Vinitaly kicks off, wineries looking for alternatives to curb the tariff effect
The United States is the first market by value for Italian wine with a turnover of 1.9 billion out of total exports of 8 billion, but the hunt is already on among wineries for markets that can make up for the likely drop in sales
4' min read
4' min read
Italian wine sends half of its production abroad and achieves over half of its turnover on international markets: 8 billion out of a total of over 14.5. In this scenario the United States is the leading market in value terms with a turnover of 1.9 billion. These few figures undoubtedly make it clear that the subject of duties cannot but be the highlight at the centre of the 57th edition of Vinitaly opening today in Verona. A topic that will hold centre stage above all in the attempt to identify if not countermeasures at least solutions.
Variables on damage estimation
.Various interpretations have been circulating in recent days in the wake of the obvious and justified recriminations over the US president's decisions (many exponents of organisations which, in reality, do not export anything, are also tearing their clothes). They range from the inevitable estimate of prospective damage, to the necessary search for alternative outlets, certainly not to replace the USA in the short term but at least to limit the damage.
These range from the fear of losing market shares to competitors, not European ones such as France and Spain, which are burdened by the same tariff applied to Italy (20%), but Chile, Australia, New Zealand and Argentina, which instead have a 10% duty, to possible market rebalancing: for example, there are many requests to speed up the EU-Mercosur agreement, which together with the EU-India agreement could offer new export opportunities for Italian wine.
On the damage estimation front, many hypotheses are circulating that examine different scenarios. It may be useful to recall the type of wines exported from Italy, which may give more precise indications on the possible repercussions of the US duties.
Little presence among luxury wines
.One of the considerations that has often been reiterated in recent days emphasises how Made in Italy wine, since it is positioned on the premium end of the market, does not have much to fear from duties. Higher prices, in short, would guarantee margins to absorb the duty. In reality, only 2% of the Italian bottles sold in America boast a luxury wine price point, while 80% are concentrated in the 'popular' bands, which translated into price/part means on average just over 4 euros per litre. And which US duties can drive out of the market.
