U.S., big Italian red wines grow in value, bucking the trend in the “luxury” segment

In the U.S. market - which on the Italian wine import front continues to perform, in spite of everything (+7.3% in the first 7 months 2024, over the same period 2023, for 1.12 billion euros, according to Istat data, analyzed by WineNews) - as in the rest of the world, with few differences, overall consumption is declining, mainly affecting red wines. But, in the States, according at least to the analysis of the Unione Italiana Vini and Vinitaly Observatory (on SipSource data, as of August 2024), “there is a segment bucking the decline of red wines: they are the luxury made in Italy, red labels from $50 and up (price at distribution), which, between January and August 2024, have put up a growth in value sales of 3% against a general performance of luxury products at -7%, with the French at -16% and the Americans in line with the market average”. This was stated at the end of the institutional event Vinitaly.Usa (Chicago, October 20-21) by the Vinitaly & Unione Italiana Vini (UIV) Observatory analysis.
“According to the monitoring of actual wine sales found by U.S. distributors, this is a surprising positioning, that of Italian super-premium reds, which hold a nano-share of 2% on the volume of sales of Italian reds, but which, in value terms, represent 14% of Italian reds in the U.S. This market share rises to 23% if super-premium reds (between $24 and $50) are included, compared to only 6% of volume sales,” the Observatory explained. “Italy”, said the president of Unione Italiana Vini (Uiv), Lamberto Frescobaldi, from Chicago, “can count, on the one hand, on the strength of territorial brands now recognized as iconic by American wine lovers; on the other hand, on the experience of American tourists in Italy, which is increasingly a factor of affection once they return home”.
Not surprisingly, leading the way (almost absolutely) in the luxury niche are Tuscan labels, responsible for 45.5% of the U.S. market for high-end made-in-Italy reds, growing 13% between January and August 2024. Pulling ahead in the preferences of a particularly conservative typical consumer who is fond of already known proposals and territories is Brunello di Montalcino, the leading appellation with a 32% market share of luxury reds. It is followed at a distance in the regional ranking by the Bolgheri galaxy (11.5%) and Chianti Classico (2%). For Piedmontese nobles, Barolo (16%) earns second place overall, while Barbaresco (4%) is off the podium. In great difficulty, on the other hand, according to the Uiv-Vinitaly Observatory, wine areas that have so far driven the luxury segment, such as Bordeaux (-37%), Burgundy (-12%), Napa Valley (-24%).
But there are also new trends that, from the U.S., are embracing consumers from all over the world, as pointed out, again from Chicago, by Marzia Varvaglione, president of Agivi (Association of Young Italian Wine Entrepreneurs by Unione Italiana Vini): “from ready-to-drink to low and no-alcohol, it is important not to be prejudiced, we must not be afraid of the new that is advancing. As Italian producers, we need to understand the underlying phenomena and, consequently, start communicating wine in a more inclusive way. Our role as entrepreneurs is to understand what new opportunities the market presents, particularly the U.S. market. Talking about young people”, she concluded, “is a matter of responsibility: they will be the next generation of wine, young cosmopolitans attentive to quality on the plate and in the glass”.
Reflections, among others, that come at the close of a U.S. debut for Veronafiere, which met the expectations of Fiera Verona, which explains how “more than 1,500 professional operators - buyers, importers, distributors, horeca channel - in two days met the proposal of 1,650 labels from more than 230 wineries and seven regions (Calabria, Campania, Friuli-Venezia Giulia, Lazio, Sardinia, Umbria, Veneto) and took part in 30 events including masterclasses, tastings and in-depth market meetings”. Numbers that Veronafiere realized in collaboration with Fiere Italiane and Ita-Italian Trade Agency, “dedicated exclusively to the meeting of international demand and supply of Italian products that represent one third of total U.S. wine imports ($1.5 billion out of $4.5 total)”.
“We have achieved all the goals we had set for this first step in the U.S.: number and quality of participating wineries; coordinated and unified promotion between regions, Chambers of Commerce, Ice, Consulates, Embassy with the Ministries of Foreign Affairs and Agriculture-who have worked with us in the same direction to bring qualified professional operators in the exclusive interest of the companies”, stresses Veronafiere president Federico Bricolo. “To these, we add the no less important goal of having selected new buyers and importers to invite to Vinitaly 2025”. “With Vinitaly.Usa we complete the geography of our trade fair events dedicated to wine, and we are now present in North America, as well as in Asia, the Balkans and South America”, points out Maurizio Danese, CEO of Veronafiere. “To these, we add an average of 15 stops each year between roadshows and previews in strategic markets that include other cities in the U.S., Japan, South Korea, China, and Northern and Central Europe with the dual objective of promoting Italian wine and selecting qualified international operators to host at Vinitaly: all roads lead to Verona”. For Adolfo Rebughini, Veronafiere’s managing director, “we chose Chicago because it is a crossroads of many U.S. trade exchanges, which is a complex market because of different import regulations. The feedback went beyond expectations. In a market that experiences very particular dynamics, where we want to continue to be to support Italian companies, this result gives us optimism for the 2025 edition”.