Snapshot of the week
- US administrative stalemate : shutdown halts TTB on COLA and COLA Waivers → delays on labels and halts entry of samples for trade fairs/tastings. Real risk of export promotions being blocked in Italy's top wine market.
- Growing tourist demand for family-run wineries : interest from international visitors is booming, led by US Gen Z ; authenticity and a personal welcome are the real drivers.
- Fine Wine is in a "reset" phase : after the 2020–2022 boom, markets are recovering and becoming more experience-oriented (drinking, not just investing). Italy 100 is more resilient than other regions.
- Vinitaly.USA (Chicago, October 5–6) : Strong participation from North American companies/consortia and buyers; practical focus on tariffs, trade, and Millennial/GenZ engagement.
- HNWI migration to the EU : 46% of the super-rich consider relocation and investments in vineyards/olive groves as "hybrid" assets (lifestyle value); Tuscany tops the list among non-urbanites.
- Italy–USA economic relationship : Italian wine generates ~$19 billion in impact on the US economy (out of a total of $144.4 billion), with a 38% share of foreign wines consumed.
- EU structural overproduction : 13% of consumption in 2024/25, in line with the 20-year average → pressure on inventories/prices.
- European consumption : 71% of consumers are cutting back on alcohol; 25% of 25-35 year-olds don't buy at all. Low-/no-alcohol, functional, and non-alcoholic beverages are on the rise.
- Italy at a crossroads : US tariffs at 15% (devaluation), declining domestic consumption, and high inventories; structural measures and innovation (including AI ) are needed.
Key insights
1) US Shutdown: immediate impacts on exports and promotion
- COLA standard : manageable impact (long-term planning).
- COLA Waivers : high criticality → impossible to ship samples for fairs/masterclasses.
- Ripple effect on consortia and companies with promotional activities scheduled in the USA.
2) Wine tourism: the (global) choice goes to the family
- Winery visits: top experiences for the US/UK/DE; family-run wineries beat out brand-name ones.
- Gen Z USA : 82% want to visit; authenticity and hospitality = competitive advantage.
- Next step: digital, multichannel promotion, AI for visibility and CRM; the role of specialized wine tourism consultants (revenue, omnichannel sales) to scale without losing brand identity.
3) Fine Wine: From the Covid bubble to the return to the glass
- World production in 2024 at its lowest since 1961; consumption down to 214 mhl .
- Indices: Liv-ex 100 −4.9% YTD (Jun '25); Fine Wine 50 −7.4% YTD; Burgundy 150 −30.2% in 2 years; Italy 100 −3.0% YTD but 12.2% at 5 years.
- New focus: ready-to-drink, mature wines , and attention to storage costs. The focus shifts back to provenance, authenticity, and drinkability .
4) Vinitaly.USA Chicago: strategic presence
- 250 exhibitors, a strong presence of consortia and top brands; >1,500 operators expected, with over 2,200 in the final estimates.
- Program: masterclass, talks, and wine2wine Business Forum ; focus on tariffs, North America, and wine tourism .
- Sentiment: Fewer tariff scares at meetings, greater openness of importers/distributors to sales programs and new projects.
5) Olive grove-vineyard capital: Europe attracts HNWIs
- Push for premium agricultural assets (organic/terroir, integrated experiences).
- Hot areas for Italy: Tuscany, Piedmont, Puglia (wine and oil).
- “Hybrid” returns: lifestyle income and asset appreciation.
6) Italy–USA: economic symbiosis
- Italian exports 2024: $2.2–2.3 billion ; US share ~ 24% of Italian wine export value.
- Every $1 spent on EU/IT wine → $4.5 in value in the US economy.
- 15% tariffs starting in August: pressure on prices and mix; economic diplomacy and channel strategies needed.
7) EU supply and falling demand: the structural issue
- EU self-sufficiency 113.6% : chronic surplus → inventories and cash flow under stress.
- In Europe, alcoholic beverages −1.8% vs. non-alcoholic beverages 5.1%; no/low-fat and functional beverages ~60% of the beverage category.
8) Italy: critical issues and levers of sectoral policy
- 30,000 processing companies, 250,000 agricultural companies; €16 billion turnover; world's leading producer.
- Operational proposals (safeguard package):
- Revision of the Consolidated Law : yields per hectare, alignment of yields with five-year data, management of surpluses, simplification of controls, labelling (ingredients & nutritional information).
- Planting/replanting permits : suspension of fines for unused permits (pre-Jan 2025); validity extended to 8 years .
- Anti-tariff measures : temporary compensation for sub-marginal profits; proposed reduced VAT on wine served with meals in restaurants to stimulate domestic demand.
- Finance & Operations : Business unit lease; joint venture/newco for technologies and new markets (e.g., dealcoholized products); revolving lien on inventory for liquidity.
- End-to-end Artificial Intelligence : vineyard (targeted dosages), winery (fermentations/blends), marketing (segmentation/CRM), sales (dynamic pricing), supply (demand forecasting).
What to do now (essential playbook for wineries and consortia)
- Mitigating the US Shutdown
- Reschedule your export promotion calendar: move activities requiring COLA Waivers to alternative markets in the next 6–8 weeks.
- Prepare a documentation pipeline ready for TTB reopening; maintain standard COLAs in progress (even if not reviewed).
- Activate B2B digital tastings , domestic shipments via importers with stock already cleared through customs.
- Portfolio repositioning
- Increase the white/sparkling/rosé mix (GenZ hookup & multi-cuisine pairing).
- For reds, focus on ready- to-drink vintages ; storytelling on origin and sustainability .
- Introduce a no/low test line on 1–2 SKUs in selective large-scale retail or DTC.
- Wine tourism as a marginal channel
- Family-Hosted format with digital booking, dynamic ticketing, and add-ons (vertical, food pairing, olive grove tour).
- CRM with lead magnets (photo tours, home recipes, playlists) and automations (welcome → cross-sell → wine club subscription).
- North American exports, beyond tariffs
- Net Pricing : Protect top placements with value-adds (bundles, library releases, magnums).
- Channels : Strengthens specialized e-retail, clubs, and premium Italian restaurants; serves as a buffer in Canada and Mexico .
- Finance and liquidity
- Activates a revolving lien on slow-moving inventory; evaluates a joint venture for third-party dealcoholization/bottling plants.
- Review delivery/yield contracts to align production with actual demand.
- AI & Operational Data
- Vineyard: sensors/vision algorithms for targeted treatments (less input, higher quality).
- Winery: Predictive fermentation models; blends assisted by a human validation panel.
- Go-to-market: elastic pricing by market/segment; look-alike campaigns targeting GenZ/Millennial audiences.
Conclusion
2025 marks an active selection process : less dispersion, more focus on high-margin markets/channels and authentic experiences. Amid tariffs, shutdowns, and shifting demand , the winners are wineries capable of three key moves: diversifying , rethinking their portfolio (including low/no), and monetizing wine tourism with digital and AI. Italian wine leadership begins here: consistent quality, authentic storytelling, and financial discipline. The rest is just background noise.
