The complex 2024, the challenges of 2025: the “state of the art” of high-end distribution

From the end of the post-Covid euphoria to the decline in Champagnes, from a 2024 harvest that was complex, albeit all in all positive, to expectations for 2025, in which new strategies and serious planning will have to be reasoned out, without forgetting the big issues of the moment, from the decline in consumption among the new generations to the low and no-alcohol trend, passing by the new Highway Code: some of the most important names in Italian high-end distribution - Cuzziol Grandivini, Gruppo Meregalli, Sarzi Amadé and Sagna - draw, for WineNews, a picture of the months that have just passed and those that lie ahead. If 2024 can be considered the year of the definitive return to normality, characterized by a physiological drop in consumption (after 2022 and 2023 when there was a post-pandemic boom), it is also the one in which other critical issues have emerged, from inflation that has eroded consumers' purchasing power to the increasingly strong health pressures, from the loss of appeal towards wine by the new generations, to the often excessive restaurant mark-ups. And if for Luca Cuzziol the year 2025 will have to be faced by investing in strategy and business vision, so as not to witness the “perfect storm”, for Alessandro Sarzi Amadè the wine world will have to revise and simplify communication aimed at Millennials and Gen Z, for whom today a Spritz is easier to understand than a glass of wine, due to a narrative that is often too difficult and complicated. Marcello Meregalli for 2025 has introduced low and no-alcohol wines and spirits in its catalog, but it pushes for a promotion of the culture of drinking, conscious and moderate, during meals, as well as calling for the liberalization of Uber and other similar services, for all those areas where there are no cabs or public transportation available. Regarding market choices, for Leonardo and Carlo Alberto Sagna this year consumers favored high-end wines, confirming the bias toward quality products.
Luca Cuzziol, at the helm of Cuzziol Grandivini (with Italian brands such as Pala, Pietradolce, Frecciarossa, Biancavigna, Elio Ottin, Parusso, Sartarelli, Ridolfi, and French brands such as Bruno Paillard, Alain Geoffroy, Comte Armand, Henri Boillot, Domaine de La Chapelle and others, ed.) explains that “2024 was a fairly complex year, especially in the second half of the year, in which there was some contraction, mainly due to scenarios beyond our control. 2025 will have to be approached differently, otherwise, we will end up witnessing the “perfect storm”. The critical issues are varied: starting with the fact that for young people, wine is not a cool product. Then there is the health factor, which sees wine accused of making people fat and causing disease. Finally, from an international point of view, for our wine - which already presents itself as “fragile”. with too many micro-denominations - there are no new markets on the horizon: we have China, which traditionally does not choose Italian wines; Africa, which, because of the climate, drinks very little; Russia, which is out of the game right now because of the war; the U.S., which, with the new Trump presidency, is a market that, between tariffs and protectionism, may present critical issues; and Germany grappling with internal political problems. We distributors do our best to defend the peculiarities of our territory and our productions, but all these situations, put together, can become a big problem. As far as domestic market trends are concerned, we are seeing a definite contraction in Champagne, for which the post-Covid “carpe diem” period is over: suffice it to say that this year the wineries have not increased their price lists, a fact that has not happened since at least 2008-2009. I believe that for wine we are also seeing a decline in the classic aperitif moment: for example, the Prosecco data refer more to a global context than a domestic one, which, instead, is static. That is why it is essential to do business intelligently, not improvisationally”, Cuzziol continued, “to work well with new and alternative offerings that pique the curiosity of the market. We have to make a joint effort. Our company ended 2024 in the positive, but without planning it is no longer possible to move forward. This is a problem that, in my opinion, affects the entire wine world in general: the “bucolic” vision