Wine (with spirits and vinegars) faces epic challenges: businesses and institutions need to team up

Domestic consumption, especially in large-scale retail, is declining but not collapsing (€694 million in the first three months of 2025, down 1% on 2024), as is consumption outside the home. Exports in terms of value, after the first three months of 2025, are essentially stable, or rather, slightly up, but we must take into account the rush to stock up before US tariffs (while the whole of Europe, wine & spirits and beyond, waits for July 9 to find out President Trump’s intentions) and the decline of an important market for Italy such as the United Kingdom. It is therefore a complex context, made even more complicated by growing international conflicts and tensions, which are weighing heavily on the world in both social and economic terms. After the difficult years of Covid, the exciting years of recovery, especially in 2022 and part of 2023, and after the new complications of 2024 (a year in which, despite everything, Italian wine exports reached a record high of €8.1 billion, ed.), the wine sector, but also the spirits and vinegar sectors, are facing a new and very complicated 2025, now at the halfway point, and having to deal with “epochal crises between geopolitical turmoil, tariff alarms, and competitiveness at risk”, despite the strength of a supply chain that, between wines, spirits, and vinegars, “remains a pillar of the national agri-food industry, with total exports in 2024 reaching €10.5 billion, with a positive trade balance of €8.9 billion, strengthening Italy’s leadership on international markets. A €21.5 billion supply chain that includes a productive fabric of over 40,000 industrial companies, guaranteeing employment for over 81,000 direct employees”. This is according to data from Nomisma for the Federvini Observatory, which today, at its meeting in Rome, appointed Giacomo Ponti as president. Ponti is at the helm of the historic family business founded in 1787 in Ghemme, a symbol of Italian vinegar and preserve production, and succeeds Micaela Pallini, while Pietro Mastroberardino remains vice president, together with Aldo Davoli. and, among other things, Albiera Antinori, already at the helm of Marchesi Antinori, is confirmed as president of Federvini Gruppo Vino.
This is a very important sector for the economy, the stability of the territories, and Italy's prestige in the world, which also enjoys great institutional attention, as evidenced by the presence at the meeting of, among others, the Minister of Agriculture, Francesco Lollobrigida, the Minister of Enterprise and Made in Italy, Adolfo Urso, the surprise arrival of the Minister of Economy, Giancarlo Giorgetti, and the Deputy Minister of Foreign Affairs and International Cooperation, Edmondo Cirielli, as well as the president of ICE, Matteo Zoppas. “I accept this position with a sense of responsibility”, said President Giacomo Ponti, “at a complex historical moment marked by strong international tensions and uncertainties. Federvini will continue to represent our companies with strength and competence, promoting their quality, sustainability, and economic importance. Among the priority objectives of my mandate is the strengthening of the international competitiveness of our sector, protecting first and foremost the cultural value of all sectors, from wines to spirits to vinegars, which constitute an economic heritage of extraordinary prestige for our country”. “I am leaving the presidency with pride and gratitude”, said Micaela Pallini, “for the work carried out during these complex years, in which we have strengthened the role of our supply chains in Italy and Europe. We have defended the cultural and social value of our production model, supported competitiveness, and promoted conscious consumption. My best wishes go to Giacomo Ponti: he will lead Federvini with vision and determination”.
Wine, and beverages in general, as mentioned, operate within a national macroeconomic framework that remains fragile. According to Federvini, Italy’s GDP grew by 0.9% in 2024, and a similar trend is expected for 2025. Prices for alcoholic beverages are deflating, compared to sustained growth in the food and food service sector. In May 2025, consumer and business confidence rebounded after three consecutive months of decline. However, retail sales volumes remain weak, with growth in discount channels, a sign of the difficulties still present in household budgets. In the context of a still cautious domestic economy, the first quarter of 2025 shows a market in slight adjustment, with some segments confirming positive signs. According to Nomisma surveys for the Federvini Observatory, sales in large-scale retail trade recorded an overall stable trend, with different dynamics between sectors. Wine generated a value of €694 million, recording a slight decline of 1% over the same period last year. The segment is driven by quality sparkling wines, with the Metodo Classico up 7.1% and sweet Charmat up 2%. Generic and sparkling wines continue to struggle, while wines with Protected Geographical Indication (PGI) recorded a +1.1% increase in value.
The spirits sector also suffered from a certain weakness, with sales of €274 million, down 3.2% on 2024. However, some segments performed well, such as gin (+14.2%), while alcoholic aperitifs held steady, and grappa, sweet liqueurs, and bitters declined. The trend for vinegars was more positive, with growth of 1.8% in value in the first quarter. In particular, apple vinegar (+6.4%) and wine vinegar (+1.5%) performed well. Aceto Balsamico di Modena PGI, on the other hand, suffered a slight decline of 0.7%, while maintaining a significant market share of 32% of total sales in large-scale retail. For out-of-home consumption, TradeLab data indicate a total value of €81.4 billion in 2024, up 1% on the previous year. Despite a 1.6% decline in visits, the sector is showing signs of resilience, with wine and sparkling wine continuing to play a central role, especially in the evening, such as at dinners and aperitifs. In short, the sector continues to generate significant numbers, but with many signs to monitor.
