Italian wine in the “perfect storm”. Certain business models and territories are holding up better

There are no alternatives for “navigating” the “perfect storm” that is hitting the wine industry: resistance is futile, but adaptation is necessary, because resilience is the winning strategy. Success does not depend on an absolutely winning business model, but on adaptability, entrepreneurial choices, managerialization, and corporate culture. To identify areas for improvement, it is necessary to analyze your specific model and compare it with similar companies. This emerges from the annual report on the financial statements of wine companies by Studio Impresa - Management DiVino, in partnership with “Il Corriere Vinicolo”, the historic magazine of Unione Italiana Vini (Uiv). The analysis provides a snapshot of a wine world capable of adapting to a difficult context, but one that is advancing at different speeds. Structural challenges (imbalance between production and consumption, corporate fragmentation, climate change) and economic challenges (inflation, conflicts, decline in purchasing power, changing consumption patterns) have different impacts on companies. The study classifies companies into two models: “asset strong” (vineyard owners) and “asset light” (brand-focused). Although agricultural companies (“asset strong”) show higher growth and margins (+16% in revenues, 21% in EBITDA) than non-agricultural companies (+2% in revenues, 10% in EBITDA), thanks in part to a favorable tax regime, there is a convergence in performance between the two models and the effectiveness of hybrid models.
The report by Studio Impresa - which examined, for this year, the financial statements filed by 877 companies out of the 1,000 companies with revenues exceeding €1 million that prepare financial statements (limited liability companies, joint-stock companies, and cooperatives) - has the merit of looking beyond the averages, overcoming the limitation of the “Trilussa chicken” by verifying the dynamics affecting the different categories of companies. Luca Castagnetti, director of the DiVino Management Study Center, urged the sector to adapt by pointing to strategies such as aggregation to increase critical mass, product innovation (such as wine in cans), the strategic role of wine tourism, and the need for cohesive political action on systemic problems (energy costs, bureaucracy). Castagnetti (here is our interview) explained the current situation: “Analysis of the three-year period 2022-2024 reveals a polarization of performance. Despite an aggregate growth of 2% in revenues, 47% of companies experienced a decrease and 41% a contraction in margins. Growth is driven by large companies and cooperatives, while SMEs are struggling with increased debt. However, the margin gap between ‘strong’ and ‘light’ companies is narrowing”. This is somewhat reflected in the testimonies of leading Italian wine companies, which are very different from each other.
“Argea has different souls, so it adopts a ‘middle ground’ model”, explained Massimo Romani, CEO of the company with revenues of €465 million in 2024, a diverse brand portfolio and exports of 170 million bottles, founded with capital from the Clessidra Fund - which combines “asset light” flexibility for commercial products and proximity to the territory and supply chain of wineries with “asset strong” iconic brands to be competitive in different market conditions. Our experience suggests that there is no absolute answer, but that, depending on the circumstances, there are models that are more or less suitable. To put it simply, I would say that there are products that have become more commodity-like over time, where flexibility is rewarded, and there are products and varieties that have remained more iconic, where, probably, more significant investments are rewarded”.
Allegrini Wines, which has an important family history and consists of Allegrini Wines (commercial/“light”) and Allegrini Agricola (production/“strong”), is also evolving towards “lightening” in order to increase flexibility and sustainability. “At this moment in history, it is imperative to ‘lighten’ the ‘strong’ part”, said Francesco Allegrini, CEO of the Fumane (Verona) company, which today has a turnover of over €20 million, 2.3 million bottles sold in 90 countries, 60% of which are exported, and assets of over 150 hectares, 105 owned and 45 leased. “We are putting this into practice, for example, by leasing vineyards, so we can expand without getting into more debt, but that's not all. There are, however, other solutions, such as small business networks that we are using that allow us to maintain the same quality standards, for example by sharing cooperative drying centers. Similarly, with the Allegrini Wines commercial branch, we are looking for products to distribute in line with market trends”.