of many producers, committed above all to making the best wine of all, without then thinking about how and to whom to sell it, is no longer sustainable. For the future I am optimistic, but, as I repeat, we need strategy and greater awareness of doing business”. Precisely with a view to a strategic vision, Cuzziol is relaunching the idea of the new show intended for distributors, as anticipated in recent months, through the Excellence Company, of which it is president and which brings together 21 leading Italian wine and spirits distributors (Sagna Spa, Gruppo Meregalli Spa, Cuzziol Grandivini srl, Pellegrini Spa, Balan srl, Sarzi Amadè srl, Vino Design srl, Teatro del Vino srl, Proposta Vini sas, Bolis srl, Les Caves de Pyrene srl, Premium Wine Selection Pws srl, Ghilardi Selezioni srl, Visconti 43 Spa, Première srl, Agb Selezione srl, Apoteca, Ceretto Terroirs, Philarmonica srl, Spirits Colori srl, ViteVini srl) for a turnover of more than 330 million euros, 2. 045 agents operating throughout Italy and representing 2,185 top Italian and foreign companies. “After the efforts of the last few months, aimed each at their own companies, by January 2025 we will return to confront each other on this important project: the date has not yet been set (January 2026 or January 2027, ed.), but it is certain that we will make a fair intended for professionals, with a “armored” system of access. After all, each of us has an average of 100-150 producers in our portfolio, so we need to work in depth and with a highly selected target, with an exclusive format, confirmed by the success of the Modena Champagne Experience again this year”, Cuzziol concludes.
Marcello Meregalli, at the head of the Meregalli Group (which boasts prestigious brands such as Tenuta San Guido, Argiolas, Speri, Oddero, Nino Franco, Badia a Coltibuono, Ciacci Piccolomini d’Aragona but also big names from France and beyond, such as Domaines Barons de Rothschild, Bollinger, Penfolds and Francis Ford Coppola Winery, to name a few) explains that “2024, despite critical moments, was a record year for us, with the wine sector at +6%: historic labels and brands, in particular, did well. In general, while it is true that the most prestigious appellations, from Brunello to Barolo, have held up well, the pricing policy of recent years has not helped the wine world. Also worth noting is a generalized crisis in Champagne, although the big brands are holding up. What suffered, however, was the spirits part, -3%, also due to the bad weather that lasted until early summer, with the impossibility of opening rooftops and gardens for outdoor aperitifs - continues Meregalli - to be recorded, always for the cocktail world, a strong setback in the second half of December 2024, since the new rules of the Highway Code came into force: let's hope they get back to saying that technically nothing has changed from before, and that they liberalize services like Uber and the like, since cabs are expensive and cannot be found, especially in the evenings. In general, for our industry, there is an awareness that the post-Covid boom is over and that we will be on a slight upswing each year. The issues we see, however, are related to consumption in general: starting with young people and certain healthy and health pushes, focused on healthy eating and zero alcohol. Although there is to be noted a niche of young people who are nonetheless passionate about wine. In the future, in my opinion, the world will increasingly divide between consumption of mass market products and high-end products, both wine and spirits, so if people have to drink one less glass maybe they will project themselves on a higher step, in price and quality. In 2025 among the new additions to our catalog we have introduced both spirits, low and no-alcohol wine; also, we will make, with our producers test labels, with a young grape variety, to produce wines between 9 and 11.5 degrees. Welcome it as an extra trend that, on the one hand, supports the world and culture of wine, and, on the other hand, gives a chance to those who go out and don’t want to take risks. But it is important, however, to promote the culture that wine is consumed, consciously and moderately, during meals. I hope, also, that we will follow the example of smart countries like France, England, Germany and the United States, where with an app you can call your Uber, even in small villages or areas where there are no cabs or public transportation.
