Essential Oils**                              51                 47                 NA                   1                1                NA                  2%                 2%                 0%

                        **Other Intermediate                            71                 82                 NA                   1                1                NA                  2%                 1%                 0%
                        Products**                                                                                                                                                                                             

                                                                                                                                                                                                                               

  **CONSUMER-ORIENTED                                                   1,980              2,463              NA                   17               25               NA                  0.84%              1%                 0%
  AGRICULTURAL TOTAL**                                                                                                                                                                                                         

                        **Snack Foods (Excl.                            98                 139                NA                   1                1                NA                  0.12%              0.09%              0%
                        Nuts)**                                                                                                                                                                                                

                        **Breakfast Cereals &                           17                 26                 NA                   1                1                NA                  0.01%              0.02%              0%
                        Pancake Mix**                                                                                                                                                                                          

                        **Red Meats,                                    505                613                NA                   1                1                NA                  0.01%              0.01%              0%
                        Fresh/Chilled/Frozen**                                                                                                                                                                                 

                        **Red Meats,                                    37                 53                 NA                   0                0                NA                  0%                 0%                 0%
                        Prepared/Preserved**                                                                                                                                                                                   

                        **Poultry Meat**                                68                 86                 NA                   0                0                NA                  0%                 0%                 0%

                        **Dairy Products (Excl.                         257                282                NA                   0                0                NA                  0%                 0%                 0%
                        Cheese)**                                                                                                                                                                                              

                        **Cheese**                                      220                272                NA                   0                0                NA                  0%                 0%                 0%

                        **Eggs & Products**                             10                 10                 NA                   0                0                NA                  0%                 0%                 0%

                        **Fresh Fruit**                                 106                124                NA                   1                2                NA                  0.60%              1%                 0%

                        **Fresh Vegetables**                            44                 82                 NA                   0                1                NA                  0%                 0.06%              0%

                        **Processed Fruit &                             116                154                NA                   2                3                NA                  1%                 2%                 0%
                        Vegetables**                                                                                                                                                                                           

                        **Fruit & Vegetable                             35                 43                 NA                   2                2                NA                  5%                 4%                 0%
                        Juices**                                                                                                                                                                                               

                        **Tree Nuts**                                   45                 65                 NA                   7                12               NA                  16%                19%                0%

                        **Wine & Beer**                                 54                 89                 NA                   1                1                NA                  0.16%              0.04%              0%

                        **Nursery Products & Cut                        30                 41                 NA                   1                0                NA                  0.02%              0%                 0%
                        Flowers**                                                                                                                                                                                              

                        **Pet Foods (Dog & Cat                          45                 65                 NA                   1                2                NA                  3%                 2%                 0%
                        Food)**                                                                                                                                                                                                

                        **Other                                         294                320                NA                   4                5                NA                  1%                 1%                 0%
                        Consumer-Oriented                                                                                                                                                                                      
                        Products**                                                                                                                                                                                             

                                                                                                                                                                                                                               

  **FOREST PRODUCTS                                                     293                424                NA                   17               20               NA                  6%                 5%                 0%
  (EXCL. PULP &                                                                                                                                                                                                                
  PAPER)**                                                                                                                                                                                                                     

                        **Logs & Chips**                                35                 31                 NA                   1                1                NA                  0.39%              0.12%              0%

                        **Hardwood Lumber**                             53                 72                 NA                   9                12               NA                  18%                17%                0%

                        **Softwood and Treated                          83                 166                NA                   3                3                NA                  3%                 2%                 0%
                        Lumber**                                                                                                                                                                                               

                        **Panel Products (Incl.                         75                 81                 NA                   4                4                NA                  5%                 5%                 0%
                        Plywood)**                                                                                                                                                                                             

                        **Other Value-Added Wood                        47                 74                 NA                   1                1                NA                  1%                 0.54%              0%
                        Products**                                                                                                                                                                                             

                                                                                                                                                                                                                               

  **FISH & SEAFOOD                                                      262                316                NA                   5                2                NA                  2%                 0.66%              0%
  PRODUCTS**                                                                                                                                                                                                                   

                        **Salmon**                                      7                  11                 NA                   1                1                NA                  7%                 0.51%              0%

                        **Surimi**                                      1                  1                  NA                   0                0                NA                  0%                 0%                 0%

