Italian wine group Argea is set to assert itself as a major player not only within Italy but on the global stage in the coming years.
Formed as a result of the 2021 merger between Mondodelvino SPA and private equity group Clessidra, Argea aims to dominate the private sector of Italian wine. Mondodelvino, prior to the merger, already possessed an extensive portfolio of Italian wine brands across multiple regions. These include renowned names like Cuvage and Acquesi (both from Piedmont), Ricossa (known for Barolo DOCG and Barbera DOC wines), Poderi dal Nespolo 1929 (Romagna), Barone Maltalto (Sicily), and Codici Masserie (Puglia).
Argea's influence expanded significantly in 2023 with the acquisition of Cantina Zaccagnini, a producer from Abruzzo responsible for approximately 3 million bottles annually, primarily from Montepulciano grapes.
Strategic Expansion and Future Plans
Enrico Gobino, head of corporate communications at Argea, reveals that Tuscany remains the missing piece in their Italian wine regions. "Terroir hunting is a priority for us as we aim to enhance our stake in the Italian wine market," states Gobino, hinting at potential future acquisitions.
The group is planning substantial investments to bolster its already impressive EUR 450 million turnover. "Our goal is to surpass the EUR 1 billion mark in the Italian wine industry," Gobino emphasizes.
Business Model and Growth Strategy
Argea operates on a unique business model where each family-owned winery under its umbrella holds a stake in the group, despite Argea itself owning 100% of the wineries and brands. The group currently manages approximately 15,000 hectares of vineyards, although ownership of the land is limited.
"Our aim is to increase our direct ownership of vineyards," explains Gobino, addressing the fragmented ownership of vineyard land in Italy, where the average grower owns only 1.5 hectares. This fragmentation, while characteristic of Italy's vast wine production, poses challenges in scaling operations.
Vision for the Future
Drawing parallels with global giants like Grupo Penaflor, Concha y Toro, and E&J Gallo, Gobino affirms that Argea is nearing the conclusion of its initial strategic plan, characterized by profitability and stability. Looking ahead, the group plans to expand its presence in the on-trade sector, focusing on wines from Friuli, Campania, and Italian volcanic regions. Moreover, Argea anticipates releasing ten new low-alcohol wine products across red, white, and sparkling categories in 2024.
"Argea’s ambition extends beyond Italy," Gobino hints, suggesting potential international acquisitions as part of their future growth strategy.
In summary, Argea's ambitious expansion plans position it as a transformative force within the Italian wine industry, combining tradition with global scalability to redefine the landscape of Italian wines.
Source: The Drinks Business