Alessandro Sarzi Amadè, who, with Sarzi Amadè, distributes in Italy many top French brands (names such as Lafite Rothschild, La Tour, Margaux, Lynch-Bages, Petrus, Angelus, Cheval Blanc and Yquem, to name a few), but also prestigious Italian names (including Benanti, Castello di Bolgheri, Monteraponi, Poderi Aldo Conterno, via the California legend, Opus One), tells of a 2024 that was not easy overall, even though his company reported a slight increase in sales, albeit in the face of a decline in bottles sold (-4 percent): “on the one hand, the post-Covid euphoria has died down, and on the other, prices have risen,” Sarzi Amadè explains, “and this has affected the general decline in Italian consumption away from home. By now established in particular is the decline in Champagne, which for us anyway represents a marginal part of the portfolio. In general, it was a strange and undecipherable year, with wineries that saw significant increases and others that suffered. In general, the best-known and most prestigious brands held up, and even well, while lesser-known brands, even of the same appellation, struggled. The feeling is that the customers wanted to protect themselves by choosing reliable labels, which guaranteed them a certain peace of mind, while the desire to experiment with new names has diminished. For 2025, of course, we are hopeful, but it will be , however, a year to be faced with seriousness, constant presence with customers and a desire to get busy: nothing will come by chance”. Finally, Alessandro Sarzi Amadè makes a small reflection on the issues on the agenda: “the drop in consumption, about which so much is spoken, is now certified by the data. For young people, other products of the alcohol industry, alternatives to wine, have greater appeal, and we are also to blame: the world of wine has raised the level of the narrative so high, making it difficult and complicated, that the younger generation is scared of it, preferring simpler alternatives. In short, today a Spritz is definitely easier than a glass of wine. There must be a return to simpler and more immediate communication: in the end, the question to be asked is simply whether one likes a wine or not. On the no-alcohol wines, let's say that a year ago I would not have even considered them. Today, although I have a hard time considering them as wine, I am beginning to evaluate the issue, also considering the health aspect, current regulations and a certain negative view of wine from the medical world”.
Leonardo and Carlo Alberto Sagna of Sagna (distributor of, among others, the wine-myth of Burgundy, Domaine de la Romanée-Conti, and another transalpine icon for Champagne such as Louis Roederer, and recently also the Deutz maison, as well as top names in Bordeaux, such as Chateau Margaux and Chateau Palmer, Cheval Blanc, Petrus, and Italian griffes such as Secondo Marco, Palmento Costanzo, Mamete Prevostini, Canalicchio di Sopra, and Querciabella, among others), reflect on the economic performance of 2024: “the year was characterized by a seesaw market environment, marked by profound changes and complex challenges, but also by evolutionary opportunities for our catalog. Restaurants and wine shops have adopted a more rational approach to purchasing, preferring strategies geared toward quality and efficiency. The market saw growth in value sales, despite a decline in volumes sold. Consumers favored high-end wines, confirming the bias toward quality products. Geopolitical crises and economic uncertainties affected global markets, creating significant challenges especially for Champagne exports, which declined around 21% in major European and American markets. However, high-end cuvées continue to drive the segment in value, thanks to growing demand in Asian and emerging markets. The year that is drawing to a close has been marked by lights and shadows, but also an opportunity to read several positive elements: the first is the normalization of purchases, which was necessary after the boom experienced in 2022 and 2023, motivated by more social than economic reasons; the second positive element is the stability of our customers served, which despite the drop in consumption, remained unchanged. Related to this is the third point: better results than the category statistics, which translate into growth in market share. In summary, after a two-year period of euphoria, we almost welcome with relief a year of “normalization”, in which, however, there was no lack of dynamism, thanks in part to new international entries. In terms of trends, we observed a physiological decline in Champagne consumption and a good hold on domestic wines, especially whites. Surprisingly, out-of-home consumption showed better resistance than body sales”, says Leonardo Sagna. Noteworthy are the effects of climate change: “2024 was marked by adverse weather events, such as incessant rains in the spring, which impacted revenues from a type of excursion tourism and stay-at-home activities, reducing consumption and retail sales in tourist resorts”. Despite the difficulties, the company remains optimistic: “the ability to adapt to market changes and respond to consumer needs with quality products remains our priority”, concludes Carlo Alberto Sagna.