Whiskey retains a big lead over ouzo in Greece
Scots are not likely to believe a claim that whiskey is more popular in Greece than its traditional tipple, ouzo. But the claim has been backed by data for years. According to a study by business research company ICAP, whiskey commands a 40 percent share in Greek spirits consumption, leaving ouzo a distant second with 25 percent. But both are in decline. Various liqueurs are third with about 10 percent, followed by vodka (9 percent), brandy (8 percent), gin and rum. The alcoholic drinks sector appears stagnant now, having enjoyed particularly robust growth in the mid-1980s when Greek consumers followed European trends and gradually turned to imported drinks. Strong competition internationally meant Greek production and importing companies had to come under the control of foreign companies through mergers and acquisitions. The increasing swing to more healthy consumer habits has resulted in a greater preference for non-alcoholic or low-alcohol drinks. The price of spirits is another factor that has affected demand, as the special tax imposed makes many consumers opt for low-alcohol alternatives. Demand is also shaped by social and psychological factors, as well as demographic factors. In terms of supply, ICAP notes that domestic spirits production concerns mainly ouzo, liqueur and brandy and comprises relatively few companies. The big producers differ from the smaller ones in their production process and distribution network. Most small production units produce ouzo. Bigger enterprises are expanding their production to liqueurs and brandy while some others are involved in producing wine and soft drinks. Almost all of them have extensive distribution networks for their products. Their imports consist only of raw materials while ouzo is their main export. The importing sector is controlled by certain large companies that are subsidiaries of multinational firms. They have national distribution networks through which they supply the market with products of their own and from other companies in the sector. Most of the imports come from EU countries. While consumption of whiskey, ouzo, liqueurs and brandy has been declining since 2004, rum has seen no significant fluctuations, and gin and vodka are firmly on the rise. The survey predicts there will not be any significant shifts in 2006 and 2007 in the Greek spirits market, as observers expect it to remain at the 2005 levels. Gin, vodka and tequila, in particular, are projected to continue their rise, as will the category of malt and premium whiskey against standard whiskey. Tsipouro is emerging as the main rival to ouzo as its growth has been constant in recent years.