The Greek Wine in the United Kingdom: Challenges and Prospects
By George Lamperis
There are significant prospects for the growth of Greek wine sales in the United Kingdom in the post-Brexit era, as indicated both by the data from the Greek Embassy in London and by Antonis Sioulis, head of Reco Exports, a company promoting Greek product exports in the United Kingdom, as reported on Capital.gr. Sioulis sees a window of opportunity, lasting 18 months from today, as there is currently demand for wines from Greece, and he considers it essential for the industry to act swiftly to seize the opportunity that has arisen.
Preference for Assyrtiko and Xinomavro
According to data from the Greek embassy, Greek wine imports to the United Kingdom amounted to £5.6 million in 2022, up from £3.8 million in 2021, marking a significant increase (49%) compared to the previous year. Greece ranked 17th in the list of countries from which the United Kingdom imports wine, compared to 20th place in 2021. Greek varieties Assyrtiko and Xinomavro are among the fastest-growing preferences among British consumers for indigenous varieties.
As Antonis Sioulis points out, after the lifting of restrictive measures due to the pandemic, demand for Greek wine has seen a significant increase. “A large number of wine specialists and distributors in this country gathered to discuss the future of their industry after the pandemic. One of the topics of discussion was the overturning of the existing landscape in the wine market of the United Kingdom, which was considered to have reached a stalemate, as international varieties such as Merlot, Cabernet, and Syrah had tired the British consumers. In this direction, wine-producing countries that could offer wines of interest for import to the United Kingdom came to the fore. Among these countries were India, Georgia, Bulgaria, Turkey, and Greece.”
According to Mr. Sioulis, Greece has been included in the exploration map of new varieties and wines by the British. “It is a fact that after the health crisis, the biggest beneficiaries of this search were wine-producing countries that were already positioned in the British market. But also countries like India and Georgia invested a lot of money in promoting their own wines in this particular country.”
Turkey, on the other hand, has managed to capture a significant share in the distribution of food and wine in the British market, as noted by Antonis Sioulis. “Greece, on the other hand, receives minimal support from the Greek state regarding the promotion of its wines. An exception is some European programs that are occasionally implemented in this direction. For example, as a company, we had the opportunity to enter the market through European Union programs, conducting roadshows and tastings in cellars and distributors not only in London but also in Birmingham, Manchester, and Bristol. What we found was that wineries that already had a place in this market, such as Domaine Thymiopoulos, Domaine Semeli, Domaine Avantis, and Domaine Mouson, as well as the Greek Wine Cellars producing the Kurtaki retsina, benefited from these efforts.
At the same time, some other wineries have started to move gradually into the United Kingdom. At the moment, there is demand and a great window of opportunity for the great wine that we estimate will last about 18 months. We estimate that intensive actions should be taken to capitalize on this demand window for Greek wine at a rapid pace.”
According to Mr. Sioulis, the window of opportunity was created through the initial demand for Greek wine from wineries that already had a presence in this country. Gradually, the British audience began to demand our wine product, which has positioned itself in the premium category since many of our wines are sold at high prices. “There are businesses that can support the required quantities of wine in this market, and there are enough of them to supply the needs that have arisen, promoting Greek wine and creating the conditions for a budget for harvesting and stable presence in the United Kingdom in the coming years.”
The “obstacles” for Greek winemakers and the lack of patience
The main obstacle to the entry of Greek wineries into British restaurants is the fact that the market is supplied by three or four large distributors who manage a huge range of thousands of internationally sourced labels. “These are distributors who set specific specifications and protocols to include a wine in their portfolio. Because it requires creditworthiness, recommendations, time investment, even recording the colors of each label, and certification that they do not harm the health of the consumer. However, most Greek wineries do not meet these specific protocols, and there is not the required patience on their part.”
The British market in numbers and Greek sales
It is noted that the total value of the British market for food and beverages has shown continuous upward trends over the past decade, except during the Covid-19 pandemic, when alcohol consumption decreased dramatically. Bottled wine ranks second in the alcoholic beverage markets of British households, with a share of 28%, after beer (52%). The total size of the wine market in the United Kingdom in 2021 is estimated at 15.7 billion euros, with white wine occupying the largest share of the market, followed by red, sparkling, and finally rosé wine, according to data from the Greek embassy.
On the other hand, the United Kingdom has a small domestic wine production (about 70,000 hectoliters in 2021), mainly in southern England and Wales, with 66 cultivated varieties, dominated by Chardonnay and Pinot Noir. Sparkling wine traditionally accounts for two-thirds of the British wine product, while almost all of British production is directed at the domestic market. The rise in temperature over the next decades, due to climate change, is expected to lead to an increase in the country’s wine production, which, however, will remain limited and is not expected to significantly affect the domestic market.
Source: Forbes.gr