In a struggling wine industry, turnover of wineries management increases in intensity

That in the wine sector, and across companies of all sizes, there is concern about the macroeconomic and geopolitical scenario, which, together with other factors (loss of purchasing power, generational change, “health-conscious” trends), is penalizing consumption and, consequently, affecting sales and winery margins, is a matter of fact. Among the “symptoms” of this legitimate unease running through the sector, there is a noticeable and somewhat unusual acceleration, compared to the norm, in the turnover of managers, general directors, and sales managers (in Italy and abroad) among Italian wineries. This is evident from the many announcements of new appointments that have been pouring in over the past months, as well as from the daily discussions that WineNews, in its coverage of the wine world, has with numerous industry entrepreneurs.
The reasons can be many. First and foremost, from what can be sensed or heard in off-the-record conversations, the growing complexity of the market plays a role. In many cases, this leads companies to revise their plans due to results below expectations, prompting attempts to change management. It is somewhat similar, just to use a simple comparison, to football teams that change coaches in the hope of reversing their course or, at least, improving performance thanks to different skills, relationships, and visions compared to the “status quo”.
Furthermore, it must be considered that in the Italian wine world, a very large number of companies are family-run businesses which are dealing with the extremely delicate issue of generational handover at the top. For a thousand different reasons, the “older generation” chooses to rely on external managers to work alongside the “new generation”, also in light of an increasingly challenging and competitive wine market, which requires a broader set of skills than in the recent past. Another aspect, partly linked to generational transition but also to family ownership in general, concerns the differences in vision and ambition among family shareholders. When these differences don’t lead to company splits or the sale of shares, they often require the intervention of external managerial expertise to be managed effectively.
Another emerging factor, especially when turnover involves sales managers, is the attempt by some companies, particularly larger or more structured ones, to increasingly invest in a sales network under their direct control. Such networks clearly require figures capable of directing and coordinating them, roles that are still lacking in many companies. Additionally, some point out that part of the turnover is due to the fact that, especially in recent years, several managers have come from sectors outside the wine industry, either by deliberate company choice or as a result of investments in wine companies by entrepreneurial groups active in other sectors, which brought their own management into the wine business. However, these managers often found themselves facing a sharply changed market scenario, from a strong and continuous growth trend, especially in exports, to a contraction in markets that has clearly persisted for at least the past two to three years.
On a more positive note, it should also be considered that, despite the challenges of the current period, there are still companies that continue to perform well, especially those with strong brands, and which invest to further expand by strengthening their management teams. However, this seems more the exception than the rule.
More generally, many critical elements and issues are emerging, and these appear to result in a much more intense turnover of management compared to the recent past in the wine world. In contrast, this seems to confirm the old saying, “you don’t change a winning team”. Yet, as with football teams, returning to the initial metaphor, a change of coach is not always enough to solve problems that may sometimes be more structural than contingent.