WINEMAKING by Yiannis Boutaris Kir-Yianni Wine Company Director Vine cultivation and wine production first appeared in Greece around 3500 BC. We have the earliest identification of wines from the period 800-1500 BC from Homer s epics; the wines are usually referred to by the names of the city or region in which they were produced. During antiquity many Greek writers and poets made reference to wine and the vine. The wine trade flourished, the adoration of Dionysus conquered the Hellenic world and Dionysus was worshipped as a god. Symposia and festive events enriched social life and elaborate wine vessels were made (cups, kraters, amphorae), many of which adorn museums around the world today and testify to the major contribution of the vine and wine to the culture of Greece. The enormous economic importance of wine production and trade led to its protection by legislation. The lengthy tradition of winemaking and the high quality of wines produced in Greece during antiquity were by no means accidental. The oldest Greek legislative text referring to wine (420-400 BC), which is also considered to be the earliest surviving wine law, is to be found engraved on white marble in the museum of Thassos. This text concerned the wines produced on the island and ensured their authenticity. The law clearly stipulates that the wine could only be sold in amphorae sealed by market inspectors. The renowned Pramnion Wine of Ikaria, famous since antiquity, can claim to be the first wine with an appellation of origin. about BRAND GREECE 57
BRAND GREECE During the Roman Empire, both viticulture and vinification were based on Greek methods, with small variations. It is characteristic that Caesar, in order to thank the dignitaries of Rome, would often offer them Greek wines. During the Byzantine period, viticulture was in large part carried out by monks. The winemaking facilities of many monasteries were the subject of admiration for Western visitors. The famous Byzantine wines were produced in various regions of the empire, but mainly on the islands. The period of Ottoman domination deprived Greece of the possibility of developing its wine sector, partly because of exceptionally heavy taxation but also due to extensive destruction caused by Turkish troops, particularly during the struggle for independence. After Greek independence from Turkish rule, the production of wine became the subject of cottage production and local trade, without any quality requirements. At that time French wines were at their zenith and it was natural that the first efforts of reconstructing the Greek wine sector were based on the French blueprint. Throughout the first half of the 20 th century, commercial wine production was limited to retsina and bulk wine. Greece became the main supplier of anonymous wine to Europe and particularly to France. After the end of the Second World War, conditions were conducive to the rise of bottled wine, the initial objective being the production of standardized wines of consistent quality for wider consumption. The legislation of 1969, enacted with a view to Greece s admission into the EEC, saw the dawn of a new reality in the history of Greek wine. This legislation was aimed at the creation of a national framework for the approval of wines in conformity with the regulations of what was then the EEC. With laws dated 1971 and 1972, certain wines from 23 regions were granted appellation of origin status, and in 1980 four more regions were added. The decade of the 1980s was characterized by: wide- 58
WINEMAKING scale modernization of winemaking installations, the establishment of new installations, the appointment of oenologists, the emergence of wine journalists, and the appearance of specialized wine publications. With a regulation dated 1988, the use of the term regional wine was approved. Since then, the Greek wine world has followed a steady and dynamic course with continuous improvements in the quality of wines, with significant contributions from scientific and technical personnel, the organization of many scientific congresses at national and local level, as well as events focused on wine and the organization of international and national wine competitions. In 2000 the National Interprofessional Organization of Vine and Wine was established with representatives from production, processing and marketing of agricultural grape and wine products, these sectors being represented by the Central Union of Wine Cooperative Organizations (KEOSOE) and the Federation of Greek Wine Producers (SEO). The aim was to provide an institutional framework to address the problems facing the sector, as well as providing the support and promotion of wine on both the Greek and international markets. Today, the total area of vineyards with grapes for vinification amounts to roughly 70,000 hectares, of which 10% produces appellation of origin wines and the rest is for the production of table wines, including wines with a geographical indication. Total production is 4,000,000 hectoliters per year. Of total production, 30% is intended for self-consumption, 30% is produced by privately owned wineries, and the remaining 40% is vinified by the cooperatives. The about BRAND GREECE 59
