VINEX Country analysis: Italy
We assess the latest situation in Italy as we head towards the crucial 2018 vintage. With last year’s drop in harvests across many of Italy’s key wine growing regions all eyes will be on how this year’s crop turns out. To help we turn to local expert and wine consultant, Vito Bivona.
- The situation is still very much in flux as a combination of hot weather and some strong rains means it will be a mixed picture in terms of overall harvest with some regions doing better than others due to the recent weather.
* Bad rains in the early part of summer hit parts of Piedmont, Emilia-Romagna, Lombardy, Sicily and Veneto in particular, according to Vinitaly International.
- But the overall picture should be for average production, or 10% below, but there should be good quality everywhere.
* The overall shortage in the 2017 harvest has seen average prices for both bulk and bottle wines go up around 20%.
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The biggest shortages and price rises have been for bulk Sauvignon Blanc and Pinot Grigio for the whites and Cabernet Sauvignon, IGP Sicily and Primitivo/Negroamaro Salento Puglia IGP.
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Prosecco and Pinot Grigio Delle Venezie DOC has also seen very tough price trending throughout the year.
* Sauvignon Bland and Puglia IGP has been around €1.20 a litre.
* Sicilia IGP around €1.60 a litre
- Pinot Grigio is €1.10 for both IGP Sicilia and Delle Venezie DOC
* Cabernet Sauvignon is closer to €1.30 a litre
* IGP Prosecco around €1.90 a litre.
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Looking ahead to pricing for the rest of 2018 is very much dependent on the 2018 vintage, but if the harvest is close to average then prices will come down slightly.
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The demand then will be very much around souring volumes of the main varietals, and rosé, but we can also expect to see more interest in biodynamic and vegan wines.
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Relationships between producers and buyers will also be key going forward and those with close contacts and good sourcing opportunities should be well placed. This will be particular important for buyers looking to secure a constant price point at normal market rates.
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2017 has seen so many buyers having to take emergency measures in order to get some of the supplies they need.
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Puglia wines and Spanish wines have been the most competitive for pricing for generics. For example recent prices have been €4,30 hg for red generics and €4 euro hg for white generics inSpain. Compared to €4.6 hg for white generics in Puglia with similar price levels for reds.
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Italy’s pricing for 2018 and going into 2019 will also be dependant on how the harvest go elsewhere in Europe and the world, but the hopes are that stocks will be replenished.
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Elsewhere the Coldiretti agricultural group has said it is anticipating a 15% increase in wine production this season to 4.6 billion litres (1.2 billion gallons), from 4 billion litres (over one billion gallons) last year.
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Coldiretti is also forecasting a 5.9% increase in wine exports this year. In 2017, export revenues reached €6bn.