Italian wine & spirits challenges upbeat markets and new post-covid consumption styles

2020 of the major Italian wine producers closed with a decline in turnover of 4.1% (-6.3% in the domestic market, -1.9% abroad). The EBIT margin reported a slight contraction, falling back to 5.8%, compared to 6.2% in 2019. The incidence of the net result on turnover performed well, with a slight variation from 4.2% to 4.1 %. Sparkling wines have lost more ground (- 6.7%) than still wines (-3.5%). Cooperatives contained the decline to 2%. The large-scale distribution channel saw its incidence rise to 38% compared to 35.3% in 2019 (in value it grew by + 2.3%), while the Ho.Re.Ca. channel contracted from 17.9% to 13, 4% (-32.7%), while wine bars and wine shops went from 7% to 6.7% (-21.5%). This is what emerges from the first joint report on the Italian wine & spirits sector of the Mediobanca Research Area, the Studies Office of Sace and Ipsos, dedicated to the analysis of domestic and international markets and the study of socio-cultural dynamics of consumption and presented today. Companies with an increasing turnover in 2020 sold base wine (less than 5 euros) for 70.8% of their turnover; this share falls to 52.6% within the group of companies with decreasing sales. But the shift towards higher segments only appears to be postponed until post-pandemic consumption styles settle. On the shields organic, with 2020 sales up by 10.8%, for a market share of 2.3%; keeps the vegan wine (+ 0.5%, also 2.3% of the total). Biodynamic wines are not yet successful, falling by 21.9% and confined to 0.1% of the market. The organic theme has three distinct levels of interest: the bio-attracted, highly interested in organic wines and representing 36% of the drinkers, the bio-light, characterized by an unconvinced and slightly fashionable approach to organic products that they reach 33%, and finally the bio-refractories that form the residual 31%. Among the bio-attracted you can find real bio-fans, who are in part also high-spenders, and are worth 24% of wine consumers.2020 brought a growth of 5.8% for wines packaged in alternative containers to glass (brick, cans, bag in box), light, eco-sustainable, suitable for online and in line with the interest in young people’s novelties generations. The major wine producers expect growth of 3.5% for 2021, which would reach 4.6% for the export component alone. For the major spirits companies, sales are expected to grow by 5.4% and exports by 4%. In the opening talk Gabriele Barbaresco, Director of Mediobanca Research Area, Alessandro Terzulli, Chief Economist of Sace and Enzo Risso, scientific director of Ipsos, analyzed the main results of the survey. Marco Magnocavallo, CEO and CoFounder of Tannico, will also be among the speakers at the event; Roberto Castagner, CEO of Acquavite SpA; Alessandro Mutinelli, Chairman and CEO Iwb; Luca Giavi, general manager of the Prosecco Doc Protection Consortium; Nadia Zenato, Owner Zenato Winery; Giovanni Mantovani, general manager of Veronafiere Spa; Gianni Bruno, Exhibition Manager Wine Food Vinitaly; Simonetta Acri, Chief Mid-Market Officer of Sace.

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