BRAND GREECE wine industry has more than 350 active enterprises in both the private and cooperative sectors, the majority of which are of small or medium size and have the production of wine as their sole activity. The large companies distribute their products through their own distribution networks, whereas distribution from small to medium-sized enterprises is mainly via representatives and wholesalers. The wines that are produced are divided according to Greek legislation into: Quality wines produced within a specific region (VQPRD Vins de qualité produits dans une région déterminée): The wines characterized as VQPRD are produced within specific regions (appellations), they are wines which are typical of the region, produced by traditional methods from a single grape variety or up to a maximum of three varieties. They are divided into: Wines of Appellation of Origin of Superior Quality (OPAP). A total of 20 areas have been recognized for the production of OPAP wines in Greece. Wines of Appellation of Controlled Origin (OPE). Only sweet wines, produced in 8 recognized regions, can be designated OPE. and: PRODUCTION 2004 TABLE WINES - HL VQPRD - HL TOTAL - HL WHITE 2,570,020 210,660 2,780,680 RED 1,359,210 155,110 1,514,320 TOTAL 3,929,230 365,770 4,295,000 REGIONAL PRODUCTION ESTIMATED PRODUCTION REGION 1999 2000 2001 2002 2003 2004 VOLUME IN HL EASTERN MACEDONIA 254,000 254,600 255,500 236,650 256,800 255,500 & THRACE WESTERN & CENTRAL 191,900 182,800 199,690 196,820 245,150 273,160 MACEDONIA EPIRUS 14,800 17,200 25,500 21,000 17,460 16,350 THESSALY 229,500 269,500 279,500 155,800 358,900 367,250 IONIAN ISLANDS 125,000 130,000 122,000 65,100 116,000 106,500 PELOPONNESE 1,374,500 1,208,500 1,234,000 922,000 1,396,500 1,652,000 CENTRAL GREECE 606,400 490,000 495,000 380,000 500,000 380,000 & EVIA ATTICA 255,300 222,200 214,220 195,620 241,360 286,820 AEGEAN ISLANDS 189,000 174,540 154,360 141,676 193,570 223,050 TOTAL 3,680,000 3,557,540 3,477,270 3,097,766 3,864,340 4,294,530 60 about BRAND GREECE
WINEMAKING TOTAL GREEK PRODUCTION Table wines: Table wines are all wines which do not meet the criteria as set out in the legislation in order to be characterized as wines with an appellation of origin. An upgraded category within that of table wines applies to wines bearing an indication of geographic origin (regional wines). Greek production represents roughly 2% of total European Union production and for 2004 it amounted to 4,295,000 HL, which is divided into the different categories and white or red. The table wines category (in which wines with geographic indication are included) cover a volume approaching 90% of total production, while the VQPRD wines cover 10%. Sixty-five percent of production is white and the other 35% is red and rosé. One of the main characteristics of the Greek vineyard is the many scattered smallholdings. With regard to geographical conditions, Greece is characterized by its diversity. The soil is generally rocky, chalk with clay and lime- GREEK WINE COMMERCE 11217 Wine from fresh grapes (excluding sparkling wines) PERIOD: January-December IMPORTS EXPORTS YEAR TONS 1,000 drs/euro 1,000 $ TONS 1,000 drs/euro 1,000 $ 1993 2,498 1,113,805 4,858 52,894 13,141,791 57,325 1994 1,896 1,043,405 4,301 65,758 14,880,651 61,388 1995 2,064 1,304,131 5,630 58,235 17,753,315 76,635 1996 2,735 1,366,438 5,677 55,469 17,241,534 71,628 1997 2,481 4,429 5,342 44,274 61,754 69,753 1998 3,455 5,153 5,780 65,690 68,901 77,287 1999 5,260 7,354 7,838 45,643 67,148 71,566 2000 15,626 11,341 10,448 44,888 67,580 62,259 2001 34,145 14,877 13,324 53,707 61,837 55,384 2002 10,856 37,142 39,304 30,480 49,750 52,645 2003 27,973 15,547 17,587 59,005 59,005 64,776 about BRAND GREECE 61
BRAND GREECE stone subsoil or over porous rock. There is a wide diversity of topography and aspects and vines can be found cultivated in areas from sea level up to altitudes of 1,000 meters. Climates show a similar diversity. The climate of Greece is generally classified as Mediterranean, but in the northern regions the climate can be said to be continental, while in the south it verges on the sub-tropical. This combination of soil and climatic conditions is conducive to the culture of vines and contributes to the creation of a wide variety of microclimates, which with the many, fine local grape varieties allows for the production of a wide variety of wines. The large number of indigenous grape varieties constitutes one of the major advantages of wine production in Greece; that these varieties are unique to Greece gives the country a powerful comparative ad- WINE CONSUMPTION IN GREECE YEAR VOLUME IN HL PER CAPITA PER CONSUMER 1993 3,105 29.60 41.40 1996 3,300 31.40 44.00 1997 2,900 27.60 38.70 1998 2,958 28.20 39.40 1999 2,752 26.21 36.61 2000 2,747 26.20 36.70 2001 2,942 28.00 39.00 2002 2,466 23.00 32.90 WINE CONSUMPTION IN GREECE 1993-2002 POPULATION RESIDENTS: 10,500,000 CONSUMERS: 7,500,000 62 about BRAND GREECE
WINEMAKING about BRAND GREECE 63
