Organic supermarkets in Athens: an investment in the future

Customers are still fairly thin on the ground, but the infrastructure for those interested in organics is in place. In the Athens region there are now a dozen organic supermarkets serving about 4 million inhabitants. These are professional supermarkets like those you find in Germany, France or Italy. If sufficient numbers of customers are to shop in these well run stores, there have to be advertising campaigns and people have to be persuaded to think differently. During the year, the conventional trade has been busy building up a substantial organic product range. (Picture: Customer at Biolotos)
“Carrefour has made a big effort this year,” says the wholesaler Stamos Manginas. He explains that previously Carrefour had only three stores selling organics, but now there are 200 that are even selling fresh organic meat. Masutis, Veropoulos and Sklavenitis are other chains in the conventional retail food trade that now stock an organic product range that comprises, however, only 100 articles. The Belgian chain Delhaize has been stocking 300-500 organic products for much longer (about 8 years). As in other countries, the greater availability of organic products has resulted in smaller specialist shops, with a retail area of 50-70 m², becoming unprofitable and closing down. This is why some independent operators have realised that they can only be effective if they have the bigger product range and the more professional approach typical of organic supermarkets.

A number of years ago, the two organic chains Green Post and Green Farm began to open bigger specialist stores (see our earlier report). The name of the stores belonging to these chains has been changed. The wholesaler Biotos calls its stores Prasino (green). The most recent one (600 m²) was opened in December 2009 in the Iraklio district. This spacious store stocks a wide range of organic products comprising 7,700 articles, including fish and meat. The store in Kifissia (204 m²) was opened in 2004, and in 2006 a 300 m² store was launched in Chalandri where, since 2008, 60 m² have been given over to eco-textiles, that unfortunately are still not selling well. (Picture: Two of the upcoming natural cosmetics brands are  Bio Plasis und Bioselect)

Stamos Manginas, the owner of Biotos, puts the emphasis in his store on added value. Since the beginning of August, nutritional advice has been available through a nutritionist who alternates between the three stores. “It doesn’t cost anything to have a brief discussion, but for longer consultations you have to pay and book in advance,” explains Manginas. He is shortly going to have another 180 m² turned into rooms for therapy, consultations and offices on the top floor of the Prasino store in Iraklio. A good 200 customers a day (the trend is upwards) shop in the store, that is located on a through-road heading north. The 41-year-old Manginas is pleased to report that in 2009 the three stores will have a turnover of around 4 million euros. His wholesale business, that supplies 200 wholefood shops in Greece, will have a turnover of 6 million euros. He supplies the Athens region with his fleet of six lorries, and the rest of the country via partner companies. His product range consists of 1,000 articles and includes meat, dairy products, fruit and vegetables, frozen foods and dry goods.

Step by step Manginas is building up two brands: Biotos for the specialist trade and Prasino for his own shops. He has been investing heavily in advertising for quite some time and has brought new customers into his shop with his “buy one, get one free” campaigns that have promoted, for example, olive oil, pistachios or Green & Black chocolate. Campaigns with 20-25 % discounts for particular Biotos articles run throughout the year in the specialist shop he supplies. “We advertise 8 – 10 products each month,” he explains. He is keen to include new regional manufacturers, and he is particularly pleased with a new range of jam, honey and tomatoe products with attractive labels that he has recently started selling (picture).

Since a full spectrum of domestically produced organics is not yet available, as in other countries where the organic trade is still being established, many goods have to be imported. In recent years, most companies in Central and Western Europe have sought partners in other countries in order to extend their market. Since manufacturers who are in competition with one another prefer different importers and wholesalers, the result in most countries is dissipation rather than concentration. In the absence of a really efficient wholesale trade that could sell (almost) all domestic and foreign goods, specialist retailers have no option but to order from a whole range of suppliers. This makes the supply chain more expensive than it should be, and retailers are forced to bear a much higher cost burden.

23 km to the north of the Acropolis in the centre of Athens is the Anoixes district, where the organic store Lotos is located. “We were the first large-scale store in Athens,” Marina and Argyris Laines are pleased to point out. The specialist store, that was opened in 2004 and has 300 m² of retail space, is attractively and clearly designed. It carries an especially big range of 7,000 articles and has a well stocked fresh meat counter. Marina Laines estimates that about 30 % of their goods come from Greece, which means that they have to import the major part of their stock. A problem is the big difference in price compared with conventional foods – around 50 – 60 % more, and in some cases even double the price.

Every day, 150 – 200 customers travel up to 20 km to use the store. Exactly 10 years ago, Mr and Mrs Laines started with a 53 m² shop near their current location. When it became too small, as demand grew continuously, they decided to move but stayed in the same busy road. Seven staff, including a trained meat salesman, help the Laines to stock the shelves, operate the tills and give advice. The store is open very long hours – from 8.00 in the morning to 21.00 at night. On Saturdays they are open “only” until 19.00.

Mondo, that is located on a fairly busy road in the centre of Athens, catches the eye with its spectacular exterior – a larger than life-size picture of a smiling girl holding four apples between her arm and chin (picture). The 200 m² organic supermarket in the Chalandri district is run by two former Biotos employees. The specialist store stocks a comprehensive range of 6,000 articles but the fairy sparse fruit and vegetable section confirms the low number of customers who shop there (only 100 – 120 a day). Mondo is supplied by, for example, the wholesaler Green Bay. Rapunzel, Vivani, Ecovert, Moelen-Artje, De Rit, Provamel and Tartex are supplied via the importer Biofresco.

Tip for Greek speakers:
www.prasino.com
www.biolotos.gr/
www.greenwaymarket.gr