December 2009
FOR IMMEDIATE RELEASE

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Anne Meerboth-Maltz
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Fax (312) 781-5188
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ITALIANS DEFY CRISIS AND FOCUS ON GERMAN MARKET

Variety instead of naivety – this is the motto of the Italian wine business. Italian producers will present themselves in at ProWein 2010, International Trade Fair Wines and Spirits, in Düsseldorf, Germany (March 21 - 23, 2010): renowned wine growing regions and wineries will be represented here as will be the owners of major wine brands and small, lesser known wine estates at joint stands. With over 700 exhibitors, Italy will be the second largest exhibitor nation at ProWein 2010 after Germany. Santa Margherita, Conte Collalto, Castello di Monsanto, Trabucchi, Magnas, Canalicchio di Sopra, Poliziano, Pavia Agostino oder Planeta – a variety of people and wine from all over the country bringing us closer to that Italian joie de vivre. And the fascination is not diminishing: witnessing the popularity of the seminars and interest in the Piedmont region’s joint stand at Prowein 2009, one could hardly believe we were in the midst of a financial crisis.

Trends in the Italian Wine Business

Italy would not be our favorite wine nation, always surprising us with ideas, if it did not come up new wine trends every five years. At the start of the 1990s it was the Super Tuscans, made with Cabernet Sauvignon and Merlot varieties that triggered a little revolution in Tuscany. Then it was the time of the native varieties. Driven by the interest of innovation-seeking wine leaders and sommeliers, almost forgotten grape varieties such as the red Nerello Mascalese from Sicily’s volcanic Mount Etna or Rome’s Cesanese from southern Lazio were at the centre of interest in the wine sector. This was followed by searches for, and investments in, some growing regions whose wines could stand up to producers in the southern hemisphere in terms of taste and price. Today these red wines from Sicily (Nero d’Avola) and Apulia (Primitivo and Negroamaro) are popular fixtures in the Italian wine range.

Currently it is the organic wines and – going one step further – biodynamic wines that are causing a stir amongst specialists. Wine growers are convinced this is not just a passing fancy. “This philosophy is not dependent on grape variety or region, making it a sustainable development relatively unaffected by price competition,” says Michael Graf Goess-Enzenberg who converted his winery Weingut Manincor in South Tyrol to biodynamic viticulture just like his famous vintner friend Alois Lageder.

Usual Market Rules Apply Even Now

What will the 2009 vintage be like? This question can be answered by the very first white wines. Wine growers could only enjoy a few days’ holiday in August since the grape harvest already started that early. In the white-wine producing north of Italy the harvest began relatively early. This was because the hot and dry summer had already driven sugar levels up high. Nevertheless, the quality of the grapes is certainly denoted as very good. However, along the Adriatic coast and in the south, several rainy spells in the spring and also in the autumn close to harvest time challenged wine growers in terms of vineyard management – who then promptly introduced lower harvest volumes than in the previous year. This meant a deficit of 44.5 m hl for Italy representing a 5% decrease compared to the previous year.

However, this smaller harvest did not lead to a stabilisation in wine prices. “In all regions from north to south, a clear and noticeable drop in prices of 20% to 40% was noted for well-known wines of significant quantities (on the open wine market),” explains Andrea Sartori of Sartori wines in Verona. This not only affects the starter-price wine Montepulciano from the Abruzzi or the trendy wines from Apulia and Sicily but also famous classics like Brunello di Montalcino, Amarone del Valpolicella and the Piedmont heavyweights Barolo / Barbaresco.

This development is particularly worrying for the many small wine producers in these growing regions who only process their own grapes. In the future, these growers will have to stand their ground against retreating retail prices for their wines.

Whither Wine?

How are prices supposed to stabilize when sales are paralysed? Almost without exception, wine growers – whether small vineyards or large wineries – are facing losses of 10% to 30% compared to last year. On the Italian market – that is so vital to everyone – this until now reliable driver of the restaurant sector is now starting to falter. “We have known that many superior dining establishments are having problems but it is the first time we see this development also affecting simple trattorias and pizzerias,” says Elisabetta Stucchi-Prinetti from organic wine estate Badia a Coltibuono in Tuscany. Scarcely any wine grower is expecting the dark clouds to dissipate this time. Savings are even being made by buying wine in supermarkets. “Downgrading”, i.e. buying cheaper, has long since reached even brand-conscious Italy. Italians are now following U.S. wine consumers’ lead who already started “downgrading” at the beginning of the financial crisis in October 2008. Weighing particularly heavy on producers is the fact that success-blessed Italians are now also having to deal with the weak and weakening U.S. dollar on what they all rank as their most important export market. As with all European wine producers, margins are melting away like ice in the sun. The situation is considered to be more precarious than ever before because real alternatives are not in sight and consumer spending has also dropped in the Asian and Eastern European markets.

Nevertheless, the Italian wine business will be present as strongly as ever - and with its usual optimism - at ProWein 2010.

The author Steffen Maus has worked as a freelance journalist and writer since 1998.

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