But the “light” model has become widespread because light companies are more attractive to financial capital and private equity, allowing for faster optimization of economic performance. This is the case with Ruggeri - over €20 million in turnover, 1 million bottles exported - acquired in 2017 by Rotkäppchen-Mumm, one of Germany's largest producers of sparkling wine, spirits, and wines. “The reality of Conegliano Valdobbiadene Prosecco is unique due to its highly fragmented nature and, therefore, the absence of large estates”, emphasized Laura Mayr, CEO of Ruggeri. “In our case, the acquisition in our case, by a large industrial group with an ‘asset light’ acquisition strategy to maximize the value chain and profitability, found in Ruggeri its main value not in direct ownership, but in the supply chain of growers who contribute 350 hectares of vineyards, with us for three generations, to which is added the historical value of the brand and a certain size that indirectly also guarantees managerial expertise. Ours is a happy case based on a partnership that has allowed for growth over time after the acquisition thanks to the strength of the brand, good productivity, and profitability”.
In any case, smaller companies, with revenues of less than €5 million and between €5 million and €10 million, recorded the most significant declines in profitability (-16.4% and -6.4% respectively). On the contrary, medium-large companies (revenues between €10 million and €20 million, up 9.1%) and those above €50 million (up 4.9%) show a significant increase. Giovanna Prandini, head of Perla del Garda (40 hectares, over €1.8 million in turnover), pointed out, however, that small businesses, although suffering, are not out of the market: “Smaller businesses suffer more, it's true, but they are not necessarily out of the market, even if they struggle to compete in an environment where skills and resources are sometimes lacking”. Her strategies are diversification (milk production, extra virgin olive oil, energy from biogas and photovoltaics) and an increase in wine tourism, which accounts for 23% of turnover for Fivi-Federazione Italiana Vignaioli Indipendenti (Italian Federation of Independent Winegrowers) companies. Prandini believes it is crucial to network with other winemakers to reduce costs and diversify markets. Furthermore, it is necessary to have the courage to innovate, as was done with the production of a premium wine in cans, “amidst criticism from everyone, in order to capture a niche market that is not yet occupied”.
In general, it also emerges that cooperation is driving growth in the sector (+2.8% in revenues), which is crucial for the stability of the system (60% of production and 43% of total turnover). Giampaolo Bassetti, CEO of Caviro (Italy's largest winery, with €385 million in turnover and two private brands, Tenute Caviro, Leonardo da Vinci, and Cesari), explained that cooperation aims to maximize margins by optimizing processes to remunerate members. “Our difficulty”, he stressed, “lies in the paradox of the growth in consumption of generic wines, which are in short supply, and in our weakness in negotiating with large purchasing centers, with which we have little bargaining power. This is another reason why size matters and why fragmentation is uneconomical in cooperation: mergers are necessary but politically complex”.
On the political front, Luca Rigotti, president of Fedagri's Wine Sector (264 wineries and consortia, over €5 billion in aggregate turnover and approximately 40% of national production), and at the helm of Mezzacorona, brought a wave of optimism thanks to the unity of the supply chain. “All the measures in the ‘Wine Package’ approved by Comagri, such as the increase in the CMO contribution for promotion from 50% to 80% and the extension of planting authorizations and contributions for diseases, are moving in the direction desired by everyone, beyond a few specific issues. We are now awaiting the outcome of the trilogue in December”. Rigotti also reiterated the importance of promoting commercial aggregation to help cooperatives overcome size limitations.
Rita Babini, president of Fivi-Federazione Italiana Vignaioli Indipendenti (Italian Federation of Independent Winegrowers), denounced the difficulties in accessing CMO funds: "”Although 70% of Fivi members export, only 14% have access to these funds. I hope that the expansion of CMO funds to 80% will increase opportunities. The measure is therefore not accessible despite the promises made by EU Agriculture Commissioner Christophe Hansen of a measure aimed at ‘so-called’ small businesses, which in Italy account for 94% of companies, given that of the approximately 30,000 Italian companies that complete the production cycle, only 6% are larger than 100 hectares. And we must not forget the internal market, understood as the European Union with (445 million inhabitants vs. 270 million in Mercosur). In the last two years, 54% of Fivi companies have seen a sharp increase in turnover thanks to exports and the introduction of wine tourism (in 81% of companies, accounting for 23% of turnover), for which we are calling for simplifications such as the activation of a ‘one-stop shop’ to facilitate shipments”.
