The Italian wine industry stands at a defining crossroads. Despite its global recognition for quality, diversity, and heritage, Italy’s wine sector faces a series of complex strategic challenges that extend far beyond vineyards and cellars.
These challenges — structural, economic, and cultural — were the central theme of the first vertical edition of the Food Industry Monitor (FIM), titled “Strategic Challenges for Italian Wine.”
The conference, held at the “La Vigna” International Library in Vicenza, brought together leading figures in finance, academia, and the wine trade. It was organized by Ceresio Investors in collaboration with the University of Gastronomic Sciences of Pollenzo (UNISG) and Slow Food, under the patronage of Confindustria Veneto.
A Vertical Focus on Wine: The Core of Italy’s Agri-Food Identity
“We began focusing on the agri-food sector as a whole 16 years ago,” explained Gabriele Corte, CEO of Ceresio Investors. “For the first time, with the working group at the University of Pollenzo, we have produced a vertical analysis of just one sector — the most important one: wine.”
This year’s FIM edition analyzed the financial and operational performance of 165 Italian wine companies, representing approximately EUR 5 billion in turnover, out of an estimated EUR 16 billion sector total. The analysis, conducted by Professor Carmine Garzia of UNISG and Scientific Director of FIM, reveals a sector that, while still robust in exports, struggles to convert volume leadership into value dominance.
Italy’s Strength and Weakness: Quantity Without Equivalent Value
Italy remains the world leader in export volumes, shipping 21.8 million hectoliters in 2024. However, its average export price — EUR 3.7 per liter — remains far below France’s EUR 9, underscoring a persistent structural gap.
“We’re playing in a different league,” noted Garzia, highlighting the need for Italian producers to shift from volume-driven strategies to value-driven positioning.
Inflationary effects on food and energy sectors have stabilized, but consumption data paints a more concerning picture: household food and wine spending in Italy grew by just 1.8% in 2024, mirroring inflation — essentially, zero real growth. The domestic wine market remains stagnant, while the global wine sector’s total production value — EUR 90 billion — is smaller than that of a single Swiss coffee capsule company.
Export Growth Without Deep Internationalization
Despite these challenges, exports have grown steadily by an annual average of 4.8% between 2019 and 2024. Yet, internationalization remains limited: 28% of Italian exports go to the US, but few companies control their own distribution networks.
This dependency leaves Italian producers vulnerable to geopolitical risks, trade tariffs, and logistical fluctuations. The recent US tariff pressures under the Trump administration, combined with reduced wine imports from Canada, illustrate the fragility of such dependence.
Profitability and Structure: Traders Lead the Transformation
The FIM’s financial analysis provides valuable insights into profitability and structure within the sector:
- Revenue growth (2024): +2.5%
- Commercial profitability (ROS): 5.9%
- Return on invested capital (ROIC): 5.3%
- Debt ratio: 1.04 (indicating solid financial health)
Among the clusters analyzed, traders (bottlers) demonstrated the highest profitability, with an average ROIC of 8.96% (2020–2024) — surpassing both integrated producers and cooperatives. This points to a strategic transformation within the sector: the key to success increasingly lies not only in production but in market control and distribution management.
As Garzia summarized:
“Exporting bottles is no longer enough. Italy must export value, culture, and production models. The challenge is to move from a volume-driven approach to a positioning-driven one.”
Industry Voices: Between Concern and Adaptation
A lively roundtable discussion, moderated by Professor Michele Antonio Fino (UNISG), addressed the sector’s current challenges and future expectations.
Marzia Varvaglione — President of the Comité Européenne des Entreprises Vins (CEEV) and producer at Varvaglione 1921 in Puglia — underscored the pressure on producers as global demand fluctuates:
“The last quarter of the year is crucial for sparkling and red wine producers. But globally, there’s a climate of concern. In California, grapes are left on the vine due to low demand. In France, Bordeaux is discussing uprooting vines, and Champagne is cutting production. Italy suffers not only from lower export prices but also from the hyper-fragmentation of its companies.”
Filippo Polegato, Vice President of the Italian Wine Union (UIV) and CEO of Astoria, echoed this sentiment, pointing to declining household purchasing power and the resulting “aggressive pricing” strategies eroding margins.
“The crisis is most visible in red wines — Tuscany, Montalcino, Puglia — where communication has failed. Meanwhile, Prosecco continues to succeed thanks to its modern, approachable style.”
Indeed, Prosecco DOC remains Italy’s standout success story, embodying adaptability and market sensitivity. Luca Giavi, Director of the Prosecco DOC Consortium, emphasized governance, transparency, and innovation as key pillars:
“We are working to adapt production rules, introducing natural Prosecco around 9% alcohol and ensuring clearer labeling. The consortium’s transparency policy — including the introduction of the ‘Nr’ (Not Registered) mark for non-certified producers — is a step toward consumer trust.”
Investment and the Future: Between Fragmentation and Opportunity
On the financial front, Alessandro Santini, Head of Corporate Advisory at Ceresio Investors, provided a long-term perspective.
“The wine sector has been less attractive to investors recently due to weaker fundamentals, but it remains extremely appealing long-term. However, 85% of Italian wineries are small-scale operations. To compete globally, growth through mergers is essential.”
Santini cautioned against short-term financial approaches typical of private equity funds, arguing that wine demands a 7–10-year investment horizon to preserve identity and authenticity.
Varvaglione added a cultural reminder:
“Wine isn’t a commodity or a quick multiplier for resale. It’s culture, roots, and heritage — values that cannot be industrialized or flipped like luxury goods.”
Beyond Numbers: Preserving Identity and Territory
As Professor Fino concluded, the EUR 88 billion global wine production figure represents more than market value — it reflects territories, histories, and the protection of landscapes.
Institutions like La Vigna International Library, with its 62,000 volumes dedicated to viticulture and agronomy, play a vital role in preserving this heritage against cultural and environmental erosion.
The conference ended with the screening of “La Vigna di Demetrio Zaccaria,” a moving documentary dedicated to the visionary founder of the library — an apt reminder that Italian wine’s greatest strength lies in its blend of tradition, passion, and human stories.
Source: WineNews