Croatian Wine Production & Exports: Lots of Questions (Part 1)

The oldest advertisement I found in a U.S. newspaper for Croatian wines was in The Lake County Times, July 1, 1910 (Indiana). So, we know that Croatian wines have been exported to the U.S. for over 100 years. Croatian wines though were mentioned prior to 1910, in articles describing Croatia and the surrounding regions. For example, the Evening Star, January 17, 1898 (Washington D.C.), in an article describing Vienna cafes, mentioned that "In southern Tyrol, Styria, Corinthia, Moravia, Illyria, Dalmatia, Hungary, and Croatia first-class wine is made..."

How much Croatian wine is currently produced? And how much Croatian wine is now exported to the U.S.?

As I searched for answers, I found more questions and answers remained elusive to some degree. I uncovered some statistics, but others remained elusive, and few explanations seemed to be provided. One of the problems is that Vina Croatia, a website of The Wine Association in Croatian Chamber of Economy, appears to contain some statistical information but the site isn't operative.

In short, I did discover that at least from 2011-2017, wine production in Croatia decreased. That doesn't seem like it would benefit a country which is seeking to expand its wine exports, and trying to make a bigger name for itself in the world wine market. What was the reason for the decline? Has the decline stopped? How much wine is currently being produced in Croatia? How much of their wine is being exported, and specifically, how much is being exported to the U.S.?

Let's begin our examination with an article in Total Croatia Wine, January 9, 2018, which noted the decline in production. "Wine production in 2016 was 21.6 percent lower than 2015. Trends in 2017 are also negative and estimates are the 2017 production will be more than 10 percent smaller than 2016." A nearly 22% decline is quite significant, and no explanation for the decline was provided. Despite the production decline, there was an increase in exports. "In the first six months of 2017, the export of wine compared to 2016 was growing." Tempering that good news though was that "... the average export price dramatically fell in 2017 and is 2.25 euro per litre, while in 2016 it was 3.31 euro."

In Total Croatia News, June 25, 2018, a little more detail was provided on the value of Croatian wine exports. The article noted that from January to November 2017, wine exports reached 11.89 Million Euros, over 30% higher than the 8.73 Million Euros exported in 2016.

The Dubrovnik Times, November 17, 2018, provided the first positive news concerning wine production. It was noted that in 2018, Croatia would produce about 777,000 hectolitres of wine, 35% more than 2017. The first increase in a number of years and hopefully a sign that the decline is finally over. The EU has noted that this would be the "second largest growth in wine production this year, with only Slovenia with a growth of over 57 percent seeing a more impressive season." Despite the decline in 2017, that vintage would allegedly be "a memorable year for wine producers."

However, the Central European Financial Observer, December 15, 2018, stressed the problems from 2017. The article noted that in 2017, wine production revenues was about 68.1 Million Euros, noting the decline of production which had been occurring since 2011. From 2014-2018, Croatia receiving subsidy funding, totaling about 57 Million Euros, for their wine industry from the European Union through the Wine Sector Program. The results of this funding weren't largely positive. For example, the article also noted, "In 2017, 230 businesses were engaged in wine production, with 151 or 65.7 being profitable. 79 enterprises reported loss,..."

The Croatian Bureau of Statistics, March 15, 2019, presented a report on the 2016/2017 wine-growing year (from August 1, 2016 to July, 31 2017), noting that total production was 760K hectoliters. Total exports were only about 54K hectoliters, about 7% of total production, and which would translate into 600,000 cases of wine. No breakdown of the exports markets was provided, though other information I've seen states the U.S. is one of Croatia's top five markets for wine exports.

It's clear that Croatians drink most of the wine they produce, which was further supported by The Dubrovnik Times, March 18, 2019, which reported that Croatians drank about 22 liters of wine per capita, making them the third largest consumer in the world. Wine is certainly a significant aspect of their culture.

Finally, a very brief article in The Adriatic Journal, March 21, 2019, indicated that in 2018, Croatia exported about $16 Million Euros in wine, with 939K Euros sent to Serbia, a 35% increase from the prior year. No additional information on other export markets was provided.

While I was in Croatia, I didn't find any additional statistical information, though several wineries noted that production in 2018 had been largely positive. Aggregate statistics, for the entire country, for 2018 though should soon start being reported in the media, and we can then assess whether the decline in production continued or not.

The modern wine industry in Croatia is only about 25 years old, after Croatia declared its independence in 1991, and then prevailed in a subsequent war in 1995. Prior to this point, much of their wine production was directed toward quantity rather than quality. With their independence, this began to turn around, and I strongly suspect that the decline in production was primarily due to wineries seeking to create higher quality wines, at the expense of large quantities. So, though they make less wine, they are making better wines, and my own experiences tasting a variety of Croatian wines convinced me that they are creating plenty of excellent wines.

We should keep an eye on Croatian wine production in the coming years, and hopefully the decline in production will even out and we will start to see increases. Croatia isn't alone in its situation as other countries, with lengthy histories of wine production, have been involved in the modern wine industry for relatively short time periods. For example, Georgia is in a similar situation, after having attained its own independence for the Soviet Union.

It's important to support these countries, to help their economies by buying their wines. As I've written previously, it can be important to be a Wine Activist. Peter Weltman, a sommelier and writer in San Francisco, summed it up well by writing, "With our wine purchases, I believe, we can help advance regional peace, provide support for farmers in war-torn regions, have a voice in geopolitics, and aid in economic recoveries." As the wines of Croatia can be excellent, it should be an easy decision to purchase their wines.

Fortunately, in Massachusetts, Croatian wines are becoming more readily available, especially due to the recent efforts of Croatian Premium Wine Imports. They currently import a number of Croatian wines, from the Komarna appellation, and are working on importing others, from different regions of Croatia. Let's hope that the other local importers/distributors who have Croatian wines in their portfolios also start promoting those wines more. Make it your goal this season to try some Croatian wines.