BRAND GREECE vantage on a world map that is tending toward varietal homogenization. Quantities of wine imported into Greece equal 10% of domestic production, with volume increasing over recent years. Imports are mainly in bulk wines. Meanwhile Greek exports of wine, both within the European Union and to third countries, are subject to large fluctuations both with regard to quantity and value, which during the period 1993-2000 initially showed an increase followed by a reduction for the period 2000-2002 and then increasing again in 2003. The domestic annual consumption oscillates at low volumes compared to the other wine-producing countries in the European Union and, as the following tables demonstrate, shows a tendency toward a reduction in consumption. However, there is a large village production of wines that influences the results of measurements of per capita consumption as there are no statistics for this production. With regard to the current situation, everything points to the fact that wine production, both at the European and international levels, is entering a new phase of realignments and reallocation of markets. The observation of international developments provides a warning against abrupt changes at a critical crossroad that will decisively influence the future and the dynamics of the sector. Everything shows that, despite all efforts, wine is losing its identity as a natural agricultural product. The global economy, which is incompatible with uniqueness, is now di- 64 about BRAND GREECE
WINE MAKING rected against regionality, typicity and tradition which up until now could be considered an integral part of wine production. The revision of the Common Agricultural Policy for wine which is currently under discussion in the EU, and is coming under pressure from negotiations also being carried out by the World Trade Organization, should have as its goal the solution of problems caused by increasing competition in the international market and also the steady decline in the consumption of European wines, mainly in traditional wine-producing countries. During recent years exports of European wine have been stagnant, as opposed to imports, which have shown a considerable increase. The European Union appears to be ceding a significant part of its market to industrialized wines from the New World, which are progressively conquering the European market. It is becoming apparent that an attempt is being made to address the management of rural policy with technocratic-budgetary terms rather than providing real support for an entire sector of EU production, and in particular one of the most dynamic and competitive, at an international level, that it possesses. The majority of proposals put forward by the European Commission up until now focused on mechanisms of regulation-restriction of supply, particularly the grubbing-up of vineyards and the abolition or transformation of existing mechanisms of intervention. It deliberately ignores the entire category of table wines, which make up the majority of wine production overall, thus surrendering the market to wines from third countries without a battle and about BRAND GREECE 65
BRAND GREECE downgrading the sector. It does not propose any real measures for consumer education and the promotion of sensible drinking. It is a defensive policy, incompatible with the tradition and dynamic of European wine production. The increasing challenges to the balance between supply and demand in the wine sector require a systematic and structured response in order to increase awareness, strengthen reputation and generally promote European wines, with the aim of winning back market share both at Community level and in developing countries. Targeted strategies should be worked out aimed at consumers with different cultural and consumption prototypes and purchasing capacity. Whatever the European and international developments, it is imperative that changes should be imposed within Greece without delay, both with regard to ingrained mentalities and vested interests as well as the legal framework. The state and institutions should collaborate with a sense of gravity and responsibility in order to resolve problems which have been dragging on for years, sabotaging the development of the Greek vineyard. The state should make the brave decision to collaborate and to cede responsibilities to the sector for matters that directly concern it. The wine sector should undertake the responsibilities of self-policing and ensuring effectiveness. Only thus can we prepare, not only in order to absorb developments but also in order to fortify the position that the Greek vineyard deserves on the international wine map. We must combine tradition with the contemporary, the legal framework should be brought up to date, we must ensure the protection of the countryside and of entrepreneurship, we should develop and apply a national strategy for the support and rejuvenation of the Greek vineyard, we must be flexible while maintaining stability in long-term objectives: All this forms the backbone of our policy as formulated at the first National Convention of Wine and Vine held in Metsovo in July 2005. Our aim is not only the protection of the wine sector as an important economic sector but also as part of our heritage with its ancient, valuable, historical, environmental and cultural traditions associated with the vine and wine. Sources: EUROPEAN UNION WEBSITE MINISTRY OF RURAL DEVELOPMENT & FOOD National Statistics Service of Greece ICAP Central Union of Wine Cooperative (KEOSOE) FEDERATION OF GREEK WINE PRODUC- ERS (SEO) 66 about BRAND GREECE