“Although exports of Italian wines, spirits, and vinegars have shown a generally positive trend over the last five years, there are concerns about the current unstable scenario, which continues to have repercussions on the cost of raw materials and energy, inflation, and employment rates. A picture that, in the first quarter of 2025, showed signs of a general slowdown: wine grew by only 0.7% in value, penalized by the slowdown in the United Kingdom and growing competition from third countries; spirits grew by +3.1%, driven by liqueurs (+10.9%), while Grappa fell by 14%; vinegars fell by 1.4%, while maintaining positive performance in 2024 in key markets such as the United States, Germany, France, and South Korea”, explains Federvini, which also emphasizes that “the international implications of the recent attacks between the United States and Iran, which could lead to further trade difficulties, cannot be ignored. Furthermore, it is unclear what will happen between now and July 9, when the United States is expected to make a final decision on introducing an additional tariff of up to +20%, if not more, on wines, spirits, and vinegars. This is a delicate transition that could significantly impact exports to the leading non-EU market for Federvini supply chains”.
“We need a strong and cohesive Europe”, said President Giacomo Ponti, “that acts with determination to facilitate dialogue and avert any escalation. Our companies cannot continue to suffer unfairly from the uncertainty dictated by the strong geopolitical tensions that are intensifying at this time. At this moment, it is essential that our government work in synergy with businesses to ensure the growth of the supply chain by promoting stability and access to international markets for our manufacturing companies”. However, the Federvini Assembly also emphasized the challenges facing Europe in the area of geographical indications. Particular attention was paid to recent cases of misuse by some member states. The creation of the European Vinegar Association, for example, is just one of the concrete signs of a growing commitment to preside over community tables and strongly protect the distinctiveness of Italian supply chains. “It is essential”, Ponti stressed, “that the European Union protects the authentic meaning of traditional products. It is crucial to establish a legal definition of vinegar at the European level”. This message extends to the entire sector represented by Federvini, which is now called upon to reaffirm its role not only economically, but also culturally and strategically for the country. “My goal”, Ponti concluded, “is clear: to create value. For businesses, for territories, for the Italian system. Economic value, but also reputational value. Federvini will be a strong and competent guardian for an Italy that produces, innovates, and dialogues with the world, with pride and responsibility”.
However, these are goals that the business world cannot achieve without the support of institutions and the government. “The first challenge is to provide stability and certainty to businesses. entrepreneurs are not asking for money first and foremost, but certainty, stability, and guarantees on the rules. Businesses create the economy, and we must thank our entrepreneurial system, which is the best in the world”, said Lollobrigida, “not only in terms of the quality of what it produces, but also in its ability to face the difficulties of the international context despite Italy having been a country of great political instability for years. We want to renew our commitment to international markets, starting with the US: we get along well with the Americans, said the Minister of Agriculture, we have great quality products, they have wealth, it’s a synergy that works. This Saturday, I will be in New York and Washington, together with ICE, for “Summer Fancy Food”, including a meeting on Italian cuisine as a UNESCO candidate, and I will reiterate how our products in the US multiply in value up to four times. I will meet Brooke Leslie Rollins (US Secretary of Agriculture, ed.), Each of us represents the interests of our own country's businesses, and we must support each other as democratic countries, so as not to further enrich those who are not, and so as not to send the message that things work better where there is no democracy. We do not believe this, and it is not the case. “Wine is the fruit of the land, it is food, it is one of our most important exports. It is also a driving force for wine tourism”, said Adolfo Urso, Minister for Made in Italy, “which increases international visitors to our country. Wine is identity, the fruit of the land, but also innovation, think of drones, digital technology, sustainable practices. But it is also internationalization. And the Italian system, despite the stormy phase, has been able to grow”.
“We are paying close attention to your work, we are also the Ministry of Foreign Trade”, added Deputy Minister of Foreign Affairs and International Cooperation Edmondo Cirielli, “and the internationalization of wine is something special, because wine is also a calling card, with an intrinsic diplomatic capacity, because where there is good wine there is quality of life, there is culture, there is identity”. “Yours is an important sector”, added Economy Minister Giancarlo Giorgetti. “Wherever I go, even abroad, it is clear how important this sector is, which until recently took many things for granted, starting with uninterrupted growth, whereas today there are problems. Cultural problems, such as the idea that wine and alcohol are bad for you regardless, and commercial problems, particularly the issue of tariffs in the US. Negotiations with the Americans are very complex. It’s not just tariffs at stake, there’s international taxation, there’s a currency issue that represents an implicit tariff with the weak dollar against the euro. It is clear that we all want the best possible outcome, but we must realistically aim for what is achievable, and even today, talking with Foreign Minister Tajani, we said that if we stay at 10%, perhaps it would be okay to close it here”.
In this context, it is becoming increasingly important to diversify markets and for companies that have not yet done so to internationalize. “This is why ICE, together with other organizations, exists”, said ICE President Matteo Zoppas. “It is an infrastructure to help growth, but it cannot replace companies. However, we can use large companies that are already internationalized to help small ones. Wine is a great ambassador for Italian wine around the world. We have many friends here, but also fellow entrepreneurs. We need to create opportunities. We work a lot with Vinitaly, we are focusing strongly on the US in Chicago, and there will be other projects that we will announce later. What I am asking is “help us to help you”. With ICE, there are many opportunities thanks to the many people who work hard every day to help companies internationalize. We have a target of €100 billion in exports of Italian agri-food products, and we must move in that direction”.