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Urban Greek Cooks Cozy Up to Frozen Foods
By Danae Synodinou
If your business is producing frozen
foods and you’re interested in sales to a Mediterranean
country, take note.
In Greece, frozen foods are becoming the fastest growing food sector in Athens and other urban areas. With nearly a third of Greek homes already outfitted with freezers and microwave ovens, the convenience trend is primed for takeoff.
While population centers are experiencing the first wave of desire for convenience foods, demand is expected to spread to the countryside.
Markets for the Taking
For the most part, Greek home cooking remains traditional, but change is coming. New dietary trends, more women working outside the home and the recognition that frozen food can be equal to or sometimes better than fresh is bringing new choices to the home front.
Market experts agree the following items
offer opportunities for U.S. frozen food producers:
French fries. With consumption of roughly 58,000 metric tons in 1997 that was worth close to $45 million in sales, over 90 percent of frozen fries are still being sold to restaurants.
Greek home cooks still prefer fresh potatoes, and they still have the time to prepare them. As more women enter the workforce, however, the frozen fries’ ease of preparation will become a marketing factor.
Vegetables. Peas rank No. 1, followed by green beans and okra, with corn and mixed vegetables coming on strong. Sales have been increasing at a 3-4 percent yearly. Now at 14,500 tons, sales in 1997 came to $45 million, not including bulk products weighing in at 15,000 tons. A successful new market entrant: traditional Greek vegetable meals.
Dough. In 1997, phyllo dough led sales of 21,000 tons valued at $41,000. When first introduced, dough products in Greece tended to jump off the sales charts, then subside to "normal" levels. Pizza’s market entry provided dizzying sales data, but the product has now reached a stable market position. Newest items include a variety of traditional desserts.
Seafood. Though adverse market conditions--including changing weather, cost fluctuations, changes in European Union and national legislation and quality controls-- have affected the frozen seafood market, the market managed for years to stabilize at 40,000 tons of consumption annually. That is, until the past few years when sales began rising 10 to 12 percent a year. With sales of 45,000 tons in 1997, the market is now valued at $100 million.
Poultry and poultry products. With sales increasing at a steady 4 percent a year, frozen poultry is now used mostly by restaurants, taverns and fast-food chains. The restaurant industry buys whole poultry or parts. Households favor parts. The 195,000 tons of fresh and frozen poultry meat sold in 1997 were worth $48.3 million.
Meat and meat products. Most frozen meats are sold to the restaurant sector; household use hasn’t caught on. Limited opportunities exist for hormone-free, high-quality U.S. beef, particularly in the better hotels and restaurants.
Fresh Produce Heavyweight Competitor
By far the fiercest competition for frozen items comes from fresh products readily available at markets, particularly in the vegetable sector. With its yearly production of 9 million tons of fruit and vegetables, Greece is among the top 15 producers in the world. During seasonal down times, imports supplement consumption for some vegetables and fruits.
As with fries, frozen vegetables compete best with fresh foods when convenience outweighs the perceived quality of the fresh items.
Not surprisingly, primary competing countries are all EU members, because of preferences granted.
Joint Ventures Profitable
There are excellent opportunities for U.S. firms with European subsidiaries, enabling them to compete on a more level playing field with EU suppliers.
Until a frozen food producer makes a
connection with an in-country producer, there are some important
things to know about exporting to Greece.
Importers Play Critical Role
About 80 percent of Greece’s import trade is handled through sales agents and distributors. Distributors can work on a wholesale or retail basis, usually with exclusive sales rights for certain districts or even for the entire country.
Since the importer is so crucial to the success of a product, producers should carefully check out the qualifications of prospective agents to ensure their experience is appropriate. Importers should also have access to an extensive sales network that offers full support to the end-user.
Importers guide a new food through the approval process. Products already complying with the terms, regulations and provisions of the current food code do not require a special permit to be imported and marketed into Greece. New foods require prior approval by Greece’s Supreme Chemical Laboratory. Applications for the permit are submitted, in Greek, to the lab. Approval requires 2 to 3 months.
Consumers Give Nod to Supermarkets
Greece has an abundance of retail
grocers--23,000 stores, including 18 supermarket chains and 22
medium-size supermarkets. Since most consumers prefer to buy
their frozen foods from a supermarket, finding distributors
affiliated with them is important.
The Greek frozen food sector has worked hard to promote its market share. And the payoff is underway. Not only is overall consumption of frozen food increasing, but the range of products is widening. These factors create the potential for rapid expansion for established firms and new market entrants.
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The author is an agricultural specialist in the FAS Office of
Agricultural Affairs in Athens, Greece. Tel.: (30-1) 720-2798;
Fax: (30-1) 721-5264; E-mail: AgAthens@fas.usda.gov
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