Sandro Sartor, president of Ruffino and advisor to the Unione Italiana Vini (UIV), concluded the discussion. “The Italian wine sector is a heterogeneous world, representing numerous players who are all equally indispensable and interdependent,” Sartor emphasized. “If one ‘piece’ goes wrong, all the others will suffer”. Sartor then reiterated “the need for Italy to speak with one voice in Brussels in order to attract France and Spain to its position and lead the EU where it wants to go. As for exports, so far we have picked what the British call ‘low hanging fruit’, i.e. the fruit that is within easy reach. Now we need to get the ladder out and start climbing, reaching for the more difficult fruit, aware that Italian companies, even the largest ones (few exceed €500 million), do not have the size to compete effectively at a global level against players worth over a billion. Growth in size is a necessity for those competing on volume”.
However, in the meantime, some data from the research, extracted by Luca Castagnetti for WineNews, reveals a certain difference in the fundamental parameter of profitability, depending on the area. In Tuscany, where the average EBITDA of the sample analyzed (143 companies) is 21.98%—with a national average of around 10% - the province of Livorno (with a sample of 11 companies) stands out, namely Bolgheri (an area also featured in the September 2025 monograph of “I Quaderni di WineNews”), which remains at the top in terms of margins created with an EBITDA of 53.75%, followed at a considerable distance by Florence (39 companies in the sample), where a large part of Chianti Classico is located, but not only, with 22.8%, while Siena (63 companies in the sample), which also includes Chianti Classico, but also Montalcino and Montepulciano, with 14.6%, is behind even the province of Pisa (21.5%, with 7 companies in the sample). “Wine companies in Tuscany have always had significant margins measured as EBITDA, which on average is double the national average, standing at 21.98% compared to 10.5%. In Tuscany, margins are very high, with the exception of small businesses, which have lower margins in line with the national average. Small agricultural businesses in Tuscany - writes Castagnetti - are often burdened by the capital structure of large vineyards and wineries, which are often out of proportion to their actual production capacity. The province of Livorno remains at the top in terms of margins, with an average EBITDA of 53.75% achieved by 11 companies in the sample. The “Bolgheri” designation makes a specific contribution to the success of local businesses. Businesses in Tuscany have a high incidence of personnel costs compared to revenues: revenue per employee is €214,000 and the average number of employees is 51.
In Veneto, on the other hand, the figure rises to €856,000 per employee, with an average number of employees remaining at 37. In the region of Amarone, Soave, Prosecco, and so on, however, profitability is lower than the national average, at 8.72% at the regional level, with a peculiar peak of 19.3% in the province of Venice, with 11 sample companies, then ranging from 4.6% in the province of Vicenza (9 companies), to 7.38% in Treviso (76 companies), 8.4% in Padua (11) and Verona (44).</B “The margin of companies in Veneto is below the national average. Even in provinces such as Verona, home to important wines such as Amarone, the EBITDA figure is in line with the regional average. There are no companies that focus on ‘premium’ products,“ explains Castagnetti, ”but on average, they all have diversified production, often with high quantities, which lowers economic returns in favor of very significant revenues and quantities. In Veneto, small companies perform better with a margin of 13.1%”.
And also in Piedmont, and in particular in the province of Cuneo, or rather in most of the Langhe region, “which accounts for 50% of the region's businesses,” Castagnetti points out, "a phenomenon similar to that in Veneto is occurring: the presence of numerous large companies, often multi-product, despite the presence of important wines such as Barolo, results in a margin (9.9%) below the national average (10.5%) and in line with the regional margin (9.3%)”.
Among the data extracted by Castagnetti, the data for the province of Brescia is interesting, where the influence of Franciacorta is particularly strong: from a sample of 31 companies (out of 71 at the regional level, with an average EBITDA of 13.4%), a profitability of 21.6% emerges, substantially in line with the data for Tuscany and double the national average.
These are just a few examples of data that, in a nutshell, confirm that the Italian wine industry is like a galaxy made up of many very different planets.