Duties, wine consortia push for dialogue with buyers

Upset, concerned but hopeful. And still looking for a strategy that mitigates Donald Trump's measures as much as possible. The wine entrepreneurs, present at the 57th edition of Vinitaly opening in Verona, are aware that a not at all positive scenario is opening up, but they bring with them networks and experience and are betting on these two ingredients for the worst. Lose perhaps yes, but over-lose certainly not.

"The presence of US operators," said Adolfo Rebughini, Director General of VeronaFiere, "is encouraging news for companies and Vinitaly. It opens up an uncertain scenario that will impact on the geography of our exports. We share the concerns of the sector and for this reason we are making Vinitaly's platform available to organisations to facilitate possible direct agreements between companies, Italian associations and importers-distributors in our first non-EU destination market,". The delegation of 3,000 US operators at Vinitaly also includes 120 top US buyers (10% of the total contingent of the 2025 incoming plan) selected, invited and hosted by Veronafiere and Ice, mainly from Texas, the Midwest, California, Florida and New York.

There is one key word that circulates insistently: dialogue. The one with Donald Trump belongs to the sphere of government, but the one with the American entrepreneurs can certainly be realised in these corridors: some three thousand American buyers are expected here and with them the most important negotiation will be held from 6 to 9 April. From Sicily to Veneto, everyone seems to be moving in this direction, which pivots, also or perhaps above all, on the supply chain. This is what Alessio Planeta, CEO of Planeta Winery, says: 'We believe it is fundamental to adopt a 'no panic' and harmonisation approach: a continuous, silent, serene path based on balanced bargaining at European level. We must focus on the diplomacy that has always underpinned international trade relations. By harmonisation we mean a common commitment along the entire supply chain, from producer to consumer. Whether it is wine or other products, there are many actors involved in the production and distribution chain. It is essential that everyone is willing to cooperate and, if necessary, give up part of their profit margin. This is what we will try to agree with our importers and distributors'. The reasoning of Francesco Mazzei, CEO of Marchesi Mazzei and President of the Maremma Toscana Consortium, is interesting: 'From the threats we have received with shots of up to 200%, let's say that 20% seems almost 'a pill',' he says. 'Having said that, duties will certainly have an impact on sales, so we will have to strengthen diplomatic negotiations on the one hand - perhaps if we manage to bring them down to 10% - and then diversify and look at other markets. Certainly a trade war of duties against duties is not to be desired'.

There is concern, of course, but also a desire to study new strategies, to find new markets: 'North America is the second export market for 82.6% of our members,' says Mariangela Cambria, president of Assovini Sicilia, which groups more than one hundred wineries on the island. 'Sicily and its products are particularly appreciated by the Americans, who not by chance represent a substantial slice of the wine tourism presence on the island. They come because they love our land and the wine and food offer is a great strength. In a delicate phase like this, wine tourism is the real key'. What is the line of the Sicilian companies is explained by Antonio Rallo, president of the Sicilian Doc Consortium: 'The American consumer, who is the richest consumer in the world, will not be dictated to by a government on his choices,' he says. Sicilian wine is much appreciated by American customers who will not abandon our market overnight: last year we received 30 thousand wine tourists and Americans are the preponderant share among foreigners. I want to be optimistic, we believe in Made in Italy and in the network that can be activated to react to duties'. In the background are strategies for expansion into new markets and the focus is on strengthening presence in countries such as Canada and the United Kingdom. The President of the Region, Renato Schifani, will be present at the Sicilian stand in Verona and says he is ready to support the Sicilian wine production chain: "The Region," says Schifani, "will do everything possible to mitigate the negative effects of the new tariff measures. We are ready to support the sector with targeted and concrete initiatives'.

The most widespread fear certainly concerns the so-called high-end wines, but above all those in a lower bracket. An example of the first case comes from Etna wines: "At a time of great momentum for Etna wines, the risk of new US duties could represent a brake on an expansion that sees our products increasingly appreciated on international markets," says Francesco Cambria, president of the Consorzio di Tutela dei Vini Etna DOC. "We need clear strategies and institutional support to protect this excellence and ensure its competitiveness in the world. On the other front, there is the fear that the cost of popular Italian wine will grow too much to the point of driving it out of a market segment that has so far given great satisfaction: "According to the UIV Observatory, the average price of exports to the USA is 5.35 euros per litre for Italian wine, only 30% of the 'popular' wines are in line (5.26 euros), while more than half are well below the threshold (3.53 euros)," says Alessandro Nicodemi, president of the Consorzio Vini d'Abruzzo. Additional tariffs of 20%, not managed fairly between the counterparts, would end up knocking these wines down to the next higher band, the 'premium'. However, the premium range today is worth 17% of the volume and would not be able to absorb this transfer of references from below and would inevitably drive our product out of the market".