Six billion bottles of wine in Italian cellars!

Situation of the Italian wine industry, highlighting some key points:

1. Wine surplus : At the end of July, a record wine stock was recorded in Italian cellars. The stock of wine in the cellar at the beginning of the 2023 harvest is equal to 45.5 million hectoliters, equivalent to over 6 billion bottles of 0.75 liters. This figure represents a 4.5% increase over the previous year.
2. Stock of higher quality wines : The increase in stocks is mainly due to higher quality wines, with Protected Designations of Origin (PDO) showing an increase of 9.9% compared to the last pre-harvest survey of 2022.
3. Contracting foreign demand : Exports to non-EU countries, especially the United States, recorded a contraction in the first half of 2023. Among the main non-EU buyers, only Russia has shown an increase in import volumes , while the United States, Canada, Japan, Norway, China and South Korea suffered double-digit declines in quantities.
4. Market Trends : Overall, export volumes declined by 9% in the first half of the year, with a 5% decrease in value. Sparkling wines suffered a 13% decrease in exports, while still bottled wines dropped by 5%.
5. Concerns about prices : The president of the Unione Italiana Vini (UIV), Lamberto Frescobaldi, has expressed concern about the lowering of prices. He stressed that lowering prices could become a "dangerous boomerang" once the purchasing power crisis, which also involves competitors, is overcome. He also mentioned the growing phenomenon of private label products and the bottling of Italian wine outside Italy, which contributes to the erosion of added value.
6. Prospects for the industry : Despite the current challenges, the wine industry is looking to intensify its commercial activities abroad. Vinitaly, for example, is working to build commercial bridges with non-EU markets, such as the United States.
7. Harvest forecasts : The forecasts for the 2023 harvest indicate a decreasing production, due to adverse climatic factors such as bad weather and torrid heat. Production could decrease by 14%, with peaks of -50% in some areas.
8. Quality of the wine : Despite the difficulties in production, it is expected that the quality of the wine can still be good.

Overall, the excerpts highlight the current challenges facing the Italian wine industry, including problems related to abundant wine stocks, shrinking foreign demand and uncertainty regarding prices.