ITALIAN WINE & FOOD INSTITUTE –THE FIRST 8 MONTHS OF 2008 SHOW REDUCTIONS IN IMPORTS TO THE U.S. A SLOW DOWN FROM ALL COUNTRIES THOUGH ITALY MANAGES TO MAINTAIN EXPORT VALUES. THE INCREASE IN PRICES IS THE REASON FOR THE DECREASE

The first 8 months of 2008 have already registered a decrease in quantity for imports to the U.S. and a slight increase in value, confirming the trend that had begun at the beginning of the year. This information was recently released by Lucio Caputo, the head of the Italian Wine & Food Institute in the U.S.

This decrease in imports has not only included Italy, but seven out of the eight principle wine suppliers to the American market. The reduction in quantity was, however, contrasted by an increase in value for most suppliers with the exception of Australia and New Zealand. An increase in price that, within the context of the current economic crisis and consequential decrease in consumption, is the main reason behind the decrease in imports. Italy, and even more so France, with a reduction in quantity of 5.6% and 17.3% respectively, and an increase in value of 6.8% and 18.1% respectively, are the countries that, even with the reinforcement of the euro, have been penalized the most.

According to Caputo, Italy has been, however, the country with the most contained rate of reduction in exports to the U.S. and who, simultaneously, amplified its quota on the import market from 30.5% (quantity) to 31.5% (value) in 2007 to 31.7% and 32.8% in the first 8 months of the current year.

Therefore, Caputo emphasized that this is a period in which it is necessary to have a presence on the market and give support to importers in order to contrast the current recessive trends in order to maintain the market positions that have been conquered with great efforts.
Overall, in the first 8 months of 2008, wine imports to the U.S. total 4,584,520 hectoliters, for a value of 2.4 billion dollars, with a decrease of 8.6% in quantity and an increase of 3% in value. Italian wine imports total 1,453,300 hectoliters for a value of 789.56 million dollars versus 1,538,700 hectoliters for 739.4 million dollars for the same period in 2007, for a decrease of 5.6% in quantity and an increase of 6.8% in value.
For the same period, Australian wines total 1,105,990 hectoliters for a value of 379.17 million dollars, a decrease of 17.2% in quantity and 21.1% in value; imports from France total 562,930 hectoliters for a value of 637.88 million dollars versus 680,820 hectoliters for a value of 539.98 million dollars from January to August 2007, equalling a decrease of 17.3% in quantity and an increase of 18.1% in value; Chile totals 347,190 hectoliters for a value of 113.9 million dollars versus 349,270 hectoliters for a value of 111.84 million dollars in the first 8 months of 2007, equalling a decrease of 0.6% in quantity and an increase of 1.8% in value; and Argentina totals 387,440 hectoliters for a value of 94.15 million dollars versus 369,440 hectoliters a 74.9 million dollars, equalling and increase of 4.9% in quantity and 25.7% in value.

The Italian Wine & Food Institute also revealed, “notable variations in average prices of wine at their origin verified over the first 8 months of 2008: for wines imported from Italy, the average price per liter was $5.43 (versus $4.81 in January to August 2007); for Australian wines, $3.43 (versus $3.60); for French wines, $11.33 (versus $7.93); for Chilean wines, $3.28 (versus $3.20); and for Argentinean wines, $2.43 (versus $2.03). The most consistent increases were verified for French wine imports, with a price hike of 3.40 dollars per liter, followed by Italian wines with a 62 cent increase per liter, and Argentinean wines with a 40 cent increase per liter.