A CHANGE IN TRENDS FOR THE U.S. MARKET ACCORDING TO THE INITIAL DATA ON ITALIAN WINE EXPORTS IN 2008

2008 could be the year that marks the change in trends for wine exports to the U.S., interrupting the positive period of growth that had been continuing for several years now.
This date was released by the Italian Wine & Food Institute, who explained that in the first period of 2008 (the data is from January 31, 2008), “for the first time since 2000 there has been a decrease of 6.7% in the overall total of wine imports to the U.S., which in the past 8 years had, instead, progressively increased”.

According to the president of the Italian Wine & Food Institute, Lucio Caputo, “this decrease has essentially been provoked by the slowing of the expansion phase of Australian exports (which decreased by 11.7%) and by the contemporary contraction of European exports, which continue to feel the heavy increases in prices due to the constant growth in the value of the euro”.

Further confirmation of the euro trend is the 3.3% increase in the overall value of U.S. imports due directly to the continued increase in euro strength, which remains the main factor penalizing exports from the Euro zone.

The other factor of particular significance, according to Caputo, is the noted contraction of Australian exports (-11.75% in quantity and -7.4% in value) in the first period of the year, which is traditionally the period in which the continent located in the Southern hemisphere exports more to the United States.

Notwithstanding this sharp decrease, Australia is still ahead of Italy in the classification of top wine suppliers on the U.S. market. Italy (-2% in quantity and +0.7% in value) continues to maintain, however, first place in value, though this ranking is largely due to the unfavorable dollar-euro exchange rate that make Italian wines more expensive without any real advantage for producers.

The negative effects of the euro have reached their apex for French wine exports which have decreased by a hefty 18.4% in quantity, and increased by 25% in value, provoking serious losses on export markets.

Argentinean wines, however, continue their expansion and have acquired an important spot on the U.S. market thanks to their low costs.