Profitability, a fatal challenge for small and medium businesses of Italian wine

That of profitability is a fatal challenge for small and medium businesses. Such as those reunited in Fivi, and, on which, their future is played. Italian Federation Vignaioli Indipendenti, a non-profit organization arose in 2008 exactly to promote and protect the figure, interests, and technical-economic needs of those who close the chain, from the vineyard to winery up to trade. A small great “army” of over 1,700 producers coming from all Italian regions for a total of over 17,000 hectares of vineyard, and an average surface per company of 10 hectares (data by Nomisma-Wine Monitor survey 2024 in collaboration with Fivi). It follows that economic-financial sustainability of vertical wine companies was the object of the research carried out by Invernizzi Agri Lab of Sda Bocconi School of Management with the support of Romeo Foundation and Enrica Invernizzi, and of Crédit Agricole Italia, in collaboration with Fivi, presented, yesterday, at Vinitaly 2025 in Verona.
The research, carried out on a representative sample both in numerical terms and geographical distribution proportionally to the consistence of Vignaioli Fivi in the different regions, based on a detailed questionnaire filled in completely by 348 companies, and by 152 partially. The parameters analyzed which confirmed predictable correlations if not even evident for who observes closely the sector, and others which identify elements of criticality on which one has to intervene were several. “We analyzed the most relevant strategic-management choices , and deepened, at the same time, the needs of credit, and used financing options  - explained Luca Ghezzi, coordinator of the research and professor of management and control systems at Sda Bocconi School of Management – paying particular attention to the adoption of practices of environmental sustainability evaluating the impact on profitability and company competitiveness. Moreover, the study deepened the problems linked to generational passage, crucial moment to ensure operational continuity, and stimulate innovation inside the businesses”.
The turnover trend of the last three years appeared to be positively correlated to the direct sale, end consumer and/or to Horeca: the companies selling in these channels present a better turnover ongoing compared to the general average of the sample. The same goes for companies proposing with success enotouristic experiences, and which invested in marketing and promotion. From this analysis of cost structure, interesting data emerges: companies with fast or moderated growth have a lower effect of energetic costs. Moreover, export represented a leading driver of growth of turnover trend in the last three years. Among the companies which declared a moderate growth of turnover, 45% present a high percentage of export share.
“This data – commented Rita Babini, new presidenti Fivi, and vine grower with Ancarani - reinforces our requests at an European level: major accessibility to Ocm funds, promotion for small-medium businesses, which are currently excluded actually, and realization of support measures to enotouristic activities. Fundamental in this historical moment for an aware consumption education, in addition to the diversification of channel of sales, and for the growth of territorial economies of internal areas. More than 70% of our almost 1,800 members export, and 23% would like to do that in the future: almost everyone has in the Usa the main market of reference, but with the conditions that are being realized, it will become very difficult, and one of the positive determining factors of turnover is going to miss for Italian vine growers. For this reason, we ask the Government to continue to put in play all the possible diplomatic efforts to put an end to trade wars, and protect a fundamental sector such as the primary one”.
It is interesting what was revealed about the correlation between sustainability and profitability: the only positive comparison, aside from the class of turnover, is the company image, and only in some cases. Therefore, the competitive advantage is reduced to this which is not translated into higher profitability evidently. An element, which is, to some extent surprising seen that the declination of sustainability, from vineyard to winery, should allow, if well interpreted, also to a rationalization of activities, and, therefore, a reduction of costs, beyond the positive effect on company reputation.
Educational activities are considered to be relevant by 75% of the sample who would desire a higher support on marketing and sale, and secondly, on agronomic techniques. “Research confirmed us some elements which, before, could only be hypothesized  - underlined Babini – and it reinforces in the willingness to protect and promote a productive model, that of vertical wine companies, which is fundamental not only for the future of wine world, but for socioeconomic maintenance of many Italian territories. Unfortunately, that of our companies is a resistant and fragile model at the same time. It resisted, and continues to resist thanks to solid fundamentals of resources and competences, often transmitted from generations. But, in a context of great changes at a national, European, and global level, and in front of a climate crisis which makes agricultural work increasingly more risky, it is important that this model is recognized in its originality and uniqueness, and put in the conditions to compete on equal terms with the other subjects of the supply chain”.
45% of companies consulted for the survey haven’t coped with the generational passage yet, crucial theme for these small companies custodians of fragile territories which are becoming less populated little by little to the detriment of a heritage which belongs to everyone. The identified difficulties are the generational involvement which is still ongoing for 31% of these companies, and the limited financial resources representing an economic barrier to ensure an effective and structured passage. Moreover, it emerges that the access to the assets could ease the entry of new generations and foster investments in innovation and growth. Among the difficulties, also the resistance of the previous generation, and the amendments in strategic choices of the company. Companies which have already coped with that (43%) already enjoy the benefits of the generational passage, identified in the expansion of trade opportunities, in innovation of products and services, and in the increase of digital competences. Amplified effects in smaller companies. On the contrary, the impact is limited on the reduction of operational risks, and process optimization. “The generational passage is fundamental for the continuity of activities which many of us noticed in previous generations, and, because the territory doesn’t finish to be abandoned victim of climate change, and of instabilities – commented Babini – certainly, compared to other sectors, we who transform our agricultural products, are luckier, but to continue, a higher profitability is necessary, and we ask bank institutes ad hoc tools to support in investments”.
The survey also revealed  - as illustrated by Biagio Maria Amico, fellow academic at Sda Bocconi School of Management -  that despite the small dimensions, the almost totality of companies of the sample (93%) made important efforts in terms of investments in the last three years demonstrating that they are businesses which have company improvement as priority. And, this is an important depicting element for the access to the credit to which most companies accede with agrarian promissory notes. “The approach of Crédit Agricole to the theme of sustainability, both if it is economic, social, or environmental, is very pragmatic  - concluded Maurizio Crepaldi, responsible direction affairs and Agri Agro of Crédit Agricole Italia -  today, for a wine company, the adoption of sustainable practices is useful and convenient because it means planning a longstanding development in terms of profitability, and company reputation. As a Bank, we are close to Italian Federation Vignaioli Indipendenti because we recognize the important role of custodians and ambassadors of the territory carried out by members, and we want to support their paths of ecologic transition”.