The Greek Economy, Through The Lens Of A Wine Glass

Jul 17, 2014

(Forbes) - Greece’s economic crisis has been devastating and overwhelming. Understanding its drivers and impacts — whether in that country’s urban environments, its islands, or its rural countryside — is challenging, to say the least.

It helps to focus. For me, getting a handle on Greece’s crisis (and the nuances of its signs of recovery) means looking at the economics of the wine industry.

Here are four angles on the Greek economy that have come into focus for me, by looking through the lens of a wine glass.

Organic Development: “Wine is back”

“At the beginning of the crisis we saw a decrease of our sales,” said Dr. Yannis Voyatzis, Chief Enologist at Boutari Wineries S.A. But there was also an increase in unexpected categories that balanced out that drop.

With less money to spend, and with a sense that local products are both appealing and less expensive, consumers demanded options in the form of “homemade” or pure wine served in carafes at restaurants. They also demanded cheaper, more casual, and smaller-portioned food options as an alternative to the more expensive, bigger meals served in formal restaurants.

This development has resulted, within the past two years, in a sharp increase of wine bars and by-the-glass consumption.

Because drinking wine by the glass encourages experimentation and comparison, the dialogue about wine is also growing, especially among young people who visit wine bars most often.

In addition, taxes on hard alcohol like vodka and whiskey have increased while taxes on wine have stabilized. On-premise establishments like trendy clubs in the cities have started carrying wine, whereas before they carried spirits for cocktails.

The combination of these three factors bodes well for wine’s position within Greece’s social culture. As Voyatzis says: “Wine is back.”

Adjustments: “There is no program on your PC for growing grapes”


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