CIRCANA FOR VINITALY: WINE IN LARGE DOCUMENT STILL IN DECREASE, BUT IMPROVING

The “Circana for Vinitaly” study was presented today at Vinitaly – Data for the first quarter of 2024: sales performance better than the end of 2023 – Whites and bubbles better than reds – Strategies for 20214: recovery of volumes or defense of margins? The representatives of Unione Italiana Vini, Federvini, Conad, Coop, Carrefour, MD spoke about it at the round table.

The data for the first quarter of 2024 report a sales trend in volume slightly better than the end of the year 2023. The 0.75 liter bottles of wine fell in volume by 2.2% compared to the same period of the previous year, but the data for the whole of 2023 saw a greater decline, of 3.2%. Sparkling wines return to profit (led by Prosecco) with 3.8% on the same period of the previous year, while in the entire year 2023 they lost 1.1%. This was reported by the "Circana per Vinitaly" study presented today at Vinitaly during the round table on wine and large-scale retail trade organized by Veronafiere, see attachment. A trend therefore seems to be confirmed which, after a strongly negative second half of 2022 and a first quarter of 2023, saw sales gradually rise in the second part of 2023. A trend which, together with the data for the first quarter of 2024, could perhaps lead to a in moderate recovery (data for the first quarter of 2024 examines 11 weeks).

From the overall data for 2023, confirmation emerges that consumer tastes are changing: whites and bubbles seem to be progressively more popular than reds. Still red wine fell by 3.9% in 2023 while remaining the best-selling overall with 276 million liters. Still white wine climbs the ranks with 245 million liters, despite losing 1.6%. This trend has already been evident for several years: the volume share of red wine has fallen from 54% in 2009 to 49% in 2023; white, however, rose from 40% in 2009 to 45%. Rosé is also growing (Cerasuolo is first in the 2023 ranking of "emerging" wines) even if it is a wine with a modest market share in large-scale retail trade: still rosé wine, with 33 million liters, increases by 1.5% and sparkling rosé sparkling wine, with 6 million litres, also grew by 1.5%. The price of 0.75lt bottles with designation of origin (Doc, Docg, Igt) rose by 6.3% per liter in 2023, while the price of sparkling wines increased by 5.9%. Promotions increased by 0.5% ( Circana for Vinitaly, 2023 data, Hypermarkets, Supermarkets, Small Free Service, Discount, Online Generalists ).

There are two scenarios for 2024. If wineries and retailers aim above all to recover volumes, they should opt for a controlled increase in prices and incisive promotions. In a scenario, however, of greater attention to the defense of margins, then it could lead to price list increases and the consequent realignment of sales prices, as well as a prudent increase in promotional budgets.

Finally, “Circana per Vinitaly” reports that sales of private label (MDD) wines are increasing in real terms, suffering a small decline in volume in 2023 of 0.6%, while MDD sparkling wines grew by 1%. ,0%. As for organic wines, wine fell by 1.1%, and sparkling wines grew by 11.8%.

“For Coop, we must work towards a correct margin – said Francesco Scarcelli, Head of Beverage & Frozen Foods at Coop Italia, speaking at the round table – that is, a promotional margin aligned with that of the shelf. Improving discounts to support promotions could be the common objective of production and distribution to try to safeguard volumes".

For Mirko Baggio, representative of Federvini (Responsible for Large-Scale Sales at Villa Sandi) : “Using promotional leverage alone is no longer sufficient, we must also support shelf positioning with adequate communication that can enhance the brand and refer to the territory and type of product involved".

Communication and innovation to speak to the new generations. This was supported in her speech by Francesca Benini, representative of Unione Italiana Vini, (Sales & Marketing Director of C antine Riunite & CIV): “ Young people consume less wine and are attracted by green attributes, origin of the product, low alcohol content. How can we, together with Distribution, drive a change that is already underway?”

“Consumers appreciate a less structured drink, fresher and easier to combine with lighter, faster and healthier meals – declared Simone Pambianco, National Category Manager of Conad – They are also attentive to the new regulatory information on the label, for example the value energy".

“We look forward to the year that has just begun – reported Marco Usai, MD's Wine Specialist – our first quarter closed positively in both volume and value, with a significant decrease in promotional pressure compared to 2023”.

Lorenzo Cafissi, Beverage & Home & PersonalCare Director of Carrefour Italia also spoke about communication: " Large retailers are trying, together with companies in the sector, to find new levers of communication and business support to bring new life and regain volumes, consensus and interest".

During the debate, non-alcoholic, or dealcoholised, wine was also mentioned, which is starting to be present on the shelves of various distribution brands, including Conad, Coop, Esselunga, Eurospin, Lidl.