he
changing business environment in Greece has attracted the attention
of major foreign companies. The presence of international corporates
like Aventis, PricewaterhouseCoopers,
Allianz, Shell, Sun Microsystems and Allied Domecq highlights the broad
potential for growth in Greece, as well as its easy access to the growing
markets of the Balkans.
The Greek manufacturing sector is still small by European standards,
accounting for about 13 per cent of gross domestic product (GDP), yet
it accounts for a substantial chunk of Greek exports. The largest and
generally most profitable sectors are consumer goods, especially foodstuffs,
beverages and tobacco.
In
the beverages sector, one of the world’s biggest players, Allied
Domecq, is increasing its commitment to the Greek market in the belief
that there is good growth potential.
The group’s strategy is to achieve double-digit profit growth every
year. There is a solid platform on which to expand, as Greece is ranked
one of the biggest per capita whisky consumers in the world.
Allied Domecq’s leading brands include Ballantine’s whisky,
for which it is targeting a younger market with a major promotion programme
this year, and Serkova Vodka, which was previously produced locally
but is now made in Scotland.
|
||
 |
“We
started Serkova as a cheap vodka and gradually invested money in it
through TV adverts to create equity in the brand and at the same time
we kept increasing the price,” says managing director Manolis
Paterakis.
“Our major weakness was that it was not imported. Greece does not
have a tradition of having a local vodka, so we decided to send the
bottling overseas in order to have the tag that it is imported.”
Mr Paterakis says Allied Domecq is keen to develop the white spirits
market in Greece, alongside whisky and brandy. This will include raising
the profile of Beefeater gin against its main rival, Gordon’s.
“We
aim to expand the white spirits market rapidly as we believe there is
potential here,” he says. The firm’s other leading brands
include Kahlua, Tia Maria, Teacher’s and Canadian Club.
Allied Domecq is looking for acquisitions in Greece as well as investigating
the potential of wine development. The Greek market is strong, although
brand names have not been developed as in other European wine-producing
countries.
In recent years there has been a trend towards producing higher quality
wine, with the aim of expanding export markets. Mr Paterakis says Greece
has the potential to compete with wines from Italy and Spain.
“We
see huge growth potential for premium wine in Greece,” he adds.
“It will take some time for people to change their habits, but
the trend is strong and positive in this direction.”
Greece was slow to join the internet revolution – in 1999, Greek
expenditure on information technology totalled less than one per cent
of GDP, compared with an EU rate of 2.7 per cent, according to the European
Information Technology Observatory 2001.
The celebrated digital guru Nicholas Negroponte, a Greek-American and
the co-founder and director of the Massachussetts Institute of Technology’s
famed media laboratory, says internet use in Greece is still low.
However,
the liberalisation of fixed-line telephony last year and the establishment
of the Athens Internet Exchange has accelerated online usage. The government
is determined that Greece catch up with its fellow EU members and is
putting up about $490 million for a programme designed to increase Greek
competitiveness by introducing the internet in business and through
the electronic delivery of government services.
The Ministry of Development has a programme called Go Digital, designed
to connect 50,000 small businesses to the internet and equip them with
basic e-commerce skills. Taxpayers can already acquire tax forms and
guides over the internet, and the self-employed can file VAT returns
online.
The Telecommunications and Information Technology Research Institute
for Southeastern European Countries started operations in January in
the northern city of Thessaloniki.
The institute was founded by the Association of Northern Greek Industries,
state-owned operator OTE Telecom and several major domestic companies
from the telecoms and IT sectors.
All
this spells good news for foreign firms who operate in IT as well as
service companies. For example, the Greek market is now the third most
important in the Mediterranean region for US-based Sun Microsystems
(after Israel and Turkey).
About a fifth of the computer manufacturer’s total annual turnover
in the 26 Mediterranean countries is generated in the Greek market.
Regional managing director Tony La Rosa says Sun Microsystems Hellas,
which was established in 1995, will experience 25 per cent growth in
the IT market this year.
[email protected]