                        **Crustaceans**                                 34                 32                 NA                   2                1                NA                  7%                 2%                 0%

                        **Groundfish &                                  60                 62                 NA                   1                1                NA                  0.88%              0.74%              0%
                        Flatfish**                                                                                                                                                                                             

                        **Molluscs**                                    64                 92                 NA                   2                1                NA                  3%                 1%                 0%

                        **Other Fishery                                 96                 119                NA                   1                1                NA                  0.04%              0.04%              0%
                        Products**                                                                                                                                                                                             

                                                                                                                                                                                                                               

  **AGRICULTURAL                                                        2,929              3,482              NA                   92               101              NA                  3%                 3%                 0%
  PRODUCTS TOTAL**                                                                                                                                                                                                             

  **AGRICULTURAL, FISH                                                  3,484              4,221              NA                   115              123              NA                  3%                 3%                 0%
  & FORESTRY TOTAL**                                                                                                                                                                                                           

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

  -----------------------------------------------------------------------
  NA - Data not available (not reported)       Data: Harmonized Tariff
  Schedule (HS 6 Digit)

  Source: FAS\' Global Agricultural Trade System using data from the
  United Nations Statistical Office
  -----------------------------------------------------------------------

# TABLE C. TOP 15 SUPPLIERS OF CONSUMER FOODS AND EDIBLE FISHERY PRODUCTS 

# 

#### CONSUMER-ORIENTED AGRICULTURAL TOTAL - 400 

  ------------------------------ --------------- --------------- ------------
  **Reporting Country:\          **Import**                      
  Greece\                                                        
  Top 15 Ranking**                                               

                                 **2001**        **2002**        **2003**

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

  **Netherlands**                434,292         562,746         0

  **France**                     287,554         401,517         0

  **Germany**                    351,465         382,366         0

  **Italy**                      257,940         310,663         0

  **Belgium**                    108,823         123,705         0

  **Spain**                      79,210          100,836         0

  **Denmark**                    100,720         99,501          0

  **United Kingdom**             46,704          58,582          0

  **Turkey**                     32,412          42,868          0

  **Bulgaria**                   21,289          32,306          0

  **Ireland**                    23,831          31,241          0

  **Austria**                    19,216          28,768          0

  **Ecuador**                    13,006          28,190          0

  **Cote d\'Ivoire**             29,874          26,700          0

  **United States**              16,641          24,872          0

  **Other**                      157,230         208,442         0

  **World**                      1,980,190       2,463,361       0
  ------------------------------ --------------- --------------- ------------

  -----------------------------------------------------------------------
  ***NA - Data not available (not reported)       Data: Harmonized Tariff
  Schedule (HS 6 Digit)***

  ***Source: FAS\' Global Agricultural Trade System using data from the
  United Nations Statistical Office***
  -----------------------------------------------------------------------

#### 

#### 

#### 

#### 

#### FISH & SEAFOOD PRODUCTS - 700 

  --------------------------------------- ------------ ------------ ------------
  **Reporting Country:\                   **Import**                
  Greece\                                                           
  Top 15 Ranking**                                                  

                                          **2001**     **2002**     **2003**

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

  **Morocco**                             19,052       32,044       NA

  **Italy**                               32,296       31,060       NA

  **Spain**                               27,840       31,035       NA

  **Denmark**                             19,196       21,771       NA

  **Netherlands**                         13,354       20,986       NA

  **Senegal**                             17,809       19,416       NA

  **Turkey**                              9,795        18,725       NA

  **India**                               13,167       17,007       NA

  **Germany**                             6,809        11,101       NA

  **Argentina**                           7,878        9,148        NA

  **New Zealand**                         9,356        8,383        NA

  **United Kingdom**                      5,378        7,214        NA

  **France**                              5,688        6,066        NA

  **Sweden**                              6,376        5,880        NA

  **Tanzania, United Republic of**        4,707        5,689        NA

  **Other**                               63,031       70,272       0

  **World**                               261,749      315,798      0
  --------------------------------------- ------------ ------------ ------------

  -----------------------------------------------------------------------
  ***NA - Data not available (not reported)       Data: Harmonized Tariff
  Schedule (HS 6 Digit)***

  ***Source: FAS\' Global Agricultural Trade System using data from the
  United Nations Statistical Office***
  -----------------------------------------------------------------------