According to the Italian Wine Union, it is necessary to adjust the Single Wine Text to react to the difficulties. Wine supply exceeds demand, with the next harvest there is a risk of 90 million hectoliters in the cellar with a consequent collapse in prices. Italy is the only country in the world where the vineyard is growing and no measures have been taken to deal with the crisis.
“Against a complex backdrop, the sector is being called to take stock. Unione italiana vini is calling on the sector to come together and launch a plan to revise the Single Wine Law, consistent with the current market situation. The goal is to actualize the law and its implementing decrees by 2026, 10 years after its entry into force.” This is the proposal of the president of Italian Wine Union (UIV) Lamberto Frescobaldi (confirmed yesterday as president), made during the national assembly of the association that has more than 800 members and 85 percent of Italian exports.
A proposal that-according to Frescobaldi-will have to synthesize the instances of the sector in order to tighten the production belt and ensure the sustainability of the entire supply chain. “Given the drop in consumption globally ,” he added, “we can no longer afford to flood Cantina Italia with 50 million hectoliter vintages, which represent the average production of the last 25 years.
Market and grape harvest unknown
It was precisely the issue of potential, along with that of the market, that was the focus of the UIV Observatory, presented by Carlo Flamini. According to the analysis, the first 5 months of this year witnessed sharp declines in volumes consumed in all 4 main outlet markets (Italy at -1.8%, US at -4.7%, Uk at -3% and Germany at -9.6%). These 4 countries together quote 73% of Italian sales for Italian wine companies. The balance of retail sales shows a contraction of 3.4%, rising to -5.3% for still/sparkling wines (+4.9% sparkling wines).
However, in this context, which involves all producing countries, Italy is the only one to see its vineyard and therefore its potential increase. According to the Observatory’s estimates, a 50 million harvest in lack of demand would result in a quantity in the cellar by next October of about 90 million hectoliters, the equivalent of nearly 2 harvests.
An unsustainable condition at this historical moment, which would lead to a real curtailment of potential values estimated at around 5.3 percent. That is, more than half a billion euros of negative balance between 2025 and 2024 and an average price of the value of production falling in double digits. “The problems were there before as well,” Frescobaldi added, ” but we were ‘saved’ by 2 exceptionally low vintages compared to the averages; now we need a bath of humility, producing 7-8 million hectoliters less to keep the helm of one of the most profitable Italian assets in our trade balance.
Lowering yields and revising the PDO system
According to UIV, the correctives to be put in place urgently pertain to the entire sphere of supply demand management in the supply chain. Starting with thelowering of grape yields per hectare, including an end to derogations for generic wines, the alignment of specification yields with actual yields on the average of the last 5 years, with a concomitant revision of the mechanism that allows redundancies for PDOs (20% reduction or elimination), the revision of reclassification mechanisms, the updating of the timing of adoption of production management tools, and a stop to new planting authorizations for one year.
For Uiv, it is also necessary to reorganize the appellation system. The top 20 designations account for 80 percent of the volume of Italian wine, meaning that a disproportionate number of Doc/Igt wines (there are 529 recognized ones) exist only on paper. “It is necessary to solve the anomaly through a system of unification and territorial reorganization by individual region,” Castelletti added. ” It is a process that should certainly be developed by individual territories . But which, in our opinion, the National Wine Committee, whose powers should be actualized in the Consolidated Text, could encourage and coordinate at the national level.”
