The Future New winery (Anagnostou) under construction in Attika. The road from here will not be easy. The Greek wine industry, like those of other European Union member countries, must reckon with two particularly debilitating affronts: shrinking domestic consumption and surpluses resulting from EU-mandated eradication policies designed to improve wine quality by decreasing production. Even though producers have successfully created a new fine wine trend expected to spur a roughly 5% annual increase in the domestic market, factors such as; higher base prices for this new breed of wines; recent tax rate increases (a VAT increase of 300% on wine products in 5 years); changes in social habits; and a loss of market share to other beverages (beer, in particular) conspire to limit consumption to levels far below those of the early 1980’s. For smaller, artisanal wineries, increased domestic competition from bulk wine marketeers has been an unwelcome consequence of the modernization on which their economic hopes had rested. Although changes aimed at improving efficiency within the industry may yet result in lower retail prices or higher profits, an increase in exports appears to be the only practicable way around these problems. For an industry supplying a shrinking domestic market, a healthy export program is essential. In this regard, large companies with export experience would appear to have the advantage. But they, too, must feel the crunch. During the 1990s, companies such as Boutari, Tsantalis and Ahaïa Clauss scrambled to meet the needs of more demanding consumers. Although their markets are under attack from a wave of small producers, these larger companies still control a substantial share of the domestic market. Tsantalis, Ahaïa Clauss and Boutari were in strong positions to retool, redeveloping prime vineyards in order to accommodate new premium wines. Kourtakis adopted a more careful approach, scaling up, but mindful not to lose its traditional base. These improvements, no matter how well received at home, have thus far had a limited effect on export growth. In America, by far the largest market in which Greek wines have significant potential, volume during the last decade has stagnated at levels far below those of competing countries. The large companies are at a difficult crossroad. The competition in America among producers of wines from typical Western varieties is fierce. For most producers, to enter the fray of Cabernet, Merlot and Chardonnay means operating with serious price restraints. The calling card of unfamiliar varieties usually favors artisanal producers operating in the premium segment, a market in which companies of substantial size are often treated with suspicion, regardless of their abilities. Nikos Douloufakis from Crete, part of the next generation Enter the small producers. As Greece looks longingly at America, her fate seems to be in the hands of winemakers focused on limited-production quality wines. With no foreign promotions subsidies expected from the Greek government anytime soon, Greek wineries must fend for themselves. Because the premium segment in America is the chief domain of oenofiles and educated consumers, it is demographically predisposed to appreciate and value the unique nature of Greece's new (and traditional) vinicultural identity. Many of Greece's small operations are able to provide highly differentiated, historically significant products of competitive quality, suitable for distribution by small companies well-versed in the hand-selling of eclectic wines to well-heeled, open-minded and curious consumers. Should any level of recognition or acceptance occur in America, Greece is in a strong position to capitalize on it. As Greek winemakers have become increasingly cognizant of the value of their cultivars and climate, the reexamination of their resources is yielding ever more surprising and satisfying results. This will not escape Western notice for long. The events of the last few years have stirred a reaction in some quarters towards the revival of more authentic traditional products and methodologies. This kind of educated hindsight is indicative of a healthy, confident environment, a sign of a mature wine industry aware, finally, of the strength of its historical foundations.